Pound's Rise Vs Dollar Likely to Remain Limited
0924 GMT - Sterling's rise against the dollar will remain
contained in coming days even if there is progress on post-Brexit
talks on the Northern Ireland protocol and a further improvement in
U.K. coronavirus infections, ING says. "We think the upside for
GBP/USD should be limited by some tentative USD progress and a
material spike above 1.4000 may not be a story for this week," ING
analysts say. The analysts expect the dollar to receive support
from expected strong U.S. economic data this week and from flows
into safe haven assets due to concerns about the global recovery.
They also expect the Bank of England's policy decision on Thursday
to be "uneventful" for sterling. GBP/USD last trades up 0.1% at
1.3919.
Companies News:
Allianz Warns of Risk to Earnings From Structured Alpha Funds
Investigations
Allianz SE said future earnings could be hit by current
investigations into its Structured Alpha funds that have been
linked to investor losses during the coronavirus-related market
downturn early last year.
---
Dialight Swung to 1H Pretax Profit
Dialight PLC on Monday reported a swing to pretax profit for the
first half of the year on higher total orders and revenue.
---
U.K. SPAC Enters Into Binding Sale, Purchase Agreement With
Hellenic Dynamics
U.K. SPAC PLC said Monday it has entered into a binding
sale-and-purchase agreement with the shareholders of Hellenic
Dynamics SA--a medical cannabis cultivation business--in relation
to the acquisition of 100% of its issued share capital for a
consideration of 45.2 million pounds ($62.8 million).
---
Kazatomprom Says 2Q Uranium Production Rose; Reaffirms 2021
Guidance
NAC Kazatomprom JSC reported that its uranium production, sales
and realized prices rose in the second quarter from a year earlier,
and reaffirmed 2021 guidance.
---
UK Watchdog Is Mulling Auction Technologies' Acquisition of
LiveAuctioneers
The U.K. Competition and Markets Authority said Monday that it
is considering whether Auction Technology Group PLC's $525 million
acquisition of LiveAuctioneers Worldwide Inc. raises competition
issues and has invited interested parties to offer comment ahead of
a formal probe.
---
XP Power 1H Pretax Profit, Revenue Rose
XP Power Ltd. reported on Monday a rise in pretax profit and
revenue for the first half of the year, and said the board expects
to post full-year performance above market expectations.
---
UK Oil & Gas Shares Fall on Delay at Basur-3 Well in
Turkey
Shares in UK Oil & Gas PLC dropped Monday after the company
warned of an unforeseen delay at the Basur-3 appraisal well in
Turkey, which is operated by Aladdin Middle East.
---
Tertiary Minerals Shares Rise on Deal to Acquire Copper Licenses
in Zambia
Shares in Tertiary Minerals PLC jumped Monday after it entered
into an option agreement with Mwashia Resources Ltd. to acquire up
to a 90% interest in five copper exploration licenses in
Zambia.
---
88 Energy Nonexecutive Chairman Michael Evans Retires, Philip
Byrne Named
88 Energy Ltd. said Monday that Nonexecutive Chairman Michael
Evans is retiring with immediate effect after seven years in the
role, and will be replaced by Philip Byrne.
---
D4t4 Solutions Appoints Ashoni Mehta as CFO
D4t4 Solutions PLC said Monday that it has appointed Ashoni
Mehta as its new chief financial officer, effective Sept. 1.
---
Meggitt Agrees to $8.76 Bln Parker-Hannifin Takeover, Shares
Rise
Shares in Meggitt PLC rose on Monday after the company said that
it has agreed to a 6.3 billion pounds ($8.76 billion) takeover by
Parker Hannifin Corp., a deal that is expected to double the size
of Parker's Aerospace Systems segment.
Market Talk:
Senior Shares Jump as 1H Results Beat Expectations
0937 GMT - Shares in Senior rise 6.2% after the company reported
first-half results ahead of management expectations. The group
reported a modest pretax profit in the period, which is no mean
feat given the challenges faced, Jefferies says. Cash flow was also
healthy, and the engineering group now enjoys a much improved
balance sheet, Jefferies adds. As a result, the bank makes positive
revisions to its 2021-23 earnings forecasts for Senior,
significantly reduces debt projections for the same three years and
raises the target price to 200 pence from 130 pence with a buy
rating on the stock. "Senior is making encouraging progress, and
while we recognize the near-term challenges will need to be
carefully navigated, we share mgmt's confidence in the group's
recovery potential."
---
UK Manufacturers Hit by Shortages in July
0921 GMT - U.K. manufacturers reported solid growth in July but
shortages of raw materials, transport and staff are stifling many
businesses, IHS Markit says in its purchasing managers survey
compiled with CIPS. The recent surge in global manufacturing growth
led to supply chain delays, exacerbated by factories and their
customers building up safety stocks, Markit's Rob Dobson says.
"Some firms also noted that post-Brexit issues were still a
constraint on efforts to rebuild sales and manage supply and
distribution channels to the EU." The U.K. manufacturing PMI fell
to 60.4 in July from 63.9 in June, although a level above 50
signals growth, Markit/CIPS confirmed. GBP/USD falls to 1.3911 from
1.3928 before the data and EUR/GBP rises to 0.8543 from 0.8535.
---
HSBC 2Q Pre-Provision Profit Falls Short of Hopes
0917 GMT - Shares in HSBC Holdings edge 0.7% higher as the
global bank reported higher second-quarter net profit after
reducing money set aside for bad loans caused by the economic
fallout from the coronavirus pandemic. Headline numbers topped
expectations on the lower provisions, though pre-provision profit
fell 4% short of consensus expectations due to heavier costs and
softer non-interest income, Barclays says. "Overall, we expect the
shares to be soft today given the slight earnings/dividends miss,
albeit recent under-performance should provide some support,"
Barclays analysts say.
---
Supply and Staff Shortages Slowed UK's Manufacturing Activity in
July
0909 GMT - The U.K. manufacturing upturn lost some traction in
July as stretched supply chains and staff shortages weighed on
growth, according to data from IHS Markit. The manufacturing PMI
stood at 60.4 in July, signaling strong expansion levels but down
from 63.9 in June. "Manufacturing in July was unable to maintain
the pace of output growth seen earlier this year following the
reopening of the U.K. economy, as supply gridlock resulted in a
moderate deceleration in the rates of expansion of production, new
orders and job creation," Duncan Brock, group director at the
Chartered Institute of Procurement & Supply, says. Price
pressures continued to grow, with input costs rising at almost the
highest pace since the PMI survey began and companies passing on
high prices to consumers.
---
Totally's Bottom Line Expected to Grow Faster Than Revenue
0909 GMT - Totally's contract win and contract extensions, as
well as positive demand trends for its Insourcing division, offer
encouragement with regard to achieving Canaccord Genuity's pretax
profit expectations of GBP2.7 million for fiscal 2022, the Canadian
investment bank says. The healthcare services provider's buy and
build strategy has, through targeted acquisitions, created a
nationwide platform for growth which provides attractive
opportunities to further develop its contract portfolio across its
three divisions, Canaccord says. "As the company continues to build
scale through contract wins, extensions and potentially
acquisitions, we expect bottom-line growth to significantly exceed
revenue growth in the coming years," the bank says. Canaccord rates
the stock buy with a 60-pence target price.
---
SSE Sold Remaining SGN Stake for Slightly Less Than Expected,
Citi Says
0846 GMT - SSE's disposal of its remaining 33% shareholding in
U.K. gas distribution company SGN for GBP1.23 billion is marginally
light compared to Citi expectations, the bank's analyst Jenny Ping
says. On an enterprise value basis, the transaction's price is 2%
lower than Citi's GBP2.76 billion valuation, Ping says. In
addition, the deal came earlier than expected, the analyst says.
"We are surprised on the timing of the announcement, given the
pending CMA review on the allowed [Weighted Average Cost of
Capital]. We are also surprised there does not appear to be any
built in adjustment to the disposal price should CMA review yield a
higher WACC." Shares in the energy company rise 1.1%.
---
SSE's Proceeds From SGN Disposal Exceed Jefferies's
Expectations
0843 GMT - SSE has agreed to sell its 33.3% stake in SGN for
GBP1.23 billion in cash, with total proceeds around 10% above
Jefferies's expectations, the bank's analyst Ahmed Farman says. The
timing of closing is in line with Jefferies's previous assumptions.
Shares in the energy company rise 1.2%. SSE has suggested the
November update on its capital investment plans could include an
increase in capex, which would put additional pressure on the
balance sheet and might require further disposals, Farman says.
Jefferies has a hold rating on the stock.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
August 02, 2021 06:12 ET (10:12 GMT)
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