Pound Seen Vulnerable as Market Scales Back BOE Rate Rise Bets

Pound Seen as Vulnerable as Market Scales Back UK Rate Rise Bets

0925 GMT - Sterling looks vulnerable as the market scales back its interest rate rise expectations for the Bank of England amid the Russia-Ukraine crisis, ING says. Despite the prospect of U.K. inflation accelerating on the surge in energy prices, the BOE's policy tightening cycle has suffered one of the largest market repricings lower, ING analysts say. Meanwhile, sterling is also sensitive to financial risks and the performance of equities given the size of the U.K. economy's financial sector, they say. "With European equities remaining vulnerable as the world re-prices European growth, EUR/GBP can bounce around in a 0.8300-0.8400 range--but could break higher if equities take another large leg lower." EUR/GBP falls 0.1% to 0.8346 but GBP/USD drops 0.2% to 1.3304. ([e-mail])

 
Companies News: 

Aviva to Acquire Succession Wealth for GBP385 Mln to Strengthen Position in U.K.

Aviva PLC said Wednesday that it will buy Succession Wealth for 385 million pounds ($513 million) in a deal that strengthens its position in the growing U.K. market.

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Persimmon 2021 Pretax Profit Rose on Higher Completions, Selling Prices

Persimmon PLC said Wednesday that pretax profit rose in 2021 on the back of an increase in homes sold and higher selling prices.

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Weir Group's Full-Year Pretax Profit Rise Misses Guidance

Weir Group PLC on Wednesday reported a rise in pretax profit for 2021, which missed its own guidance, and said that it expects to post strong growth in revenue and profit for 2022.

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Vivo Energy 2021 Profit Rose as Retail Volumes Recovered to Pre-Pandemic Levels

Vivo Energy PLC on Wednesday reported a higher profit for 2021, as the retail business recovered to its pre-pandemic levels.

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Europa Oil & Gas Acquisition of Exploration License in Ireland Falls Through

Europa Oil & Gas (Holdings) PLC said Wednesday that it won't acquire the Frontier exploration license offshore Ireland after DNO North Sea (U.K.) Ltd. chose to end the sale-and-purchase agreement.

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Hiscox Swung to a 2021 Pretax Profit; Sees Outlook as Positive

Hiscox Ltd. on Wednesday reported a swing to a pretax profit for 2021 and said that it expects to close 2022 as a good year.

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Aviva PLC Pretax Profit Fell in 2021; To Increase 2022 Dividend by 40%

Aviva PLC on Wednesday posted a fall in pretax profit for 2021, but upgraded its dividend policy for 2022 and 2023.

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Vistry 2021 Profit, Revenue Rose; Sees Strong Start to 2022

Vistry Group PLC said Wednesday that 2021 pretax profit significantly rose along with revenue, and it reported a strong start to this year with increased average sales.

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Vertu Motors Raises FY 2022 Profit Guidance

Vertu Motors PLC on Wednesday raised financial guidance for the year ended Feb. 28, reflecting higher margins amid sector tailwinds and limited vehicle supply.

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Foxtons Swung to 2021 Pretax Profit on Better Market Conditions

Foxtons Group PLC said Wednesday it swung to a pretax profit in 2021 on higher revenue from improved market conditions and greater market share, and reinstated a final dividend.

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Nichols Swung to a Pretax Profit in 2021; Confident About 2022

Nichols PLC said Wednesday that it swung to a pretax loss in 2021 but said that it has entered 2022 with excellent momentum and financial position.

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Abingdon Health Shares Fall on Lower 1H Revenue

Shares in Abingdon Health PLC fell Wednesday after the company said that first-half revenue significantly fell below management expectations, primarily on a lack of revenue from the U.K.'s Department of Health and Social Care, or DHSC.

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McKay Securities Agrees on GBP272 Mln Workspace Takeover; Shares Leap

Shares of McKay Securities PLC rose 27% in early trade Wednesday after the company said that it has agreed to a 272 million pound ($362.4 million) takeover by FTSE 250 office-rental company Workspace Group PLC.

 
Market Talk: 

Palladium's Russia Worries Is Bad News for Auto Makers

0946 GMT - Palladium prices rise to their highest level since August on worries that sanctions on Russia would reduce the supply of the metal. Palladium futures traded in New York are up 4% at $2,640.50 a troy ounce. They have risen almost 40% so far this year as tensions between Russia and Ukraine built. Russia accounts for around 40% of global palladium supply and a hit to supply now would be bad news for auto makers looking to bounce back from the chip shortage. "Such supply curtailment would not only coincide with a palladium market deficit of 146koz, but would also occur during a year when auto production is expected to recover as the availability of semiconductor chips and supply-chain challenges improve," Fitch Solutions says. ([e-mail])

Aviva Could be Benefiting from Macro Uncertainties

0929 GMT - Aviva 2021's earnings shows that the U.K. life-insurance sector continues to improve, with macro uncertainties such as regulation and Covid-19 apparently playing in its favor, RBC Capital Markets. The Canadian bank highlights the rebound of volumes in bulk annuities during the 2H; positive developments in the U.K.'s Solvency II reforms, and rising interest rates as tailwinds for Aviva. "Trading at an attractive 2023 estimated dividend yield of 6.0%, we continue to see upside in the shares, with the intended capital return from the 2021 divestments also supportive for the share price," RBC adds. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

03-02-22 0539ET