UK 2063 Gilt Seen Attractively Valued Ahead of Syndicated Tap

1241 GMT - Valuations are attractive ahead of the U.K. Debt Management's upcoming syndicated tap of the 4% October 2063 gilt, planned for early September, Daniela Russell, head of U.K. rates strategy at HSBC Global Research says. Both the 40-year maturity segment of the gilt curve and the bond itself have underperformed over the last couple of months, she says. HSBC Global Research favors 30-50-year U.K. gilt steepeners and expects weakness in the ultra-long end of the gilt curve to prevail. "With longevity estimates falling and pension demand shifting shorter on the curve as its overall depth wanes, the ultra-long end may continue to suffer," she says. (emese.batha@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.

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Shell Nearing Deal to Sell UK Energy Retail Unit, Sky News Reports

-- Energy major Shell is in talks with Octopus Energy to divest Shell Energy Retail, Sky News reports.

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Jade Road Investments Raises $1.05 Mln Through Share Placing

Jade Road Investments said it has successfully raised $1.05 million through a share placing and that proceeds will be used for working capital.

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AstraZeneca Files Legal Challenge to Some Drug-Price Provisions of IRA

By Will Feuer

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Watches of Switzerland Shares Fall Amid Rolex-Bucherer Tie-Up, But Reaction Mixed -- Analysis

Shares of Watches of Switzerland Group hit near-three year lows Friday after Rolex's acquisition of retailer Bucherer--a deal that gives Rolex greater control over its brand and potential expansion in direct-to-consumer sales--although analysts met the news with mixed views.

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Proteome Sciences Shares Fall After Swing to Loss on Higher Costs

Shares of Proteome Sciences fell 23.5% after the company reported a swing to a first-half pretax loss on flat revenue and higher expenses and finance costs.

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Dentons, Deloitte, Alantra set to share GBP11m in fees after failed Liontrust deal -- Financial News

Liontrust said it would incur a one-off charge 'of not more than GBP11 million' after failing to acquire its Swiss rival

MARKET TALK:

Watches of Switzerland Facing Significant Threat From Rolex Distribution Arm

1220 GMT - The unfolding scenario for Watches of Switzerland, with Rolex developing a distribution arm, brings one of the biggest risk factors for luxury-watch retailer, HSBC analysts say in a note as it downgrades the rating on the stock to hold from buy. However, despite there not being many positives for Watches of Switzerland in Rolex acquiring Bucherer, one long-term possibility would be that the integration would see Watches of Switzerland become a potential target for Rolex in a consolidation phase, they say. "More importantly, Rolex/Bucherer will now likely be a fierce competitor for future acquisitions, basically curbing Watches of Switzerland in its expansion plans, notably in the U.S. and continental Europe," the analysts add. (michael.susin@wsj.com)

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Aston Martin Seen at a Turning Point With Encouraging Outlook

1146 GMT - Aston Martin's stabilized net debt, renewed focus on front-engine cars and sharp average selling price improvements indicate that the group has made a new start, despite current metrics looking no stronger than after its IPO in 2018, Jefferies analysts say in a note. The luxury-car maker is at a turning point following three capital injections in three months, which sorted out its balance sheet liquidity and opened the way to deleveraging, they note. The group has an encouraging outlook and is starting to close the gap on peers, they add. Jefferies upgrades the stock to buy from hold and the price target to 420 pence from 300 pence. (michael.susin@wsj.com)

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AstraZeneca, Sartorius, Merck KGaA Seen Well Positioned in Drug Development, Innovation

1110 GMT - The development of drugs addressing unmet medical needs and improving quality of life will generate investment opportunities for ESG-conscious investors, UBS analysts say in a note. A company like AstraZeneca is considered among the top ones for innovation, but Sartorius and Merck KGaA are also well positioned, the analysts say. This is due to the fact that these companies offer processes that improve drug manufacturing, which will in turn hasten the innovation pace of drug development and expand manufacturing capacity for the sector, they add. (cecilia.butini@wsj.com)

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Rolex-Bucherer Deal to Accelerate Direct-To-Consumer Push in Watches

1107 GMT - Rolex's acquisition of Bucherer will likely accelerate a push to direct-to-consumer distribution for watches, which are, unlike jewelry or handbags, still highly dependent on wholesale and multi-brand distribution, Bernstein analysts say in a research note. While major watch brands have already been involved in the transition to direct-to-consumer, Friday's news will only accelerate this, the U.S. brokerage says, adding that it is also likely to boost the takeover appeal of other major multi-brand watch retailers such as, for example, Watches of Switzerland. "Investors should stay tuned for similar developments in watches," Bernstein says. (maitane.sardon@wsj.com)

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CRH's Balance-Sheet Capacity Could Drive Growth

1053 GMT - CRH's significant balance-sheet capacity reflects the group's increasing profitability and is likely to drive further growth, Jefferies analysts say in a note. The Irish building-materials supplier's 1H performance suggests it has a balance-sheet capacity of $35 billion in the coming five years, they highlight. This implies that around $9 billion could be used for organic growth when assuming that 2023 capital expenditure range of $1.7 billion to $1.8 billion is repeated annually, they add. "This leaves $20 billion-$25 billion potential for M&A and buyback, both of which can significantly supplement EPS growth," they say.(michael.susin@wsj.com)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

08-25-23 0947ET