Sterling Could Extend Losses if UK Inflation Eases Further
1049 GMT - Sterling faces further declines if upcoming data show a further cooling in U.K. inflation ahead of the Bank of England's next policy meeting on March 23, MUFG Bank says. Data Wednesday showed U.K. inflation eased by more than expected in January, which indicated the potential for the BOE to pause its interest-rate rise cycle in March, MUFG analyst Derek Halpenny says in a note. A 25 basis points rate rise in March was more than priced in after Tuesday's U.K. employment data, but has now dropped to 80%, he says. There's "ample scope" for rate expectations to fall further if February inflation data eases further, which would weigh on sterling, he says. (renae.dyer@wsj.com)
Companies News:
Smith & Nephew Appoints Rupert Soames Chair Designate; Roberto Quarta to Retire
Smith & Nephew PLC said Friday that Rupert Soames has been appointed chairman effective Sept. 15, replacing Roberto Quarta, who is retiring this year.
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Segro Swung to 2022 Pretax Loss on Valuations Although Adjusted Profit Rose
Segro PLC said Friday that it swung to a pretax loss in 2022 on an unrealized valuation deficit in the portfolio, though adjusted pretax profit and revenue rose.
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NatWest Launches GBP800 Mln Buyback After 4Q Pretax Profit Beat Views
NatWest Group PLC on Friday posted a rise in pretax profit for the fourth quarter of 2022, which came in slightly ahead of market views, and said it intends to start a share buyback program of up to 800 million pounds ($959 million) in the first half of 2023.
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Pod Point 2022 Pretax Loss Widened on Higher Costs; Revenue Rose
Pod Point Group Holdings PLC said Friday that revenue for 2022 rose but that its pretax loss widened as costs increased.
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Purplebricks Group Hangs Up 'For Sale' Sign; Cuts FY 2023 Guidance
Purplebricks Group PLC on Friday launched a strategic review of the business which could lead to a sale of the company or some or all of its business and assets.
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Kingspan Group Warns of Tough 2Q Comparative After 2022 Pretax Profit, Revenue Rose
Kingspan Group PLC said Friday that the second quarter of 2023 has a tough comparative as it reported a rise in 2022 pretax profit and revenue as trading profit reached record levels.
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EnQuest Sees Lower Production, Higher Costs in 2023
EnQuest PLC on Friday said it expects its 2023 production in a range lower than its 2022 average with higher operating and cash capital expenditures.
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Rambler Metals' Pauses Mine Operations Pending Delivery of Supplies
Rambler Metals & Mining PLC said Friday that while it continues discussions around its financial restructuring, it has decided to pause operations, pending the delivery of key supplies to its Ming copper mine in Canada.
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EnSilica 1H Pretax Loss Narrowed, Revenue Rose; Secures EUR5 Mln Contract
EnSilica PLC said Friday that its first half pretax loss narrowed and revenue rose, and it secured a 5 million euro ($5.3 million) contract.
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SolGold Says Completion of Cornerstone Deal Delayed
SolGold PLC said Friday that it expects the Cornerstone Capital Resources Inc. transaction to close during the week starting Feb. 27 after experiencing delays in its completion.
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Atlantic Lithium in Talks With Potential Investor
Atlantic Lithium Ltd. said Friday that it is in talks with Minerals Income Investment Fund of Ghana over a potential $30 million investment in the company.
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Harland & Wolff Finalizes Saipem Contract Payment, To Cut Methil Workforce
Harland & Wolff Group Holdings PLC said it has concluded negotiations around its amended contract with Saipem Ltd. and that it intends to reduce staff at its Methil facility.
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HealthBeacon Says 1H 2022 Challenges Continue to Subside; Backs Guidance
HealthBeacon PLC said Friday that availability and cost pressures experienced in the first half of 2022 have continued to subside, and backed its revenue guidance.
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Tasty Names New CFO
Tasty PLC said Friday that Chief Financial Officer Mayuri Vachhani will step down and leave the company at the end of March to pursue other opportunities, and named Ian Davies her replacement.
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Zaim Credit Systems to Ask Shareholders to Remove Director, Change Name
Zaim Credit Systems PLC said Friday that it will ask shareholders at a general meeting to vote on resolutions to remove Vladimir Golovko from the board with immediate effect, and to change the company name to Adalan Ventures PLC.
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Maintel Holdings CEO Ioan MacRae Resigns
Maintel Holdings PLC said Friday that Chief Executive Ioan MacRae has resigned with immediate effect.
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Tertre Rouge Assets Shares Restored to Trading
Tertre Rouge Assets PLC said Friday that its shares have been restored to trading following the publication of its interim results.
Market Talk:
EnQuest's Windfall Tax Complaints Unlikely to Get Sympathy, AJ Bell Says
1015 GMT - Sympathy for EnQuest's lower 2023 guidance, which it blames on changes in the U.K.'s energy profits levy, is likely to be in short supply, AJ Bell says in a market comment. "Can anybody locate the world's tiniest violin? Despite booking record cash flows, North Sea oil and gas producer EnQuest is vocal in complaining about the windfall tax," investment director Russ Mould says, adding that the group's move to abandon a planned drilling at its Kraken field may provoke concern at a time when the country needs all the domestic production it can get. Shares drop 10.4% at 19.12 pence, their lowest price January 2022. (elena.vardon@wsj.com)
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Uncertainty in UK Gilt Market as Inflation and Labor Data Provide Mixed Signals
1040 GMT - The U.K. gilt market is uncertain about the extent of interest rate increases by the Bank of England in the near term after the latest labor market data and inflation data provided mixed signals, Barclays fixed income strategist Moyeen Islam says in a note. The latest U.K. labor market report showed strong wage growth in 4Q 2022 while the latest inflation data showed a fall in services inflation in January. "Given this uncertain outlook, it is not surprising that the market cannot find a base at which to consolidate," he says. (miriam.mukuru@wsj.com)
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NatWest Shares Drop as 2023 Income Forecast Falls Short
1051 GMT - NatWest Group tops the FTSE 100 fallers, down 6% after the U.K. bank forecast worse-than-expected income this year. Income for 2023 is now guided to be lower than expected, with the key net interest margin metric falling short and costs also set to top forecasts, AJ Bell says. "While impairments are anticipated to be a bit lower than estimates, the market may be cautious of taking NatWest at its word, given the difficult backdrop for consumers and businesses," AJ Bell investment director Russ Mould writes. Forecast income of about GBP14.8 billion compares with market expectations of GBP15 billion, Citigroup says. "On balance, we expect these results to be met with disappointment on the weaker 2023 outlook," Citi analysts write. (philip.waller@wsj.com)
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Vodafone Considering Options for Vodacom Stake
1059 GMT - Vodafone is reportedly exploring options for its controlling Vodacom stake to extract more value and this could involve selling a stake, divesting certain assets or merging assets, Jefferies analysts Jerry Dellis and Yi Hsin Yeoh say in a research note. For any Vodacom transaction to imply upside to Vodafone shares, it is necessary to believe that either Vodacom's growth potential is underestimated and/or a transaction could unlock significant synergies, they say. Any full Vodacom stake sale could lead to a buyback at the U.K.-based telecommunications company, they add. Jefferies has a hold rating on the stock with a 85.00 pence price target. Vodafone shares trade up 0.2% at 101.70 pence. (kyle.morris@dowjones.com)
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Risks to NatWest's ROTE Delivery Seen Higher, UBS Says
1103 GMT - NatWest's indicated near-term peak in net interest margin casts doubts on whether the bank can realistically deliver its targeted return on tangible equity as net interest income will likely fall on lower rates, UBS says in a note. "The acid test: If NIM is peaking this soon, can ROTE be defended in 2024/5?" ask analysts Jason Napier and Sanjena Dadawala. If the bank is successful, the stock still looks good value, but the risks to delivery are higher than previously thought, they say. UBS has a buy rating on the stock. Shares fall 6.8% at 284.7 pence.(elena.vardon@wsj.com)
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EnQuest Drops After Forecasting Lower 2023 Output
1114 GMT - Shares in EnQuest drop 11% after the North Sea oil & gas company forecast lower production and higher operating costs in 2023 than in 2022. EnQuest generated more than $500 million of free cash flow in 2022 on the back of stable production and strong commodity prices, albeit capped by hedging requirements, SP Angel says. However, mixed operational results across its business limited gains and the impact of the U.K. energy profit levy clearly impacted investment, reducing production, cash flow and the pace of debt reduction, the brokerage says. "Following last year's re-financing, we wait to see if ongoing cash-flow strength causes the company to re-evaluate its strategy and capital allocation policy this year," SP Angel analyst David Mirzai writes. (philip.waller@wsj.com)
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Purplebricks Unlikely to Secure a Buyer Fast
(MORE TO FOLLOW) Dow Jones Newswires
02-17-23 0638ET
