Gilt Yields Could Fall as Impact of BOE Rate Rises Emerge

UK Gilt Yields Could Fall as Impact of BOE Rate Rises Emerge

0919 GMT - U.K. gilt yields could fall in coming months as Bank of England rate increases start to hurt the economy, writes HSBC head of U.K. rates strategy Daniela Russell in a note. "In our view, gilt yields are unlikely to fully retrace back to where they were before the onset of the banking turmoil," she writes. "But we think they can fall much further if a hard landing scenario becomes more likely and the possibility of cuts comes on the horizon." The 10-year gilt yield falls 5 basis points to last trade at 3.389%, Tradeweb data show. HSBC expects a near-term range for the 10-year gilt yield of 3.10%-3.75%. ([e-mail])

 
Companies News: 

De La Rue Names Charles Andrews as Interim CFO

De La Rue PLC said Thursday that it has appointed Charles Andrews as interim chief financial officer with effect from April 11.

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Shell Sees 1Q Integrated Gas Production Rising, With Higher LNG Volumes

Shell PLC on Thursday forecast improved production from its integrated gas-and-oil products division in the first quarter of 2023, with higher liquid natural gas liquefaction volumes.

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Motorpoint Sees FY 2023 Break-Even Pretax Profit, Revenue to Reach Record High

Motorpoint Group PLC said Thursday that it expects pretax profit for fiscal 2023 to be broadly break even, while revenue is anticipated to reach record highs.

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Helical Says It Is Well-Placed to Capitalize on Office-Space Trends

Helical PLC said Thursday that it was well-positioned to capitalize on the continuing market dislocation and structural trends affecting the office sector.

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Robert Walters 1Q Gross Profit Rose Slightly Despite Tough Market Terms, Comparables

Robert Walters PLC said Thursday that its gross profits rose slightly in the first quarter of 2023, despite difficult macroeconomic conditions and tough comparables.

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Fulcrum Utility Sees FY 2023 Meeting Guidance; Will Exit Smart Metering

Fulcrum Utility Services Ltd. said Thursday that it expects it full-year results to meet prior guidance, and that it will exit the smart-metering business.

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EDF's Acquisition of GE's Nuclear Steam Power Business Faces Probe by UK Regulator

The U.K. Competition and Markets Authority has launched a merger inquiry into the acquisition by Electricite de France SA of General Electric Co.'s nuclear steam power business for competition concerns.

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Gear4Music Sees FY 2023 Earnings Lower Than Previously Forecast on Weaker Demand, Economic Conditions

Gear4Music (Holdings) PLC said Thursday that it expects to report that earnings for fiscal 2023 were lower than previously forecast following weaker consumer demand during February and March and generally challenging economic conditions.

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Xpediator Agrees to GBP62.3 Mln Cogels Consortium Takeover

Xpediator PLC said Thursday that it has agreed to a 62.3 million-pound ($77.6 million) takeover by DLM Bidco Ltd., a new company created by a consortium that includes its largest shareholder Cogels Investments.

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Barryroe Offshore to Raise Up to EUR20 Mln via Placing, Open Offer

Barryroe Offshore Energy PLC said Thursday it will raise up to 20 million euros ($21.8 million) via a placing and an open offer and that it will use the proceeds to meet working capital requirements and develop the offshore Barryroe project over the next two years.

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SigmaRoc Says Sweden Appeals Compensation Award in Dispute Over Land-Use Restrictions

SigmaRoc PLC said Thursday that the Swedish state has appealed against a decision to award compensation to the company amid a dispute over land-use restrictions.

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Real Good Sees FY2024 Improvement, Secures GBP550,000 Loan

Real Good Food PLC said Thursday that it expects fiscal 2024 performance to improve, on the back of its reform program, and that it has secured a further loan.

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Tyman CEO Jo Hallas Steps Down by Mutual Agreement With Board

Tyman PLC said Thursday that its Chief Executive Officer Jo Hallas will step down from today after mutual agreement with the board.

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Rosslyn Data Technologies Sees FY 2023 Revenue Fall

Rosslyn Data Technologies PLC said Thursday that it expects to report a fall in revenue in fiscal 2023, despite an expected rise in annual recurring revenue, while its earnings loss narrowed on new customer wins and strong demand.

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Celsius Resources Nonexecutive Vice Chairman Jonathan Colvile Steps Down

Celsius Resources Ltd. said Thursday that nonexecutive Vice Chairman Jonathan Colvile has resigned from the role and the board effective immediately.

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Malvern International 2022 Pretax Loss Narrowed as Student Numbers Recovered

Malvern International PLC said Thursday that its pretax loss narrowed and its revenue more than doubled in 2022 as the easing of travel restrictions led to a recovery in student numbers.

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Integrated Diagnostics 2022 Revenue, Pretax Profit Fell With Demand, Inflation

Integrated Diagnostics Holdings PLC said Thursday that 2022 revenue and pretax profit fell following declines in demand for Covid-19-related products and services and inflation affecting markets.

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Gresham House Energy 2022 Pretax Profit Rose, Helped By Revaluation of New Projects

Gresham House Energy Storage Fund PLC said Thursday that 2022 pretax profit rose, helped by the revaluation of new projects and increased third-party revenue forecasts, and that some projects initially planned for 2022 are expected to be commissioned in 2023.

 
Market Talk: 

Shell's 1Q Loss on One-off Taxes Doesn't Spook Investors

0901 GMT - Shell flagged that it is anticipating big loss in its first-quarter update, but investors are shrugging it off as a quirk of accounting, reflecting one-off tax charges, AJ Bell says. The oil-and-gas company's divisional performances leave the market still expecting plenty of cash generation to fund its dividend, and a recent spike in oil prices on OPEC production cuts will lead to further boosts down the road, AJ Bell head of financial analysis Danni Hewson says. "Shell and the rest of the peer group must balance the temptation to take advantage of strong commodity prices today and reward shareholders with generous returns of capital with a need to future-proof their businesses," Hewson says. Shares are up 1.7% at 2,403 pence. ([e-mail])

Rathbones's Investec Deal Will Deliver Synergies, But With a Delay

0858 GMT - Rathbones's deal to combine with Investec Wealth & Investment shows long-term value creation but there is no rush to buy, says RBC Capital Markets in a note. "Our enthusiasm for RAT shares in the short term is tempered by one, the back-dated nature of the synergy recognition and two, a concern that the bid premium may now ebb, as the long-term independence of the group looks more likely," say analyst Ben Bathurst and senior associate Rafael Castillo. The delay in synergy delivery means the acquisition is expected to have a muted impact on consensus for 2023 and 2024, they add. RBC has a sector perform rating on the stock. ([e-mail])

THG's Partnership With Maximo Gives Confidence on Strategy Shift

0821 GMT - THG's partnership agreement with beauty retailer Maximo Group shows that the shift in its Ingenuity platform to focus on bigger clients is starting to bear fruits, Liberum analysts Wayne Brown and Anubhav Malhotra say in a note as shares rise 6.8%. The deal struck by the U.K. e-commerce company--known as the Hut Group--increases confidence in the delivery of its target to add more than GBP1 billion in incremental gross merchandise value to Ingenuity in 2023, they say. "We believe larger-scale client wins are key to a re-rating as it allows the group to leverage the excess capacity and meaningfully improve free cash flow and returns on capital," they add. ([e-mail])

Commodity Prices Seen Slowing Shell's 1Q Earnings, Despite Good Developments

0814 GMT - Shell's first quarter update was interesting, with several developments coming in better than expected, ING says. The oil-and-gas company's LNG volumes beat forecasts as the troublesome Prelude and QGC plants were ahead of expectations, and chemicals and refineries did even better, ING analyst Quirijn Mulder says in a research note. Chemicals margins were improved, though in practice margins still remain below $100 a ton, partially due to the slow ramp-up of the Pennsylvanian plant. "With the rest in line with expectations, we can foresee a good underlying first quarter but commodity prices under pressure will still show lower earnings," the Dutch bank says. ING maintains its buy rating on the stock. Shares are up 2.1% at 2,412 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

04-06-23 0605ET