Pound, UK Stocks Gain Even as Political Uncertainty Rises

0855 GMT - Reports that U.K. Prime Minister Boris Johnson will resign is lifting sterling and the FTSE 100 as there is no doubt he has failed the public on many occasions, AvaTrade analyst Naeem Aslam writes. "However, political uncertainty has increased as a large number of political cards will come into play where the new prime minister may try to persuade public by adopting more loose fiscal policy, which could make the Bank of England's job even more difficult [in bringing down inflation]," he says. GBP/USD rises 0.5% to 1.1978 and EUR/GBP falls 0.4% to a three-week low of 0.8512. The FTSE 100 rises 0.9% to 7168 points. (renae.dyer@wsj.com)

 
Companies News: 

Persimmon 1H Revenue Fell on Lower Completions; Sees Profit Beating Views

Persimmon PLC said Thursday that revenue for the first half fell on lower house completions, but it expects profit to beat expectations and its forward sales position rose.

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Currys Says FY 2022 Profit Rose Ahead of Views But Warns on Inflation Hit

Currys PLC reported Thursday an increase in fiscal 2022 adjusted pretax profit that beat views, but said its outlook for the current year has worsened due to inflationary pressures.

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Legal & General Says Has Had Good Start to 2022, in Line With Views

Legal & General Group PLC said Thursday that it has had a good start to 2022, and that its performance is in line with expectations.

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Entain Downgrades 2022 Online Net Gaming Revenue, Backs 2023 Positive Ebitda Views

Entain PLC said Thursday that it expects online net gaming revenue to be flat year-on-year given that the macroeconomic environment is moderating customers' spending.

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Shell to Reverse up to $4.5 Bln in Impairments on Assets

Shell PLC said Thursday it will reverse previous aftertax impairments of up to $3.5 billion to $4.5 billion to its upstream and integrated gas assets in the second quarter.

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Watches of Switzerland's FY 2022 Pretax Profit Soared on Record Sales

Watches of Switzerland Group PLC on Thursday reported a nearly doubled pretax profit for fiscal 2022 after delivering record sales, and said it is confident about its strong momentum despite current macroeconomic headwinds.

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RS Group Had Strong 1Q; Expects to Beat FY 2023 Revenue, Adjusted Profit Consensus

RS Group PLC said Thursday that its revenue performance over the first quarter of the new fiscal year has been strong and that it now expects to beat consensus estimates for both revenue and adjusted pretax profit.

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Persimmon 1H Revenue Fell on Lower Completions; Sees Profit Beating Views -- Update

Persimmon PLC said Thursday that revenue for the first half fell on lower house completions, but it expects profit to beat expectations and its forward sales position rose.

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Wood Group Returned to Revenue Growth in 1H; Sees Stronger 2H

John Wood Group PLC said Thursday that it has returned to revenue growth during the first half of the year and expects a stronger second half with higher full-year revenue.

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SSE's Viking Energy Wind Farm to Be Awarded a 220-MW Contract in U.K.

SSE PLC said Thursday that its wholly owned Viking Energy Wind Farm is set to be awarded a low-carbon power contract for 220 megawatts in the U.K.

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Currys Says FY 2022 Profit Rose Ahead of Views But Warns on Inflation Hit -- Update

Currys PLC reported Thursday an increase in fiscal 2022 adjusted pretax profit that beat views, but said its outlook for the current year has worsened due to inflationary pressures.

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Shell Upgrades Asset Values on Energy-Price Rise -- Update

Shell PLC said Thursday that it would reverse previous impairments of up to $4.5 billion to its upstream and integrated gas assets in the second quarter after it raised its energy-prices outlook.

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C&C Group Says Four-Month Revenue Is 6% Ahead of Prepandemic Level

C&C Group PLC said Thursday that it has had a solid start to the new fiscal year, with revenue for the four months ended June 30 up 6% from prepandemic levels.

 
Market Talk: 

UK PM Johnson's Resignation Could Bring Tax Cuts

0928 GMT - The economic implications of Prime Minister Boris Johnson's resignation will depend on who succeeds him, but it is likely that whoever leads the next government will opt for a looser fiscal policy, Capital Economics' chief U.K. economist Paul Dales says in a note. "All candidates will have to lean towards lower taxation to have a chance of being voted in by Conservative Party members," he says. Any loosening of fiscal policy could add to inflation pressures, as would do taking a hard stance over the Brexit Northern Ireland Protocol, Dales says. "The door to looser fiscal policy may have been nudged open," he says. "That may just mean the Bank of England has to raise interest rates further to offset any resulting boost to inflation." (xavier.fontdegloria@wsj.com)

 

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

(END) Dow Jones Newswires

July 07, 2022 06:11 ET (10:11 GMT)

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