UK's Worsening External Deficit Leaves Sterling Vulnerable
July 01 2022 - 6:16AM
Dow Jones News
UK's Worsening External Deficit Leaves Sterling Vulnerable
0901 GMT - Sterling will remain highly sensitive to global
investor risk appetite as the U.K.'s external deficit is worsening,
MUFG Bank says. Sterling tends to perform poorly during periods of
risk aversion and data on Thursday that showed the U.K. had a
record current account deficit in the first quarter suggest the
currency's underperformance could continue as financial market
conditions will remain challenging in coming months, MUFG analyst
Derek Halpenny says in a research note. "The overall external
position is worsening which leaves the U.K. more vulnerable at
times when risk aversion becomes elevated and capital flows can
diminish as investors pull back from financing." GBP/USD falls 0.5%
to 1.2112 and EUR/GBP rises 0.3% to 0.8634.
(renae.dyer@wsj.com)
Companies News:
Mondi Completes Sale of Personal Care Components Ahead of
Schedule
Mondi PLC said Friday that it has completed the disposal of its
Personal Care Components business to Nitto Denko Corp. for 615
million euros ($644.8 million) ahead of schedule.
---
Aston Martin Lagonda Regularly Monitors Funding Options; Trading
in Line
Aston Martin Lagonda Global Holdings PLC said late Thursday that
it regularly keeps funding options under review and that any
financing, if made, would be used to support and accelerate the
company's growth.
---
Itaconix 1H Revenue Hit Record High; Set to Meet Full-Year
Market Views
By Sabela Ojea
---
M.J. Gleeson Meets Target With Sale of 2,000 Homes in FY
2022
M.J. Gleeson PLC said Friday that it doubled home sales for the
financial year ended June 30 after completing the sale of 2,000
homes.
---
Lamprell Shareholder Considers Takeover Bid
Lamprell PLC's shareholder Sami Al Angari said Friday that it is
considering an offer to acquire the rest of the troubled United
Arab Emirates-based company.
---
Kazatomprom CEO Mazhit Sharipov Steps Down for Personal
Reasons
NAC Kazatomprom JSC said Friday that Chief Executive Officer
Mazhit Sharipov will step down on Monday for personal reasons.
---
Braemar Shipping Says Performance Is Ahead of Expectations
Braemar Shipping Services PLC said Friday that its performance
in the year ending February 2023 continues to be strong and ahead
of management's expectations.
---
S4 Capital Agrees to Buy Marketing Agency XX Artists
S4 Capital PLC said Friday that it has entered into a deal to
buy the U.S.-based social-media marketing agency XX Artists to
combine it with Media.Monks.
---
Ukrproduct Suspends Shares as War Delays Audit, Hurts 2022
Performance
Ukrproduct Group Ltd. said Friday that it has suspended its
shares from trading because it can't complete its 2021 audit due to
the war in Ukraine, and that the current year's performance has
been hurt by the conflict.
---
CVS Group Says U.K. Watchdog Completed Investigation Over The
Vet Deal, Buys OCVC
CVS Group PLC said on Friday that the U.K. Competition and
Markets Authority has completed its investigation on CVS'
acquisition last year of Quality Pet Care Limited, which trades as
The Vet, and added that it has acquired OCVC Limited and that it is
currently performing in line with expectations.
---
BlueRock Diamonds 2021 Loss Narrowed, Fundraising Talks
Continue
BlueRock Diamonds PLC on Friday reported a narrowed loss for
2021 and said that it remains in talks to secure further
financing.
---
Block Energy to Step Up Drilling in 2022, 2023 -- Energy
Comment
Block Energy PLC on Friday reported a narrowed loss for 2021,
and promised to accelerate drilling in 2022 and 2023 to increase
oil production and target gas deposits. Here is what the
Georgia-focused oil-and-gas company had to say:
---
Pennpetro Energy Trading Suspended Due to 2021 Accounts
Delay
Pennpetro Energy PLC said Friday that trading in its shares has
been temporarily suspended as the U.K.-based company hasn't been
able to publish its 2021 accounts by the June 30 deadline.
---
Lamprell Shares Suspended Due to Delayed Publication of 2021
Accounts
Lamprell PLC said Friday that its shares have been suspended
pending the release of its 2021 results.
Market Talk:
S4 Capital's XX Artists Agreement Could Signal Further Deals
0921 GMT - S4 Capital's deal for XX Artists to combine it with
Media.Monks' operation highlights upside risk from further
unannounced mergers, Jefferies analysts say in a research note. The
digital advertising and marketing-services company's conditional
agreement significantly enhances its social media marketing
capabilities and client base and XX Artists has highly appealing
growth prospects with structural tailwinds, the analysts say. XX
Artists' creates and executes social and influencer content
strategies for clients, which include Google, YouTube, Logitech and
Ancestry.com. Jefferies has a buy rating on the stock with a
570-pence price target. Shares trade up 1.6% at 232.80 pence.
(kyle.morris@dowjones.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
July 01, 2022 06:01 ET (10:01 GMT)
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