BOE Buys Time for U.K. Government to Re-Evaluate Policy
September 29 2022 - 3:49AM
Dow Jones News
BOE Buys Time for U.K. Government to Re-Evaluate Policy
0716 GMT - The Bank of England's purchases of long-end gilts buy
time for the U.K. government to make some reversal of recent policy
announcements, David Page, head of macro research at AXA Investment
Managers says. The upcoming Conservative Party Conference provides
the next test as to whether the government will react, he says in
a note. "Otherwise, UK asset markets are likely to come under
further pressure," he adds. The necessity of the BOE's
intervention to address the disruption of orderly markets caused by
the Chancellor's statement on Friday is quite exceptional, Page
says. "The BOE's operations buy time for the government to
're-evaluate' policy," he says. (emese.bartha@wsj.com)
Companies News:
Vodafone Chief Technology Officer to Step Down; Successor
Named
Vodafone Group PLC said Thursday that Chief Technology Officer
Johan Wibergh will retire at the end of 2022 after serving in the
role since 2015, and that Scott Petty will take over from Jan.
1.
---
M&G Names Andrea Rossi as Chief Executive, Replacing John
Foley
M&G PLC said Thursday that it has appointed Andrea Rossi as
its new chief executive from Oct. 10, replacing John Foley who is
retiring after seven years in the role.
---
Avation Swung to FY 2022 Pretax Profit as Business Returns to
Prepandemic Levels
Avation PLC said Thursday that it swung to pretax profit for
fiscal 2022 as the pandemic comes to an end and a high level of
utilization for the aircraft fleet returns.
---
Attraqt Group Agrees to GBP63.2 Mln Takeover by Crownpeak
Holdings
Attraqt Group PLC said Thursday that it has agreed to a 63.2
million pound ($68.8 million) cash offer by Aegean Bidco Ltd, a
subsidiary of Crownpeak Holdings, LLC.
---
Mitchells & Butlers FY 2023 Comparative Sales Rose; Seeing
Inflation Pressure
Mitchells & Butlers PLC said Thursday that like-for-like
sales in fiscal 2022 rose slightly compared to prepandemic levels,
but total sales fell, and it was experiencing inflationary
pressures.
---
HSS Hire 1H Pretax Profit Fell on Higher Costs, Reinstates
Dividend
HSS Hire Group PLC said on Thursday that pretax profit for the
first half of fiscal 2022 slightly fell amid higher costs which
offset a revenue increase, and reinstated a dividend payout.
---
Great Portland Estates Sees Strong 1H Leasing Activity
Great Portland Estates PLC said Thursday that it has seen strong
leasing activity in its first half, and reiterated its confidence
in its outlook.
---
Next Cuts FY 2023 Profit, Sales Guidance Amid Waning Consumer
Confidence -- Update
Next PLC on Thursday reported a better-than-expected pretax
profit increase for the first half of fiscal 2023, amid stronger
retail sales, and cut its full-year profit guidance amid rising
living costs.
Market Talk:
BOE's Purchase of Long Gilts Is Only a Short-Term Fix
0606 GMT - The Bank of England's temporary purchases of
long-dated gilts offer a short-term fix, but not a panacea,
Barclays' debt research analysts Ajay Rajadhyaksha and Themistoklis
Fiotakis write in a note. "In the short term, these actions are
working extremely well," they say. "But if the goal is to restore
lasting stability to sterling-denominated financial markets, we
worry that the move will fall short." The problem is that bond and
currency markets have reacted poorly since the mini-budget, at
least in part due to fears that the move added new fiscal stimulus
to an economy that already had 10% inflation and a very low jobless
rate, they say. "It's difficult to see how this perception can be
corrected by new monetary policy stimulus."
(emese.bartha@wsj.com)
Litigation Stay Upheld for Cineworld in Cineplex Lawsuit
1525 ET - A bankruptcy judge on Wednesday denied Cineplex Inc.'s
request to lift the litigation shield for bankrupt Cineworld Group
PLC, effectively shelving the upcoming oral arguments in the failed
Cineworld acquisition dispute before the Ontario Court of Appeal.
Judge Marvin Isgur with the U.S. Bankruptcy Court in Houston said
in his ruling that allowing the litigation to continue at this
early stage of Cineworld's bankruptcy process would be "premature."
The Canadian appeal court was set to hear arguments next month to
determine whether a lower court's decision to award Cineplex nearly
$1B in damages against Cineworld was appropriate. Cineworld, which
filed for chapter 11 earlier this month, withdrew from a deal to
acquire Cineplex in the wake of the Covid-19 pandemic. "The purpose
of the automatic stay is to give the debtor a breathing spell,"
Judge Isgur said. (akiko.matsuda@wsj.com; @AskAkiko)
Contact: London NewsPlus; Dow Jones Newswires;
paul.larkins@wsj.com
(END) Dow Jones Newswires
September 29, 2022 03:34 ET (07:34 GMT)
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