Sterling Likely to Be Driven by External Factors This Week
0855 GMT - Sterling will be entirely driven by external factors this week given a lack of U.K.-specific catalysts, ING says. The Federal Reserve's policy decision at 1800 GMT may not have a sizeable impact on GBP/USD as the central bank could deliver a 25 basis-point interest-rate rise before pausing, as widely expected, ING analyst Francesco Pesole says in a note. However, EUR/GBP faces "downside risks" later this week--potentially falling to 0.8750-0.8780--as the European Central Bank's meeting on Thursday may fall short of the market's "hawkish" pricing for further rate rises in the eurozone, he says. EUR/GBP falls 0.1% to 0.8818 and GBP/USD rises 0.5% to 1.2522. (renae.dyer@wsj.com)
Companies News:
Haleon 1Q Pretax Profit Rose, Says Performance Was Strong Across All Categories
Haleon said Wednesday that pretax profit for the first quarter of 2023 has increased on the back of a robust performance across all categories and areas.
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Lloyds Banking Backs 2023 Guidance After 1Q Pretax Profit Beat
Lloyds Banking Group PLC on Wednesday maintained its full-year guidance as it posted better-than-expected pretax profit for its first quarter on strong net income and capital generation.
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Barratt Developments' Home Completion Fall; Sees FY 2023 in Line
Barratt Developments said Wednesday that it has completed fewer homes from Jan. 1 to Apr. 23, and that its outlook for fiscal 2023 ending June 30 is in line with expectations.
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RS Group CFO David Egan Resigns
RS Group said Wednesday that Chief Financial Officer David Egan has resigned from the role and as a director with immediate effect.
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Johnson Matthey Sells Diagnostic Services for GBP55 Mln
Johnson Matthey said Wednesday that it has sold its Diagnostic Services to Sullivan Street Partners and Souter Investments for 55 million pounds ($68.6 million) in cash.
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Intertek Sees Return to Peak Margins With New Growth Strategy, 2023 in Line With Views
Intertek Group said Wednesday that it sees 2023 trading in line with its guidance as it outlined its Intertek 30 AAA growth strategy.
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Wickes Sees 2023 in Line With Views
Wickes Group said Wednesday that its 2023 performance is in line with expectations after an encouraging start.
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Metro Bank 1Q Loans Rose on Year, Deposits Slipped
Metro Bank on Wednesday said that it was profitable on a statutory basis in the first quarter as loans increased on year, though deposits and assets edged lower.
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Gym Group Appoints Will Orr as CEO
Gym Group said Wednesday that it has appointed Will Orr as its chief executive and that he is expected to start later in 2023.
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TI Fluid Systems 1Q Revenue Rose on Growth Across Segments; Backs 2023 View
TI Fluid Systems said Wednesday that revenue climbed 15% in the first quarter of 2023 as revenue across segments and regions grew, and that it backs its full-year guidance.
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Reach's Four-Month Revenue Fell; Backs Market Views for 2023 Profit
Reach said Wednesday that revenue fell 5.9% in the four month period to April 23 against strong comparatives, but that its 2023 profit expectations remain in line with market views.
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Andrews Sykes 2022 Pretax Profit Rose on Record Revenue
Andrews Sykes Group PLC said Wednesday that pretax profit for 2022 rose on the back of record levels of revenue and profitability.
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Ashtead Technology 2022 Pretax Profit Rose, Sees 2023 Performance Ahead of Previous Views
Ashtead Technology Holdings said Wednesday that pretax profit soared for 2022 as revenue surged on organic growth and favorable foreign-exchange rates, and that it expects its performance for this year to be ahead of its previous expectations.
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OSB Group Raises 2023 Loan-Book Guidance After 1Q Growth, Demand
OSB Group on Wednesday raised its full-year loan guidance due to current demand and growth in its net loan book during the first quarter.
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Aston Martin 1Q Pretax Loss Narrowed as Revenue Jumped 27% on Volumes, Pricing
Aston Martin Lagonda Global Holdings said Wednesday that its pretax loss narrowed in the first quarter as revenue rose on higher volumes and strong pricing, and that it backed its 2023 targets.
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Watches of Switzerland CFO to Stand Down; Appoints Anders Romberg as Successor
Watches of Switzerland Group said Wednesday that Chief Financial Officer Bill Floydd will be standing down from May 12 by mutual agreement, and that Anders Romberg will assume the role.
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Lords Group 2022 Pretax Profit Rose on Robust Performance; Backs Mid-Term Views
Lords Group Trading said Wednesday that pretax profit for 2022 rose on the back of record levels of revenue, reiterated its medium-term targets and raised its dividend payout.
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Hotel Chocolat Appoints Stephen Alexander as Nonexecutive Chairman
Hotel Chocolat Group said Wednesday that it has appointed Stephen Alexander as its nonexecutive chairman, effective May 5.
Market Talk:
Lloyds' 1Q Decline in Customer Deposits Shows Focus Should Shift Beyond Profits
0951 GMT - Lloyds Banking Group's decline in customer deposits as customers shop around for better rates is something to keep an eye on as Bank of England rates remain high, AJ Bell says after the lender posted first-quarter profits ahead of expectations boosted by interest income. It is hard not to ignore the GBP2.2 billion reduction in customer deposits brought about by a more competitive market for deposits meaning banks have to work harder to lure customers in, investment director Russ Mould says in a market comment. "Rates staying at these elevated levels will continue to put pressure on consumers and businesses, meaning that banks in general will need to stay focused on customer arrears rather than simply look at the profit line," Mould says. Shares tumble 3.6% at 46 pence. (elena.vardon@wsj.com)
Haleon's Margin Squeeze Shows Struggle to Pass On Costs
0946 GMT - Haleon's 1Q showed the business coming under pressure, with earnings missing expectations amid a squeeze on margins, AJ Bell investment director Russ Mould says in a note. The consumer-healthcare business's fall in profitability indicates that the group is struggling to pass on increased costs to consumers, or that it has made the decision to sacrifice margins in order to preserve volumes, Mould says. "There is no right or wrong answer to this conundrum, but it may see investors reappraise the business and suggests the competitive threat posed by own-brand alternatives is a real one," he adds. Shares fall 3.5%. (michael.susin@wsj.com)
Barratt Developments Looks Well-Supported for Future
0946 GMT - Barratt Developments has posted a reassuring business update pointing to a healthy order-book and supporting full-year expectations, though it's unlikely to shift market consensus forecasts, Citi says. The house builder's recent performance--including private sales for the second half to date--look encouraging and the company has reiterated its target to deliver completions in the range of 16,500 to 17,000 units, Citi analyst Ami Galla says in a research note. "[Barratt] looks well-positioned to benefit from the sequential demand recovery and the current balance sheet and outlet position provides a strong platform to deliver earnings recovery in fiscal 2025 and beyond," Galla says. The U.S. bank retains its buy rating and 533 pence price target. Shares are down 0.9% at 500.6 pence. (joseph.hoppe@wsj.com)
LLoyds Banking Drops as Net Interest Income Falls Short
0932 GMT - Lloyds Banking Group shares lose hold of earlier gains, dropping more than 1% after the U.K.-focused bank reported slightly lower-than-expected first-quarter net interest income. While 1Q underlying pretax profit topped forecasts due to lower-than-expected costs and impairments, NII came in 1% worse than the market anticipated, Citigroup says. "A somewhat uneventful set of results, but we still believe full-year guidance could be increased with the interims. We have a buy rating," Citi analysts say in a note. (philip.waller@wsj.com)
HSBC's Footprint Looks Structurally Attractive
0930 GMT - HSBC's stars are more clearly aligned than before, Berenberg says in a note after the bank published strong activity in its first-quarter results. The lender's structural strength was previously eclipsed by cyclical headwinds and uncertainty related to its restructuring but higher interest rates have recently supported its returns, analyst Peter Richardson says. Restructuring risks are now modest, he says. "Strengthening activity, particularly in Asia, provides further cyclical support, and growth can be supported further by the bank's recent investments," Richardson says. HSBC's returns and growth are undervalued, he notes. Berenberg raises its rating on the bank's stock to buy from hold. Shares have gained 16% in the year to date. (elena.vardon@wsj.com)
UK Financial Regulator's Move to Ease Listing Rules Aims to Keep the Party Going
0923 GMT - The U.K. government and Financial Conduct Authority have been stung hard by the loss of the crown jewel of the domestic tech sector, Arm Ltd., to the U.S. market, AJ Bell says after the FCA proposed changes to its listing rules. "Like a bouncer at a nightclub, the London market has traditionally adopted a stricter dress code than most when it comes to listing rules, whether in the form of restricting dual-listings, votes on major transactions or requiring fuller levels of disclosure when raising capital," managing director Kevin Doran says in a press comment. The proposal is akin to asking club-goers whether they're willing to let the trainer wearing ruffians in, in order to keep the party going, he says. (elena.vardon@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
05-03-23 0639ET
