Sterling Likely to Fall in Longer Run as Markets Overestimate Rate Prospects

1115 GMT - Sterling has had a decent start to the week but is likely to fall in the longer run as markets are overestimating how high the Bank of England will raise interest rates, ING FX analyst Francesco Pesole says in a note. "In the longer run, markets will have to scale down expectations and EUR/GBP can climb back to 0.87-0.88," he says. Sterling outperformed major currencies on Monday, with EUR/GBP falling close to chart support at 0.8600, though it remains sensitive to risk sentiment, Pesole says. The pound falls on Tuesday as equity markets lose ground. GBP/USD falls 0.5% to 1.2719 while EUR/GBP is steady at 0.8611. (miriam.mukuru@wsj.com)

COMPANIES NEWS:

Spirax-Sarco CEO Nicholas Anderson to Retire; Nimesh Patel Named Successor

Spirax-Sarco Engineering's Chief Executive Officer Nicholas Anderson plans to retire early next year after ten years in the role and will be replaced by Chief Financial Officer Nimesh Patel.

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Wealth firm 7IM downsizes London HQ as private equity buyers circle -- Financial News

UK wealth manager moves into premises a quarter of the size of its offices in 55 Bishopsgate

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InterContinental Hotels Group Net Profit Rose on Improved Conditions

InterContinental Hotels Group said first-half net profit and revenue increased, driven by improved trading conditions, but that it expects the comparatives to 2022 in the second half to get tougher due to continuing economic uncertainties.

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Abrdn Pretax Loss Narrows; Extends Buyback

Abrdn posted a narrower pretax loss for the first half of 2023 as it reported higher-than-expected net outflows and extended its share buyback program.

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STM Group Gets Extension for PSF Capital Takeover Plan

The U.K. Takeover Panel has extended the deadline for PSF Capital Reserve to make an offer for STM Group, or walk away, until Aug. 22 so that the parties can continue talks and the due diligence process.

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SIG Says Pretax Profit Fell on Higher Costs; Conditions to Remain Challenging

SIG reported lower first-half pretax profit after booking higher costs, and said it expects conditions to remain challenging across end markets in the second half alongside further moderation in price inflation.

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Quilter Sees 2023 Profit Ahead of Views; Assets Under Management and Administration Rise

Quilter expects its adjusted profit for the year expected to be meaningfully ahead of current market expectations, assuming broadly stable markets after it reported a rise in its assets under management and administration for the first half.

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Adriatic Metals Raises GBP25.1 Mln via Share Placing

Adriatic Metals said it has raised 25.1 million pounds ($32.1 million) via the share placing first announced late Monday, slightly more than planned.

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IWG Pretax Loss Flat; Outlook Cautiously Optimistic

IWG's pretax loss for the first half was flat after it booked higher costs, but its outlook for the full year remains cautiously optimistic due to growing demand for hybrid working solutions.

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Rotork Pretax Profit Rose on Higher Revenue Due to Divisional Growth

Rotork said pretax profit rose in the first half as revenue increased on growth across all divisions, and that it entered the second half with a record order book.

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Amur Minerals Ends Takeover Talks With Ascent Resources

Amur Minerals said talks over a possible 2.4 million pound ($3.1 million) all-share takeover from Ascent Resources have ended.

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PHSC Shares Soar on Swing to Pretax Profit, Potential Share Buyback

PHSC shares soared on Tuesday after the company reported a swing to pretax profit for fiscal 2023, saying that it didn't book any impairments, and that the board is considering a third share buyback program.

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Abrdn reports GBP4.4bn outflows amid challenging macro climate -- Financial News

The FTSE 100 firm's pretax loss was GBP169m for the first half of the year compared with a pretax loss of GBP326m the previous year.

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MyHealthChecked Shares Fall After Dwindling Covid-19 Test Demand Hits Revenue

MyHealthChecked shares slumped to more-than three-year lows on Tuesday after the company said its first-half revenue was hurt by the reduction in demand for its Covid-19 lateral flow test kits for at-home use.

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Kore Potash Shares Fall on Discounted $1 Mln Fundraise

Shares in Kore Potash fell after the company announced it would raise $1 million via a discounted subscription and a convertible loan issue, and that it will use proceeds toward a contract related to the Kola potash project located in the Republic of Congo.

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Smartspace Software Backs FY 2024 Guidance After Revenue Rose

Smartspace Software said that revenue for the first half of fiscal 2024 rose 15% and that it expects to meet full-year market expectations on a constant-currency basis.

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TI Fluid Systems Shares Rise After Hiked Guidance, Dividend Policy

Shares in TI Fluid Systems jumped after the group raised its 2023 guidance and changed its dividend policy to target progressive annual growth, increasing shareholder payouts.

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Tirupati Graphite to Beat FY 2023 Production, Revenue by End of Month After Strong 1Q

Tirupati Graphite has reported a large rise in production and sales for the first quarter of fiscal 2024 and said that it expects to exceed last year's figures before the end of August.

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Videndum Delays Publication of 1H Results

Videndum is delaying the publication of its first-half results as it needs more time to finalize the report.

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Fletcher King Optimistic for FY 2024 After Rise in Pretax Profit, Revenue

Fletcher King fiscal 2023 pretax profit and revenue rose, and the company is optimistic for the forthcoming period, it said Tuesday.

MARKET TALK:

Glencore's Halved Profits Show Market Is Normalizing

1104 GMT - Glencore's first-half profits halving is clear evidence the resources market has normalized since the disruption caused by the invasion of Ukraine, further exacerbated by a slower than expected post-coronavirus recovery in China, AJ Bell says. The miner and commodity trader has dialled back its generosity in terms of shareholder returns, partly to keep some capital for a potential deal to acquire assets from Canada's Teck Resources after a long-running pursuit, AJ Bell investment director Russ Mould says in a market comment. Glencore's interest in coal makes it stand out from its peer group and a potential plan to combine its own coal assets with Teck's and spin this off as a separate entity might be warmly received by the market, Mould says. Shares are down 3.7% at 439.6 pence. (joseph.hoppe@wsj.com)

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WPP Needs Time to Restore Investor Confidence

1041 GMT - WPP's weak set of first-half results and its guidance cut didn't help investor confidence, Deutsche Bank analyst Silvia Cuneo says in a note after the London-based advertising holding company's half-year update on Friday. "We think it will take time to restore confidence on the stock; with lack of visibility on positive catalysts, a re-rating to WPP's long-term average [price to earnings ratio] is unlikely to happen over the next 12 months," the analyst writes. Deutsche cuts its rating on the stock to hold from buy and trims its target price to 1,030 pence from 1,230 pence. Shares fall 1.4% at 797.4 pence. (elena.vardon@wsj.com)

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Quilter Shares Supported By 1H Profit Beat

1023 GMT - Quilter's first-half adjusted profit beat expectations significantly, UBS says in a note after the wealth-management company posted results and signalled more costs savings to come. Its adjusted profit at GBP76 million was 35% ahead of views on lower base costs and slightly higher revenues from investment revenue, or interest income, analysts point out. "Given the strong beat to profits and new cost guidance, coupled with the weak share performance YTD, we expect a positive reaction from investors despite the small miss on net client cash flows," they write, adding the latter was driven by weaker outflows related to inflationary pressures. Shares rise 13% to 80.5 pence. (elena.vardon@wsj.com)

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DS Smith Seen More Resilient Than Peers in an Economic Downturn

1018 GMT - Packaging company DS Smith could prove to be more resilient than its peers in an economic downturn as its business is mostly in developed markets, and 84% of its volumes are linked to fast-moving consumer goods, compared with 74% for the industry, Barclays analysts say in a note. It is also expected to have the lowest ROIC and EBIT margins versus European corrugated-packaging peers, analysts say. "In the near term, we expect the stock to remain range-bound due to pressure on volumes from destocking and a weaker consumer environment," the analysts say. Barclays initiates coverage with an equal weight rating on the stock and a 310 pence target price. Shares are down 2.6% at 297.60 pence. (anthony.orunagoriainoff@dowjones.com)

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Mondi's Printing Exposure Looks Concerning Amid Online Shift

1017 GMT - Mondi's exposure to uncoated fine paper is a concern, with around 20% of the paper and packaging company's Ebitda related to the declining paper and printing market, Barclays says. "We expect the [paper and printing] volumes to decline as consumers shift to digital/online channels, leading to lower revenues and lower margins," the U.K. bank says. Still, the FTSE 100 company has access to cost-competitive raw materials and a well-invested asset base, and generates the majority of its energy needs internally, the bank says. Barclays initiates the stock with an equal-weight rating and a 1,300 pence price target. Shares are down 1.5% at 1,293.0 pence. (joseph.hoppe@wsj.com)

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Smith & Nephew Seen Missing 2023, 2025 Margin Guides

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08-08-23 0737ET