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Sterling Might Rise After Budget on Position Adjustment, But Gains Won't Last

11/17/2022 | 04:02am EST

Sterling Might Rise After Budget on Position Adjustment, But Gains Won't Last

0839 GMT - Thursday's U.K. budget could prompt investors to unwind their remaining hefty short positions in sterling, which were "one of the most popular buy-side trades going into October," ING currency analyst Chris Turner says in a note. He describes this as an "outside risk," but says position adjustment could lift GBP/USD to 1.23. Such gains wouldn't last, however. A "credible" budget will deliver substantial fiscal tightening and "cement views of a multi-quarter U.K. recession" where the Bank of England continues to hike rates, Turner says. This "cannot be a good environment for sterling," he says. Sterling and gilts have also returned to levels seen before the previous treasure chief's controversial budget. GBP/USD rises 0.3% to 1.1950. (jessica.fleetham@wsj.com)

 
Companies News: 

Halma 1H Pretax Profit Fell After Disposal Gain in Prior Year

Halma PLC said Thursday that pretax profit for the first half of fiscal 2023 fell after the comparable period a year earlier was boosted by a gain on a disposal.

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International Distribution Services Swung to 1H Pretax Loss on Royal Mail Losses

International Distribution Services PLC said Thursday that it swung to a first-half pretax loss and revenue fell as a good performance from its GLS division was offset by Royal Mail losses.

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Burberry Group 1H Pretax Profit Rose on Lower Costs; Backs FY 2024 Views

Burberry Group PLC said Thursday that it expects to achieve near-term guidance despite the challenging environment and that pretax profit for the first half of fiscal 2023 rose amid lower costs.

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Spirax-Sarco Engineering Backs 2022 Guidance After Underlying Demand Growth

Spirax-Sarco Engineering PLC on Thursday backed its full-year guidance for adjusted operating profit as underlying demand growth remained strong in the four months to the end of October despite a weakening global industrial production growth forecast.

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Investec 1H Pretax Profit Rose on Higher Interest Rates, Starts GBP350M Buyback

Investec PLC on Thursday reported an increased pretax profit for the first half of fiscal 2023, supported partly by rising global interest rates, and declared a 350 million-pound ($417 million) share buyback program.

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Intermediate Capital Appoints William Rucker Chair; 1H Pretax Profit Fell

Intermediate Capital Group PLC said Thursday William Rucker has been appointed nonexecutive director and chair, and it reported a fall in pretax profit for the first half of fiscal 2023 as revenue decreased.

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Finsbury Food Four-Month Sales Up 16%, Boosted by Higher Volumes, Prices

Finsbury Food Group PLC said Thursday that sales for the first four months of the new fiscal year have risen 16%, boosted by higher volumes and prices, but it expects macro-economic and cost inflation headwinds to continue throughout the year.

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International Distribution Services Swung to 1H Pretax Loss on Royal Mail Losses -- Update

International Distribution Services PLC said Thursday that it swung to a first-half pretax loss and revenue fell as a good performance from its GLS division was offset by Royal Mail losses.

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Close Brothers Says 1Q Performance Was Robust Despite Market Uncertainties

Close Brothers Group PLC said Thursday that its first-quarter performance has been solid, with a robust margin in the banking division and increased net inflows in asset management despite market uncertainty.

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Mitie Group 1H Pretax Profit Fell; Raises Interim Dividend

Mitie Group PLC said Thursday that pretax profit for the first half of fiscal 2023 fell after it booked fewer coronavirus-related contracts, and declared an increased interim dividend.

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Crest Nicholson Sees FY 2022 Profit Meeting Guidance; Recent Sales Slowing

Crest Nicholson Holdings PLC said Thursday that it expects adjusted pretax profit for fiscal year 2022 to meet previous guidance of 135 million to 140 million pounds ($160.9 million-$166.8 million), though recent weeks have seen sales slow.

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Begbies Traynor Group Sees 1H Revenue, Profit Increase

Begbies Traynor Group PLC said Thursday that it expects to report a rise in revenue and adjusted pretax profit for the first half of fiscal 2023 and that it backed its full-year expectations.

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Kier Group Says New Fiscal Year Started Well, In Line With Expectations

Kier Group PLC said Thursday that the new financial year has started well, and that it is performing in line with the board's expectations.

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Fuller Smith & Turner 1H Pretax Profit Rose Amid Recovery From Pandemic Restrictions

Fuller Smith & Turner PLC said Thursday that pretax profit and revenue for the first half of fiscal 2023 rose on a recovery from the effect of coronavirus-related restrictions.

 
Market Talk: 

International Distribution Disappoints on Delays, No Dividends

0838 GMT - International Distribution Services' first-half results detail an overall adjusted operating loss of GBP57 million, driven by a loss in the Royal Mail unit of GBP219 million and a GLS profit of GBP162 million, Citi says. The postal service and courier's GLS unit also delayed its' medium-term targets--EUR500 million in operating profit and EUR1 billion accumulated free cash flow in fiscal 2025--by 18 to 24 months, given the worse-than-expected macroeconomic backdrop, and International didn't pay a dividend, Citi analysts say in a research note. "We expect shares to react negatively to the delayed GLS targets and no-interim dividend," the U.S. bank says. Citi retains its buy rating and 410 pence price target on International Distributions' stock. Shares are down 1.0% at 237.2 pence. (joseph.hoppe@wsj.com)

Burberry's New Strategy Seen as Unsurprising

0830 GMT - Burberry's new strategy didn't surprise and appears to be a step away from previous targets, RBC analysts Piral Dadhania and Richard Chamberlain say in a note. The luxury-goods company's mid-term target of GBP4 billion revenue implies high single-digit revenue growth, they say. "However there appears to be a step away from the previous 20% EBIT margin target replaced by 'good margin progression'," the analysts highlight. On the other hand, Burberry's 1H revenue came in 2% ahead of consensus, while EBIT was 3% ahead, they note. RBC has a perform rating on the stock and price target of 1,800 pence. (michael.susin@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

11-17-22 0401ET

Stocks mentioned in the article
ChangeLast1st jan.
BEGBIES TRAYNOR GROUP PLC -0.90% 143.7 Delayed Quote.-0.14%
BURBERRY GROUP PLC 0.04% 2461 Delayed Quote.21.18%
CLOSE BROTHERS GROUP PLC 0.73% 969 Delayed Quote.-8.12%
CREST NICHOLSON HOLDINGS PLC 2.44% 243.6 Delayed Quote.0.51%
FINSBURY FOOD GROUP PLC 0.52% 97 Delayed Quote.4.89%
GLOBAL INDUSTRIAL COMPANY 4.33% 26.29 Delayed Quote.7.39%
HALMA PLC -0.28% 2148 Delayed Quote.9.12%
INTERMEDIATE CAPITAL GROUP PLC -1.49% 1388 Delayed Quote.22.74%
KIER GROUP PLC -1.01% 68.5 Delayed Quote.16.69%
MITIE GROUP PLC -1.02% 78 Delayed Quote.5.63%
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