Sterling Might Not Enjoy Big Boost From a Government U-Turn

Sterling Might Not Enjoy Big Boost From a Government U-Turn

0913 GMT - Markets are anticipating that the U.K. government will say it is reversing many of its planned unfunded tax cuts which have caused turmoil in U.K. markets, but any gains for sterling may be limited, says MUFG analyst Derek Halpenny. News that Treasury chief Kwasi Kwarteng flew back early from an International Monetary Fund meeting late Thursday suggests reports of a U-turn are likely to be true, but given the scale of the rebound in the pound and drop in gilt yields, market pricing already implies a "best-case scenario," he says. "We doubt GBP/USD can advance much further from here." GBP/USD falls 0.5% to 1.1274, having hit a high of 1.1381 on Thursday. ([e-mail])

 
Companies News: 

Diageo to Increase Stake in East African Breweries to Up to 65%

Diageo PLC said Friday that it plans to increase its stake in East African Breweries PLC to up to 65% through a partial tender offer.

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Mondi 3Q Underlying Ebitda Rose, Expects Progress in Full Year

Mondi PLC said Friday that third-quarter underlying Ebitda rose 55%, and the despite expecting inflation to hit the fourth quarter, it sees a year of good progress.

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Loungers Early FY 2023 Sales Rose; Doesn't See Change in Consumer Spending

Loungers PLC said Friday that like-for-like sales grew 17% in the 24 weeks to Oct. 2 when compared with the year-prior period and that it hasn't seen changes in consumer spending.

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Premier Miton 4Q Assets Under Management Fell Amid Uncertain Market

Premier Miton Group PLC said Friday that assets under management fell in the fourth quarter of fiscal 2022, driven by client caution about committing new investment in an uncertain market.

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Town Centre Securities Swung to FY 2022 Pretax Profit; Seeks Disposals

Town Centre Securities PLC reported on Friday a swing to pretax profit in fiscal 2022 and increased its dividend payout, and said it is considering disposals to reduce debt.

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Comptoir Names Nick Ayerst as New CEO

Comptoir Group PLC said Friday that it has appointed Nick Ayerst as chief executive, effective Oct. 17.

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Revolution Beauty Chairman, CEO Temporarily Step Away for Investigation

Revolution Beauty Group PLC said Friday that Executive Chairman Tom Allsworth and Chief Executive Adam Minto have voluntarily stepped away from day-to-day management for now to support an independent investigation being carried out.

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Sabien Technology FY 2022 Pretax Loss Widened on Higher Costs

Sabien Technology Group PLC reported Friday that pretax loss for fiscal 2022 widened on higher costs, and said it is well placed to take its three main business lines to their next development stage in 2023 following a recent fundraise.

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Vistry Group's Board Reshuffles Amid Merger With Countryside Partnerships

Vistry Group PLC said Friday that a major change on its board of directors will take place from Nov. 11 as part of its merger with Countryside Partnerships PLC.

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Metals Exploration 3Q Gold Sales Fell; Sees 2022 Production at Lower End of Guidance

Metals Exploration PLC said Friday that its third-quarter gold sales slipped on-quarter on lower volumes and prices, and it expects full-year production to be at or slightly below the lower end of guidance.

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Royal Mail Warns of 5,000-6,000 Potential Job Cuts by Next August -- Update

U.K. postal service Royal Mail might require approximately 5,000 to 6,000 redundancies by the end of August 2023, its parent company International Distribution Services PLC said Friday.

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Vaalco Energy Completes Merger With TransGlobe Energy, to Buy Back Up to $30 Mln in Shares

Vaalco Energy Inc. said Friday that its business combination with TransGlobe Energy Corp. has been completed, and outlined a share buyback plan among other shareholder return plans.

 
Market Talk: 

Mondi's Strong 3Q Is Likely to Lead to Market Forecast Upgrades

0928 GMT - Mondi's third-quarter statement is likely to lead to market consensus upgrades as Ebitda rose 55%, Goodbody says. The current consensus of an Ebitda of EUR1.76 billion for 2022 would imply a strong slowdown in growth in the final quarter for the FTSE 100 paper-and-packaging company, meaning higher forecasts are likely, Goodbody analyst David O'Brien says in a research note. "While the macro backdrop remains uncertain this is the second positive statement from the sector in a week against the backdrop of depressed trading multiples," the Irish brokerage says. Goodbody retains its hold recommendation on the stock. Shares are up 0.4% at 1,382.0 pence. ([e-mail])

Mondi 3Q Update Reassures on Pricing, Cost Control

0908 GMT - Shares in Mondi rise 1% after the FTSE 100-listed paper-and-packaging company reported a strong third quarter. The update is likely to have a relatively muted effect on 2022 estimates, although the company issued a reminder of the ongoing effect of adverse wood and energy costs in 4Q, Citigroup says. "Overall, we think this trading update will have little material impact on the investment thesis, but can serve to reassure investors that the group remains competitive in its pricing and cost-control measures," Citi analysts say in a note. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

10-14-22 0611ET