BOE Expected to Opt for Smaller Interest-Rate Increase at
December Meeting
1227 GMT - The Bank of England is expected to scale down its
interest-rate hiking pace at the December meeting and opt for an
increase of 50 basis points, Oxford Economics chief U.K. economist
Andrew Goodwin says in a note. Calmer financial markets, a stronger
pound, and less generous energy support to households should tip
the balance toward a smaller increase, he says. Still, inflation
remains high and the labor market is tight, so further
interest-rate increases are likely on the way even if the BOE
believes the U.K. economy is already in a recession, Goodwin says.
One or two members of the Monetary Policy Committee may favor an
even smaller rise or even holding rates at the Dec. 15 meeting, he
says. (xavier.fontdegloria@wsj.com)
Companies News:
Hipgnosis Songs 1H Loss Narrows on Streaming Growth
Hipgnosis Songs Fund Ltd. said Thursday that its first-half loss
narrowed as revenue rose after strong growth from streaming.
---
S&U Sees FY 2023 Positive Performance Despite Challenging
Backdrop
S&U PLC said Thursday that is performing well despite the
macroeconomic uncertainty and it expects the current trend to
continue for the remainder of the fiscal year.
---
Purplebricks 1H Pretax Loss Widens; Sees Recovery Plan Bearing
Fruit in 2H
Purplebricks Group PLC said Thursday that its pretax loss for
the first half of fiscal 2023 widened on lower revenue and higher
operating costs, but backed its full-year guidance as it sees
financial benefits of its recovery plan in the second half.
---
Tullow Oil Appoints Richard Miller as Permanent Chief Financial
Officer
Tullow Oil PLC said Thursday that it has appointed Richard
Miller as chief financial officer from Jan. 1, having held the role
on an interim basis since April.
---
Balfour Beatty Sees Revenue Ahead on Year, Profit Ahead of
Views
Balfour Beatty PLC said Thursday that full-year revenue is seen
ahead on year and profit is seen ahead of market expectations.
---
In The Style Swung to 1H Pretax Loss on Rising Costs, Lower
Revenue
In The Style Group PLC on Thursday reported a swing to pretax
loss in the first half of fiscal 2023, driven by higher costs and
lower revenue, as consumer sentiment deteriorated amid the
uncertain macroeconomic outlook.
---
MyCelx Technologies Shares Jump as It Expects to Post in Line FY
Results
Shares in MyCelx Technologies Corp. jumped 26% on Thursday after
the company said that it expects to end 2022 in line with market
expectations.
---
Trakm8 Swung to 1H Pretax Loss on Lower Sales, Higher Costs
Trakm8 Holdings PLC on Thursday reported a swing to a half-year
pretax loss on the back of lower software sales and higher material
costs, but said it is confident of meeting market expectations.
---
Thungela Sees 2022 Coal Production Below Views Due Rail
Disruption
Thungela Resources Ltd. said Thursday that coal production for
2022 is expected to be below previous guidance, dragged by
rail-transport disruptions.
---
On the Beach Shares Drop as CEO-Founder to Step Down; Swung to
FY 2022 Pretax Profit
On the Beach Group PLC shares dropped 14% on Thursday after it
said that founder and Chief Executive Simon Cooper will step
down.
---
Mears Group Expects to Beat 2022 Forecasts After Strong
Performance to Date
Mears Group PLC said Thursday that it has continued to
experience strong trading since the half-year earnings report in
August and therefore expects to beat full-year market forecasts for
revenue and adjusted pretax profit.
---
Seraphine 1H Pretax Loss Narrowed; Expects Positive 2H
Ebitda
Seraphine Group PLC on Thursday reported a narrowed pretax loss
for the first half of fiscal 2023 despite lower revenue after
booking an exceptional charge in its accounts last year, and said
it expects the second half to be profitable on an Ebitda basis.
---
Netcall Says Solid FY 2022 Momentum Has Continued Into 1H
Netcall PLC said Thursday that the solid momentum experienced in
fiscal 2022 has continued into the first half of the new year, with
increasing demand for its cloud solutions.
---
Focusrite Shares Drop After FY 2022 Pretax Profit Fell Amid
Increased Costs
Shares in Focusrite PLC slid 11% on Thursday after the company
said pretax profit for fiscal 2022 fell as costs increased.
---
Falanx Shares Fall After 1H Pretax Loss Widened
Falanx Group Ltd. shares fell as much as 13% on Thursday after
the company reported a widened pretax loss in the first half of
fiscal 2023 on increased investments in sales and marketing
designed to boost growth.
---
Vertu Motors Buys Helston Garages for GBP182 Mln
Vertu Motors PLC said Thursday that it is buying Helston Garages
Group Ltd. for 182 million pounds ($222.2 million), as flagged last
month.
---
Aferian Expects to Meet FY 2022 Expectations
Aferian PLC said Thursday that trading has finished the year in
line with its expectations and it expects to announce full-year
results consistent with the guidance ranges.
---
Bluebird Merchant Ventures Raises GBP230,000 to Fund Korean Gold
Mine
Bluebird Merchant Ventures Ltd. said Thursday that it raised
230,000 pounds ($280,761) through a share issue, which will be used
to fund a permit to develop its Kochang gold and silver mine in
South Korea.
---
Aukett Swanke CEO Nicholas Thompson to Retire Dec. 31; Robert
Fry Named Successor
Aukett Swanke Group PLC said Thursday that Chief Executive
Officer Nicholas Thompson is retiring on Dec. 31 after 17 years in
the role, and will be replaced by Robert Fry from Jan. 1.
Market Talk:
Euro, Sterling Vulnerable Amid Europe's Energy Crisis
1110 GMT - The euro and sterling look vulnerable due to Europe's
energy supply issues as the Ukraine war persists, Legal &
General Investment Management says. "I think we have to be a bit
more cautious and humble with euro and sterling simply because of
the direct impact still of the energy crisis and the geopolitical
situation," LGIM chief investment officer Sonja Laud says in a
webinar. This may change to some extent throughout 2023 but for now
the outlook is uncertain, she says. GBP/USD falls 0.3% to 1.2160,
EUR/GBP rises 0.3% to 0.8636 and EUR/USD drops 0.1% to 1.0500.
(renae.dyer@wsj.com)
---
DS Smith Seen as Performing Well in Challenging Environment
1128 GMT - DS Smith's first-half update was solid overall
against a challenging backdrop, with the primary driver of
performance being increased pricing, Goodbody's David O'Brien says
in a research note. The packaging company's key takeaways were
challenges in Northern Europe amid lower organic box volumes--the
U.K. and Germany showed lower levels of decline--and Southern
Europe being more resilient, though it did experience some decline,
he says. Goodbody has a buy recommendation on the stock. Shares
trade up 1.3% at 321.10 pence. (kyle.morris@dowjones.com)
---
Tackling Climate Change Has Inflationary Impact
1142 GMT - The transition that is essential to tackle climate
change is likely to be inflationary, and the same is true for
de-globalization, says Sonja Laud, chief investment officer at
Legal & General Investment Management, in a webinar. "All else
equal, we know that globalisation was in fact disinflationary," she
says, adding that this was linked to the efficiency of global
supply chains and a global labor force. "We have to assume that all
else equal, de-globalization will be inflationary," she says. The
U.K. and Europe will suffer the most from the energy crisis, which
is hitting consumers very directly, she says, adding that recession
is imminent. (emese.bartha@wsj.com)
---
Sterling Unlikely to Benefit Much if Dollar Falls
1201 GMT - Sterling may not benefit materially from potential
seasonal weakness in the dollar in December given evidence of a
weakening U.K. economy, ING says. A Royal Institution of Chartered
Surveyors survey on Thursday showed respondents are the most
negative on the outlook for U.K. house prices since May 2020, which
isn't surprising given the cost of living crisis and tightening of
fiscal and monetary policy, ING analyst Chris Turner says in a
note. "Despite seasonal weakness in the dollar, we really struggle
to see GBP/USD trading much higher and for those corporates with
USD needs or GBP receivables, we see these 1.22-1.23 levels as
perhaps the best GBP/USD levels for the next three to six months."
GBP/USD falls 0.2% to 1.2169. (renae.dyer@wsj.com)
---
Balfour Beatty Looks a Winner Given Share Price Growth
1214 GMT - Balfour Beatty has proven itself to be a stock market
winner this year, defying market turmoil and macroeconomic
headwinds to stage a share price rally of more than 25%
year-to-date, Interactive Investor says. The house builder's share
price took a hit in early 2022, reflecting geopolitical uncertainty
caused by Putin's invasion of Ukraine, but since the March trough,
shares have been enjoying an impressive uptrend, Interactive
Investor head of investment Victoria Scholar says in a market
comment. "Balfour Beatty has benefited from a weaker pound,
positive net interest income thanks to the rising rate environment
and smaller tax charges, [and] it has also won a number of key
contracts in the U.K., the U.S. and in Hong Kong," Scholar says.
Shares are up 3.7% at 343.8 pence. (joseph.hoppe@wsj.com)
---
Frasers's Backdrop Uncertainties Could Have Prompted Share
Drop
1225 GMT - Frasers's shares are down 9.7%, becoming Thursday's
worst performer on the FTSE 100 as its comments about uncertainties
regarding macroeconomic challenges could be weighing on investors
sentiment, head of investment at Interactive Investor Victoria
Scholar says in a note. However, the U.K. sports-fashion company's
strategy of key partnerships with strong brands seems to be
positioning Frasers as one of the winners in a struggling sector,
she notes. "Although Frasers group's shares had a difficult first
half of the year, since mid-October when investor risk appetite
returned, shares have staged an impressive surge of almost 50% off
the intraday lows," Scholar highlights. On a year-to-date basis,
Frasers shares are up 4.8%. (michael.susin@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
December 08, 2022 08:22 ET (13:22 GMT)
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