UK 10Y Gilt Yield Opens Higher

UK 10Y Gilt Yield Opens Higher

0801 GMT - Investors sell benchmark U.K. government bonds this morning after rallying strongly the previous day, sending yields higher, Tradeweb data show. The 10-year gilt yield, which trades inversely to the price of the bond, is last quoted at 1.801%, after closing at 1.791% Tuesday, the lowest level since April 8, according to the bond trading platform. Mounting geopolitical tensions in Europe as Russia's war in Ukraine intensifies dampened risk appetite significantly on Tuesday, Deutsche Bank says in a research note. This added to prevailing fears of a slowdown in global growth and the commensurate shallower path of policy tightening by the Federal Reserve, which ricocheted through global sovereign bond markets, it says. ([e-mail])

 
Companies News: 

WPP 1Q Revenue Rose; Raises Full-Year Guidance

WPP PLC said Wednesday that revenue for the first quarter rose as continued momentum from 2021 contributed to growth across all businesses and regions in the period.

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Fresnillo Backs 2022 Guidance as 1Q Production in Line

Fresnillo PLC on Wednesday reaffirmed 2022 production guidance as its mines performed in line with expectations in the first quarter.

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Darktrace Management, Employees Sell Shares at 410 Pence Each

Jefferies International Ltd. said Wednesay that it has sold 6.1 million shares in Darktrace PLC on behalf of management and employees at 410 pence a share, as flagged late Tuesday.

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M&G PLC CEO John Foley to Retire

M&G PLC said Wednesday that Chief Executive John Foley has decided to retire and that it will start a process to appoint his successor.

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London Stock Exchange Group 1Q Underlying Income Rose

London Stock Exchange Group PLC said Wednesday that total income for the first quarter rose on an underlying basis.

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United Utilities CEO Steve Mogford to Retire in 2023

United Utilities Group PLC said Wednesday that Chief Executive Steve Mogford will retire next year, and will be replaced by Louise Beardmore as CEO designate.

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Persimmon YTD Performance in Line With Views; Demand Remains Strong

Persimmon PLC said Wednesday that its performance was in line with expectations in the year to date, with demand remaining strong and its private sales rate around 2% higher on year.

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Lloyds Says 1Q Pretax Profit Fell But Beat Views; Enhances 2022 Guidance

Lloyds Banking Group PLC reported on Wednesday a decline in pretax profit for the first quarter of 2021, beating market views of a greater fall, and said that it has enhanced its guidance for the year as a whole.

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Nichols 1Q Revenue Rose on Vimto Strength, Pandemic Recovery

Nichols PLC said Wednesday that first-quarter revenue increased 29% on year as the Vimto brand outperformed the wider U.K. soft drinks market and out of home continued to recover from Covid-19 restrictions.

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Aveva 4Q Revenue Rose 18%; Sees Fall in FY 2023 Revenue

Aveva Group PLC said Wednesday that revenue in the fourth quarter rose 18% on a pro forma organic constant currency basis, and that revenue in fiscal 2023 will be hurt by the timing of revenue recognition as well as by the war in Ukraine.

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Metro Bank 1Q Loans Deposits Rose, Assets Fell

Metro Bank PLC said on Wednesday that loans and deposits both rose on year in the first quarter, though assets fell slightly.

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Ted Baker Has Received a Number of Non-Binding Takeover Proposals

Ted Baker PLC said Wednesday that it has now received a number of non-binding takeover proposals and has invited some of the parties to enter into a due diligence process.

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Drax Sees 2022 Ebitda at Top End of Market Views

Drax Group PLC said Wednesday that it expects to deliver full-year earnings at the top end of analysts' expectations following a strong performance in the first quarter.

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Inspecs Says 1Q Performance Was Strong, Revenue Rose

Inspecs Group PLC said Wednesday that its performance for the first quarter of 2022 was strong, marked by significant revenue growth.

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Sportech Declares GBP7 Mln Special Dividend

Sportech PLC on Wednesday declared a seven million pound ($8.8 million) special dividend that amounts to seven pence a share.

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GlaxoSmithKline 1Q Earnings, Revenue Beat Expectations

GlaxoSmithKline PLC on Wednesday posted higher earnings and revenue for the first quarter, beating expectations as sales rose across the biopharma and consumer healthcare businesses.

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Coca-Cola Europacific Partners 1Q Revenue Rose; Declares Interim Dividend

Coca-Cola Europacific Partners PLC said Wednesday that first-quarter revenue rose on year after the acquisition of Coca-Cola Amatil in May 2021 and that it has declared an interim dividend.

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Go-Ahead 1H Pretax Profit Fell on Lower Revenue

Go-Ahead Group PLC said Wednesday that pretax profit for the first half of fiscal 2022 fell as revenue declined, and that it intends to reinstate dividend payments.

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Bank of Ireland's Start to 2022 Was Positive, with Strengthened Capital Position

Bank of Ireland Group PLC said Wednesday that it has had a good start to 2022, with net interest income, costs and capital performing in line with expectations, and added that its business momentum remains positive.

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Etalon Group 1Q New Sales Rose on Higher Real Estate Demand

Etalon Group PLC said Wednesday that new sales for the first quarter of 2022 rose as it experienced an active demand for real estate, and that sales continue to be supported by the Russian state-backed mortgage program.

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WH Smith Swung to 1H Pretax Profit; Confident in FY Outlook

WH Smith PLC reported a swing to a pretax profit in the first half of fiscal 2022, driven by a recovery from the pandemic in its markets, and said it is confident in the fiscal-year outlook.

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Pendragon 1Q Underlying Pretax Profit Jumped; Sees Full Year in Line

Pendragon PLC said Wednesday that underlying pretax profit for the first quarter jumped on year thanks to the implementation of its strategy, and that it expects to meet the board's profit expectations for the full year despite macroeconomic uncertainty and inflationary pressures.

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IG Design Shares Fall After FY 2022 Seen Missing Market Views on U.S. Performance

Shares in IG Design Group PLC on Wednesday fell after the company said it anticipates that fiscal 2022 adjusted post-tax losses and adjusted loss per share to be significantly below market expectations.

 
Market Talk: 

Diageo Shares Fall as Deutsche Downgrades, Cites Economic Woes

0742 GMT - Shares in U.K. beverage company Diageo fall 1.9% to 3,896 pence after Deutsche Bank downgraded the stock to hold from buy as it turns more cautious on European spirits manufacturers, and more positive on brewers as fears emerge about growth as well as inflation. "Inflation remains a key focus but broader macro concerns are building. We believe distillers are better placed to manage cost headwinds and remain structurally advantaged. However, brewers and soft drinks players are less sensitive to broader macro headwinds and trade at discounts to European staples," the bank says in a research note. These leave it "incrementally more positive on brewers and incrementally more cautious on spirits," Deutsche says. ([e-mail])

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London Stock Exchange Group's Russian Attrition Might Stay in 1H

0732 GMT - London Stock Exchange Group showed a solid set of results, but Russian revenue attrition could stay for some time, analysts from Citi say in a research note. LSEG estimates the impact of the war in Ukraine to be around GBP60 million in 2022, mainly caused by a dip of annual subscription value in its data & analytics business. The U.S. bank analysts expect the worst of the attrition to happen by the end of June, and then annual subscription value should start seeing a recovery in 2H. Citi has a buy rating on the stock. Shares are down 1.8% at 7,930.0 pence. ([e-mail])

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WPP Undervalued Amid Efficiency Drive

0729 GMT - WPP is undervalued by the market, Citi says after the advertising giant posted a first-quarter trading update that included an organic growth beat ahead of expectations and a guidance upgrade for the full year. The company's action to further integrate and simplify agencies--with a focus on the media space--should drive a more integrated service offering and a more efficient one, the U.S. bank says. Citi has a buy rating on the stock and raises its target price to 1,500 pence from 1,400 pence previously. Shares trade up 0.4% at 994 pence. ([e-mail])

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Glaxo Gets Short-Lived Boost from Covid-19 Sales

0722 GMT - The reason GlaxoSmithKline got a big sales boost in the first quarter is the same reason that the boost will be short-lived: the shifting shape of the coronavirus that causes Covid-19. Glaxo's Covid-19 antibody treatment Xevudy was for a short time the only authorized therapy shown to work against the Omicron BA.1 variant, which drove a huge surge in cases over the winter and rendered its two main competitors ineffective. Glaxo quickly ramped up supply as governments around the world scrambled to secure doses, and the treatment chalked up GBP1.3 billion, equivalent to $1.6 billion, for the company in the first quarter. But that demand has dropped precipitously in the face of the BA.2 variant, which has rendered Xevudy ineffective and is now dominant in many parts of the world. The changing fortunes does not impact Glaxo's full-year outlook though: the company excludes Covid-19 products from its guidance due to the unpredictability of the pandemic. ([e-mail]; @deniseroland)

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Fresnillo 1Q Silver Production Will Please Investors

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04-27-22 0418ET