Risk Sentiment Seen as More Important for Pound Than UK GDP Data
August 12 2022 - 5:47AM
Dow Jones News
Risk Sentiment Seen as More Important for Pound Than UK GDP
Data
0826 GMT - Sterling is more likely to be driven by broad risk
appetite than Friday's better-than-expected U.K. economic growth
data, MUFG Bank says. "In reality the better June print doesn't
change the overall backdrop and won't alter at all the Bank of
England's outlook and hence its policy outlook," MUFG analyst Derek
Halpenny says in a note. The U.K. economy contracted 0.6% on month
in June, less than the 1.3% decline expected by economists in a WSJ
survey. For 2Q, the economy contracted by 0.1% on quarter against
expectations for a 0.2% drop. GBP/USD falls 0.2% to 1.2172 but
EUR/GBP is flat at 0.8457. (renae.dyer@wsj.com)
Companies News:
Haleon Says It Hasn't Been Notified About Litigation on Zantac
Drug
Haleon PLC said Friday that it hasn't been notified about
potential negative implications of U.S. lawsuits over discontinued
heartburn drug Zantac.
---
888 Holdings 1H Pretax Profit Fell Materially
888 Holdings PLC reported on Friday a significant decline in
pretax profit for the first half of 2022 on lower contribution,
increased legal and professional costs linked to the acquisition of
William Hill, and expenses related to the disposal of the Bingo
business.
---
TBC Bank's 2Q Pretax Profit Fell on Higher Costs; Outlook
Unchanged
TBC Bank Group PLC reported Friday a decline in pretax profit
for the second quarter of 2022 on the back of higher operating
expenses, and reiterated its medium-term targets for the whole
year.
---
Stelrad Group 1H Pretax Profit Fell on Turkish Subsidiary Costs;
Declares Dividend
Stelrad Group PLC said Friday that pretax profit for the first
half fell amid higher costs caused by its Turkish subsidiary new
reporting standards, but revenue rose driven by increased
margins.
---
Global Invacom Group 1H Pretax Loss Widened; Starts Business
Review
Global Invacom Group Ltd. said Friday that pretax loss for the
first half of 2022 widened and revenue fell amid a shortage of
semiconductors, and that it is reviewing its business given
continuing challenges.
Market Talk:
UK's Record Current Account Deficits Negative for Pound
0902 GMT - The U.K.'s trade data for June underlined that the
nation is running record current account deficits, which has proved
a persistent negative factor for sterling, MUFG Bank says. "The
performance of the pound is currently very sensitive to broader
risk appetite and during times of risk aversion, large current
account deficits fuel GBP weakness," MUFG analyst Derek Halpenny
says in a note. The U.K.'s total trade in goods deficit widened by
GBP2.1 billion to GBP22.1 billion in June, Office for National
Statistics data showed Friday. GBP/USD falls 0.2% to 1.2176, but
EUR/GBP is flat at 0.8459. (renae.dyer@wsj.com)
Flutter's 1H Performance Slightly Exceeds Forecasts
0827 GMT - Flutter has issued a very encouraging set of results
for the first half, with performance coming in slightly better than
forecast, a reiteration of full-year estimates and a positive
contribution from the U.S. in the second quarter, Shore Capital
says. The gambling group's second half has started in line and
Shore's estimates will require a modest improvement for the period,
Shore analyst Greg Johnson says in a research note. "Our preference
has been for [peer] Entain over Flutter on both valuation and
growth profile, though the relative first-half performances and
current valuations suggest the difference is now modest," the U.K.
investment group says. Shore retains its hold rating on the stock.
Shares are up 9.8% at 10,300 pence. (joseph.hoppe@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
August 12, 2022 05:32 ET (09:32 GMT)
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