Sterling Could Fall as Dollar Strengthens

Sterling Could Fall as Dollar Strengthens

1114 GMT - Sterling may fall against the dollar to the 1.2590/1.2610 area on Monday as the dollar strengthens, supported by robust U.S. activity data, ING analyst Chris Turner says in a note. In addition, sterling movement will likely be hit by U.K. labor market and inflation reports due to be released Tuesday and Wednesday, respectively. ING expects U.K. services inflation to come in weaker than expected, lowering the chances of a 50 basis points Bank of England interest-rate rise. "Sterling may have more trouble with Wednesday's July CPI data," Turner says. GBP/USD trades flat at 1.2701. ([e-mail])

COMPANIES NEWS:

Glantus Holdings Agrees to GBP17.8 Mln Takeover by BasWare

Glantus Holdings has agreed to a 17.8 million pound ($22.6 million) takeover by Genesis Bidco, a new company owned by BasWare.

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Centralnic's 1H Profit Slipped Despite Revenue Increase; Backs 2023 Market Views

Centralnic Group said its pretax profit slipped on an increase in costs and non-cash charges, though revenue and adjusted earnings rose and it expects its full-year results to at least be in line with market expectations.

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Plus500 1H Pretax Profit Fell on Calmer Markets; Returns Capital

Plus500 said it will launch new share buyback and a special dividend as it reported a drop in pretax profit for the first half of the year due to lower volumes across financial markets.

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Pelatro Raises GBP1.1 Mln to Support Working Capital

Pelatro has raised 1.1 million pounds ($1.4 million) via a share subscription with a number of new investors based in the Middle East, which will support the company's working capital as it seeks to collect payments from some customers as previously noted, as well as adding new customers.

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Lok 'N Store Revenue Rose as Self-Storage Business Beat Expectations

Lok 'n Store Group said Monday that revenue growth in fiscal 2023 was strong, with self-storage revenue in the second half ahead of expectations.

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ITM Power To Sell Motive Fuels

ITM Power signed non-binding terms of agreement to sell its joint venture Motive Fuels to an undisclosed buyer as part of its efforts to cut costs.

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Jubilee Metals Group Names Neal Reynolds as Incoming CFO

Jubilee Metals Group named Neal Reynolds as chief financial officer, effective from the first day of October, taking over the role from current Acting CFO Pedja Kovacevic.

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B90 Names Farzad Peyman as CFO, Mergers and Acquisitions Development Officer

B90 said it has appointed Farzad Peyman as chief finance and mergers and acquisitions development officer.

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Harvest Minerals Cuts Sales Target Again on Weak Fertilizer Demand

Harvest Minerals cut its invoiced sales target for the year again due to persisting soft demand for its products as farmers delay their orders.

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Tan Delta Systems Plans to Raise GBP6 Mln in London IPO

Tan Delta Systems plans to raise 6 million pounds ($7.6 million) as part of its initial public offering on London's junior AIM.

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Stelrad Backs Guidance After Adjusted Operating Profit Fell

Stelrad Group said that adjusted operating profit fell for the first half against a tough comparative and backed its guidance for the year.

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Robinson Reduces Debt Via Property Sale, Pension Fund Surplus

Robinson is reducing its debt through the sale of some of its property and the return of surplus from its pension fund buy-out.

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Serinus Energy Shares Fall on Swing to 1H Loss

Shares of Serinus Energy fell 16% in early trade after the company reported a swing to net loss for the first half year on revenue that fell due to lower production and realized oil prices.

MARKET TALK:

Europe Stocks Rise; Asia Drops On China Property Woes

1023 GMT - European stocks mostly rise ahead of a likely higher U.S. open, though Asia markets largely fell after fresh Chinese property-market concerns emerged. The Stoxx Europe 600 advances 0.3%, the CAC 40 gains 0.4% and the DAX rallies 0.6%, with banks among the biggest risers, but the FTSE 100 drops 0.2%. IG futures data show the Dow opening at 35356, versus Friday's close of 35281. Asia markets were mostly lower, with Hong Kong and Japanese stocks falling more than 1%. "News that China property giant Country Garden had missed bond payments as it racked up big losses was always likely to prompt selling in Asian markets and that's fed through to the European open," AJ Bell investment director Russ Mould writes. ([e-mail])

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Legal & General Solvency Ratio To Be in Focus at 1H Results

1002 GMT - Legal & General's first-half solvency II coverage ratio is seen at 225% by a company-compiled consensus ahead of its first-half results on Tuesday, consistent with the British insurer's estimate laid out last month. "The weakness vs market expectations (of c.235%) was already a basis of questions in July, however, we believe it will arise as a focus again," Deutsche Bank wrote in a note from Aug. 7. L&G's operating profit is expected to amount to GBP834 million, according to analyst estimates, which also sees operating profit from divisions at GBP1.03 billion. The group restated its 2022 figures under the new accounting standard, but didn't provide half-year comparatives, though pre-IFRS 17, it had posted figures of GBP1.16 billion and GBP1.355 billion, respectively. ([e-mail])

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TBC Bank Has All Engines Firing

1003 GMT - TBC Bank's confidence in the sustainability of its underlying growth trends was explicitly reflected in its raised 2025 guidance, Peel Hunt says in a note on the back of the Georgia-focused lender's quarterly update last Thursday. "There is unexpectedly strong momentum in the 2Q23 results, some of which can be extrapolated into a more positive outlook," analysts write. The brokerage lifts its estimates though it points out that some elements from the second-quarter results, such as net interest margin and cost of risk, might prove unsustainable. Its valuation multiples remain low and allow for share price upside as management executes its strategy, they add. Peel Hunt rates the stock buy. Shares in the FTSE 250-listed group are up 22% year to date. ([e-mail])

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Lok 'n Store's Momentum Seen Continuing

1002 GMT - Lok 'n Store's FY 2023 update is assuring with self-storage revenue looking marginally ahead of forecasts, a better-than-expected 2H performance and momentum continuing, Peel Hunt analysts Matthew Saperia and James Carswell say in a note. Although pricing per square foot of occupied space was up 6.8%, closing occupancy on stores more than three years of age fell to 80.6% from 82.9%, consistent with peers such as Big Yellow which reported established store occupancy down 260 basis points for FY 2023, the analysts say. "In our view, the growth opportunity remains compelling," the analysts say. Peel Hunt rates the stock buy and has a 1,050 pence target price. Shares are flat at 732 pence. ([e-mail])

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Quilter Could Surprise Positively Again on Costs

0939 GMT - Quilter's effort to simplify the business and increase its scalability is aligned with its remarkable track record, JP Morgan says in a note after the wealth manager shared its accelerated cost simplification program. "In light of this, we wouldn't rule out that Quilter might positively surprise once again," analysts write. Its low operating margin and expected cost reduction leads to estimates upgrade, they say, adding they see it over-delivering on its 25% pretax profit margin by 2025 target. Challenges remain with given disappointing net flows in its independent financial advisor segment, where competition is expected to remain fierce, and the pressure from regulation on the wealth management industry. JPM raises its rating to neutral from underweight, lifting its target price to 90 pence from 73 pence. ([e-mail])

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Plus500's 1H Held Few Surprises

0929 GMT - Plus500's first-half numbers had few surprises and are unlikely to change consensus figures, Jefferies says in a note. The online-trading platform operator's update showed that active customer numbers are now stable after pandemic highs and new customer numbers are growing again, analysts write. They note that the B2B and wider B2C opportunity in the U.S. seems closer to fruition. Jefferies rates the London-listed stock buy given its high returns to equity and the group's lack of debt. Shares, which are among the FTSE 250's best performers, rise 3.2% to 1,477 pence. ([e-mail])

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Sainsbury's Bank Mortgage Portfolio Sale Increases Focus

0915 GMT - Sainsbury's Bank mortgage portfolio sale makes it a much more focused business and is another piece of work setting up the group for the future, Shore Capital says in a note. The U.K. grocer's banking branch sold its mortgage book to The Co-operative Bank for around GBP464 million in cash, seeing through a plan from Sept. 2019. "Both Sainsbury and Tesco have structurally reshaped their commitment to financial services compared to the time of their initial entry c15 years ago into a market that was under-estimated in terms of its capital, management, and operational requirements plus the regulatory complexity, technological advancements, and the power of incumbency," analysts Clive Black and Darren Shirley write. Shore has Sainsbury's as a house stock. ([e-mail])

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FTSE 100 Falls Amid Concerns About Chinese Property Market

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08-14-23 0739ET