Sterling Could Fall if BOE Can't Meet Rate Rise Bets

0941 GMT - Sterling could fall modestly as the Bank of England's policy statement Thursday may struggle to meet market expectations for a further 125-150 basis points of interest rate rises, MUFG Bank says.That might require the BOE to deliver a larger 50bps rate increase or signal that such a move is possible in future, MUFG currency analyst Lee Hardman says in a note. "If the BOE only hikes rates by 25bps and does not signal it is seriously considering larger 50bps hikes, it could trigger a temporary correction lower for U.K. yields and modest GBP sell-off." However, that wouldn't lead to a sustained reversal of sterling's strengthening trend with the BOE unlikely to push back strongly against rate expectations, Hardman says. (renae.dyer@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 Seen as an Uncertain Departure

1001 GMT - The market has reacted negatively to Coca-Cola HBC's acquisition of Brown-Forman Finland, owner of the Finlandia vodka brand, AJ Bell analyst Russ Mould says in a note. The London and Athens-listed bottler for Coca-Cola said Monday that it has agreed to buy the Brown-Forman subsidiary for around $220 million. The market seems unsure about a deal which feels a bit of a departure from its core activity of bottling Coke, Mould says. Shares are down 0.2% at 2,327 pence. (anthony.orunagoriainoff@dowjones.com)

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UK Housing Market Looks Gloomy, With More Rate Rises Predicted

0930 GMT - The U.K. housing market continues to show early signs of stress as the cost of mortgages soars, AJ Bell says, citing new Rightmove data. Until recently, house prices had been supported by a lack of sufficient housing stock in the U.K. and also low borrowing costs, but now the latter part of that equation looks to be disappearing and this has inevitable consequences for the property market, AJ Bell investment director Russ Mould says in a market comment. "The Bank of England's next rate decision on Thursday will be closely watched by markets, homeowners and estate agents. Another rate increase looks nailed on but the messaging which surrounds it could be highly instructive," Mould says. Shares in Barratt Developments, Taylor Wimpey and Persimmon are down 0.7%, 1.2% and 0.9%, respectively. (joseph.hoppe@wsj.com)

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BAT's Rejigged Management Face Regulatory Pressures

0903 GMT - British American Tobacco's senior management face big challenges as regulatory pressures on tobacco and vaping continue ramping up, AJ Bell says in a note after the London-listed group named Johan Vandermeulen as its chief operating officer effective on July 1 and Kingsley Wheaton as its chief strategy and growth officer from Sept. 1 onwards. "Despite being an internal appointment new British American Tobacco boss Tadeu Marroco clearly wants to put his own stamp on the business, making several appointments to the board," investment director Russ Mould says. Shares edge up 0.4% at 2,590 pence, though they are down 21% since the start of the year. (elena.vardon@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-19-23 0642ET