UK Recession Would Bring Down Gilt Yields

UK Recession Would Bring Down Gilt Yields

1119 GMT - A U.K. recession would allow the Bank of England to ease off raising interest rates and cause the recent sharp rise in gilt yields to reverse, says Capital Economics senior markets economist Thomas Mathews in a note. U.K. gilt yields have risen faster than their U.S. and eurozone peers due to continued rising expectations of the BOE peak rate and markets' assumption that the rates will remain higher for longer, Mathews says. "That probably reflects the U.K.'s particularly acute inflation problem," he says "We forecast gilt yields to fall over the next couple of years, even if it seems hard to rule out further rises in the near term." ([e-mail])

COMPANIES NEWS:

JD Sports to Buy Outstanding Stake in Iberian Sports Retail for EUR500 Mln

JD Sports Fashion said Friday that it plans to buy the 49.98% stake of Iberian Sports Retail Group it doesn't already own, for a total cash consideration of 500.1 million euros ($544.7 million).

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M.J. Gleeson FY 2023 Expected to Meet Views; New Year Looks Encouraging

M.J. Gleeson said Friday that it expects its fiscal 2023 results to meet expectations, as higher average selling price offset lower volumes, and said it has encouraging prospects for fiscal 2024.

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Quadrise to Raise up to GBP4 Mln to Progress Operations, Projects

Quadrise said Friday that it is seeking to raise up to 4 million pounds ($5.1 million) via a share placing and open offer and will use the money to progress operations and projects through to at least February 2024.

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Shell to Book Up to $3 Bln of 2Q Impairments, Upstream Production Fell on Quarter

Shell said Friday that it expects to book after-tax impairments of up to $3 billion for the second quarter of 2023, and that upstream production declined from the first three months of the year.

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YouGov Raises GBP51.2 Mln via Share Placing at 920 Pence

YouGov said Friday that it has now raised 51.2 million pounds ($65.2 million) via the share placing first announced late Thursday.

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Lok 'n Store Raises GBP20.5 Mln via Oversubscribed Placing, Retail Offer

Lok 'n Store Group said Friday that it has now raised 20.5 million pounds ($26.1 million) via the placing and retail offer outlined late Thursday, more than planned.

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Vast Resources to Raise GBP1.7 Mln via Discounted Placing

Vast Resources said Friday it will raise 1.7 million pounds ($2.2 million) via a discounted placing and that it will use the funds to meet current obligations in Romania and at the corporate level.

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1Spatial Secures New Customers Despite Protracted Sales Cycles

1Spatial said Friday that it has secured several new customers despite protracted sales cycles, and that the investments made in fiscal 2023 and at the start of the current fiscal year have helped grow its sales pipeline.

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CMC Markets CFO Euan Marshall to Resign

CMC Markets said Friday that Chief Financial Officer Euan Marshall has resigned with effect from January to become CFO at IntegraFin Holdings.

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Electric Guitar PLC Reverses Into 3radical in GBP3 Mln All-Share Deal

Electric Guitar said Friday that it has agreed buy 3radical for 3 million pounds ($3.8 million) in an all-share deal that is classified as a reverse takeover under London Stock Exchange rules.

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ProCook Names Lee Tappenden as Incoming CEO

ProCook Group said Friday that Lee Tappenden is expected to take over as CEO from early October, succeeding Daniel O'Neill.

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IntegraFin Appoints Euan Marshall CFO

IntegraFin Holdings said Friday that Euan Marshall has been appointed chief financial officer and will join the company once released from his current employment at CMC Markets, where he is CFO.

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OSB to Book Up to GBP180 Mln Interest Rate Reversion Adjustment in 1H Accounts; Shares Fall

Shares of OSB Group fell 17% in early trade on Friday after the company said late Thursday that it expects to book an interest rate reversion adjustment of up to 180 million pounds ($229.4 million) in its half-year accounts.

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Caspian Sunrise Shares Rise on Swing to 2022 Pretax Profit, Lifting of Share Suspension

Shares in Caspian Sunrise rose Friday after the company said it swung to a 2022 pretax profit as revenue rose on strong oil prices, and that the suspension of its shares was lifted earlier in the day.

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Quartix Technologies' CTO Laura Seffino Steps Down From Board to Focus on Development

Quartix Technologies said Friday that Chief Technology Officer Laura Seffino has resigned from the board, to focus on delivering on the company's technology roadmap and continued development of her team.

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Pendragon's COO Martin Casha to Stand Down in November; Role Won't Be Replaced

Pendragon said Friday that Chief Operating Officer Martin Casha will stand down on Nov. 7 to take up a chief executive officer position at Marshall Motor Group, and that it won't replace his role.

MARKET TALK:

UN Maritime Regulator Fails To Adopt Carbon Tax

0719 ET - The International Maritime Organization, the UN maritime regulator, agrees on a revised strategy to reach net zero carbon emissions by ocean going vessels "by, or around 2050" compared with a 50% cut, which was the goal until now. But the body failed to adopt a global carbon tax to finance the green transition -- estimated to cost up to $3 trillion -- after opposition by China and a number of developing countries which argued the carbon levy will boost the cost of their exports. "Although net zero was adopted, It's pretty disappointing," a northern European IMO delegate said. "There is no firm commitment on a specific year, no real intermediate goals and more importantly we haven't figured out where the money to make it happen will come from." ([e-mail])

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European Stocks Trade Mixed After Asia Closes Lower

1056 GMT - European stocks trade mixed after downbeat Asia trading and ahead of a likely broadly flat U.S. open. The Stoxx Europe 600 advances 0.1% and the DAX and CAC 40 rise about 0.4%, though the FTSE 100 drops 0.3%. IG futures show the Dow opening at 33924, versus Thursday's close of 33922. Asia stocks closed lower, with markets in Australia and Japan falling more than 1%. "Markets come into today's U.S. non-farm payroll report under severe pressure, having seen yields spike in recent days as strong data and hawkish commentary combine to boost expectations of a fresh round of hikes by central banks," IG analysts write. "Even Japan is showing signs of inflation; wage growth in May was much higher than expected." ([e-mail])

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JD Sports' Iberian Acquisition Offers Further Growth in European Markets

1035 GMT - JD Sports' acquisition of the remaining stake of Iberian Sports Retail Group provides improved growth control in the appealing European markets, Peel Hunt analysts say in a note as shares rise 1.3%. The news comes a week after the fashion retailer reported franchises opening in the Middle East, showing that the group's expansion plans span the globe, the analysts say. "We continue to believe that the global growth story here is materially undervalued, and reiterate our buy on the shares," they say. ([e-mail])

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Coca-Cola HBC Delivers Growth in Varied Environments

0957 GMT - Coca-Cola HBC significantly upgrades 2023 guidance following a very strong June, signaling a good start to the key summer selling season, Investec analyst Alicia Forry says in a note. The bottling company is exposed to tourist destination markets such as Greece, Italy and Croatia, and 1H sales are expected to be up double digits, Forry says. Moreover the company made no mention of the recent devaluation of the Nigerian naira--Nigeria is the company's third-largest market and generated 11% of net revenue in 2022--which suggests it hasn't had a significant effect, she says. "We are particularly impressed by the company's revenue growth management capabilities, which allows it to deliver growth in almost any consumer environment," Forry says. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

07-07-23 0751ET