Sterling Likely to Fall as BOE Faces Stagflationary Conundrum, JPMorgan Says
1351 GMT - JPMorgan maintains bets on sterling weakening versus the dollar via options as the Bank of England faces a tricky "stagflationary conundrum," JPMorgan analysts say in a note. Better U.K. news recently, including below-forecast inflation in November and signs of improving growth, only suggest the economy is "probably stagnating, but not deeply contractionary," while wage growth remains high. The BOE has "one of the most difficult balancing acts" among G10 central banks, evidenced by last week's vote for a 50 basis-point rate rise where two policymakers wanted rates on hold and one wanted a bigger increase, the analysts say. JPMorgan has a negative view on the U.K. economic outlook for 2023 and into 2024 and stays "bearish on GBP." (jessica.fleetham@wsj.com)
Companies News:
Bunzl Agrees to Buy Four Businesses and Sell UK Healthcare Division
Bunzl PLC said Tuesday that it has agreed to buy four businesses and to the sale of its U.K. healthcare division.
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WANdisco Agrees Contract Worth $31 Mln With Undisclosed Telecom Supplier
WANdisco PLC said Tuesday that it has signed an agreement worth $31 million with an undisclosed tier-1 global telecommunications supplier.
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Cochlear, Demant Merger Faces Further Probe by UK Competition Watchdog
The U.K.'s Competition and Markets Authority said Tuesday that it is referring the merger of Cochlear Ltd. and Demant AS--known as Oticon Medical--to a Phase 2 investigation.
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GSTechnologies 1H Net Loss Widened on Subsidiary Underperformance
GSTechnologies Ltd. on Tuesday reported that its half-year net loss widened slightly as revenue declined, dragged by the poor performance of its subsidiary EMS Wiring Systems, which it disposed of after the end of the period.
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Focusrite to Buy Sonnox for GBP9.1 Mln
Focusrite PLC said Tuesday that it will buy audio processing software designer Sonnox Ltd. for 9.1 million pounds ($11.1 million) to add to its portfolio.
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Bens Creek 1H Pretax Loss Widened on High Costs
Shares in Bens Creek Group PLC fell as much as 14% on Tuesday after the company said its first-half pretax loss widened as revenue was outweighed by production costs and non-cash charges.
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Churchill China Appoints New CFO
Churchill China PLC said Tuesday that it has appointed Michael Cunningham as chief financial officer.
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Goodwin Sees FY 2023 Pretax Profit Rising Modestly Instead of Substantially
Goodwin PLC said Tuesday that it expects pretax profit for the second half of fiscal 2023 to be similar to the first half and that this will in turn result in a modest increase in its annual pretax profit instead of a substantial increase as previously guided.
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Surface Transforms CFO to Step Down
Surface Transforms PLC said Tuesday that Chief Financial Officer Michael Cunningham will step down at the end of May.
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Kazera to Sell African Tantalum for $13 Mln; Shares Rise
Shares in Kazera Global PLC rose by as much as 33% on Monday after the company said it is selling its interest in African Tantalum Ltd. for $13 million in cash.
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San Leon Energy Shares Fall After Refinancing Negotiations Delay
Shares in San Leon Energy PLC fell Tuesday after the company said that although its refinancing options were progressing slower than initially expected.
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Predator Oil & Gas Holdings to Acquire Challenger Energy Group Stake in Trinidad Asset
Predator Oil & Gas Holdings PLC said Tuesday that it has entered into an agreement with Challenger Energy Group PLC to buy Challenger's 83.8% interest in the Cory Moruga asset in Trinidad for $9 million.
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Gemfields Starts $10 Mln Share Buyback
Gemfields Group Ltd. said Tuesday that it is starting a $10 million share-buyback program as a means of using surplus cash and enhancing future earnings per share for shareholders.
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Beowulf Mining Says It Aims to Raise SEK112 Mln; Shares Fall
Shares in Beowulf Mining PLC fell after the company said it aims to raise around 112 million Swedish kronor ($10.8 million) via a preferential rights issue in Sweden and a retail offer in the U.K.
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AG Barr Takes Full Ownership of MOMA Foods
A.G. Barr PLC said Tuesday that it has bought the remaining 38.2% stake in MOMA Foods Ltd. for 3.4 million pounds ($4.1 million).
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Serica Energy To Buy Tailwind Energy For GBP367 Mln
Serica Energy PLC said on Monday it has agreed to buy Tailwind Energy Investments Ltd. for 367 million pounds ($445.7 million) in cash and shares, and will be taking on its debt.
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Tavistock Investments Swung to 1H Pretax Loss on Higher Costs
Tavistock Investments PLC on Tuesday reported a swing to pretax loss for the first half of fiscal 2023 amid increased costs.
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Croma Security Solutions Buys Safecell Security for Around GBP750,000
Croma Security Solutions Group PLC said Tuesday that it has bought U.K.-based Safecell Security Group Ltd. for around 750,000 pounds ($910,875).
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Petrofac Sees Lower 2022 Revenue; Shares Fall
Shares in Petrofac Ltd. fell Tuesday after the company said it expects 2022 revenue to decrease.
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Agronomics FY 2022 Pretax Profit Boosted By Currency Gains
Agronomics Ltd. on Tuesday reported a rise in pretax profit for fiscal 2022 as foreign-exchange gains made up for a drop in its investment income.
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Litigation Capital Management Funded Party Awarded GBP110 Mln in UK High Court
Litigation Capital Management Ltd. said Tuesday that the U.K. High Court awarded a judgement of around 110 million pounds ($133.6 million) in November in favor of a funded party.
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Redx Pharma FY 2022 Pretax Loss Narrowed
Redx Pharma PLC on Tuesday said its full-year pretax loss narrowed as the group reported significant progress in its in-house pipeline of drug candidates with two lead assets now in Phase 2 clinical trials.
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Velocity Composites Shares Rise on FY 2022 Sales Increase, Long-Term Contracts
Velocity Composites PLC shares rose on Tuesday after the company said fiscal 2022 sales are anticipated to increase amid significant long-term contracts and a recovery in the aerospace industry.
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Eurowag to Acquire Remaining 30% of Sygic
W.A.G Payment Solutions PLC said Tuesday that it has agreed to buy the remaining 30% minority interest in Sygic AS, a Slovak automotive navigation systems company, for 14.4 million euros ($15.3 million) payable in April 2024.
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Xeros Technology Nonexecutive Director David Baynes to Step Down
Xeros Technology Group PLC said Tuesday that David Baynes will step down from his role as nonexecutive director on Dec. 31.
Market Talk:
Goodwin's 1H Underpins Medium-Term Outlook
1343 GMT - Goodwin's 1H workload increase to GBP242 million is significant, Shore Capital analyst Peter Ashworth says in a note. It vindicated the diversification of the engineering group's Mechanical Engineering division away from its previous oil and gas focus, Ashworth says. The rise in its order book is anticipated to underpin a step forward in the 2H's activity levels in Mechanical Engineering with overall activity and profitability levels seen growing over the next 12 months despite global uncertainties, Ashworth says. "These results highlight the group's strengths, given the workload underpinning the medium term outlook," Ashworth says. Shore Capital has Goodwin as a house stock. Shares are down 4.2% at 3,060 pence.(anthony.orunagoriainoff@dowjones.com)
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Hilton Food's Singapore Deal Will Help It to Expand
1354 GMT - Shares in Hilton Food Group edge 0.8% higher after the meat processing and packaging company said it had agreed a long-term partnership with Singaporean food importer and distributor Country Foods. Overall, the strategic collaboration--set to start in the first quarter of 2023--will help enlarge and diversify Hilton's business further, brokerage Goodbody says. "Whilst we expect a limited financial impact on next year's earnings, over the medium-term it opens up further opportunities for Hilton to enhance and expand its offering," Goodbody analyst Jason Molins says in a note. (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
12-20-22 0959ET
