Pound's Gains Seen as Limited in Absence of Early Rate Rise Signals
1035 GMT - Sterling's gains are likely to remain limited unless Bank of England policymakers start signaling an earlier-than-anticipated interest rate rise, Commerzbank says. Michael Saunders, an external member of the Monetary Policy Committee, on Thursday said that the BOE could decide to halt its bond-buying program early to curb inflation. A stronger sterling seems justified after the comments as other MPC officials have joined Saunders in acknowledging inflation risks, Commerzbank's Thu Lan Nguyen says, noting similar remarks from BOE deputy governor Dave Ramsden on Wednesday. However, Saunders mentioned an earlier end to asset purchases, not early rate hikes, she says. "As long as there is no mention of a rapid normalization of interest rates, only limited sterling strength is justified," she says. (email@example.com)
Segro Sells Six Italian Warehouses for EUR127.5 Mln
Segro PLC said Friday that it has sold six urban warehouses in Italy to AXA IM Alts for 127.5 million euros ($150.6 million), and that it was done on behalf of clients.
Burberry 1Q Comparable Sales, Retail Revenue Rose
Burberry Group PLC said Friday that comparable sales rose in the first quarter to be in line with pre-coronavirus trading and retail revenue rose sharply.
Micro Focus Settles Wapp Patent Litigation Case with $67.5 Mln Payment
Micro Focus International PLC said Friday that it has settled its patent litigation case against Wapp Tech Limited Partnership and Wapp Tech Corp., reaching a settlement for payment of $67.5 million.
DS Smith Sells De Hoop Paper Mill in the Netherlands for EUR50M
DS Smith PLC said Friday that it is selling its De Hoop paper mill in the Netherlands for 50 million euros ($59.1 million) as part of its strategy to have a "short paper" position in Northern Europe.
Learning Technologies Raises GBP85 Mln Via Share Placing, More Than Planned
Learning Technologies Group PLC said Friday that it has now raised 85 million pounds ($117.5 million) under the share placing first announced late Thursday, more than initially planned.
Eve Sleep 1H Revenue Grew 13%; Cautions on Global Supply Issues
Eve Sleep PLC said Friday that revenue for the first half of the year grew 13%, and cautioned that it might continue to experience further disruption and inflationary pressures if the coronavirus pandemic continues to hurt global supply chains.
Homeserve Backs Fiscal 2022 Outlook
Homeserve PLC on Friday backed its outlook for fiscal 2022, saying product usage across its business continued to be strong for the period April 1 to July 15.
Bonhill Group Expects 1H Revenue Fall, Narrower Pretax Loss
Bonhill Group PLC said Friday that first-half trading is expected to be in line with market expectations, with slight fall in revenue but a narrower pretax loss on year.
RBG Holdings 1H Trading in Line With Views; To Pay Interim Dividend
RBG Holdings PLC said Friday that it continues to trade in line with market expectations for the first half of 2021 and that the board intends to pay an interim dividend.
Nucleus Financial 2Q Assets Under Administration Rose
Nucleus Financial Group PLC said Friday that assets under administration rose 19% in the second quarter.
Pantheon Resources Shares Rise on Upgraded Resource Estimate at Alaska Well
Shares of Pantheon Resources PLC rose as much as 15% in early trade Friday after the company said that recent analysis of the SMD-B zone at the Talitha #A well in Alaska indicates higher resources than initially thought.
Luceco 2Q Trading Performance Continues to Improve; Raises 1H Guidance
Luceco PLC said Friday that its trading performance during the second quarter has continued to improve, and raised its guidance for the first half.
Renold FY 2021 Profit Grew Despite Revenue Fall
Renold PLC said Friday that its fiscal-year pretax profit grew despite revenue being hurt by the coronavirus pandemic.
Burford Capital Receives Full $103 Mln Entitlement From Akhmedov Matter
Burford Capital Ltd. said Friday that it has received the full cash entitlement of around $103 million from the Akhmedov matter, boosting its 2021 operating profit.
X5 Retail 2Q Sales Rose 11%
X5 Retail Group NV said Friday that net retail sales for the second quarter rose 11% on year and that like-for-like offline sales rose 4%.
Kore Potash CFO Quits After 5 Weeks for Personal Reasons
Kore Potash PLC said Friday that Chief Financial Officer Jean-Michel Bour plans to leave for personal reasons after just over five weeks in the job.
Tightening Tilt Undermines BOE's Perceived Credibility, Says UBS
1030 GMT - Perceived willingness by Bank of England officials to cut stimulus earlier than previously indicated may quell some concerns over persistent higher inflation, but undermines its credibility, says UBS. The main market gauge of inflation expectations--the 5-year, 5-year inflation swap rate--was unmoved following Thursday's comments by policymaker Michael Saunders about possible earlier policy tightening and remains close to its highest level since the financial crisis, it says. "This rate should be considered an important indicator of market confidence in policy credibility rather than a forecast of where inflation may be in the medium term, and the puzzling timing of these comments and apparent inconsistency with recently expressed views in light of the Covid situation will in our view undermine that perceived credibility," it says. (firstname.lastname@example.org)
Sterling Corporate Bonds Look Attractive for Global Investors
1018 GMT - Some sterling-denominated corporate bonds have become attractive for global investors after credit spreads widened, driven by volatility in the sovereign bond market, Bank of America says . A "hawkish Bank of England speak has caused rates volatility to rise, cheapening U.K. credit," credit strategist at Bank of America say, referring to recent comments by policymakers suggesting that the central bank may tighten monetary policy earlier than previously anticipated causing gilt yields to rise. They say their heatmaps suggest sterling-denominated corporate debt rated at BBB--or the lowest investment-grade rung--maturing between 5 and 10 years are now very attractive for global investors, as are shorter-dated sterling corporate bonds rated at B in the high-yield investment category. (email@example.com)
Richemont, Burberry 1Q Sales May Herald Stronger Luxury Recovery
1013 GMT - Impressive trading updates from Swiss conglomerate Richemont and U.K. fashion firm Burberry could offer positive read-across for the wider European luxury-goods sector, Paola Carboni of Equita Sim says. Richemont's 22% constant-currency sales growth in 1Q from the same period two years ago, and Burberry's 1% rise in comparable store sales against the same period, could herald a happy surprise on the pace of recovery from the pre-pandemic period, Carboni suggests. However, read-across is limited by Richemont's focus on hard luxury and Burberry's transformation phase, she cautions. Equita continues to prefer French sector leaders LVMH and Kering, which are due to report 2Q results July 26 and July 27, respectively. (firstname.lastname@example.org; @joshualeokirby)
DCC to Continue Its M&A Policy
1007 GMT - Although DCC's 1Q is a less significant period for the group--with less than 15% of annual profit--it is reassuring that all four divisions grew in the period, UBS says. Although the marketing and support-services provider didn't announce any new M&As, it expects to continue being active in that respect with a number of bolt-on acquisitions already completed since May, UBS says. The Swiss bank and consensus see fiscal 2022 Ebita estimates rising 6% to 8% on year. UBS rates the stock buy and has a 7,700 pence target price. Shares are up 2.4% at 6,034 pence. (email@example.com)
Rio Tinto's Second Half Looks Brighter, But Uncertainties Still Loom
1001 GMT - Rio Tinto's second-quarter production numbers were weak nearly across the board and the miner appears to be undergoing operational difficulties, RBC says. But despite the weak production and guidance revisions driving consensus downgrades for 2021, the first half is likely to be insulated as realized pricing in iron ore came in 6% better than the consensus, RBC says. While operations may start to improve in the "always easier 2H," it will likely take some time to restore investor confidence with so many uncertainties overhanging the business. RBC prefers other diversified exposure including BHP, Vale, and Glencore. (firstname.lastname@example.org)
Ferrovial Still Likely to Struggle With Pandemic Commuting Slump
0945 GMT - Ferrovial will continue to suffer from long-term structural issues around working from home and its impact on commuting, even with traffic on U.S.-toll roads now increasing, Citi says. Earnings from Ferrovial's Toronto concession, 407 ETR, show improvement versus 2Q 2020, but remain lower than in 2019, and Ebitda in coming results for the company as a whole is still seen as below the pre-pandemic period, Citi says. Ferrovial's holding in London's Heathrow airport is not expected to contribute to cashflow, Citi says, expecting the focus of the results to be on progress at the services division, which Citi values at EUR1 billion. Ferrovial reports 1H results on July 27. Shares are up 1.1% at EUR24.83. (email@example.com)
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