UK 10Y CASH UK Short-Term Gilt Yields Rise Faster Than Long-Term Gilt Yields
1140 GMT - Short-dated gilt yields are rising faster than long-dated gilt yields as markets expect more Bank of England interest-rate rises in the near term after stronger-than-expected wage growth and core inflation data this week, Saxo's strategy team says in a note. "The focus shifts toward Friday's retail sales, which might cause short-term gilt yields to rise even faster," Saxo says. Two-year gilt yields could rise to "test resistance again at 5.5% and potentially breaking above it," they say. Since the release of the jobs data on Tuesday, the U.K. 2-year gilt yield is up around 17 basis points to 5.236% while the U.K. 10-year gilt yield is up around 14bps to 4.709%, Tradeweb data show. (miriam.mukuru@wsj.com)
COMPANIES NEWS:
BAE Systems Agrees to Buy Ball's Aerospace Unit for $5.55 Bln
BAE Systems said Thursday that it has agreed to buy Ball Corp.'s aerospace business for $5.55 billion in cash.
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Rank Group PLC Swung to FY 2023 Pretax Loss Despite Revenue Rise
Rank Group PLC swung to a pretax loss for fiscal 2023 after a significant rise in cost of sales and impairment charges, though revenue rose.
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Bank of Georgia 2Q Pretax Profit Rose on Rates Boost; Approves Buyback
Bank of Georgia Group posted a rise in pretax profit for the second quarter of 2023 as higher interest rates boosted its income and approved a 62 million Georgian lari ($23.4 million) share buyback program.
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Kin & Carta Adjusted Operating Profit to Beat Market Forecasts
Kin & Carta expects to beat adjusted operating profit market forecasts for the fiscal year as it benefits from a realigned operating model with a lower cost base and improved operational efficiencies.
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Empiric Student Pretax Profit Slips on Lower Property Gains
Empiric Student Property reported a fall in first-half pretax profit, driven by fewer gains in the fair value of investment property, but is in a strong position ahead of the new academic year, the company said Thursday.
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ITM Power FY 2023 Loss Widened, Revenue Fell; Expects Improvements in New Year
ITM Power's full-year pretax loss widened and revenue fell, though it sees revenue rising and adjusted losses narrowing in the upcoming financial year.
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Golden Rock Global Signs Preliminary Deal to Reverse Into 2Mee; Shares Suspended
Golden Rock Global has signed a preliminary deal to buy omnichannel communication platform developer 2Mee for up to 8 million pounds ($10.2 million) in shares.
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Robinson Sees 2023 Profit Marginally Ahead Despite Swing to 1H Pretax Loss
Robinson expects its adjusted operating profit for 2023 to be marginally ahead of 2022's and in line with expectations as it sees sales volumes picking up in the second half after soft demand weighed on first-half sales, resulting in a swing to a pretax loss.
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Tremor International Shares Slide After Guidance Cut on 2Q Earnings Fall
Tremor International shares fell after it reported a slump in second-quarter earnings and lowered full-year earnings guidance.
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Ashington Innovation to Reverse Into Cell Therapy for GBP135M; Shares Suspended
Ashington Innovation has agreed to buy clinical-stage biotechnology company Cell Therapy for 135 million pounds ($171.9 million) in an all-share deal.
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Fiinu Continues to Look for Funding as Pretax Loss Widens
Fiinu posted a wider pretax loss for the first half of 2023 on heavier administrative expenses as it continues to seek funding to restart its banking-license application.
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Riverstone Energy Launches GBP80 Mln Tender Offer
Riverstone Energy plans to buy up to 80 million pounds ($101.9 million) worth of shares via a tender offer.
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Intelligent Ultrasound 1H Pretax Loss Widened Slightly On Costs
Intelligent Ultrasound Group said its pretax loss for the first half of 2023 widened slightly on higher costs related to marketing and inflationary pressures on salaries, which were partly offset by lower expensed research and development.
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EN+ Group's Net Profit Fell on External Restrictions, Price Drops
EN+ Group International said its first-half net profit slumped and revenue fell, driven by increasing pressure in global markets and external restrictions, as well as a significant drop in aluminum prices.
MARKET TALK:
ITM Power Gains After FY Revenue Tops Hopes
1204 GMT - ITM Power shares rise 4% to 91 pence after the clean-fuel and energy-storage company reported better-than-expected annual revenue, though losses were worse than forecast. Revenue in the year to the end of April of GBP5.2 million was "significantly" ahead of guidance of GBP2.0 million, though the company's adjusted pretax loss before interest, depreciation and amortization of GBP94.2m was a touch worse than Peel Hunt's forecast of GBP90.3m, the brokerage says. ITM also issued new guidance, with 2023/24 revenue from commercial projects expected to be between GBP10m-GBP18m, versus Peel's forecast of GBP19.9m, Peel says. "We'll be reviewing and updating our forecasts in the light of the new guidance," Peel analysts write, maintaining their buy rating and 200p price target. (philip.waller@wsj.com)
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Bank of Georgia Shares Hit Highest Price Ever After Strong 2Q
1012 GMT - Shares in Bank of Georgia rise 15% at 3,680 pence after the lender posted its second-quarter results, which Peel Hunt sees as "exceptionally strong". Shares trade at their highest price since listing in 2012, beating the previous milestone of 3,550 pence hit in May. Momentum remains positive heading into the third quarter and shares should respond positively to forthcoming upgrades, analysts at Peel Hunt write. They point to the bank's significant loan growth while its margins, efficiency and impairments are all trending favorably. "Although falling Georgian interest rates will negatively impact the industry net interest margin (NIM) over time (it should also stimulate loan growth), in 2Q23 Bank of Georgia's NIM increased QoQ by 20bps to 6.6% (2Q22: 5.3%) and we expect it to remain strong in 3Q23," they say. (elena.vardon@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
08-17-23 0825ET
