Pound Expected to Stay Firm Versus Euro on BOE Rate Expectations

Pound Expected to Stay Firm Versus Euro on BOE Rate Expectations

1102 GMT - The pound should remain firm against the euro in the coming weeks due to high U.K. inflation and expectations that the Bank of England will raise rates again, says Commerzbank currency analyst You-Na Park-Heger. "Inflation in the U.K., which is still quite high for the time being, should maintain rate-hike expectations for the BOE, from which the pound should benefit," she says. "At the same time, recession concerns for the eurozone should weigh on the euro." Commerzbank forecasts EUR/GBP at 0.8600 by the end of September, before rising again to 0.88 by year-end. EUR/GBP rises 0.2% to 0.8620, having earlier hit a one-week low of 0.8588. ([e-mail])

COMPANIES NEWS:

Hikma Appoints Bill Larkins as President of Injectables Business

Hikma has appointed Bill Larkins as president of its injectables business, effective Sept. 1.

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Bellway Sees Weaker Performance Ahead After Housing Revenue Fell in Line With Views

Bellway has warned of a decrease in home completions in the fiscal year ahead after housing revenue fell in line with guidance in fiscal 2023.

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TP ICAP Pretax Profit Rose, Launches GBP30 Mln Share Buyback

TP ICAP Group launched a share buyback program of up to 30 million pounds ($38.2 million) and said it is on track to meet full-year targets after first-half pretax profit rose against strong comparatives.

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4imprint Pretax Profit, Revenue Rose as Customer Demand Reached Record Levels

4imprint Group said pretax profit rose for the first half as revenue grew on customer demand reaching record levels, and backed its guidance for the year.

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Polymetal International Backs Production Guidance on Russian Operations Boost

Polymetal International reported a rise in revenue for the second quarter and backed full-year production guidance despite current disruptions to concentrate shipments.

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Codex Acquisitions Shares Leap as Trading Resumes

Shares of Codex Acquisitions rose 43% in early trade after the company returned from suspension having posted its 2022 annual report.

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Secure Trust Bank Sees Better Profitability in 2H After Charge Hits Pretax Profit

Secure Trust Bank expects profitability improvements in the second half of 2023 after it posted a fall in first-half pretax profit due to an impairment charge, despite higher lending and deposits.

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D4t4 Solutions Gets Contract That Was Delayed From FY 2023

D4t4 Solutions has been awarded a contract with an existing banking customer, most of which will be delivered in the first half of fiscal 2024.

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RM PLC Shares Tumble After Going-Concern Warning

Shares in RM PLC fell after the company said there was material uncertainty about its ability to continue as a going concern until it reaches an agreement with banks, and that it expects to breach its Ebitda banking covenant from the third quarter of fiscal 2023.

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Inspired PLC Confident of Meeting Forecasts on Continued Momentum

Inspired PLC said momentum from the first quarter has continued into the second quarter and that it is confident to meet market forecasts for the full year.

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Bank of Cyprus Pretax Profit Jumped on Interest Rates Boost

Bank of Cyprus Holdings is on track to meet its targets for the year after the company reported a significant rise in first-half pretax profit on higher income from interest rates.

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CLS Holdings Swung to Pretax Loss on Higher Revaluation Losses

CLS Holdings swung to a pretax loss for the first half after booking higher revaluation losses and costs, and said it expects the economic backdrop for the property market to remain challenging until interest rates peak.

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PCI-PAL Sees Higher Full-Year Revenue on Contract Wins

PCI-PAL expects its fiscal 2023 results to be aligned with its expectations as new contracts in its second half boosted its sales.

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Star Energy Backs 2023 Production Targets After 1H Increase

Star Energy backed its production guidance for the year following a first-half increase.

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Hargreaves Services Pretax Profit Fell on Higher Costs

Hargreaves Services pretax profit for fiscal 2023 fell on higher costs but the outlook for its trading activities is strong, the company said Wednesday.

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KEFI Gold & Copper Outlines Development Plans for Ethiopia, Saudi Arabia Projects

KEFI Gold & Copper expects aggregate mineral resources from projects under development at its Ethiopian and Saudi Arabia sites to amount 4.7 million ounces of gold-equivalent, with aggregate production of 326,000 ounces of gold-equivalent at the three sites.

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Braemar Says Auditor's Pay Resolution Passed With Low Votes

Braemar said that the resolution seeking authority to determine the auditor's remuneration received a low vote but was still passed.

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Gfinity Shares Drop After Conditionally Raising GBP450,000, Board Shuffle

Gfinity shares fell after the group said that it has conditionally raised 450,000 pounds ($573,750) through a discounted subscription and that proceeds will be used for immediate working capital.

MARKET TALK:

Bellway's Share Price Holds Steady Despite Gloomy Update

1103 GMT - Bellway's reservation rates and order book are down sharply, prices are no longer going up and completions are expected to fall in fiscal 2024, but its shares are holding firm, AJ Bell says. The house builder's business update is leading analysts to cut their profit forecasts for the upcoming year, but despite its gloomy outlook statement the shares don't appear to care much, so perhaps markets are already pricing in much of the bad news, AJ Bell investment director Russ Mould says in a research note. "For there to be any further negative surprises that could hit the shares hard, interest rates will have to go higher for longer than thought, or inflation prove stickier than thought," Mould says. Shares are down 1.5% at 2,182 pence. ([e-mail])

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Global Ports Holding's St. Lucia Agreement Proves Its Prowess in the Sector

1053 GMT - Global Ports Holding signing a 30-year concession in St. Lucia is further evidence of its capabilities in the market segment, Shore Capital analyst Greg Johnson says in a note. The agreement entails it investing significantly in facilities upgrades which include increasing capacity to allow for Oasis-class ships and enhancing the retail offering. Despite there being no financial details the scale and passenger numbers are seen as similar to Antigua, where it invested around $40 million to $50 million, the analysts say. Shares are down 1.8% at 220 pence. ([e-mail])

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Quilter Gets Adviser Boost, Though Shares Lack Drivers

1046 GMT - Quilter's fall in financial adviser numbers looks to have bottomed out, Bank of America says, upgrading the investment manager to neutral from underperform. A relentless drop in advisers since 2020 was Bank of America's key reason to be bearish on the stock, but numbers rose in the first half, suggesting the slide has ended, BofA says. The company has also taken impressive action on expenses, BofA says as it increases its price target by 13% to 93 pence. "However, the challenging U.K. backdrop means flows will likely remain depressed, which could limit scope for re-rating," BofA analysts say in a note. Shares rise 1.4% to 82p. ([e-mail])

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GEO Group Cuts Outlook as Government Monitors Fewer Immigrants

1037 GMT - GEO Group, which in addition to operating prisons and processing facilities also makes electronic-monitoring devices, cut its full-year outlook, saying that the government is monitoring fewer people than the company expected through the Department of Homeland Security's Intensive Supervision Appearance Program, or ISAP. Enrollment in the program is an alternative to detention for undocumented immigrants, and the Biden administration has supported expanding ISAP. But GEO, which runs ISAP through a subsidiary, says participants in the program have declined through July and early August. Shares fall 4% in premarket trading. ([e-mail];@WillFOIA)

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TUI's 4Q Expected Strong

1020 GMT - TUI's balance sheet concerns are more or less put to rest after the recent round of funding, and the business is seen well positioned for a strong performance in 4Q, Deutsche Bank analysts Andre Juillard and Harishankar Ramamoorthy say in a note. The London-listed travel operator's third quarter, meanwhile, was seasonally positive for the first time since 2020, they say. "We remain of the view that the risk-reward balance is favorable at the moment," the analysts say. Deutsche Bank rates the stock buy. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

08-09-23 0722ET