BOE Unlikely to Push Back Heavily Against Rate Rise Bets, Lifting Pound

BOE Unlikely to Push Back Heavily Against Rate Rise Bets, Lifting Pound

1144 GMT - The Bank of England is unlikely to push back strongly against lofty interest rate rise expectations at its June 22 meeting and this should support sterling unless U.K. inflation data on June 21 are surprisingly soft, ING says. "Markets are pricing almost six more rate hikes from here, and while we doubt the Bank of England would endorse that, we don't think it will want to push back heavily either given the recent tendency for inflation data to come in above expectations," ING analysts say in a note. "Expect a 25 basis-point rate hike next week and only vague guidance on what's likely to come next." ING expects GBP/USD to rise to 1.30 in the near term from 1.2809 currently. ([e-mail])

COMPANIES NEWS:

ITV Confirms It Is Considering All3Media Acquisition

ITV confirmed Friday that it was actively exploring the possible acquisition of U.K. film production company, All3Media

---

Currys Mulls Sale of Greek Business Kotsovolos

Currys said Friday it had started a strategic review of Greek business Kotsovolos, and that this could lead to its sale.

---

Tesco 1Q Group Retail LFL Sales Rose 8.2%, Backs FY 2024 Guidance

Tesco on Friday said its like-for-like group retail sales grew 8.2% in the first quarter of fiscal 2024 boosted by volumes and inflation, and reiterated its guidance for the full year.

---

Mears Sees 2023 Profits Materially Ahead of Market Views

Mears Group said Friday that the board expects 2023 profits to be materially ahead of current market expectations.

---

Travis Perkins Lowers Full-Year Profit Guidance on Challenging Market Conditions

Travis Perkins said Friday that is has lowered its full-year profit guidance due to lower volumes in both the new build housing and private domestic repair, maintenance and improvement markets.

---

CT Automotive 2022 Pretax Loss Widened; Confident on Meeting 2023 Views

CT Automotive Group on Friday said its pretax loss widened in 2022 but that it has seen an encouraging start to 2023 as operating conditions stabilize.

---

Invinity Energy Systems Expects Narrower 2022 Pretax Loss Than Anticipated

Invinity Energy Systems said Friday that it expects to report a materially narrower pretax loss and gross margin loss than anticipated for 2022.

---

ASA International Executive Director Aminur Rashid to Retire

ASA International Group said Friday that Executive Director Aminur Rashid will retire as of June 30 to spend time with his family.

---

Peel Hunt Swung to Pretax Loss in FY 2023 on Market Turmoil

Peel Hunt on Friday said it swung to a pretax loss in fiscal 2023, hit by low market activity and subdued investor sentiment, and said it has seen signs of activity picking up as well as a gradual improvement in its M&A pipeline since the start of the new fiscal year.

---

Dukemount Capital 1H Pretax Loss Narrows, Needs Extra Funds To Operate Beyond 12 Months

Dukemount Capital on Friday said its pretax loss for the first half of fiscal 2023 narrowed and that it will need extra funding to continue operating beyond the next 12 months.

---

IAG Launches Buyback Program of Up to EUR35 Mln

International Consolidated Airlines Group said Friday it had agreed to launch a buyback program of up to 35 million euros ($38.3 million) for share awards to executives and employees under its share-based incentive plans.

MARKET TALK:

ITV's Slowing Ad Revenue, Broadcast Operations Could Shift Focus to Production

1032 GMT - A slowdown in ITV's broadcasting operations and advertising revenue may require it to boost its focus on producing content it can sell globally, and in turn accelerate its M&A ambitions, Third Bridge analyst Sandeep Sharma says in a note. The broadcaster says it is considering buying U.K. production company All3Media. "While our expert interviews tell us that there are constraints in the availability of attractive production houses in the U.K. for M&A activity--with a majority of consolidators looking to acquire assets in Europe and Australia--and an increasing focus on 'premium factual' content versus scripted-content houses, All3Media still remains an attractive acquisition asset, if the transaction was to go ahead," Sharma says. Shares are down 0.5% at 69.72 pence. ([e-mail])

---

Centrica Will Likely Raise Shareholder Returns at 1H

1021 GMT - Centrica will likely discuss capital allocation and a cash return to shareholders via further buybacks at its interim results next month, Citi analysts Jenny Ping and Rory Graham-Watson write in a research note. The U.S. bank expects the energy company, which owns British Gas, to launch a GBP750 million buyback, previously GBP500 million, in addition to the current GBP550 million buyback program. "Even assuming this higher level of cash return, we continue to see Centrica's balance sheet in a net cash position for the years to come, supporting investments in flexible generation, and providing comfortable headroom to retain current credit rating," they say. Citi keeps a buy rating on the stock with an unchanged 135.00 pence price target. Shares are up 1.9% at 117.75 pence. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-16-23 0839ET