BOE Could Act Cautiously as UK Rates Are Already Quite High

BOE Could Act Cautiously as UK Rates Are Already Quite High

0954 GMT - The Bank of England could slow down the pace of interest rate increases or pause rate rises as U.K. rates are already high, said ING developed markets economist James Smith in a Webinar on Thursday. "With U.K. rates quite high, the BOE can afford a slower moving shift now and spend more time assessing data," Smith said. ING expects the BOE to raise rates by 25 basis points at the March 23 meeting and pause rate increases thereafter as the latest decision maker panel data showed businesses' pricing behavior is calming down. ([e-mail])

 
Companies News: 

Berkeley Group Backs FY23 Pretax Profit Guidance on Underlying Demand

Berkeley Group Holdings PLC said Friday that it is trading resiliently and expects to deliver a fiscal 2023 pretax profit in line with guidance.

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Cora Gold Raises $19.8 Mln for Development of Sanankoro Gold Project in Mali

Cora Gold Ltd. said Friday that it has raised $19.8 million through an equity fundraising and convertible loan notes, with proceeds directed toward developing its flagship Sanankoro gold project in Mali.

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Cenkos Securities Swung to 2022 Pretax Loss

Cenkos Securities PLC on Friday said that it swung to a pretax loss in 2022 due to low levels of activity on the AIM equity market but that it is well placed as markets begin to recover.

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Bonhill Group Gets New Offer Proposal for InvestmentNews

Bonhill Group PLC said Friday that it has received a new proposal from another U.S. media buyer for InvestmentNews LLC, and that the exclusivity period has ended with the previously announced potential buyer after it lowered its price materially.

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Hostmore Delays Publishing 2022 Results on Lender Discussions

Hostmore PLC said Friday that it no longer expects to publish its 2022 results next Thursday as it is currently in discussions with its lending banks to amend its existing facilities.

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FirstGroup Sees FY 2023 Adjusted Operating Profit, Attributable Profit Above Views

FirstGroup PLC said Friday that adjusted operating profit and adjusted attributable profit for fiscal 2023 will be ahead of the board's previous expectations.

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Robert Walters Hit Record Pretax Profit in 2022; CEO to Retire

Robert Walters PLC said Friday that it made a record pretax profit in 2022 on higher revenue despite a tough economic backdrop, and that its Chief Executive is stepping down.

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Versarien CEO Neill Ricketts Resigns

Versarien PLC said Friday that Neill Ricketts has resigned as chief executive officer.

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Sabien Technology Says FY 2023 Order Value Doubled

Sabien Technology Group PLC said Friday that the value of its orders almost doubled compared with the previous year and it expects most of it to be recognized as revenue during fiscal 2023.

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SigmaRoc Says It Is Trading In Line With Views

SigmaRoc PLC on Friday said it continues to trade in line with expectations as it benefits from its European and end-market spread and gains from productivity improvements across its regional platforms.

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Haydale Graphene CFO Mark Chapman to Step Down

Haydale Graphene Industries PLC said Friday that Chief Financial Officer Mark Chapman will step down, with the date yet to be confirmed.

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FBD Holdings 2022 Pretax Profit Fell on Interest Rates

FBD Holdings PLC said Friday that 2022 pretax profit fell as higher interest rates weighed on investment return, and proposed a stable dividend payout.

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Amigo Says It Is Unlikely to Meet Capital Raise by Deadline

Amigo Holdings PLC on Friday said it hasn't received enough aggregate indications of interest to cover the total amount to support the capital raise it needs to complete by May 26 to avoid a wind-down of the business and is unlikely to do so by the deadline.

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Abicad Holding Buys GBP4 Mln of Additional Shares in Breedon Group

Abicad Holding Ltd. said Friday that it has purchased around 4 million pounds ($4.8 million) of additional shares of Breedon Group PLC through a reverse accelerated bookbuild.

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Dial Square Investments to Buy EnergyPathways for GBP4.1 Mln in Reverse Takeover

Dial Square Investments PLC said Friday that it has agreed to acquire EnergyPathways Ltd. in a reverse takeover for around 4.1 million pounds ($4.9 million), and it expects to cancel and re-apply its shares to trading.

 
Market Talk: 

UK Economic Rebound in January Lifts 1Q Outlook, But Is Unlikely to Change Subdued Trend

1128 GMT - U.K. GDP data for January marks a welcome return to growth but the improvement mainly reflect the reversal of contractions in 4Q, Citi economist Benjamin Nabarro says in a note. Survey data, namely purchasing managers index data, signals that growth could extend into February, but this isn't likely to be enough to pull the U.K. economy out of an increasingly embedded pattern of stagnation, he says. "With consumer spending still trending down and stress in interest-sensitive parts of the economy continuing to build, we don't yet see signs of a sustained cyclical upswing," Nabarro says. Citi expects U.K. GDP to grow by 0.2% on quarter in 1Q but to contract in 2Q. ([e-mail])

UK's Rising Interest Rates Hit Real-Estate's Contribution to GDP

1107 GMT - UK GDP and industrial output data shows evidence that rising interest rates are having an impact on the property and construction market, Barclays economist Abbas Khan says in a note. Consistent with the sharp fall in mortgage activity, real estate was the only sub-sector within services to contribute negatively to growth in January, he says. It comes as the construction sector was the biggest negative contributor to growth--falling 1.7% on month--driven by a decline in new work, he says. While in part this may reflect heavy rainfall at the beginning of January, it is also likely that higher rates are weighing on the sector, Khan says. ([e-mail])

Berkeley Group Looks a Strong Operator on Guidance Reiteration

1054 GMT - Berkeley Group is a high-quality operator in a sector facing a tough time and its guidance-affirming fiscal 2023 update demonstrates its credentials, AJ Bell says. The house builder is pitched largely at the premium end of the London and south-east market--so its wealthier buyers appear more insulated from rising mortgage costs and other inflationary pressures--borne out by a less-dramatic sales-rate drop post-mini budget than its peers, AJ Bell investment director Russ Mould says in a market comment. "Signs of moderating build-cost inflation will help Berkeley protect profitability and it's worth watching closely for signs of a more expansionist approach, given its historic track record of calling shifts in the property market under late boss Tony Pidgley," Mould says. Shares are down 0.4% at 4,020 pence. ([e-mail])

Pound Rises After UK GDP Data, But Faces Hit From US Banking Stress

1014 GMT - Sterling rises after Friday's U.K. economic growth data but looks vulnerable to signs of U.S. banking system stress, ING says. "If the banking stress story has a little further to run we can expect a little sterling under-performance, given the relatively large size of financial services in the U.K. economy," ING analyst Chris Turner says in a note. EUR/GBP could rise above 0.8900 while GBP/CHF may fall to 1.1000, he says. EUR/GBP falls 0.3% to 0.8849 and GBP/USD rises 0.2% to 1.1969 but GBP/CHF drops 0.1% to 1.1126. SVB Financial and U.S. bank shares slumped Thursday as the lender grapples with declining deposits from technology start-ups. U.K. gross domestic product rose 0.3% month-on-month in January. ([e-mail])

UK Economy Could Avoid Contraction in 1Q But Weakness Likely to Persist

1007 GMT - The chances that the U.K. economy will avert a GDP contraction in 1Q are increasing despite the mounting challenges it faces, HSBC senior economist Elizabeth Martins says in a note. Still, the 0.3% monthly GDP increase in January shows a rebound driven by temporary factors rather than a sustained turnaround, she says. "This January outturn is another case of one step forward, one step back," Martins says. "The fact that GDP was flat on year points to an economic stagnation, if not a recession, that has been in place since the start of 2022." ([e-mail])

Berkeley's Post-September Performance Shows Mini-Budget Damage

0934 GMT - Berkeley Group is on track to meet market views for fiscal 2023, but the stark contrast in financial performance pre- and post-September highlights the extent of the fallout for mortgage costs due to the so-called mini-budget that caused shockwaves across the housing market, Interactive Investor says. The house builder suffered a sharp drop in sales from September but could benefit from green shoots of optimism starting to emerge with stronger-than-expected Halifax house price data, Interactive head of investment Victoria Scholar says in a market comment. Still, headwinds remain, she says. "Although January saw a significant jump in Berkeley Group's shares, the stock has been under pressure, reversing its initial gains since the peak at the start of February and is trading lower today." Shares are down 0.4% at 4,022 pence. ([e-mail])

FirstGroup's 2H Update Seems Positive, But Residual UK Bus Business Is Less Attractive

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03-10-23 0811ET