Bank of England Set for 25Bp Rate Hike, But Economic Data Warrants Higher

1028 GMT - Recent U.K. inflation and labor market data indicate persistent inflationary pressures, warranting a 50 basis-point interest rate increase from the Bank of England at Thursday's meeting, Bank of America analysts say in a note. Nonetheless, the BOE is expected to act more gradually and raise rates by 25pbs to 4.75%, the analysts say. "We do not expect the BOE to hike 50bps in June, given their seeming preference to move gradually," they say. "We expect three more 25bps rate rises from the BOE--in June, August and September--to a terminal rate of 5.25%," BofA says. (miriam.mukuru@wsj.com)

COMPANIES NEWS:

British American Tobacco Names Johan Vandermeulen as COO

British American Tobacco on Monday said it has appointed Johan Vandermeulen as its chief operating officer as it restructures its management board.

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Severn Trent Deal With Andigestion Being Assessed by UK Competition Regulator

Severn Trent's proposed acquisition of Andigestion is being assessed by the U.K. Competition and Markets Authority, the regulator said Monday.

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Concurrent Technologies Sees Higher 2023 Revenue; Delays 2022 Results

Concurrent Technologies on Monday said it expects its revenue for 2023 to represent a significant on-year increase and that its 2022 results would be delayed by a few days as its auditor has requested more time for final reviews.

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Synectics Says FY 2023 Financial Results to Be Weighed Toward 2H

Synectics said Monday that it expected financial results for the year ending Nov. 30 to be significantly weighed to the seasonally stronger second half.

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MusicMagpie Sees Increase in 1H Earnings After Rebound in Momentum

MusicMagpie said Monday that it is expecting a rise in earnings for the first half of fiscal 2023 as trading strengthened from the month of February.

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Spectris Agrees to Acquire MicroStrain Sensing Systems Business for $38 Mln

Spectris said on Monday that it has signed an agreement to acquire MicroStrain Sensing Systems Business for $37.6 million.

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Ignite Luxembourg Expands Offer for RHI Magnesita Stake to 29.9%

RHI Magnesita said Monday that Ignite Luxembourg Holdings has expanded its offer to buy 29.9% of RHI share capital, up from 20% previously.

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Avacta Group Says No Fundraising Imminent; Shares Rise

Shares in Avacta Group rose 12% Monday after the company said no fundraising is imminent as it responded to market speculation regarding a possible fundraiser.

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Allergy Therapeutics Shares Fall on Going Concern Uncertainty

Shares in Allergy Therapeutics fell Monday after it said there was material uncertainty about its ability to continue as a going concern, and that trading on its shares was restored today after being suspended .

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Surface Transforms Taps James Cropper PLC's CFO Isabelle Maddock

Surface Transforms said Monday that it has appointed James Cropper PLC's Chief Financial Officer Isabelle Maddock as its own incoming CFO, effective from Sept. 4.

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Feedback's Bleepa-CareLocker Solutions Drove Higher FY 2023 Revenue

Feedback said Monday that it expects an increase to its fiscal-year revenue driven by its Bleepa-CareLocker solutions.

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Kainos CEO to Retire in September; Russell Sloan Named Incoming CEO

Kainos Group said Monday that Chief Executive Officer Brendan Mooney intends to retire by the end of September, and named Digital Services Director Russell Sloan as a replacement.

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African Pioneer Shares Fell on Discounted Placing to Raise GBP790,000

African Pioneer shares fell Monday after the company said it will raise 790,000 pounds ($1 million) via a discounted share placing and a subscription, and that it will issue 1.2 million shares to settle GBP27,500 worth of accrued consultancy fees.

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UniVision Engineering Shares Slump on Swing to 1H Loss

Shares in UniVision Engineering shed 22% on Monday after the company's shares were restored to trading as it published delayed first-half results in which it reported a swing to a loss and a drop in turnover.

MARKET TALK:

Coca-Cola HBC's Finlandia Deal Not a Change in Strategic M&A Direction

1140 GMT - Coca-Cola HBC acquisition of Brown-Forman Finland, owner of the Finlandia vodka brand, will strengthen its relationships with the on-premise across central and eastern Europe as well as enhance its offering in the adult segment alongside its existing ready-to-drink mixers, Citi says. The deal is likely to be marginally accretive to year one EPS for the Coca-Cola bottler, with Citi analysts saying they note that the transaction doesn't represent a change in strategic M&A direction. "Management is not looking for spirits deals and future bolt-on M&A will be primarily focused on sparkling beverages," they say in a note.Citi rates the stock buy and has a 2,425 pence target price. Shares are up 0.2% at 2,237 pence. (anthony.orunagoriainoff@dowjones.com)

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Pound Likely to Rise on Potential Record UK Core Inflation, Hawkish BOE

1126 GMT - The pound has room to extend its recent gains following U.K. inflation data for May on Wednesday and the Bank of England's interest rate decision on Thursday, Ebury says. "In addition to yet another record-high core inflation print, we expect the Bank of England to hike rates this week and sound a hawkish tone," Ebury strategist Matthew Ryan says in a note. One or both of the two BOE policymakers who voted against past rate rises could join the rest of the Monetary Policy Committee in voting for an increase, he says. U.K. rates are likely to peak above 6%, compared to the current level of 4.5%, and "we maintain our bullish view of GBP," he says. (renae.dyer@wsj.com)

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UK Inflation Fueled by Combination of US and Eurozone Problems

1100 GMT - Recent U.K. data is in sharp contrast to the U.S. and eurozone, where both headline and core inflation are coming down, Katharine Neiss, chief European economist at PGIM Fixed Income, says in a note. The U.S. is dealing with a too-hot labor market, whereas the euro area is still feeling the aftereffects of the energy shock as it ripples through other non-energy goods and services, she says. But the U.K. is affected by both, fueling inflation, Neiss says. "All this suggests the U.K. has a bigger inflation problem than its peers, hence the run of further interest-rate rises the market now expects," she says. If CPI data for May is higher than expected, a 50 basis-point rate rise is possible at the Bank of England's meeting this week, she adds. (edward.frankl@wsj.com)

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UK House-Builders Fall as Asking Prices Drop in June

1035 GMT - U.K. house-builders fall after industry data showed a slight drop in house prices in June. Average new seller asking prices have fallen by GBP82 this month to GBP372,812, the first monthly drop in asking prices this year and the first in the month of June since 2017, property website Rightmove said. "The housing market tends to get a seasonal boost around this time of year and U.K. consumer confidence has been recovering from lows," Interactive Investor's head of investment Victoria Scholar writes. "However, the market is still grappling with rising interest rates, falling real wages, sluggish economic growth and mortgage-market volatility." Rightmove, Persimmon, Taylor Wimpey, Barratt Developments, Berkeley Group Holdings, Redrow, Bellway and Vistry all lose ground. (philip.waller@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-19-23 0815ET