UK Inflation Data May Bring Relief But Pound Driven by Risk
Sentiment
0852 GMT - Investors may express some relief that May's U.K.
inflation data were in line with most analysts' expectations, but
sterling's declines are more likely to reflect widespread risk
aversion, MUFG Bank says. "In a world when inflation is
consistently coming in stronger than expected, this data will be
greeted with a degree of relief," MUFG analyst Derek Halpenny says
in a note. If June data also meet expectations, the Bank of England
could stick to 25 basis points interest rate rises rather than
switching pace to 50 bps, he says. Sterling's direction for now,
however, will be dictated by broader market sentiment and will
remain vulnerable given increased risk aversion, he says. GBP/USD
falls 0.5% to 1.2208 and EUR/GBP rises 0.3% to 0.8610.
(renae.dyer@wsj.com)
Companies News:
Micro Focus 1H Pretax Loss Narrowed on Lower One-Off Costs, Gain
on Digital Safe Disposal
Micro Focus International PLC said Wednesday that its pretax
loss for the first half narrowed, driven by a significant reduction
in exceptional spending and a $63.0 million profit on the disposal
of Digital Safe.
---
Anglo American's De Beers Reports Higher Diamond Sales for Cycle
5
Anglo American PLC on Wednesday reported diamond sales of $650
million for the fifth sales cycle of 2022 running between June 6
and June 21.
---
Berkeley Group FY 2022 Profit Rose on Robust Homes Demand; Backs
FY 2023 Views
Berkeley Group Holdings PLC said Wednesday that pretax profit
and revenue rose in fiscal 2022, and backed its fiscal 2023
expectations.
---
Frasers Group Increases Investment in Hugo Boss
Frasers Group PLC said Wednesday that it has recently increased
its investment in Hugo Boss AG to around 900 million euro ($948.0
million).
---
UK Government Extends NatWest Trading Plan to August 2023
UK Government Investments Ltd. said Wednesday that it has
extended the trading plan under which it will sell Her Majesty's
Treasury's shareholding in NatWest Group PLC by a year to Aug. 11,
2023.
---
Churchill China Confident in 2022 View on Continued Record
Demand
Churchill China PLC said Wednesday that it remains confident of
delivering an on-year improvement in performance for 2022 as the
record demand noted in its preliminary results has continued.
---
Bonhill to Sell Business Solutions and Governance Arm; Focus on
Financial Services
Bonhill Group PLC said Wednesday that it has decided to sell its
business solutions and governance division to focus on financial
services.
---
JD Sports Fashion FY 2022 Pretax Profit Rose but Missed Market
Views
JD Sports Fashion PLC said Wednesday that pretax profit for
fiscal 2022 rose, though it was below market expectations, and the
company warned of headwinds due to macroeconomic uncertainties.
---
Intelligent Ultrasound Sees 2022 Revenue in Line With
Expectations
Intelligent Ultrasound Group PLC said Wednesday that it
continues to be confident in the upgraded market expectations for
2022 revenue.
---
Liontrust FY 2022 Pretax Profit Rose, Raises Dividend
Liontrust Asset Management PLC reported on Wednesday a rise in
both pretax profit and revenue for fiscal 2022, and raised its
dividend payout.
---
Team PLC 1H Pretax Loss Narrowed on Organic Growth, Maintained
Positive Momentum
Team PLC said Wednesday that pretax loss for the first half of
fiscal 2022 narrowed and revenue increased on organic growth and
maintained positive momentum after completing two acquisitions.
---
System1 Group to Return Up to GBP1.5 Mln Via Tender Offer
System1 Group PLC said Wednesday that it will seek to return up
to 1.5 million pounds ($1.8 million) of excess cash via tender
offer, and going forward it will pay annual distributions via
buyback or tender offer rather than by way of a dividend.
---
Wentworth Resources Backs 2022 Gas Production Guidance
Wentworth Resources PLC said on Wednesday that its gas
production guidance for 2022 remains unchanged as its rate remains
robust.
---
Roquefort Therapeutics to Buy Oncogeni in All-Share Deal
Roquefort Therapeutics PLC shares rose Wednesday after it said
that it has conditionally agreed to buy Oncogeni Ltd. in return for
shares, and it will also place shares at a premium to raise 1
million pounds ($1.2 million) to fund development of the enlarged
group.
---
Impact Healthcare REIT to Raise Undisclosed Amount to Buy Care
Homes
Impact Healthcare REIT PLC said Wednesday that it will raise
funds, in a share placing and offer for subscription, to acquire an
identified pipeline of care homes.
Market Talk:
JD Sports FY Results Were Reassuring, Shares Look Cheap
0922 GMT - Shares in JD Sports Fashion rise 3% after the U.K.
clothing retailer reported higher annual profit. The results were
reassuring, with margins improving, latest trading staying
positive--with like-for-like sales between February and June up
5%--and JD reiterating full-year profit guidance, investment
manager Quilter Cheviot says. "There has been a lot of incremental
negative news around JD Sports, some stock-specific, some
macro-related, but today's news flow was all about showcasing that
the fundamentals of the business remains in good shape," Quilter
equity research analyst Mamta Valechha says in a note. "We hope to
see corporate governance improve with new board appointments and
the shares are very cheap." (philip.waller@wsj.com)
NatWest's Net Interest Income Could Be Better Than Expected
0900 GMT - NatWest Group's consensus estimates currently doesn't
reflect the interest rate impact, showing an asymmetric reward and
risk factor that doesn't contemplate the increasing tailwind,
Jefferies analysts say in a research note. They expect the U.K.
bank's net interest income for 2024 to be 8% above market
expectations as rising rates gear in. They note that new mortgage
rates by banks rose by around 50 basis points since March. They
also see GBP5.4 billion of cumulative dividends and buybacks
through 2024. Jefferies upgrades the recommendation on the stock to
buy from hold and price target to 359 pence from 246 pence.
(michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
June 22, 2022 05:41 ET (09:41 GMT)
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