BOE Might Be More Worried About Growth Risks Than Inflation

1030 GMT - The Bank of England is likely to be more focused on downside risks to growth than it is to inflation continuing to run in excess of its target, RBC BlueBay Asset Management's chief investment officer Mark Dowding says in a note. BlueBay AM forecasts U.K. rates peaking around 5.5%-5.75%, versus a current rate of 5.25%. Markets price the peak bank rate at 5.80% and assign a probability of more than 90% to a 25-basis point rate rise at September's policy meeting, according to Refinitiv. (emese.bartha@wsj.com)

COMPANIES NEWS:

John Lewis Partnership to Hire Over 10,000 New Staff in Coming Months

The John Lewis Partnership is planning to hire more than 10,000 people across the country over the coming months, of which 8,400 are Christmas temporary jobs.

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CMC Markets Warns of Fall in Operating Income Due to Weaker Market Conditions

CMC Markets said net operating income for fiscal 2024 is expected to fall on the back of lower revenue, amid subdued market conditions.

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DWF Group's Pretax Profit Fell on Higher Costs; Halts Dividend Due to Takeover Offer

DWF Group said its pretax profit fell in fiscal 2023 due to a rise in administrative costs, and that it won't declare a dividend due to the proposed takeover offer by Inflexion.

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Kazatomprom Profit Soars on Higher Uranium Prices

NAC Kazatomprom net profit for the first half of 2023 rose sharply on the back of a significant improvement in the uranium market, the company said Friday.

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Shearwater Group 1Q Revenue to Beat Prior Year

Shearwater Group has now received a number of delayed contracts and said revenue for the first quarter of the year has beat that for the comparable period a year earlier.

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Mast Energy Developments' Pretax Profit Widens on Higher Costs, Lower Revenue

Mast Energy Developments' pretax loss widened in the first half of the year due to lower revenue and higher costs, it said Friday.

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Premier African Minerals to Raise $5 Mln to Fund Zimbabwe Project

Premier African Minerals has launched a discounted share placing and direct subscription in order to raise 4 million pounds ($5 million) to fund the development of the Zulu project in Zimbabwe.

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Zenova Pretax Loss Narrows on Improved Sales

Zenova Group's first-half pretax loss narrowed on the back of improving revenue generation as international sales contracts commenced, it said Friday.

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Watches of Switzerland Shares Dive on Rolex's Acquisition of Bucherer

Shares of Watches of Switzerland Group fell as much as 29% in early trade after Rolex agreed to buy watch retailer Bucherer in a deal that will give it more control over how its watches are sold.

MARKET TALK:

Capital Ltd's Future Contracts to Boost Shares

1039 GMT - Capital Ltd. shares could jump on any future contract announcements as the market doesn't seem to have priced in any nondrilling growth, Peel Hunt analysts write in a research note. "We think this indicates the market simply isn't pricing in the cash generation from the group over the next four years," they say. The Africa-focused mining company should see its balance sheet improve steadily, thereby gaining flexibility to add large contracts, they say. "We would therefore expect the share price to react well to any future contract announcements." Peel Hunt reaffirms its buy rating and its 153 pence price target on the stock. (christian.moess@wsj.com)

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Petra Diamond Should See Prices Rise as Demand Returns

1023 GMT - Petra Diamonds' first tender of its fiscal year saw a strong price recovery versus the prior tender in May, but lower volumes meant lighter-than-anticipated revenue, Peel Hunt analysts write in a research note. However, despite the price recovery to $114 per carat, which was in line with Peel Hunt's estimates, prices were still down 4% on a like-for-like basis on May levels, they say. Still, this could change as the recovering end-demand for jewellery is expected to drive rising rough prices, given the flat, at best, mine production outlook, they say. Petra Diamonds is a corporate client of Peel Hunt, which keeps a 91-pence price target on the London-listed diamond miner. (christian.moess@wsj.com)

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CMC Markets Estimate Risk Seen To The Upside

1020 GMT - CMC Markets' estimate risk is now to the upside, Numis says in a note after the online trading platform guided for full-year net operating profit in the GBP250 million to GBP280 million range after lower monetization of client trading activity in August. Volatility is a strong revenue driver for the stock, analysts say. "CMC states increased diversification and hence reduced earnings volatility as a key driver behind the investments already made and planned for the future," they say. The brokerage lifts its rating on the London-listed stock to add from hold but trims its target price to 144 pence from 162 pence to reflect higher uncertainty around income for fiscal 2024. Shares fall 13% to 105.6 pence, the lowest price since late 2019. (elena.vardon@wsj.com)

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European Stocks Rise Ahead of Jackson Hole Speech

0946 GMT - European stocks rise and Wall Street looks set to gain ahead of U.S. Federal Reserve chief Jerome Powell's Jackson Hole speech, though Asia markets fell. The Stoxx Europe 600, FTSE 100 and DAX advance 0.3% and the CAC 40 climbs 0.6%. IG futures data show the Dow opening at 34164, versus Thursday's close of 34099. Australian shares dropped 0.9%, mainland China and Hong Kong markets fell more than 1% and Japan's Nikkei 225 backtracked 2%. "It would take a brave person to load up on shares just before Powell makes his speech later today at the Jackson Hole summit," AJ Bell investment director Russ Mould writes. "Any comments suggesting the Fed will keep raising rates for some time could trigger another risk-off mood." (philip.waller@wsj.com)

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CMC Markets Profit Warning on Market Headwinds Disappoints

0911 GMT - CMC Markets shares fall 12% after the online trading platform said it expects net operating income for fiscal 2024 to come in below expectations on the back of lower revenue given continued subdued market conditions. "This is clearly disappointing, and is another reminder that CMC can suffer from periods of subdued trading activity," Peel Hunt analysts say in a note. However, the company should start to reap the benefits of its investments and strategic initiatives once trading activity recovers, the brokerage adds. Peel Hunt places the stock under review. Shares, which are down 52% since the start of the year, trade at 107.2 pence. (elena.vardon@wsj.com)

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Capital-Goods Industry's Inventory Hit Could Last Several Quarters

0910 GMT - An inventory reduction of capital goods in Europe could take several quarters to be fully completed, Morgan Stanley analysts say in a research note. In past cycles of manufacturing inventory reductions going back to 1983, the average time of destocking until inventories start to grow again has been about 15 months, the analysts say, citing data from the U.S. Federal Reserve Economic Data database. "This is relevant as both own inventories and customers' inventories pose risks to margins," Morgan Stanley says. Industrial companies are seen as more vulnerable given their short-cycle nature, the analysts say. MS has underweight recommendations on ABB, Weir Group, Atlas Copco, Schindler and SKF. (andrea.figueras@wsj.com)

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Bar for Another ECB Interest-Rate Rise Looks High, Jefferies Says

0904 GMT - The bar for another eurozone interest-rate rise is high and for this the European Central Bank would need to see higher inflation data, says Mohit Kumar, chief financial economist for Europe at Jefferies in a note. "We think that the September hike is a close call, but following the recent PMI data, would argue that balance has shifted towards a pause." ECB President Christine Lagarde speaks at the Jackson Hole Economic Symposium later on Friday and is unlikely to provide clear indications on future monetary policy for now as there are divisions within the ECB governing council, Kumar says. Markets price in a marginally higher chance of a 25 basis-point rate increase versus unchanged rates, according to Refinitiv data. (emese.bartha@wsj.com)

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Watches of Switzerland's Relation With Rolex Seen as Excellent

0853 GMT - Watches of Switzerland's relation with Rolex shouldn't be affected despite concerns regarding Rolex's acquisition of retail partner Bucherer, Jefferies analysts say in a note. The Swiss brand has confirmed to the London-listed luxury-watch retailer that there will be no change in the processes of product allocation or distribution, they say. The positive relation is further reinforced by the strong expertise of Watches of Switzerland in selling Rolex's narrative, which is validated by the success in driving points of distribution, they add. Added to that, Watches of Switzerland's creation of a new Rolex boutique in Old Bond Street and the recent launch of Rolex's certified pre-owned program is a "good reminder of the strong collaboration", the analysts add. (michael.susin@wsj.com)


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(END) Dow Jones Newswires

08-25-23 0702ET