BOE Could Increase Pace of Quantitative Tightening, Still Cut Rates in 2024

BOE Could Increase Pace of Quantitative Tightening, Still Cut Rates in 2024

0920 GMT - The Bank of England could raise the pace of its quantitative tightening program in 2024 but still start interest-rate cuts in the second half of 2024, say Barclays analysts in a note. "A tick up in the pace of quantitative tightening over 2024 would not be inconsistent with our current baseline for four 25 basis points rate cuts in 2H 2024," they say. BOE deputy governor Dave Ramsden on Thursday said a slow down in the pace of balance sheet reduction is unlikely and the bank is likely to increase the pace in coming years. (miriam.mukuru@wsj.com)

COMPANIES NEWS:

Dechra Pharmaceuticals Sees FY 2023 Profit Below Market Views on Wholesaler Destocking

Dechra Pharmaceuticals said Monday that it expects to miss market expectations for operating profit for fiscal 2023 due to wholesaler destocking in the U.S. and U.K. hurting third-quarter results.

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UK Government Sells Shares Worth GBP1.26 Bln in NatWest Group

The U.K. government said Monday that it had disposed of its shareholding in NatWest Group through an off-market purchase by the company of 469.2 million ordinary shares for a total consideration of 1.26 billion pounds ($1.57 billion).

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Begbies Traynor Sees FY 2023 Revenue, Pretax Profit Ahead of Views

Begbies Traynor Group said Monday that it expects fiscal 2023 results to come in slightly ahead of market expectations, and that it sees further growth ahead.

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Wise CFO Matthew Briers to Step Down

Wise PLC said Monday that Chief Financial Officer Matthew Briers intends to step down from the role by March 2024.

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Stelrad Group Year-To-Date Results Are in Line on Strong UK Volumes

Stelrad Group said Monday that results in the year so far have been in line with its expectations, and that it expects to meet its full-year guidance.

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888 Holdings Sells Latvian Business Share for Up to GBP22 Mln

888 Holdings said Monday that it has sold its Latvian business share for up to 22 million pounds ($27.4 million) as part of a plan to focus on its core and growth markets.

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Norman Broadbent Posts Rise in 1Q Revenue, Net Fee Income

Norman Broadbent on Monday said its revenue and net fee income for its first quarter rose by two thirds and that positive performance is continuing into the second quarter.

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Siemens Gamesa to Sell Windar Renovables Stake to Bridgepoint

Siemens Energy is selling Siemens Gamesa's 32% stake in Spanish wind turbine-tower maker Windar Renovables to British investment company Bridgepoint, a spokesperson for the German energy company confirmed on Monday.

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Wincanton FY 2023 Pretax Profit Fell on Higher Costs; Backs FY 2024 Expectations

Wincanton said Monday that pretax profit fell for fiscal 2023 after booking higher costs as its performance in the second half was hurt by lower customer volumes, and backed its expectations for fiscal 2024.

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Ilika Expects FY 2023 Earnings Loss to Widen Despite Revenue Rise

Ilika said Monday that it expects to report a rise in revenue for fiscal 2023, but that its earnings loss is seen to have widened.

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Venture Life Optimistic About 2023 Outlook; Sees Performance in Line With Views

Venture Life Group said Monday that the board was cautiously optimistic about the outlook for the year ahead and its ability to deliver full-year performance for 2023 in line with market expectations.

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Enwell Energy Unlikely to Publish 2022 Results by Deadline; Shares Fall

Shares in Enwell Energy dropped 16% on Monday after the group said it is unlikely to publish its audited results for 2022 by the deadline, and that its shares may be suspended pending their publication.

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Angle Names Jan Groen as New Chairman As Garth Selvey Retires

Angle on Monday appointed Jan Groen its chairman as Garth Selvey intends to retire from the role.

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Kainos FY 2023 Boosted by Robust Market Demand, High Customer Engagement

Kainos Group on Monday reported an 18% rise in pretax profit for fiscal 2023 on higher revenue due to robust underlying market demand and high levels of customer engagement.

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Oncimmune Eases Going-Concern Risk With Sale of Two Subsidiaries for GBP13 Mln

Oncimmune Holdings said Monday that it has sold subsidiaries Oncimmune Ltd. and Oncimmune Europe GmbH for 13 million pounds ($16.2 million) in cash to Freenome Holdings, and that this alongside debt repayment has removed the material uncertainty regarding it remaining a going concern.

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Atome Energy Says Baker Hughes Has Become Shareholder on GBP2.4 Mln Subscription

Atome Energy said Monday that Baker Hughes Co. has become a shareholder with a 6.6% interest in the company after it subscribed for 2.4 million pounds ($3 million) for a total of 2.5 million new ordinary shares at 95 pence a share.

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Landore Resources to Appoint Glenn Featherby as Interim CEO if Replacement Isn't Named by AGM

Landore Resources said Monday that Chief Financial Officer Glenn Featherby will become interim chief executive officer if a replacement for Bill Humphries hasn't been found by the date of its upcoming annual general meeting.

MARKET TALK:

Petro Matad Shares Have Considerable Running Room

0916 GMT - Petro Matad shares have plenty of upside once main drilling on the Velociraptor 1 well starts, Shore Capital analyst Craig Howie writes in a research note. "We will eagerly look forward to results from what could be one of the most important exploration wells to be drilled in the AIM-listed exploration and production sector this year," he says. Shares in the Mongolia-focused miner are down 19.5% at 4.95 pence on news of a delayed special-purpose land certification process from the country's government. Shore Capital acts as a broker on the stock and as such doesn't give recommendations. (christian.moess@wsj.com)

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StanChart and HSBC's Attractive Growth, Returns Look Undervalued

0915 GMT - Standard Chartered and HSBC's capacity to generate growth and returns remains underappreciated, Berenberg says in a note. Uncertainty around the durability of Asia's economic activity rebound is weighing on loan growth for both lenders but this isn't a concern given the near-term strength and long-term growth of their non-lending businesses, analyst Peter Richardson writes. Wealth flows have accelerated and also become less concentrated, which benefits both global banks, he notes. "Cost efficiency concerns are being replaced by concerns related to whether banks have invested enough. We believe that they have (for now)," Richardson adds regarding their greater emphasis in intra-Asia activity. In London, StanChart shares top the FTSE 100, up 3.1% while HSBC rises 1.5%. (elena.vardon@wsj.com)

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Ryanair Profitability Still Threated by Volatile Oil Prices

0851 GMT - Ryanair is once again soaring as operations have surpassed its prepandemic capacity, indicating strong demand not just for travel but for low-cost flights, eToro analyst Adam Vettese says in a note. The budget airline's story over the coming years is likely to be one of growth as it expects to grow traffic by 10% in FY 2024, reaching 300 million in the next 10 years, Vettese says. Although in the short-to-medium term it will be helped by cheaper fares, its FY 2023 fuel bill more than doubled and is expected to add EUR1 billion to its cost base in FY 2024, he says. "Volatile oil prices remain a major threat to profitability, even though airlines try to hedge their fuel costs," Vettese says. (anthony.orunagoriainoff@dowjones.com)

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(END) Dow Jones Newswires

May 22, 2023 05:38 ET (09:38 GMT)

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