Weak UK Growth Outlook Holds Back Pound
August 11 2022 - 6:18AM
Dow Jones News
Weak UK Growth Outlook Holds Back Pound
0939 GMT - The weak U.K. economic growth outlook has prevented
sterling from receiving much support from the Bank of England's
interest rate rises, Rabobank says. Long-term issues over low U.K.
productivity growth and the lack of clear direction from the U.K.
government over the benefits of Brexit have also likely contributed
to weak investment levels and sterling's lacklustre performance,
Rabobank forex strategist Jane Foley says in a note. "The U.K.
maintains a significant current account deficit which opens the
pound to downside potential if the UK's fundamental backdrop is not
attractive to overseas savers." GBP/USD could fall below 1.20 in
one to three months from 1.2220 currently, Foley says.
(renae.dyer@wsj.com)
Companies News:
Coca-Cola HBC Missed 1H Pretax Profit Views; 2022 Outlook Seen
Stronger
Coca-Cola HBC AG on Thursday reported a significant decline in
pretax profit for the first half of 2022, which came in below
market expectations, and said that, excluding Russia and Ukraine,
it expects to close the year with double digit organic revenue
growth.
---
Entain 1H Profit Fell on FX Losses; Sees 2022 Earnings
Rising
Entain PLC said Thursday that its first-half profit fell on
foreign exchange losses on retranslation of debt, though revenue
rose and it expects full-year earnings to rise.
---
M&G 1H Operating Profit Fell Amid Higher Market
Volatility
M&G PLC reported on Thursday a fall in first-half operating
profit and a swing to pretax loss, while the decrease in assets
under management was lower than expected despite a period of market
volatility.
---
Antofagasta 1H Profit Fell on Lower Copper Production,
Prices
Antofagasta PLC on Thursday reported a profit drop for the first
half of 2022 and reiterated recently-revised guidance for the full
year.
---
Spirax-Sarco Engineering 1H Pretax Profit Hit by Charges
Spirax-Sarco Engineering PLC on Thursday reported a 7.7% fall in
pretax profit for the first half of the year due to a number of
costs, including a restructuring charge related to its electric
thermal solutions business and an impairment on its Russian
operations.
---
Entain to Acquire 75% Stake in SuperSport Group
Entain PLC said Thursday that it has partnered with EMMA Capital
to acquire SuperSport Group from EMMA, valued at around 920 million
euros ($947.6 million).
---
OSB Group 1H Pretax Profit, Net Interest Income Rose; Outlook
Upgraded
OSB Group PLC reported on Thursday a significant rise in pretax
profit and net interest income for the first half of 2022 and said
that it has improved its full-year underlying net interest margin
guidance.
---
Marks Electrical Four-Month Revenue Rose Despite Strong
Competition
Marks Electrical Group PLC said Thursday that its performance
for the first four months of fiscal 2023 was robust despite a
challenging market backdrop.
---
Petrofac Reports 1H Loss, Says Performance Was in Line
Petrofac Ltd. on Thursday reported a loss for the first half of
the year, adding that its performance for the period was in line
with guidance.
---
Morses Club Takes Further Steps to Set Up Potential Scheme of
Arrangement
Morses Club PLC said Thursday that it has appointed an
independent chairperson to set up a new committee to represent
customers eligible to make redress claims and assist the company in
developing any potential scheme of arrangement in relation to
settling them.
---
Empiric Student 1H Pretax Profit Rose as Academic Year
Normalizes
Empiric Student Property PLC reported a robust increase in
pretax loss for the first six months of 2022, driven by an
improvement in fair value of investment property and reflecting the
normalization of the academic year as Covid-19-related impact
reduces.
---
Savills 1H Pretax Profit Slips on Higher Costs; Maintains 2022
Guidance
Savills PLC said Thursday that its first-half pretax profit
slipped on increased costs, though revenue rose, and maintained its
full-year expectations despite increased macroeconomic
uncertainty.
Market Talk:
Entain's 1H Update Has Plenty of Positives
0847 GMT - Entain's first-half update had a number of positives,
with the reinstatement of the dividend and a full-year guidance
range for Ebitda likely to be well-received, and a sensible-looking
acquisition of Croatian sportbook and gaming company SuperSport,
Goodbody says. The betting-and-gambling group now forecasts a 2022
Ebitda range of GBP925 million-GBP975 million but Goodbody leaves
its own forecasts unchanged given macro-uncertainty, Goodbody
analyst David Brohan says in a research note. The SuperSport
purchase is in-line with Entain's strategy of buying companies with
strong positions in attractive markets, and "given the group's
track record of accelerating growth in companies it acquires, it
can be a material contributor to online growth going forward," the
Irish brokerage says. Goodbody retains its buy recommendation.
Shares are up 3.3% at 1,351.0 pence. (joseph.hoppe@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
August 11, 2022 06:03 ET (10:03 GMT)
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