UK Wage Growth Will Keep Interest Rates High

1038 GMT - U.K. wage growth is staying high and any downtrend will likely be gradual, suggesting Bank of England rate cuts will come later than the Fed's, ING developed markets economist James Smith says in a note. Last month's higher-than-expected inflation reading already sent interest-rate expectations soaring, but wage growth too plays a part in the central bank's decision making, he says. Indeed, under ING's models, it was underlying lack of staff that was the most important driver of wage growth through the Covid-19 pandemic, rather than inflation expectations, Smith says. And while worker shortages have eased, they will remain a long-term issue, with startling rates of worker sickness pointing to long-lasting hiring problems. (edward.frankl@wsj.com)

COMPANIES NEWS:

Frasers Group Buys Stake in AO World for GBP75 Mln

Frasers Group said Monday it bought a 18.9% stake in electrical retailer AO World for 75 million pounds ($94.3 million).

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Learning Technologies Sees Sales Growth, New Deals Ahead, Chairman Says

Learning Technologies Group said Monday that it expects moderate sales momentum in the first half of the year and is eyeing fresh acquisitions following the integration of GP Strategies.

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Capital Ltd. Lifts 2023 Capex Guidance; Gabon Contract

Capital Ltd. on Monday raised its capital expenditure guidance for 2023 after securing an earthmoving and crushing services contract for Ivindo Iron in Gabon.

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CVC Advisers, Francisco Partners Management Won't Make Offer for Network International

CVC Advisers and Francisco Partners Management said Monday they don't intend on making an offer for Network International Holdings after it said it had accepted a takeover bid from Brookfield Asset Management.

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Staffline Sees 2023 Performance in Line With Views

Staffline Group on Monday said it anticipated that performance in the current year will continue in line with expectations, with revenue to be weighed to the second half aligned with historical trends.

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Cizzle Biotechnology Raises GBP350,000 via Subscription

Cizzle Biotechnology Holdings said Monday that it conditionally raised 350,000 pounds ($440,090) via a discounted subscription and that it will use the funds as working capital.

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Dekel Agri-Vision Palm-Oil Production Rose on Year in May

Dekel Agri-Vision said Monday that palm-oil production rose substantially on year in May and it is well-positioned to deliver positive first-half financial results.

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SDX Energy Reports Multiple Offers for Egyptian Assets

SDX Energy said Monday that it has received multiple offers for its Egyptian assets, currently being evaluated by its board.

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AOP Health Gets Minimal Acceptances to Mandatory Offer for Shield Therapeutics

AOP Health International Management said Monday that it has received a low number of valid acceptances in respect of its mandatory 46.1 million pound ($58.0 million) offer for Shield Therapeutics.

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R&Q Insurance Raises $50 Mln in Equity; Gets Approval to Split Businesses

R&Q Insurance Holdings on Monday said it has raised $50 million in capital from a large shareholder through equity issuing by one its subsidiaries and that it has gotten approval for the separation of its businesses.

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China Nonferrous Gold Agrees to $65 Mln Loan to Repay Bank of Shanghai Loan

China Nonferrous Gold said Monday it agreed to a loan of up to $65 million with CNMC Trade Co. on Friday to pay the existing Bank of Shanghai (Hong Kong) $65 million loan that was due for repayment on June 9.

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ACG Acquires Brazil EV-Metal Mines With Investment From Auto Makers

ACG Acquisition said Monday that it is acquiring two Brazilian mines in a deal that includes investment from auto makers Stellantis and Volkswagen, as it hones its focus on electric-vehicle metals.

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Caspian Sunrise Sells 50% of Drilling Vessel for $22.5Mln

Caspian Sunrise said Monday that it has sold 50% of its shallow-water drilling vessel Caspian Explorer for $22.5 million.

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Inspiration Healthcare Names Alan Olby as CFO

Inspiration Healthcare on Monday named Alan Olby as chief financial officer, effective immediately.

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Triad Group Shares Fall After FY 2023 Pretax Profit Shrinks

Triad Group shares fell 17% on Monday after the company said its pretax profit for fiscal 2023 fell as it first half saw lower levels of consultant utilization before recovering in the second half.

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Tullow Oil Considering Options for Espoir Field in Ivory Coast

Tullow Oil said Monday that it is considering all options with respect to its interest in the Espoir field in the Ivory Coast, in-line with its strategy of focusing on its highest return producing assets.

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Actual Experience 1H Pretax Loss Narrowed on Lighter Costs

Actual Experience on Monday said its pretax loss for the first half of fiscal 2023 narrowed due to lower costs.

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HSBC Moves SVB UK Under Newly-Launched HSBC Innovation Banking

HSBC Holdings on Monday launched HSBC Innovation Banking, a new standalone entity which includes Silicon Valley Bank UK and new innovation teams.

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Tern Signs GBP3 Mln Credit Line With Investor

Tern said Monday that it has signed a credit line agreement with an investor for a loan facility of up to 3.0 million pounds ($3.8 million), available for up to three years.

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Sainsbury's Resumes Talks Over Mortgage Deal, Sky News Reports

--Sainsbury's banking arm has resumed the efforts to sell its 650 million-pound ($817.3 million) mortgage book after talks with Co-operative Bank failed to produce an agreement on a price back in March, Sky News reports, citing unnamed sources.

MARKET TALK:

Cruise Industry Attracting More First-Timers

0805 ET - The cruise industry is beginning to attract more first timers, suggesting that the rebound in demand could be hitting a new, sustainable leg of growth, analysts at JP Morgan say in a research note. "Importantly in explaining the continued demand strength - mgmt teams cited a recent inflection in new to cruise pointing to sustainability," the analysts say. Earlier in the pandemic recovery for cruises, demand was led by loyalists who had been unable to hit the seas during the pandemic disruptions. They raise their price targets on Carnival, Royal Caribbean and Norwegian, and upgrade Carnival to overweight. Shares of Carnival rise 6% in pre-market trading. (will.feuer@wsj.com; @WillFOIA)

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European Property Firms Have Differing Prospects in 2023

1204 GMT - European property companies face varying fortunes this year, Goldman Sachs says, tweaking its recommendations on several sector players. Segro is among the biggest FTSE 100 fallers, down 2% after Goldman downgraded the U.K. warehousing and industrial-property group to neutral from buy, saying the shares have less scope for gains after a rally and the company faces potentially softer leasing demand, given weak manufacturing PMI data. The investment bank also cuts Great Portland Estates to sell from neutral, citing a deteriorating London office market. Still, it upgrades Unibail-Rodamco-Westfield to buy from neutral, pointing to better euro-area consumer confidence so far this year and potentially improving household budgets as wages rise and energy costs fall. It also upgrades Icade to neutral from sell. (philip.waller@wsj.com)

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IT Market Still Grappling With Uncertainty, But Endava Seen Upbeat

0740 ET - The information-technology industry is still grappling with uncertainty, though Endava executives appear to be upbeat about their outlook, Susquehanna analysts James Friedman and Spencer Anson say in a research note. The analysts say they came away encouraged after meeting with the company. "We even think there may soon be some major new customers to announce," they say. However, they say there's still uncertainty headed into the summer, a key time for IT contract renewals. American depositary receipts tied to shares of Endava rise 2.9% to $47 premarket. (will.feuer@WSJ.com; @WillFOIA)

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Frasers, AO World Have Potential Synergies

1112 GMT - Although Frasers Group acquiring a strategic stake on AO World might look like an unlikely match, they have potential synergies in terms of at-home appliances with the former's sofa range complementing the latter's white goods offering, Interactive Investor says. Given the recent recovery from last year's lows for Frasers' shares, the retailer clearly judges that now is a good time to pounce, in case the recent recovery continues, and shares become even dearer, Interactive Investor analyst Victoria Scholar says in a note. The deal is part of its broader intelligent strategy to acquire and build stakes in other businesses and position itself as a consumer platform, she says. "White goods could become another string to its bow," Scholar says. (anthony.orunagoriainoff@dowjones.com)

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Return-On-Equity Squeeze Seen Risking UK, Europe Bank Profits

1027 GMT - Return-on-equity headwinds are crystallizing for U.K. and European banks and this doesn't bode well for sector profitability, Liberum says in a note. "Recent news flow confirms our cautious stance on European banks with net interest margins peaking, capital requirements creeping inexorably higher, and banks beholden to governments," analysts Nick Anderson and James Allen write. Structural pressures on return on investment point to a value trap despite sector valuations looking appealing at first glance, they say, adding that consensus expectations for a return to 2006 peaks for return on assets look plain wrong. The analysts note they prefer banks that have the capital and low gearing to withstand an economic downturn. (elena.vardon@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

06-12-23 0833ET