1239 GMT - Hilton Food Group's retained forecasts are reassuring news given that it implies a robust recovery in 2H, Shore Capital analysts Darren Shirley and Clive Black say in a note as shares rise 0.9%. The food company's unchanged guidance for FY 2023 implies also that its seafood business could return to profit, leaving behind a significant headwind which particularly affected the division in the second half of FY 2022, they add. The interim dividend per share increase of 27% also provides further confidence, they add. "We expect Hilton to get back on the front foot with respect to its growth agenda and see the stock as materially undervalued," they add. (michael.susin@wsj.com)

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Currys' UK Market Shows Promising Signs

1231 GMT - Currys' revenue dip showed continued issues in the U.K. and particularly in the Nordics market, Interactive Investor Head of Markets Richard Hunter says in a note. Despite the fall, Curry's U.K. and Ireland operations seem to be more promising, with improving revenue trend in the last two months as compared to May and June and further adoption of its credit and protection services above expectations, he adds. However, Nordics region has been particularly challenging for the retailer of technology products, leaving a material impact in the groups accounts as it accounts for around 40% of overall revenues, he adds. (michael.susin@wsj.com)

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Melrose Industries' Buyback Plan, Upgraded Guidance Sho Management Confidence

1219 GMT - Melrose Industries' 1H performance was good and it outlined the start of its GBP500 million buyback in October, earlier than expected, Investec says in a note, adding that this speaks volumes about management confidence. The turnaround specialist upgraded guidance and its engines division showed momentum with revenue up 19% and outperforming expectations, Investec analysts Ben Bourne and Scott Cagehin say. Investec upgrades its 2023 adjusted operating profit estimates for the engines division by 8.6% to GBP380 million, with adjusted pretax profit for the group up 12% to GBP285 million. Investec rates the stock buy and has a 625 pence target price. Shares are up 4.5% at 531.80 pence. (anthony.orunagoriainoff@dowjones.com)

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Direct Line's Rosy 2024 Outlook Brings Comfort

1204 GMT - Direct Line Insurance Group's expected 2024 improvement is being well received by the market despite pressures on profit in the current year, Interactive Investor's head of investment Victoria Scholar says in a market comment. "Investors have shrugged off its first-half loss, focusing instead on its rosy outlook for next year, which has helped to propel shares sharply higher today," Scholar says. She points to the four key areas outlined by the insurer: improving pricing, boosting its underwriting footprint, the launch of its cheaper essential motor product and a strengthening team. Shares surge 15% at 172.8 pence, helped by the sale of its brokered commercial insurance business lines to Intact, though the stock is still down 21.5% year-to-date. (elena.vardon@wsj.com)

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BOE Interest-Rate Pause More Likely in November, ING Says

1156 GMT - The Bank of England is more likely to pause interest-rate rises in November based on recent comments by BOE members indicating rates are near the top, ING economist James Smith says in a note. Governor Andrew Bailey's comments on rates nearing the peak "fit into a broader communication exercise from the Bank that appears to be laying the ground for a pause", Smith says. ING expects the BOE to raise rates by 25 basis points on Sept. 21 for the final time in the current cycle. Markets place a 29% chance of a BOE rate pause in September versus a 71% chance of a 25bps rate rise, Refinitiv data show. (miriam.mukuru@wsj.com)

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Europe Markets Trade Mixed; US Shares Set to Edge Lower

1150 GMT - European stocks lack direction after overnight Asia losses and an expected slightly lower open on Wall Street. The Stoxx Europe 600 drops 0.2%, the FTSE 100 and CAC 40 gain 0.1% and the DAX retreats 0.1%. Brent crude falls 0.4% to $90.28 a barrel. Markets in Australia, mainland China and Hong Kong backtracked more than 1%, while stocks in Japan and South Korea also lost ground. IG futures data show the Dow opening at 34431, versus Wednesday's close of 34443. "Investors have moved into risk-off mode as concerns loom regarding the next Fed move, as well as rising oil prices that could spark an inflation revival," IG analysts write. "On today's calendar are weekly jobless claims, plus crude-oil inventories." (philip.waller@wsj.com)

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Beazley Profit Miss Was Due to an Accounting Anomaly, Numis Says

1144 GMT - Beazley would have exceeded consensus' pretax profit forecast if not for an accounting timing technicality, Numis analyst Nick Johnson writes in a research note. The specialty insurer booked a pretax profit of $366.4 million, well below a Numis-compiled consensus of $422 million. However, "profit drag from property growth in 1H is an IFRS 17 timing technicality, whereby the risk adjustment in reserves is front loaded and premium income recognition is weighted to 2H to match risk profile seasonality," Johnson says. "Excluding this anomaly, we estimate profit was 11% ahead of forecasts," he says. Additionally, Beazley looks on track to meet it full-years targets, the analysts says. Numis keeps a buy rating and a 880-pence price target on the stock. Shares are down 4% at 519.50 pence. (christian.moess@wsj.com)

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UK House Prices Fall at Fastest Rate for August Since 2009

1127 GMT - U.K. house prices fell 4.6% in August, outpacing analysts' expectations for a drop of 3.45% on-year--the biggest fall in the month of August since 2009, Interactive Investor says, citing new Halifax data. This is the fifth straight monthly fall, as 14 consecutive rate rises from the Bank of England weigh on mortgage availability, prompting sellers to drop asking prices as property demand softens, Interactive's head of investment Victoria Scholar says in a market comment. "While falling house prices can help first-time buyers get onto the housing market, many individuals and families are facing a perfect storm, stuck with the dilemma of deciding between extortionate rental costs or hefty monthly mortgage repayments," Scholar says. Shares in Barratt Developments and Taylor Wimpey are up 0.2% and 0.3% respectively, while Persimmon falls 0.15%. (joseph.hoppe@wsj.com)


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(END) Dow Jones Newswires

09-07-23 1217ET