Sterling Rises to 11-Month High Versus Weak Dollar

Sterling Rises to 11-Month High Versus Weak Dollar

0837 GMT - Sterling rises to an 11-month high of $1.2594 against a weaker dollar after the Federal Reserve raised interest rates but hinted that rates might have peaked, while U.S. banking sector concerns resurfaced. ING says sterling's rise is largely due to dollar weakness. "It seems that the view that European banks, including the U.K., are better regulated than those in the U.S. is providing some insulation to European currencies," says ING currency analyst Chris Turner. This is helping keep alive expectations that the Bank of England could raise rates two or three further times this year, a view which ING doesn't share, he says. GBP/USD is last up 0.1% at 1.2567. EUR/GBP falls 0.2% to 0.8794. ([e-mail])

 
Companies News: 

Mondi 1Q Earnings Fell on Lower Prices, Weaker Demand

Mondi said Thursday that earnings fell in the first quarter of the year on lower average selling prices and soft demand.

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Next's 1Q Sales Fell, Backs FY 2024 Views

Next PLC said Thursday that full-price sales decreased in the first quarter of fiscal 2024, although it said it did better than feared, and backed its full-year pretax profit views.

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Shell 1Q Earnings Exceeded Market Views; Declares $4 Bln Share Buyback

Shell said Thursday that earnings fell on quarter for the first quarter of 2023 but beat market expectations, and declared a $4 billion share buyback program.

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Endeavour Mining Backs 2023 Views After 1Q Production Fall

Endeavour Mining backed its full-year targets on Thursday despite reporting a fall in gold production during the first quarter.

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Hargreaves Lansdown 3Q Revenue Grew on Net Interest Margin Rise

Hargreaves Lansdown said revenue rose 28% in the third quarter of fiscal 2023 on rising net interest margin, but that assets under management fell.

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Trainline Swung to FY 2023 Pretax Profit on Higher Ticket Sales Amid Pandemic Bounceback

Trainline said Thursday that it swung to a pretax profit in fiscal 2023 on significantly higher ticket sales as it bounced back from the effects of the Covid-19 pandemic.

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Glanbia Raises and Extends Its Buyback Program

Glanbia said Thursday that it has increased and extended its existing share buyback program of up to 50 million euros ($55.3 million) to EUR100 million.

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Virgin Money UK Raises FY 2023 Net Interest Margin Guidance

Virgin Money UK PLC on Thursday upgraded its net interest margin guidance for fiscal 2023 as it posted a fall in pretax profit for the first half of the year due to an impairment charge.

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Domino's Pizza 1Q Orders Rose; Launches GBP20 Mln Share Buyback

Domino's Pizza Group said Thursday that business in the first quarter was strong, with orders rising on year despite a robust comparative period and unveiled a new 20 million pound ($25.1 million) share buyback.

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Grafton 1Q Revenue Rose; Launches GBP50 Mln Buyback Program

Grafton Group said Thursday that first-quarter revenue rose in line with its expectations, and that it plans to launch a buyback program of up to 50 million pounds ($62.8 million).

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600 Group CFO Neil Carrick Departs With Immediate Effect

600 Group PLC said Thursday that Chief Financial Officer Neil Carrick has left the company with immediate effect.

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Spirent Communications 1Q Revenue Fell 20%; Customer Order Delays Continue

Spirent Communications said Thursday that revenue for the first quarter fell 20% and that customer order delays in the period continued.

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SIG Backs 2023 Views After 4-Month Revenue Increased on Higher Prices

SIG backed its full-year guidance on Thursday after reporting a performance for the four months in line with expectations.

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Glanbia Lifts 2023 EPS Guidance Despite 1Q Revenue Decline

Glanbia said Thursday that revenue declined in the first quarter, but that it lifted its full-year guidance for earnings per share as a result of improved margin outlook in the performance nutrition unit.

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AIB Group Raises 2023 Guidance on Interest-Rates Boost

AIB Group PLC on Thursday raised its full-year guidance as a higher interest-rate environment led to a jump in its first-quarter income.

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Morgan Sindall Says 1Q and 2023 Performance in Line With Views

Morgan Sindall Group said Thursday that its performance for the first quarter has been as expected and full-year performance will be in line with the board's views.

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Rathbones 1Q Funds Under Management and Administration Rose Slightly

Rathbones Group on Thursday said its total funds under management and administration rose slightly over the first quarter and that it is on track to meet its operating margin targets.

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Derwent London 1Q Letting Activity Rose, Vacancy Improved

Derwent London PLC said Thursday that first-quarter letting activity rose on year, and that its vacancy rate improved.

 
Market Talk: 

Next Gains After Mixed Trading Update

0841 GMT - Next shares rise 2% after the U.K. clothing and homeware retailer reported lower full-price sales in the 13 weeks to April 29 and reduced its second-quarter sales forecast, but maintained full-year sales and profit guidance. First-quarter full-price sales dipped by 0.7%, better than the 2% decline Next had previously predicted, Interactive Investor says. "In a brief but uninspiring trading update, Next maintained its previous guidance for the year, but downgraded its forecast for the next quarter," Interactive's head of markets Richard Hunter writes. "Second-quarter sales are now expected to decline 5%, compared to the group's previous estimate of 4%, largely driven by strong comparatives whereby last year saw the release of some pent-up demand alongside some unusually warm weather." ([e-mail])

BAE Systems' Strong 1Q Sees Good Operational Performance

0822 GMT - Defense-and-aerospace company BAE Systems' 1Q update is strong with good operational performance, Berenberg analysts say in a note. The company's program execution has been good across all sectors with several notable milestones having been reached, including the start of construction on the third Dreadnought class submarine, the analysts say. The company confirmed 2023 guidance with notable contract awards, including the GBP656 million award for further technology, design and development funding on Tempest, and the $491 million award for electronic warfare on the F-35 fighter, analysts say. "Given the strong run year-to-date, we expect the shares to trade in line on the back of this update," they say. Berenberg rates the stock hold. ([e-mail])

BAE Systems Edges Lower After 'Robust' Trading Update

0818 GMT - BAE Systems shares drop 1.7% after the arms company reported trading so far this year in line with expectations and backed full-year guidance. The update was robust and the shares have done well in the year to date, trading at a premium to the European defense sector on a price-earnings ratio basis, Berenberg says. "Given the strong run [in the year so far], we expect the shares to trade in line on the back of this update," Berenberg analysts say in a note. ([e-mail])

Virgin Money UK's Heavier Cost, Impairment Guidance Weigh on Shares

0808 GMT - Virgin Money UK's mixed results and updated outlook statement is likely to be met with disappointment, Citi says in a note after the financial-services company posted in-line pretax profit for its first half but heavier cost and impairment guidance. "The need to guide to heavier costs (where the company already has a poor track record) and impairments (when other U.K. banks are seeing low impairments) could cause a further de-rating vs. peers," says analyst Andrew Coombs. Citi rates the stock buy. Shares are down 6.7% at 142.9 pence, paring some losses after slumping as much as 11% lower earlier in the session. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

05-04-23 0500ET