Marks & Spencer Seen Entering Growth Cycle -2-

Genuit's Focus on Margins Seems Enough to Offset Headwinds

0920 GMT - Genuit Group's solid delivery was underpinned by a strategic focus on margins, Jefferies says in a note after the U.K. provider of water, climate and ventilation products posted first-half results and said it sees underlying operating profit for the year at the top end of expectations. The guidance upgrade is still conservatively set despite the difficult macro and worsening volume trends, analysts write. "While Genuit's mid-term potential to grow ahead of market driven by sustainability remains intact, today's results show the group's tight focus on margin is sufficient to offset top-line headwinds and offer an interesting equity story in the near term," they add. Jefferies rates the stock buy. Shares are up 6.8% since the start of the year. (elena.vardon@wsj.com)

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Wealth Inequality Narrowed in 2022 as Total Wealth Shrank

0917 GMT - Wealth inequality dropped in 2022 along with aggregate wealth, according to the Global Wealth Report from UBS and Credit Suisse. Last year, the wealth share of the global top 1% fell to 44.5% and the number of USD millionaires dropped by 3.5 million to 59.4 million people, the report says. Of those millionaires, 4.4 million wouldn't qualify if the threshold were adjusted for inflation, UBS notes. For 2027, the bank estimates wealth per adult to reach $110,270 and the number of millionaires to reach 86 million. (maitane.sardon@wsj.com)

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Legal & General Shares Slump on Vulnerabilities From Outflows, Inflation

0902 GMT - Investors aren't fully on board with Legal & General despite the British insurer seeming on track from its own perspective, AJ Bell investment director Russ Mould says in a market comment after the British insurer's first-half results beat expectations. The market wasn't convinced and sent shares 4% lower to the bottom of FTSE 100. "What may be creating disquiet is the material drop in assets under management," Mould writes, noting this is a result of market conditions and net outflows. The latest wage growth data suggest inflation is becoming more entrenched, making the domestic-facing group vulnerable, he says. Interest rates are a double-edged sword for L&G as higher rates have helped boost bulk annuity agreements and generate growth in that part of the business, he notes. (elena.vardon@wsj.com)

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(END) Dow Jones Newswires

August 15, 2023 08:02 ET (12:02 GMT)

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