Pound Rises After UK Inflation Data, Gains Limited Before
Fed
The pound rises after data showed annual U.K. inflation reached
2.1% in May, above a Wall Street Journal poll forecast of 1.9% and
exceeding the Bank of England's 2.0% target for the first time in
almost two years. Gains are limited, however, ahead of a U.S.
Federal Reserve decision later Wednesday, which has the potential
to boost the dollar and weigh on risk appetite, sending the pound
lower. The U.K. data "remains supportive for the pound" but the
dollar's reaction to the Fed "will of course be key as will any
deterioration in the EU-U.K. relationship in regard to the Northern
Ireland protocol," says Derek Halpenny, head of research for global
markets for EMEA at MUFG. GBP/USD rises 0.2% to 1.4115. EUR/GBP
falls 0.2% to 0.8593.
Companies News:
Elixirr International Sees 2021 Revenue at Top End of Range
After Strong Start
Elixirr International PLC said Wednesday that trading for the
first five months of the year has been strong and it now expects to
report revenue at the upper end of the previously indicated
range.
---
ScS Group Sees FY 2021 Results, FY 2022 Outlook Above Market
Views; Declares 3p Dividend
ScS Group PLC said Wednesday that it expects both its results
for fiscal 2021 and outlook for fiscal 2022 to beat market
forecasts on the back of strong business, and that it is resuming
dividend payments.
---
Mercantile Ports & Logistics Restructures Debt Facility
Mercantile Ports & Logistics Ltd. said Wednesday that it has
restructured its debt facility in terms which are favorable to the
company as it recognizes the acute disruption in India caused by
Covid-19.
---
Oxford Instruments PLC Buys WITec Wissenschaftliche for Up to
EUR42 Mln -- Deal Digest
ACQUIRER: Oxford Instruments PLC.
---
Filta Group Says Demand Has Picked Up in All Operating
Territories
Filta Group Holdings PLC said Wednesday that demand for its
services has increased in all of its operating territories amid
Covid-19 vaccine rollouts.
---
Alpha Growth Clarifies Purchase of Northstar Shares
Alpha Growth PLC said Wednesday that it has acquired shares in
Northstar Group (Bermuda) Ltd, not Northstar Financial Services
Bermuda Limited, in response to shareholder queries.
---
EverArc to Buy Perimeter Solutions Parent in $2 Bln Reverse
Takeover
EverArc Holdings Ltd. said Wednesday that it has agreed to buy
SK Invictus Intermediate Sarl, parent company of firefighting
products and lubricant additives maker Perimeter Solutions, in a
reverse takeover valued at around $2 billion.
---
Best of the Best Shares Tumble on Declining Customer Engagement
-- Update
Shares in Best of the Best PLC fell Wednesday after the company
warned of declining customer engagement amid easing restrictions in
the U.K.
---
Origin Enterprises Sees FY 2021 Adjusted EPS on the Rise Despite
Lower 3Q Revenue
Origin Enterprises PLC said Wednesday that it expects adjusted
diluted earnings per share for fiscal 2021, following a decent
third quarter given the inclement weather.
---
Severfield FY 2021 Pretax Profit Fell
Severfield PLC said Wednesday that pretax profit fell for fiscal
2021 after booking higher costs, and that its high-quality order
book for the U.K. and Europe supports continued growth throughout
fiscal 2022 and beyond.
---
Castings FY 2021 Profit, Revenue Fell on Covid-19
Disruptions
Castings PLC said Wednesday that pretax profit and revenue fell
in fiscal 2021 as the coronavirus pandemic caused disruptions, but
that it is now back to full production.
---
Renold Shares Fall on FY 2021 Accounts Delay; Trading in Line
with Views
Shares of Renold PLC fell as much as 12% on Wednesday after the
company said that its fiscal 2021 earnings will be delayed while
its auditors complete the audit process.
---
Oilex Appoints Roland Wessel as CEO
Oilex Ltd. said Wednesday that Roland Wessel has been appointed
chief executive officer effective June 16, and that Managing
Director and Interim Chairman Joe Salomon will assume the position
of executive chairman for an interim period.
---
Political Summits Signal International Focus on Ransomware
The attention of world leaders to ransomware in a series of
high-level meetings highlights how quickly the destructive
cyberattacks have climbed the political agenda as a string of
recent attacks disrupted companies and critical infrastructure in
the U.S. and other countries.
---
Invesco Star Fund Manager Duo to Retire From Fixed Income Team
-- Financial News
Of Financial News
Market Talk:
N. Brown's Prospects Are Getting Better, Shore Says
0859 GMT - U.K. clothing-and-footwear retailer N. Brown Group
continues to be plagued by legacy issues but the outlook seems to
be improving, according to Shore Capital. "There will undoubtedly
be a feeling of frustration...as the group has been through a
sustained period where legacy matters have involved cash outlays,
from a dispute with HMRC through to a series of exceptional items,"
Shore says. However, the company has undertaken a good
re-engineering work in fiscal 2021, which delivered a much stronger
financial position, the investment group says.
---
ScS Group Shares Still Seem Cheap, Says Peel Hunt
0858 GMT - ScS Group's stock has been enjoying big upgrades but
it still remains far from fully reflecting the
flooring-and-furniture retailer's strength, according to Peel Hunt.
"We don't expect that the strong sector trends will ease quickly,
and risk remains to the upside for our forecasts," the brokerage
says. It is encouraging that ScS is returning to paying dividends
while its cash position remains enviable, Peel Hunt says. The
brokerage has a buy rating on the stock and a target price of 340
pence. Shares are up 13% at 327 pence.
---
Higher UK Inflation Unlikely to Last
0855 GMT - U.K. inflation could accelerate further after rising
above the Bank of England's 2% target in May but these price
pressures won't last, EY Item Club says. "The risk of higher
inflation in the short term has risen due to the escalation in
price pressures further down the supply chain, largely caused by
bottlenecks and component shortages," EY economist Howard Archer
says. However, inflation should ease further out as a stronger
pound is still to pass through to consumer prices and the large
amount of spare capacity will weigh on wage growth and margins, he
says. Consumer prices rose 2.1% year-on-year in May following a
1.5% increase in April, official data showed Wednesday.
---
FireAngel Safety Technology's 1H Trading Guidance
Encouraging
0847 GMT - FireAngel anticipating 1H trading in line with the
board's expectations is encouraging despite the challenges it
faces, Shore Capital says. On the demand side, some of the
company's markets aren't yet fully opened due to Covid-19
restrictions, whereas the supply side has seen it deal with some
global component shortages and international shipping disruptions,
the U.K. investment group says. Demand for the company's products
will be strong in the coming years following is GBP9 million
fundraise, and will be partly driven by legislation and, or,
regulation, Shore says. "The potential for gross margin improvement
as a principal driver of improved profitability... combined with
increased sales augurs well for enhanced shareholder returns in due
course," Shore Capital says.
---
Sustained Rise in UK Inflation Could Happen Sooner Than
Expected
0839 GMT - Reopening of the U.K. economy could drive inflation
up to 3% this year and the consumer-price index might not drop back
below 2% next year, Paul Dales, chief U.K. economist at Capital
Economics, says. The firm's forecast that inflation will fall back
below 2% next year is based on the view that businesses can absorb
higher costs, but the additional increases in producer-price
inflation show that cost pressures are building up, he says. "The
risk is that the sustained rise in inflation above 2% we expect in
late 2023 or early 2024 happens sooner," Dales says.
---
Pets at Home Seen Set for Further Growth
0814 GMT - Pets at Home's impressive growth seems bound to
continue as the company can leverage both self-help and external
tailwinds, according to Berenberg. The pet-care company ended
fiscal 2021 with two-year like-for-like sales growth of circa 20%
and if that momentum continues it should generate 9% to 10%
like-for-like sales growth in fiscal 2022, Berenberg says.
Meanwhile, the company continues to benefit from the increasing pet
population in the U.K. and has plans to expand its store chain this
year, the German brokerage says. Berenberg has a buy rating on the
stock and a target price of 540.0 pence. Shares are up 0.4% at
458.4 pence.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 16, 2021 06:18 ET (10:18 GMT)
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