BOE May Lift Rates Decisively as UK Business Inflation Expectations Rise

1032 GMT - The Bank of England's latest survey on U.K. business inflation expectations confirm the central bank will need to raise interest rates aggressively at its next policy meeting on November 3, Monex Europe says. "This view is similarly shared by short-term interest rate markets, with overnight index swaps for the Bank's upcoming two meetings rising by 10 basis points on the day to an implied year-end rate of 4.33%," Monex forex strategist Simon Harvey says in a note. U.K. business expectations for consumer price inflation in one year's time rose to 9.5% in September from 8.4% in August, the BOE survey showed Thursday. (renae.dyer@wsj.com)

 
Companies News:

Diageo Backs Medium-Term Guidance Amid Challenging Operating Backdrop

Diageo PLC said Thursday that it has had a good start to fiscal 2023 and that it remains well-positioned to deliver its medium-term guidance despite expecting the operating environment to remain challenging.

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RS Group 1H Revenue Rose; Expects Full Year to Slightly Beat Market Views

RS Group PLC said Thursday that like-for-like revenue for the first half of fiscal 2023 rose 16%, with strong growth across all three regions, and that it expects to slightly beat full-year market expectations for profit and revenue.

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Imperial Brands Launches Buyback of Up to GBP1 Bln; FY 2022 Performance in Line With Views

Imperial Brands PLC said Thursday that it is launching a share-buyback program of up to one billion pounds ($1.13 billion), and that its performance for the year ended Sept. 30 was in line with expectations.

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Halma Buys Germany's WEETECH for EUR57.5 Mln

Halma PLC said Thursday that it has acquired the German safety-critical electrical testing technology company WEETECH Holding GmbH.

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Shell PLC Sees Rise in 3Q Marketing Results; Fall in Integrated Gas Trading

Shell PLC said Thursday that it expects integrated gas trading and optimization results to fall on quarter, but for market results to rise.

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Motorpoint 1H Revenue Rose But Pretax Profit Slipped on Higher Investment

Motorpoint Group PLC said Thursday that its revenue for the first half of fiscal 2023 rose significantly, helped by vehicle mix and price inflation, though pretax profit is expected to slip on increased investment.

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Chemring 11-Month Performance on Track; FY 2022 in Line With Views

Chemring Group PLC said Thursday that its performance in the 11 months to Sept. 30 was on track despite a challenging macroeconomic environment, and that its result for fiscal 2022 was expected to be in line with expectations.

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CMC Markets' 1H Net Trading Revenue Rose; On Track to Achieve Three-Year Growth Plans

CMC Markets PLC said Thursday that leveraged net trading revenue for the first half of fiscal 2023 rose 27%, and that it is on track to deliver its three-year growth plans.

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AIQ Nonexecutive Chairman Steps Down; New Chairman Appointed

AIQ Ltd. said Thursday that Nonexecutive Chairman Graham Duncan is stepping down to pursue other interests and that Aditya Chathli has been appointed as chairman.

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Eckoh Sees FY 2023 Profit, Revenue Increase Boosted By US activity

Eckoh PLC said Thursday that it expects significant revenue and profit growth in fiscal 2023 as it benefits from a robust order book boosted by renewed activity in U.S.

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Volution FY 2022 Profit, Revenue Rose on Regional Growth; FY 2023 Started Well

Volution Group PLC said Thursday that pretax profit and revenue rose significantly in fiscal 2022, driven by growth in the U.K., continental Europe and Australia, and that fiscal 2023 has started well.

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BATM Advanced Communications CEO to Step Down; Successor Appointed

BATM Advanced Communications Ltd. said Thursday that Chief Executive Officer Zvi Marom has decided to step down and that Chief Financial Officer Moti Nagar will be promoted to CEO.

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N. Brown Expects 2H Product Revenue Decline; Shares Fall

Shares of N. Brown Group PLC fell Thursday after it said that it expects product revenue in the second half of fiscal 2023 to decline at a rate similar to the second quarter's, and that first-half pretax profit fell on lower product revenue due to softer market conditions.

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Seeing Machines to Collaborate With Magna International; Shares Rise

Seeing Machines Ltd. shares rose Thursday after it said it has agreed to collaborate with Magna International Inc., with the latter providing an investment of up to $65 million through an exclusivity arrangement and convertible note.

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Tern Raises GBP1.6 Mln via Discounted Subscription

Tern PLC said Thursday that it has raised 1.6 million pounds ($1.8 million) via a discounted retail offer and subscription.

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Shell PLC Sees Fall in 3Q Integrated Gas Trading, Rise in Marketing Results -- Update

Shell PLC said Thursday that it expects integrated gas trading and optimization results to fall on quarter, along with refining margins, but for market results to rise.

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Image Scan Says FY 2022 Revenue, Profit, to Be Below Views; Shares Fall

Shares in Image Scan Holdings PLC fell Thursday after the company said revenue and profit for the year ended Sept. 30 will be below market expectations.

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Mila Resources to Raise GBP696,000 for Australian Gold Exploration

Shares in Mila Resources PLC rose Thursday after the company said it had conditionally raised around 696,000 pounds ($788,360) via a share placing, and that it will use the proceeds to continue its gold exploration activity in Australia.

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Mobile Streams to Raise GBP1.2 Mln to Fund Further NFT Deals

Mobile Streams PLC said Thursday that it is seeking to raise 1.2 million pounds ($1.4 million) via a share placing to fund further non-fungible token contracts, including several expected to be signed this month.

 
Market Talk:

Imperial Brands Seems a Good Investment Despite State of Economy

1020 GMT - Imperial Brands will return GBP2.3 billion to shareholders via dividends and share buybacks, an astonishing 13% of its market value, AJ Bell analyst Russ Mould says in a note. The tobacco company is gaining market share and bringing down the ratio of net debt-to-earnings despite investments aimed at making it more competitive, Mould says. And although smoking and vaping are unhealthy for some investors, it has been a rare gem of a stock this year, with share price up 20% year to date, significantly outperforming the FTSE 100 index, he says. "Investors look for so-called defensive companies which do well no matter the state of the economy, and Imperial Brands has become the poster child for this category," he says. (anthony.orunagoriainoff@dowjones.com)

Diageo's Focus on Spirits Should Help Protect Margins

1017 GMT - Diageo's update shows that people are still finding money to spend on their favorite drink despite the pressures on consumer budgets, AJ Bell investment director Russ Mould says in a note. Amid the inflationary backdrop, the Johnnie Walker whisky and Tanqueray gin owner's focus on spirits is likely to help to protect margins given the low manufacturing costs and strong brand loyalty, Mould says. The spirit drinks category is also a growing trend in emerging markets, he says. (michael.susin@wsj.com)

Rise in Gilt Yields Makes Interest-Rate Risk Hedging Extremely Expensive

0943 GMT - Rising yields in the gilts market has made hedging interest rate risk "prohibitively expensive" say ABN AMRO fixed income strategists Shanawaz Bhimji and Larissa de Barros Fritz in a note. Yields on the ten-year gilts have risen by 100 basis points to 4.073% in the last month after the government announced a large and unfunded fiscal plan. U.K. swap rates, which normally trade close to gilt yields with corresponding maturities, have gone up as yields on U.K. government bonds rise. "The general idea we are getting from talking to investors is that hedging has become prohibitively expensive following the surge in the swap rates," the strategists say in a note. (miriam.mukuru@wsj.com)

Diageo's Cautious Tone Might Be Seen as Disappointing

0940 GMT - Diageo's performance update was in line with the group's guidance overall, but a lack of new data points and cautious outlook may be viewed as slightly disappointing given elevated investor expectations, Citi Group analysts Simon Hales and Frederick Wilkinson say in a research note. On the bright side, the liquor maker hasn't seen signs of down-trading or changes in the consumer behavior, the analysts say. Performance for the start of FY 2023 by region was also in line with views, with its European business being supported by good weather and tourism, and moderating growth in North America, they add. Shares fall 0.3%. (michael.susin@wsj.com)

Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

October 06, 2022 07:32 ET (11:32 GMT)

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