UK's Covid-19 Strategy and Brexit Tensions Could Hit Pound
1113 GMT - The U.K. government's coronavirus strategy of
achieving herd immunity along with rising trade tensions between
the U.K. and EU could weigh on the pound in the near term, MUFG
Bank says. The consensus among epidemiologists seems to be that a
possible plateau in infections will be reached later in August so
evidence that the herd immunity strategy is working may not be
available imminently, MUFG analyst Derek Halpenny says. "That could
mean limited appetite for buying GBP over the short-term," he says.
"The escalation of the U.K.-EU conflict over the Northern Ireland
protocol is another reason to be cautious on the near-term outlook
for GBP," he says. GBP/USD falls 0.2% to 1.3739 and EUR/GBP rises
0.2% to 0.8565.
Companies News:
Alliance Trust Swung to 1H Pretax Profit; Plans to Review
Dividend
Alliance Trust PLC said Friday that it swung to a pretax profit
for the first half of 2021 as the value of its assets rose, and
said it is launching a review of the level and funding of its
dividend payments.
---
Fusion Antibodies Gets First GBP150,000 Research Milestone
Payment
Fusion Antibodies PLC said Friday that it has achieved its first
research milestone payment of 150,000 pounds ($206,520) as part of
a collaboration with an undisclosed major client.
---
Gateley Buys Tozer Gallagher for Up to GBP825,000 -- Deal
Digest
ACQUIRER: Gateley (Holdings) PLC, a U.K. legal and professional
services group.
---
U.K.'s CMA Won't Further Probe Lanxess-Emerald Kalama Deal
The U.K.'s Competition and Markets Authority said Friday it
won't further probe the proposed acquisition by German chemicals
company Lanxess AG of Emerald Kalama Chemical.
---
Sealand Capital Signs New Distribution Contracts in East
Asia
Sealand Capital Galaxy Ltd. said Friday that it has entered into
exclusive, three-year product-specific distribution contracts with
Heath London, The Gruff Stuff and Carter Beauty by Melissa Carter
in Hong Kong, Macau and mainland China.
---
Harworth Sees First Half Developing Nicely
Harworth Group PLC said on Friday that it expects EPRA [European
Public Real Estate Association] Net Disposal Value as at June 30 to
be materially ahead of current consensus for 2021, and that it
remains well-capitalized and is managing cashflows sustainably.
---
---
Prime People FY 2021 Pretax Loss Narrowed; Suspends Final
Dividend
Prime People PLC said on Friday that its pretax loss for fiscal
2021 narrowed on lower costs, but that it isn't declaring a final
dividend for the year.
---
Vodafone 1Q Revenue Rebounds After Pandemic Hit -- Update
Vodafone Group PLC said Friday that revenue rebounded in the
first quarter of fiscal 2022, recovering from the hit caused by the
coronavirus pandemic last year, and said it is on track to meet its
expectations for the full year.
---
Bank of Cyprus Sees Higher 2021, 2022 Staff Costs
Bank of Cyprus Holdings PLC said Friday that it expects an
increase in its staff costs for 2021 and 2022 after closing a new
renewals agreement with a workers' union.
---
Gambling.com IPO Prices at Bottom of Reduced Expected Range
Gambling.com Group Ltd. is set for its Nasdaq debut Friday after
its initial public offering was priced at the bottom end of a
reduced expected range.
---
GYG Says Deadline for Harwood Capital's Bid Is Extended to Aug.
20
GYG PLC said Friday that the U.K. Takeover Panel has extended to
Aug. 20 the deadline for its second-largest shareholder Harwood
Capital to give a firm intention to make an offer.
Market Talk:
Ultra Electronics Could See Cobham Come Back With a Lower
Offer
1143 GMT - Ultra Electronics has received a non-binding proposal
from Advent's Cobham of GBP35 per share, up from June's GBP28 per
share, and an extension of the 'Put Up or Shut Up' deadline to Aug.
20, Citi says. Although the U.K. defense-equipment provider's board
has indicated that it would be minded to recommend the offer--a 63%
premium prior to the offer period--to shareholders, it still has to
pass the U.K. government's security veto, the U.S. bank says. Citi
says that it is possible that under certain circumstances Cobham
could come back with a lower offer or that no offer could be made.
Citi rates the stock neutral, with a 2,200 target price. Shares are
up 33% at 3,284 pence.
---
Green Gilts to Have Equivalent BOE Eligibility to Existing
Gilts
1123 GMT - Green gilts will have equivalent eligibility to
existing gilts in the Bank of England's market operations, the Bank
of England says. The U.K. plans to issue a minimum of GBP15 billion
in inaugural green gilts during the 2021-22 financial year. Green
gilts will be eligible for purchase in line with the existing Asset
Purchase Facility operating procedures and consolidated market
notice, for purchase as part of the Sterling Bond Portfolio; and as
collateral in the central bank's market operations.
---
Divergence Between UK and Eurozone PMIs Widens
1118 GMT - Global purchasing managers' indexes show an
increasing divergence between countries amid a rise in Covid-19
cases, with U.K. data worse than expected and figures from Europe
stronger, says Ben Laidler, global markets strategist at
multi-asset investment platform eToro. The U.K. PMI came in at
57.7, as the number of infections climb while supply-chain
disruptions persist, he says. By contrast, the eurozone PMI
increased to 60.6, its highest reading since 2000, reinforcing
eToro's view on strong GDP and a rebound in earnings ahead. "Whilst
the continuing rise in cases is continuing to cause uncertainty
globally, we see the current growth scare as overdone, and set to
ease," Laidler says, noting that fiscal and monetary support
remains significant, vaccination rates are rising and economies are
gradually reopening.
---
Moneysupermarket.com's 1H Margin Climbs on Impressive Progress,
Says Jefferies
1111 GMT - Moneysupermarket.com's first-half results included a
marketing margin that rose 3.8% on year to 61.2%, a return to
pre-coronavirus levels in a very quick time, Jefferies says. The
price-comparison website's new CEO only called out "efficient
acquisition" as one of its three strategic pillars in May, but it
has already made impressive progress, with its switch to a leading
bidding platform accounting for two-thirds of the margin
improvement, the U.S. bank says. Management resisted giving
long-term margin guidance but are confident in the outlook,
Jefferies says. "This bodes well for both earnings momentum and
multiple expansion," the bank says. Jefferies retains its buy
rating and 350.0 pence price target. Shares are down 0.2% at 261.0
pence.
---
UK's Covid-19 Test Case Could Provide Guidance to Other
Developed Economies
1035 GMT - U.K.'s strategy amid its latest wave of Covid-19
infections is a test case for what happens when a country with high
vaccination rates eases restrictions even as cases rise, economists
from Berenberg say. For now, vaccines seem to be working and
economic data have largely decoupled from virus trends, while there
are indications that the current wave may have already peaked, they
say. "If the U.K. manages to ride out the Delta wave without
overwhelming its hospitals or reintroducing economically damaging
restrictions, that would provide a positive signal for other
advanced economies that have also eased restrictions after reaching
a similar level of vaccination but are a just a few weeks behind
the U.K. in terms of new infections," Berenberg says.
---
Brewin Dolphin 3Q Flows Rose; Rivals Still Appeal More
1010 GMT - Brewin Dolphin Holdings gains 1.6% after the FTSE 250
listed fund manager reported higher 3Q discretionary net flows and
said gross discretionary fund inflows hit a record. Panmure Gordon
says 3Q assets under management slightly exceeded its estimate
after better-than-expected net flows and the company is
better-placed than some more traditional wealth-management players,
though it still prefers several rivals. "Despite the higher end
point of AUM, revenues were in line with our expectations,
suggesting a touch more revenue margin attrition than we had
anticipated. Overall, our estimates move a little higher on the
back of the AUM reported," Panmure analysts say, keeping their hold
recommendation.
---
UK Recovery Expected to Falter Amid Rising Covid-19 Cases
0959 GMT - The fall in July's composite PMI in the U.K. adds
further signs that the economic recovery is stalling, at least
temporarily, due to high Covid-19 infections, says Gabriella
Dickens, senior U.K. economist at Pantheon Macroeconomics. The PMI
remained well above expansion levels at 57.7, pointing to solid
economic growth in July, but its downward direction is more
important than its level, she says. Economic activity continued to
be constrained by supply shortages, but some data from the PMI
survey suggest that supply-chain disruptions and price pressures
could have already peaked, Dickens say.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
July 23, 2021 08:42 ET (12:42 GMT)
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