Sterling to Fall if BOE Fails to Deliver Larger Rate Rise

Sterling to Fall if BOE Fails to Deliver Larger Rate Rise

0922 GMT - Sterling could fall if the Bank of England delivers another 50 basis-point interest-rate rise on Thursday, given expectations for a larger 75bp move, Ebury says. The BOE has a track record of being more cautious than expected and market participants may be disappointed again, Ebury strategist Matthew Ryan says in a note. "We think that even in the event of a 75bp rate hike this week, sterling could sell off should the bank signal a more gradual pace of tightening ahead." Market participants would also likely perceive a vote of 5-4 or 6-3 on a potential 75bps rise as bearish for sterling, Ryan says. GBP/USD rises 0.1% to 1.1502 and EUR/GBP is flat at 0.8602. ([e-mail])

 
Companies News: 

Next 3Q Full-Price Sales Rose; Backs FY 2023 Views

Next PLC said Wednesday that full-price sales in the third quarter of fiscal 2023 rose slightly, and backed its full-year guidance.

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Weir Group 3Q Orders Rose on Strong Aftermarket Spares Demand; Backs 2022 Guidance

Weir Group PLC said Wednesday that orders in the third quarter rose 19% on year thanks to strong aftermarket spares demand and it backed its guidance for 2022.

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Morgan Sindall Backs 2022 Views on Strong Secured Workload

Morgan Sindall Group PLC said Wednesday that its secured workload has risen slightly since the year end, allowing it to back its 2022 outlook despite macroeconomic uncertainty.

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Metro Bank 3Q Deposits Slipped, Loans Rose; Returns to Profitability

Metro Bank PLC said Wednesday that its deposits fell 1% in the third quarter while loans rose 4%, and it returned to profitability.

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GSK Raises 2022 Guidance as 3Q Sales Beat Expectations

GSK PLC on Wednesday raised its guidance for the full year and posted rising sales for the third quarter that beat expectations.

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Bonhill Group Lowers 2022 Guidance on Political, Economic Uncertainty

Bonhill Group PLC on Wednesday downgraded its 2022 earnings forecasts citing the recent political and economic uncertainty, specifically in the U.K.

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Aston Martin Lagonda Global 3Q Loss Doubled; Lowers 2022 Guidance

Aston Martin Lagonda Global Holdings PLC said Wednesday that its loss for the third quarter more than doubled amid supply-chain challenges and foreign exchange revaluations and it lowered its guidance for the full year.

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Wizz Air 1H Pretax Loss Widened on Higher Costs, 2H Capacity Increased by 35%

Wizz Air Holdings PLC said Wednesday that its pretax loss widened for the first half of fiscal 2023 after booking higher costs, and that it was increasing its capacity in the second half by 35%.

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Hiscox Says Nine-Month Gross Premiums Rose 6.3%

Hiscox Ltd. said Wednesday that gross written premiums rose 6.3% in the first nine months of the year, as strong rate momentum continued across all business segments, and that premium growth remained ahead of its claims inflation assumptions.

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Technology Minerals Raises GBP400,000 via Discounted Share Subscription

Technology Minerals PLC said Wednesday that it has raised 400,000 pounds ($459,280) via a share subscription and will use the money toward operations at the Tipton lead-acid battery recycling plant in England.

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Insight Business Support Plans GBP2 Mln Subscription, Board Reshuffle, Name Change

Insight Business Support PLC said Wednesday that it plans to raise up to 2.0 million pounds ($2.3 million), change its name and undertake a number of board changes.

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Coca-Cola Europacific Partners Raises 2022 Guidance as 3Q Revenue Rose

Coca-Cola Europacific Partners PLC on Wednesday lifted its full-year guidance and declared a record dividend after its third-quarter revenue rose.

 
Market Talk: 

GSK Shares Likely to Outperform Given 3Q Beat

0943 GMT - GSK's third-quarter results beat expectations driven by shingles vaccine Shingrix, Covid-19 treatment Xevudy and the General Medicines portfolio, Morgan Stanley analysts say in a note. Shares are expected to outperform Wednesday on the back of the beat and as the company raised its guidance to reflect this strong momentum, the analysts say. A beat in operating profit was driven by strong revenue performance and higher royalties than consensus had anticipated, which was partially offset by higher operating expenses, MS says. Sales in the pharmaceutical and vaccine businesses as a whole also beat consensus expectations, the analysts say. GSK shares trade 1% higher at 1,461 pence. ([e-mail])

UK Still Requires Considerable Rate Increases, BofA Says

0937 GMT - The U.K. still requires considerable interest-rate increases due to persistently high inflation and a tight labor market, say Bank of America analysts, even as they warn the Bank of England may signal fewer rate rises than the market is pricing in. "The U.K. faces a prolonged period of high headline inflation and a tight labour market," the analysts say. "In our view, the Bank of England needs to slow the economy rapidly through further sizeable rate hikes after November." U.K. inflation reached 10.1% in September. The BOE announces a policy decision on Thursday, with most in the market anticipating it will increase its key rate by 75 basis points. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

11-02-22 0623ET