UK Bank Stocks Slip on Windfall Tax Speculation
0747 GMT - Shares in U.K. banking stocks slipped Wednesday after the FT reported that allies of new U.K. Chancellor Jeremy Hunt expect him to target lenders' profits, in an attempt to plug a GBP40 billion fiscal gap. The FT reported that banks are expected to make significant profits on increasing interest rates, including reserves held overnight on deposit at the Bank of England, and larger lending margins. The new chancellor has said he isn't opposed "in principle" to a windfall tax, and is mulling what level the banks should be taxed at ahead of the new budget on Oct. 31. Lloyds Banking is down 3.7% at 41.05 pence, NatWest is down 1.7% at 232.7 pence and Barclays is down 1.4% at 145.46 pence. (joseph.hoppe@wsj.com)
Companies News:
CPPGroup Launches New Strategy, Change Management Program
CPPGroup PLC said Wednesday that it is launching a new strategy and change management program after completing a review.
---
Antofagasta Sees 2023 Copper Production Increase Boosted by Los Pelambres
Antofagasta PLC on Wednesday that it expects an increase in copper production for 2023 after the completion of works at Los Pelambres, and that third quarter production rose compared with the previous period.
---
Man Group Assets Under Management Fell in 3Q in Difficult Period
Man Group PLC said Wednesday that assets under management at the end of the third quarter fell in what was a very difficult period for the industry.
---
ASOS Swung to FY 2022 Pretax Loss; Sees Volatile Start to FY 2023
ASOS PLC said Wednesday that it swung to a pretax loss for fiscal 2022 on higher sales costs, and distribution and administrative expenses, and said the business environment remains volatile going into the new year.
---
Provident Financial Sees 2022 in Line With Market Expectations Despite Backdrop
Provident Financial PLC said Wednesday that its performance for the full year is in line with market views, reflecting its shift to lower-risk costumers and despite the current market backdrop.
---
Spectris 3Q, Nine-Month Sales Rose 10% on Continued Strong Demand
Spectris PLC said Wednesday that third-quarter and year-to-date sales were up 10% after it booked continued strong demand and maintained a positive book-to-bill ratio.
---
Rathbones Group 3Q Funds Under Management Slip As Investment Values Fall
Rathbones Group PLC on Wednesday reported a slight fall in funds under management over the third quarter due to a fall in the value of its investments, but still outperformed its benchmark index.
---
Brickability 1H Revenue, Adjusted Earnings Rose
Brickability Group PLC said Wednesday that it expects its revenue for the first half of fiscal 2023 to significantly increase on-year together with adjusted earnings, following growth across all of its divisions.
---
Eastnine to Sell its Stake in Russian Fashion Retailer to Sistema for EUR193 Mln
STOCKHOLM--Swedish real-estate company Eastnine AB said Wednesday that it has entered an agreement to sell its 36% stake in Russian fashion retailer Melon Fashion Group to Sistema JSFC for around 193 million euros ($190.3 million).
---
Network International 3Q Revenue Rose; Backs Full-Year Outlook
Network International Holdings PLC said Wednesday that revenue increased in the third quarter, and reiterated its full-year expectations.
---
Liontrust Asset Management 1H Assets Under Management Fell 5.5%
Liontrust Asset Management PLC said Wednesday that assets under management and advice as at the end of first half of fiscal 2023 fell, and reported net outlflows driven by a challenging market backdrop.
---
Technology Minerals to Take Full Ownership of Recyclus via Share Issue
Technology Minerals PLC said Wednesday that it has signed an agreement to acquire the remaining issued share capital of Recyclus Group Ltd. that it doesn't already own via the issue of new shares.
---
Antofagasta 3Q Production Boosted by Los Pelambres, Centinela -- Commodity Comment
Antofagasta PLC on Wednesday reported a 40% rise in on-quarter copper production and backed full-year guidance. Here's what the Chilean copper miner had to say:
---
RHI Magnesita 3Q Met Expectations, On Track to Meet Full-year Market Views
RHI Magnesita NV said Wednesday that its third quarter was in line overall, and that it is comfortably on track to meet analysts' consensus expectations for full-year Ebita.
---
Quilter 3Q Net Inflows, Assets Under Management Fell
Quilter PLC said Wednesday that net inflows for the third quarter fell together with assets under management, though it said it was well positioned to navigate a tough business environment.
Market Talk:
Antofagasta's 2023 Production Views Seen Below Expectations
0734 GMT - Antofagasta reported a robust third-quarter copper production, but 2023 guidance missed market expectations, Citi analysts say in a research note as shares fall 1.2%. The commissioning of Los Pelambres expansion is forecast to increase the Chilean miner's copper production to a range of 670,000-710,000 metric tons, while market consensus was of 723,000 tons, they say. Antofagasta should meet its 2022 guidance at the lower end of the 640,000-670,000 ton range, delivering a flat production quarter-on-quarter, implying that 4Q performance will drive FY numbers toward the mid-point range, they add. Citi has a neutral rating on the stock. (michael.susin@wsj.com)
UK Risks Higher Inflation and Deeper Recession After U-turn on Energy Price Cap
0734 GMT - The U.K.'s decision to limit the energy price guarantee to six months risks higher inflation in the U.K. for much of 2023 and could deepen the forecasted recession, says ING developed markets economist James Smith in a note. "This sort of policy would inevitably come at a cost to both growth and inflation...inflation would be roughly 3 percentage points higher through much of 2023 if energy prices revert to those set by the regulator Ofgem," says Smith. (miriam.mukuru@wsj.com)
ASOS Likely to Face a Tough Year Ahead, Potentially Hitting Growth
0732 GMT - ASOS offers a solid customer proposition, but it operates in a highly competitive environment and its advantage on service has reduced in recent years, according to RBC Capital Market's research. The online fashion retailer's business environment has remained volatile heading into the new financial year and profitability remains a priority for the company--so growth investments are likely to be curbed somewhat, potentially hitting growth beyond fiscal 2023, RBC analysts say in a research note. "This has undermined our confidence in the stock's ability to outperform, especially while near-term growth is likely to be challenged by soft consumer spending and measures to protect profitability," the Canadian bank says. RBC retains its sector perform rating and 1,000 pence price target on the stock. (joseph.hoppe@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
10-19-22 0406ET
