Pound Falls Despite Solid UK Retail Sales, Still Hurt by Weaker Inflation

Pound Falls Despite Solid UK Retail Sales, Still Hurt by Weaker Inflation

1057 GMT - The pound falls, failing to benefit from solid U.K. retail sales as it continues to suffer after this week's below-forecast inflation figures, writes Matthew Ryan at Ebury. The data showed U.K. retail sales rose by 0.7% in June, much more than the 0.2% increase expected in a WSJ poll. The pound has been one of the main underperformers this week and its reaction to better-than-expected retail sales has been very limited, he says. "This can be largely attributed to this week's UK inflation miss, though stretched investor positioning has also likely contributed to the move," he says. GBP/USD falls 0.1% to 1.2849, while EUR/GBP rises 0.1% to 1.1127. ([e-mail])

COMPANIES NEWS:

FirstGroup FY 2024 Performance in Line So Far; To Launch Buyback Program of Up to GBP115 Mln

FirstGroup said Friday that its fiscal 2024 performance in the year-to-date has been in line with expectations.

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DP Poland 1H Sales Up 18% on Higher Order Count

DP Poland said Friday that first-half like-for-like sales rose 18% on year, supported by an 11% rise in order count, and that it expects its performance to continue improving as it remains optimistic about its outlook.

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THG Confirms Sale of Loss-Making Units for GBP4 Mln

THG said on Friday that it has sold THG OnDemand and ProBikeKit for a total consideration of around 4 million pounds ($5.1 million) following a conclusion of its strategic review of loss-making areas within the THG OnDemand division.

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Liontrust Asset Management Says Takeover Offer for GAM Holding Won't Be Increased

Liontrust Asset Management on Friday said its offer to buy Zurich-listed investment manager GAM Holding is final and won't be increased.

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BowLeven Says It is Unaware of Reasons for Share-Price Surge; Fundraise Planning Continues

BowLeven said Friday that it wasn't aware of any particular reason for the sudden increase in the price of its shares, and that planning for an additional equity raise continued.

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Petershill Partners' 2Q Aggregate Assets Under Management Rose

Petershill Partners on Friday said its aggregate assets under management rose over the second quarter of 2023 and kept its full-year guidance for raising organic gross fee-eligible AUM.

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Premier African Minerals Loans GBP1.7Mln From CEO

Premier African Minerals said Friday that it has entered into a loan facility agreement of up to 1.7 million pounds ($2.2 million) with Chief Executive George Roach.

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Keywords Studios Agrees on New $400 Mln Loan to Replace Previous EUR150 Mln Facility

Keywords Studios said Friday it had agreed on a $400 million loan and that this replaced its previous 150 million-euro ($167 million) unsecured multicurrency revolving credit line.

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Thruvision FY 2023 Pretax Loss Narrowed, Boosted by Order Intake From US Customer

Thruvision Group said Friday that its pretax loss narrowed in fiscal 2023 as revenue increased due to strong order intake from a U.S. customer.

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Star Phoenix AIM Shares Cancelled After Failing to Appoint Nominated Adviser

Star Phoenix Group said Friday that trading of its shares on AIM had been cancelled effective today after failing to appoint a nominated adviser.

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European Metals Holdings Agrees to EUR6 Mln Investment for Czech Lithium Project

European Metals Holdings said Friday that the European Bank for Reconstruction and Development will invest 6 million euros ($6.7 million) to support the development of its lithium project at Cinovec in the Czech Republic.

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DWF Group Shares Rise After Takeover Confirmation By Inflexion Private Equity

Shares in DWF Group rose on Friday after Inflexion Private Equity Partners confirmed it is buying the company in a recommended all cash offer valuing it at 342 million pounds ($440.1 million).

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LKQ, Uni-Select Merger Could Harm Competition in Car-Parts Supply, UK Regulator Says

The U.K. Competition and Markets Authority said Friday that auto parts supplier LKQ's purchase of Uni-Select could reduce competition in the supply of car parts and garage equipment.

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Trading Places: Deutsche names new UK CEO, Kraken hires in London, Hargreaves chair steps down -- Financial News

Find out who is on the move in the City and beyond this week

MARKET TALK:

Watkin Jones Forecasts Slashed by Davy after Surprise Hit to Financial

1107 GMT - Watkin Jones has unsurprisingly had a challenging last couple of months--but the scale of the financial hit was more significant than expected in its Wednesday update, Davy Research says. The U.K. property developer's update laid bare the effect of a customer base that had to take a big step back from the market following a significant increase in interest rates, says Davy analyst Colin Sheridan in a research note, cutting operating profit forecasts for fiscal 2024 by 68% to GBP18.0 million. "We materially reduce earnings forecasts today, although our intrinsic valuation suggests the market has priced in further material issues," the Irish research firm says. Davy retains its outperform rating on the stock but cuts its target price to 103 pence, from 247 pence. Shares are flat on 45.4 pence. ([e-mail])

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Centamin's Egypt-Field Results Could Drive Shares Up

1100 GMT - Centamin took a step closer to unlocking Egypt's greenfield frontier by signing a new agreement with the goverment, and the expected 4Q-release of drilling results should be a strong catalyst for shares, Berenberg analyst Richard Hatch writes in a research note. The regulatory framework confirms the gold miner's progress toward unlocking the underexplored potential of the highly-prospective Eastern Desert, and Egypt more broadly, Hatch says. Berenberg anticipates drilling results released from 4Q, which should positively drive shares, the analyst says. "Centamin reports interim results on July 26, where we will look for comments on exploration activity in 2Q and going into 2H." Berenberg rates the stock a buy, with a 145-pence price target. ([e-mail])

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Anglo American's 2H Seen to Shape Up Better than 1H

1027 GMT - Anglo American booked stable 1H production output, leading to a small negative impact on estimates, as the second half looks to carry upside, Berenberg analyst Richard Hatch writes in a research note. "We have been cautious on Anglo American going into results, with the view that issues across its portfolio would weigh on the numbers... but the operational update on July 20 was fairly stable," Hatch says. The second half-year is shaping up to be better for the multinational miner, and pending equally solid results week next week, shares could enjoy a better 2H, he says. Berenberg rates the stock at hold, with a 2,600-pence price target. ([e-mail])

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Next's Guidance, Total Platform Valuation Boost Profit Forecasts

1023 GMT - Next's FY 2024 guidance upgrade and an improved valuation of its Total Platform offering is likely to drive profits ahead of expectations for the year ending Jan. 28, Barclays analysts James Anstead and Nicolas Champ say in a note, reffering to the brand's ecommence service for third parties. The retailer is anticipated to report a FY 2024 pretax profit of GBP850 million, above its updated guidance of GBP835 million, they say. The update includes an EPS upgrade of 5.2% for the current year and 3.5% in FY 2025, they add. "We continue to see Next as a best-in-class operator with the ability to grow its top line at the same time as generating strong cash flows," they add. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

07-21-23 0754ET