Sterling Could Face Renewed Weakness After UK Policy U-Turn
1038 GMT - Sterling rises after the U.K. government abandoned
its plan to scrap the highest rate of income tax but the currency
is far from out of the woods, Rabobank says. Cutting the top tax
rate would have cost about GBP2 billion, a modest part of the GBP45
billion fiscal package announced on September 23, Rabobank forex
strategist Jane Foley says in a note. Moreover, the Bank of
England's intervention to stabilize U.K. government bonds, or
gilts, ends on October 14, leaving the market exposed to the
"weight of extra gilt issuance during the coming fiscal year," she
says. Rabobank expects GBP/USD to fall to 1.04 in three to six
months, from 1.1194 currently. (firstname.lastname@example.org)
U.K. Makes Major U-Turn on Tax Cuts
The U.K. government said it won't proceed with the removal of a
45% top rate of income tax, removing a key element of a plan
announced late last month that triggered turmoil in the country's
James Halstead FY 2022 Pretax Profit, Revenue Rose; New Year
James Halstead PLC said Monday that its fiscal 2022 pretax
profit and revenue rose on sales growth and despite increased
costs, and the new year has begun well.
Halma Acquires IZI Medical Products in US
Halma PLC said Monday that it has acquired IZI Medical Products,
a designer, manufacturer and distributor of medical consumable
devices headquartered in Maryland in the U.S., for an initial
consideration of $153.5 million in cash.
QinetiQ to Buy Air Affairs for $33.9 Mln; To Sell Belgian
Division for $31.4 Mln
QinetiQ Group PLC said Monday that it has agreed to buy Air
Affairs (Australia) Pty for 53 million Australian dollars ($33.9
million) in cash, and that it will sell QinetiQ Space NV for 32
million euros ($31.4 million) in cash.
Argentex Expects Higher 1H Revenue
Argentex Group PLC said Monday that it expects to report a rise
in revenue for the first half and the board is confident the
company will exceed current market expectations for the year.
Renew Holdings Sees FY 2022 Adjusted Profit Ahead of Views
Renew Holdings PLC said Monday that it expects performance for
fiscal 2022 to be marginally ahead of market expectations despite
the current inflationary backdrop.
Genel Energy Appoints New CEO
Genel Energy PLC said Monday that it has appointed Paul Weir as
chief executive with immediate effect.
Pelatro Chairman Richard Day Resigns
Pelatro PLC said Monday that Richard Day has decided to resign
as chairman of the board.
Real Good Food FY 2022 Loss Widens; Sees Challenging Year
Real Good Food PLC said Monday that fiscal 2022 pretax loss
widened on a significant one-off impairment charge, and it expects
fiscal 2023 to remain loss-making.
Tortilla Mexican Grill Warns Industry Headwinds Will Hurt 2H
Profitability; Shares Fall
Shares in Tortilla Mexican Grill PLC fell Monday after it said
that industry headwinds will hurt profitability in the second half
as it reported a fall in pretax profit for the first half on higher
Essentra CEO Paul Forman to Step Down; Scott Fawcett Named
Essentra PLC said Monday that Chief Executive Paul Forman has
decided to step down at the end of 2022, to be succeeded by Scott
Fawcett, managing director of the components division.
Peel Hunt Expects 1H Revenue to Fall on Lower Capital Markets
Peel Hunt Ltd. said Monday that it expects to report a fall in
revenue for the first half of fiscal 2023 due to a market-wide
backdrop of historically low levels of capital markets activity
throughout the period.
Investec to Repurchase Up to $66 Mln Worth of Shares in Capital
Investec PLC said Monday that it will repurchase up to 1.2
billion South African rand ($66.3 million) worth of shares, as part
of its capital optimization strategy.
Essentra to Sell Filters Business for GBP262 Mln; Will Pay
Essentra PLC shares rose Monday after it said it will sell its
filters business to a subsidiary of Centaury Management Ltd. for an
enterprise value of around 262.1 million pounds ($292.7 million),
and will pay a special dividend.
STM Group Appoints Interim CEO
STM Group PLC said Monday that Therese Neish has been appointed
as interim chief financial officer and that she will also join the
board on an interim basis.
Hyve Group Confident in FY 2023 Outlook on Forward Bookings
Hyve Group PLC said Monday that it is confident in its fiscal
2023 outlook due to the continued positive performance of its
IDOX Buys LandHawk Software Services for GBP1.1 Mln
IDOX PLC said Monday that it has bought LandHawk Software
Services Ltd. for 1.1 million pounds ($1.2 million), enhancing its
geospatial information services, or GIS, offering.
UK Policy Reversal Gives Gilts Short-Term Relief But Damage
1030 GMT - The U.K. government's reversal of its decision to cut
the top-bracket income tax offers short-term relief to government
bonds, but the damage to the market is still present, Ben Laidler,
global markets strategist at eToro says in a note. "Much of the
damage from last week is also still visible, with 10-year bond
yields up by a quarter from early September and by half from
August, implying higher costs for all borrowers," Laidler says.
"The government is not out of the woods yet with the vast majority
of its unfunded spending plans still intact." U.K. 10-year gilt
yields edge down 3 basis points to 4.068%, still well above levels
below 3% traded in early September, according to Tradeweb.
UK Policy U-Turn Still Leaves Uncertainty For Gilts,
1000 GMT - The U.K. government's U-turn on its plan to cut the
rate of income tax for top earners "clearly eases some of the
worries surrounding unfunded tax cuts" and has helped sterling and
gilts to recover a little but it still leaves uncertainty, Premier
Miton Investors says. "The Bank of England and the government are
at loggerheads and, as importantly, there is no conviction in
government policy. It all makes a for a very uncertain backdrop for
markets, particularly gilts and sterling," says chief investment
officer Neil Birrell in a note. "It is not the solution to the
turmoil in the markets," with inflation still high and economic
growth "under severe threat," he says.
Oil Stocks Rise as OPEC+ Expected to Debate Production Cut
0952 GMT - Oil stocks across Europe are higher Monday ahead of
an OPEC+ meeting on Wednesday where it is expected that an oil
output cut of one million barrels a day will be considered. Brent
crude oil rises 4% to $88.52 a barrel. "OPEC+ is of course very
well aware of the fast slowdown in the global economy and want to
pre-empt any possible oil market balance surplus," DNB Markets
analyst Helge Andre Martinsen says. TotalEnergies, Repsol and BP
are 2% higher, while Eni and OMV are up 1.9% and Shell's shares are
up 1.3%. (email@example.com)
UK PM's Policy U-Turn Seen as Symbolic
0928 GMT - U.K. Prime Minister Liz Truss's U-turn on plans to
cut the highest rate of income tax was probably less about saving
money and more about the poor signal delivered of ideological
unfunded tax cuts, ING says. The decision to reverse the planned
abolishment of the 45% tax bracket is "rather symbolic," ING
analyst Chris Turner says in a note. "The move looks driven by a
backlash from [Truss's] own party and perhaps the threat of a
sovereign rating downgrade, where the S&P rating agency on
Friday shifted the U.K. outlook to negative from stable in an
unscheduled move." GBP/USD rises 0.2% to 1.1199 and EUR/GBP falls
0.2% to 0.8745. (firstname.lastname@example.org)
Contact: London NewsPlus; email@example.com
(END) Dow Jones Newswires
October 03, 2022 06:57 ET (10:57 GMT)
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