No Brexit-Related Risk Seen Priced Into Sterling

10/05/2021 | 03:10am

No Brexit-Related Risk Seen Priced Into Sterling

0833 GMT - The pound doesn't seem to be factoring in any meaningful risk of renewed trade tensions with the EU, ING says. The U.K.'s Brexit minister David Frost has reportedly drawn up proposals to permanently replace the Northern Protocol of the Brexit deal, which could create new frictions with the EU, ING analysts say. "Our short-term fair value model indicates there is currently no risk-premium in EUR/GBP: over the past few years, Brexit-related risks have caused multiple overvaluation spikes (between 2% and 6%) in the pair." EUR/GBP falls 0.3% to a two-and-a-half-week-low of 0.8512, according to FactSet. GBP/USD rises 0.1% to 1.3621. (renae.dyer@wsj.com)

 
Companies News: 

Tesco Likely to Announce Agreement With Shareholders Over 2014 Accounting Scandal -Sky News

Tesco is close to announcing an agreement with shareholders over claims referring back to an accounting scandal in 2014, Sky News reports.

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Melrose Industries 3Q Revenue Rose 16%

Melrose Industries PLC said Tuesday that revenue for the three months to Sept. 30 was 16% higher than the same period a year earlier, and that its automotive and its powder metallurgy businesses are on track to achieve their margin targets once supply constraints are resolved.

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ScS Posts FY 2021 Profit, Sees FY 2022 Performance in Line With Expectations

ScS Group PLC on Tuesday reported a profit for the fiscal year, and said performance in the current period remains in line with internal expectations.

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Hotel Chocolat Swung to FY 2021 Pretax Profit

Hotel Chocolat Group PLC said Tuesday that it swung to a pretax profit for fiscal 2021 as revenue rose, and that it isn't declaring a dividend due to the investment opportunities for further growth.

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Greggs 3Q Comparable Sales Up 3.5% Vs 3Q 2019; Expects to Beat Previous Forecasts

Greggs PLC said Tuesday that like-for-like sales for the third quarter of the year are up 3.5% compared with the same period in 2019, despite disruption to staffing and supply chains, and that it expects to beat previous expectations for the year.

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Gooch & Housego Says FY 2021 Profit Beat Management's Views

Gooch & Housego PLC said Tuesday that profit for fiscal 2021 was slightly ahead of management's expectations, and that it has entered fiscal 2022 with a robust order book.

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Great Portland Estates Signed GBP14.3M of New Annual Rent in 3Q

Great Portland Estates PLC said Tuesday that it signed 14.3 million pounds ($19.5 million) of new annual rent in the third quarter.

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Lamprell Secures $45 Mln Initial Loan Conditional on Equity Raise

Lamprell PLC said Tuesday that it has agreed to terms of a $45 million loan facility, which is conditional on a 19.99% equity raise.

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Marechale Capital Shares Rise on Share Subscription With Luke Johnson

Shares of Marechale Capital PLC rose as much as 38% in early trade Tuesday after the company said that it has raised 160,000 pounds ($217,728) via a share subscription which will provide it with working capital towards investment opportunities.

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Wincanton's 1H 2022 Revenue Growth Remained Strong

Wincanton PLC said Tuesday that it has continued to deliver strong revenue growth throughout the first half of fiscal 2022, and that it is on track to deliver full-year profits in line with market expectations.

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Lamprell Secures $45 Mln Initial Loan Conditional on Equity Raise

Lamprell PLC said Tuesday that it has agreed to terms of a $45 million loan facility, which is conditional on a 19.99% equity raise.

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Coral Products FY 2021 Pretax Loss Narrowed on Higher Revenue

Coral Products PLC reported on Tuesday a narrowed pretax loss for fiscal 2021 as revenue increased.

 
Market Talk: 

Greggs's Momentum and Ambition Looks Under-Appreciated

0851 GMT - Greggs's share price has always been a little high for comfort but to management's credit it has handled expectations well and beaten guidance several times over, Shore Capital says. The on-the-go food retailer has signaled further upgrades and medium-term growth ambitions in its third-quarter results, along with a return to dividends, the investment group says. Shore said that it has under-estimated Greggs' momentum and the market's appreciation for its stock, and said it will place its "erroneously over-cautious" sell stance under review. "We will digest today's update and return with new medium-term forecasts, a refreshed investment thesis and whatever recommendation we deem appropriate," Shore says. Shares are up 4.4% at 2,998.0 pence. (joseph.hoppe@wsj.com)

Greggs Seen as Well Managed and Ambitious Despite Supply-Chain Issues

0849 GMT - Greggs' reinvention from a discount baker to a refreshed food-on-the-go outlet with strong vegan credentials is testament to its management's agility and poise, even as it contends with lingering coronavirus pandemic effects and supply-chain issues, AJ Bell says. Looking ahead, Greggs has ambitions to be much larger in five years' time and its plan to double turnover by 2026 doesn't look cautious, the brokerage says. "It's when times are tough that management really earn their corn and despite seeing shortages on a daily basis and facing inflationary and staffing pressures it is impressive that the company still felt able to raise profit forecasts for 2021," AJ Bell says. Shares are up 4.6% at 3,004.0 pence. (joseph.hoppe@wsj.com)

Greggs Shares Heat Up After Upbeat 3Q, But Costs Weigh

0847 GMT - Greggs gains 4% after the U.K. bakery-shop chain reported higher third-quarter like-for-like sales versus the same period in 2019, despite disruption to staffing and supply chains, and said it expects to beat its full-year expectations. Still, it said it expects costs to increase toward the end of 2021 and into 2022 due to inflation pressures. "The company remains understandably guarded on the outlook, with staffing and supply-chain disruption still rampant," Interactive Investor analyst Richard Hunter says. "At the same time, inflationary pressures are elevated, especially in food, though the fact that the group has been forward-buying has given it some short-term protection." (philip.waller@wsj.com)

Europe's Gas Price Surge to Ease Soon, Morgan Stanley Says

0838 GMT - The surge in European gas prices should ease in the coming weeks, while pass-through to inflation is more limited than expected, Morgan Stanley says. According to analysts at the bank, excess supply from Russia should be freed up by November and storage levels aren't as low as feared by the market. "If the shock is short, we expect the impact on inflation will be modest," Morgan Stanley says. "We expect the about 500% rise in wholesale gas prices to drive a transient 15% rise in retail prices...with retail prices a drag on inflation already by 2H 2022," the bank says. (giulia.petroni@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

10-05-21 0510ET

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