BOE's March 23 Rate Decision is Finely Balanced

BOE's March 23 Rate Decision is Finely Balanced

1203 GMT - The Bank of England rate decision due on March 23 is finely balanced and will come down to the monetary policy committee's views on recent economic data versus concerns about financial stability due to the global banking crisis, says Barclays fixed income strategist Moyeen Islam in a note. The market is pricing about a 60% chance of a 25 basis-point rise but the rate decision is finely balanced and "the market should not be overly surprised should the MPC pause the rate increase", Islam says. (miriam.mukuru@wsj.com)

 
Companies News: 

Predator Oil & Gas to Raise GBP2 Mln via Share Placing

Predator Oil & Gas Holdings PLC on Friday said it has placed shares to raise 2 million pounds ($2.4 million) to fully fund its MOU-3 well in Morocco.

---

UnitedHealth Takeover of EMIS Could Hurt UK National Health Service, Antitrust Regulator Says

The U.K. competition regulator's initial investigation into UnitedHealth Group Inc.'s 1.24 billion-pound ($1.50 billion) deal to buy EMIS Group PLC could reduce competition, leading to worse outcomes for the National Health Service and patients and taxpayers, it said Friday.

---

John Wood Extends Apollo's Takeover Offer Deadline

John Wood Group PLC said Friday it has extended the deadline by which Apollo Global Management Inc. is required to make a formal offer for the company.

---

Diploma PLC Raises GBP236 Mln via Equity Issues

Diploma PLC said Friday that it has raised 236 million pounds ($285.8 million) via the equity issues first announced late Thursday.

---

EnQuest Delays Publication of 2022 Results

EnQuest PLC on Friday delayed the publication of its 2022 results and confirmed its guidance for 2023 is unchanged.

---

Yourgene Health CFO Barry Hextall Steps Down

Yourgene Health PLC on Friday said its Chief Financial Officer Barry Hextall is stepping down from the role with immediate effect to pursue other opportunities.

---

Bodycote 2022 Pretax Profit Rose on Price Increases

Bodycote PLC said Friday that pretax profit and revenue rose in 2022, as inflationary costs were offset by price increases and surcharges, and that it has recommended an increased dividend.

---

Celsius Resources Requests Voluntary Share Suspension in Australia

Celsius Resources Ltd. said Friday that it has requested an immediate voluntary trading halt in its shares on the Australian Securities Exchange ahead of an announcement.

---

Rolls-Royce Wins Funding for Nuclear-Powered Moon Base Research

Rolls-Royce Holdings PLC said Friday that it has secured 2.9 million pounds ($3.5 million) from the U.K. Space Agency for research into how nuclear power could support a future moon base.

---

Kazatomprom 2022 Profit, Revenue Rose as Uranium Price Increased, Tenge Weakened Against Dollar

NAC Kazatomprom JSC said Friday that it met guidance in 2022, booking increased revenue and profit, as the average uranium price rose and due to the weakening of the tenge against the dollar.

---

Circle Property Starts GBP46.2 Mln Capital Return

Circle Property PLC on Friday said it has started its first capital return to shareholders as it progresses in the sale of its assets in view of delisiting from London's AIM market.

---

Amala Foods Terminates Deal With Terra Rara UK; Raises GBP405,000

Amala Foods PLC said Friday that it has terminated the proposed transaction with Terra Rara UK Ltd. due to administrative issues relating to some of the mining assets of Terra Rara following due diligence.

---

Neometals' Vanadium Recovery JV Project Enters Funding Appraisal Stage

Neometals Ltd. said Friday that its joint-venture company Recycling Industries Scandinavia AB has passed the funding consideration stage by the European Investment Bank and has now entered a formal appraisal stage.

---

Non-Standard Finance Shares Fall on Scheme of Arrangement Plans

Shares in Non-Standard Finance PLC fell on Friday after the company said it is planning a scheme of arrangement which, if successful, will provide certainty on its liability for historical redress claims and pave the way for a capital raise.

 
Market Talk: 

European Banks to Face Risks From Tighter Monetary Policy

1205 GMT - Although the European Central Bank hiked rates by 50 basis points to 3%, the focus when it comes to European banks is now likely to shift from the positives of higher interest rates to the risks of tightening monetary policy, analysts at JP Morgan say in a note. While we have had higher liability spreads in the early part of the rate-hike cycle, banks will also have to pay up over time for deposits and higher wholesale funding costs with frontbook asset spreads still under pressure, the analysts say. As a consequence, the current forward curve now implies limited earnings upgrades for consensus on net interest income, according to JP Morgan. (cecilia.butini@wsj.com)

European Banks' Investment Case Seen Weakened by Uncertainty

1108 GMT - The investment case for European banks has been weakened by events that unfolded over the last week, and investors should brace for volatility ahead in the sector, Morgan Stanley equity strategists say in a research note. "Having been overweight banks since September we have to recognize that the investment case for the sector today is not as attractive as it was last week even though valuations are lower," the MS strategists say. European banking stocks are now cheaper, but previous expectations of earnings upgrades and cash returns might start to fade or even reverse, MS says. The Stoxx Europe 600 Banks index rises 0.7%, but is down 13% over the last week. (adria.calatayud@dowjones.com)

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

(END) Dow Jones Newswires

March 17, 2023 08:32 ET (12:32 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.