Sterling Falls After Gains Following UK PM's Resignation

Sterling Falls After Gains Following UK PM's Resignation

0833 GMT - Sterling falls after moderate gains Thursday following U.K. Prime Minister Boris Johnson resigned. GBP/USD falls 0.8% to 1.1929 and EUR/GBP rises 0.1% to 0.8464. It is too soon to draw conclusions about the future implications of Johnson's departure for sterling given high uncertainty around possible candidates to replace him, ING analysts write. Sterling has bigger issues to deal with, namely a potential scaling back of Bank of England interest rate rise expectations due to a worsening U.K. economic outlook, they say. "We think politics will continue to have a relatively contained FX impact, and lingering downside risks for GBP mean that sub-0.8500 levels in EUR/GBP may prove unsustainable unless we see a material further deterioration in the eurozone's economic outlook." ([e-mail])

 
Companies News: 

JD Sports Fashion Appoints Andrew Higginson as Chairman

JD Sports Fashion PLC said Friday that it has appointed Andrew Higginson as its chairman.

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Vistry's 1H Beat Management Views; Sees 2022 at Top-End of Market Views

Vistry Group PLC said Friday that its first-half performance beat its initial expectations at the start of the year, and it expects to meet the top-end of market forecasts for 2022.

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EMIS Group Sees 1H Performance Ahead of Its Expectations

EMIS Group PLC said on Friday that performance for the half year continued to be in line with the board's expectations as it benefited from robust recurring revenue.

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Live Company to Buy Outstanding 80% Share of Start Art; to Raise GBP0.6 Mln

Live Company Group PLC said Friday that it is buying the remaining 80.06% interest in Start Art Global Ltd. for 4 million pounds ($4.8 million), which will be part-funded from a share placing.

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Unite 2Q Portfolio Valuations Rose; Reports Strong Sales Performance

Unite Group PLC said Friday that its portfolio valuations rose on a like-for-like basis in the second quarter, and that it has experienced a strong sales performance to date for the 2022-2023 academic year.

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Amigo Swung to Pretax Profit in FY 2022 After Court Ruling; Revenue Fell

Amigo Holdings PLC reported on Friday a swing to pretax profit for fiscal 2022 after a court ruled in favor of its scheme of arrangement to compensate customers, but noted a fall in revenue.

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Litigation Capital Management Sees Growth for FY 2022's Earnings

Litigation Capital Management Ltd. said Friday that it expects to report a rise in revenue and adjusted operating profit for its fiscal 2022 performance despite the delay in justice systems.

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HICL Infrastructure to Raise Funds via Equity Issue

HICL Infrastructure Co. said Friday that it plans to raise money via an equity issue which will be used towards its investment pipeline and restore its 400 million-pound ($481 million) revolving credit facility.

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Science in Sport 1H Revenue Rose But Missed Management Views

Science in Sport PLC said Friday that its first half revenue rose by around 12% on year, lower than it expected.

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Tekmar Shares Rise on Engineering Contract for Japanese Wind Farm

Tekmar Group PLC shares rose Friday after it said that it has been awarded a significant new contract to provide an integrated engineering solution for an offshore wind project in Japan, for an undisclosed sum.

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MGC Pharmaceuticals Gets Approval for South Africa Covid-19 Treatment Study

MGC Pharmaceuticals Ltd. said Friday that it has received study approvals and an import permit from the South African health regulator for its CimetrA coronavirus treatment.

 
Market Talk: 

UK PM's Resignation Isn't the Biggest Factor in Pound's Performance

0928 GMT - Boris Johnson's departure as British prime minister may offer more political stability, and the possibility of a friendlier course toward the EU could support business investments, Julius Baer economist David Alexander Meier says in a research note. However, the current economic backdrop--with inflation expected to rise beyond 10% and a marked slowdown of economic growth--is a more dominant issue when it comes to the currency, he says. Politics isn't a major player in the direction of the pound, even if it strengthened when news of Johnson stepping down emerged. It only made up some of the losses of the past days after recession angst pushed the dollar higher, Meier adds. GBP/USD falls 0.7% to 1.19. ([e-mail])

Iofina Secures Financing and Prices Look Good

0853 GMT - Iofina has attractive new financing, providing it with the flexibility to accelerate its growth plans and allowing optimal development of the IO#9 plant once the agreements are finalized, finnCap says. The iodine producer's fiscal 2022 production guidance is below the U.K. investment bank's forecast, having produced 234.0 metric tons of crystalline iodine in the first half, with expectations of 255 to 275 tons for the second half. However, pricing is more than making up for the shortfall--with spot prices exceeding $70 a kilogram--while fundamentals for iodine and derivative products remain strong, finnCap analyst Jonathan Wright says in a research note. FinnCap retains its 30.0 pence price target on Iofina's stock. Shares are up 1.9% at 27.0 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

07-08-22 0548ET