UK Gilt Yields Fall on Weaker Retail Sales, Manufacturing PMI

UK Gilt Yields Fall on Weaker Retail Sales, Manufacturing PMI

1022 GMT - U.K. gilt yields drop following weaker-than-expected retail sales and flash manufacturing Purchasing Manager's Index (PMI) data on Friday, which raise concerns about a weakening economy just as inflation remains high. U.K. retail sales fell 0.9% month on month in March, missing the 0.6% fall expected by economists in a WSJ survey. Flash S&P Global/CIPS manufacturing PMI fell to 46.6 in April from 47.9 previously, below the 48.3 consensus by economists in a WSJ poll. "U.K. retail sales was weaker but, not by a game changing amount," write RaboResearch rates strategists. The 10-year gilt yield is down around 5 basis points to last trade at 3.732%, according to Tradeweb. The 2-year gilt yield falls 2bps to last trade at 3.717%. ([e-mail])

COMPANIES NEWS:

Petrofac Extends $252 Mln Bank Facility

Petrofac Ltd. said Friday that it has entered into an agreement to extend $252 million of its banking facilities.

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Network International Gets $2.65 Bln Takeover Proposal From Brookfield Asset Management

Network International Holdings PLC said Friday that it has received a preliminary, nonbinding proposal regarding a possible cash offer that values the company at around 2.13 billion pounds ($2.65 billion) from Brookfield Asset Management Ltd.

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Kelso Group Increases Stake in THG

Kelso Group Holdings PLC said Friday that it has acquired further interest in THG PLC.

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Sureserve Group Agrees to GBP214.1 Mln Private Equity Takeover

Sureserve Group PLC said Friday that it has agreed to a 214.1 million pound ($266.4 million) takeover by Cap10 4NetZero Bidco Ltd., a new company indirectly owned by funds managed and/or advised by private-equity firm Cap10 Partners LLP.

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Scotgold Resources to Raise GBP1.5 Mln-GBP2.0 Mln via Subscription

Scotgold Resources Ltd. on Friday said it aims to raise between 1.5 million and 2.0 million pounds ($1.9 million-$2.5 million) by share placement to fund the development of its Cononish gold mine in Scotland and provide additional working capital.

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Thruvision to Report Narrowed FY 2023 Loss as Revenue Rose

Thruvision Group PLC said Friday that its expects to report a rise in revenue and narrowed loss for fiscal 2023 as it delivered a resilient performance despite the challenging economic backdrop.

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iEnergizer Seeks Shareholder Approval to Cancel AIM Listing

iEnergizer Ltd. said Friday that it is seeking shareholder approval to cancel the trading of its shares on London's junior AIM as the costs of maintaining the listing are disproportionate to the benefits and that it is unlikely to get wider access to capital.

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Tyman Names Juliette Lowes Interim CFO

Tyman PLC said Friday that in has appointed Juliette Lowes as interim chief financial officer with immediate effect.

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Angle PLC 2022 Pretax Loss Widened; Reports Strong Growth in 1Q

Angle PLC said Friday that its pretax loss widened 40% in 2022, as operating costs increased, but that it has seen good growth in the first quarter of 2023 and anticipates strong demand.

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Savannah Energy Appoints Joseph Pagop Noupoue as Chairman-Designate

Savannah Energy PLC said Friday that it has appointed Joseph Pagop Noupoue as chairman-designate with immediate effect.

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I(X) Net Zero Names Jonathan Carpenter Stearns as CFO

I(X) Net Zero PLC said Friday that it has appointed Jonathan Carpenter Stearns as chief financial officer with immediate effect.

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Tanfield Group Swung to 2022 Pretax Profit on Cash Settlement

Tanfield Group PLC on Friday posted a swing to pretax profit in 2022 as it received a cash settlement from legal proceedings in the U.K.

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Unikmind Holdings Buys Further Stake in Kape Technologies

Unikmind Holdings Ltd. on Friday said it has bought a further 4.01% stake in Kape Technologies PLC and received commitments for an additional 12.93%.

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Kelso Raises THG Stake, Calls for Nutrition-Business Spinoff in Absence of Takeover Offer -- Update

Kelso Group Holdings PLC on Friday called for a separation of THG PLC's nutrition business if no offer for the whole company was forthcoming, as it raised its shareholding in the e-commerce company.

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Anglo-Eastern Plantations Shares Rise on Record Revenue, Higher Dividend

Shares of Anglo-Eastern Plantations PLC rose as much as 9.7% on Friday after the company reported a 4.5% rise in adjusted pretax profit for last year on record revenue as it benefited from higher crude palm oil prices, despite lower production.

MARKET TALK:

European Banks Seen Reassuring on Deposits, Assets, Buybacks at 1Q

1016 GMT - European banks are expected to give reassurance on deposit stability, asset quality and share buybacks at their first-quarter results, says Credit Suisse in a note. The brokerage says deposits should be reasonably stable over the quarter based on recent money market flow data. Net interest income guidance is seen remaining constructive relative to consensus, they add. Improving GDP forecasts and a low level of bankruptcies suggest cost of risk--seen at around 38 basis points by consensus, ahead of guidance--could be much better. "Our top picks are [ABN AMRO] and [BNP Paribas] for capital returns, [Barclays] and [Santander] for revaluation potential and [Bank of Ireland Group] for exposure to higher interest rates," say analysts at the brokerage. ([e-mail])

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Sterling Stays Lower After UK PMI Survey

0925 GMT - Sterling remains lower on the day, showing little reaction after the latest S&P/CIPS U.K. purchasing managers' index survey showed services activity expanded further in April but manufacturing activity contracted at a faster pace. The services PMI rose to 54.9 in April from 52.9 in March while the manufacturing PMI fell to 46.6 from 47.9. A level above 50 signals an expansion in activity while a level below that indicates a contraction. Analysts in a WSJ survey expected a services PMI of 52.6 and a manufacturing PMI of 48.3. GBP/USD and EUR/GBP are little changed after the data at 1.2403 and 0.8839 respectively. ([e-mail])

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Watches of Switzerland Likely to Meet FY 2023 Views

0840 GMT - Watches of Switzerland is expected to meet its FY 2023 targets supported by ongoing sales growth in the fourth quarter and second-half adjusted Ebitda margin expansion, Jefferies analysts say in note. Despite softening demand, the luxury-watch retailer's wait lists remain healthy with a net addition of new clients, they add. Watches of Switzerland 4Q performance is also anticipated to have resilient growth in the U.K. and a slight slowdown in the U.S., they say. Jefferies has a buy rating on the stock and a price target of 1,300 pence. ([e-mail])

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Man Group's Future Fee Potential Looks Attractive

0838 GMT - Man Group's current valuation implies investors are buying the future performance-fee potential at the active investment-management firm for free, UBS says in a note, raising its rating on the stock to buy from neutral and its target price to 255 pence from 220 pence. "We like that risk-reward," analysts Michael Werner and Amit Jagadeesh say, pointing out that it is trading at just 13.5 times its estimated management-fee earnings for 2024 and its low 2023 performance-fee expectations are more than priced in. The group's core business remains strong with its tech leadership, competitive advantage and in-demand product set, which will continue to generate best-in-class client inflows in the years ahead, they add. Shares rise 2.2% at 210.8 pence. ([e-mail])

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(END) Dow Jones Newswires

04-21-23 0638ET