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Sterling Seen Unmoved by UK Political Scandal

Sterling Seen Unmoved by UK Political Scandal
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The British pound has not been affected by the political scandal in the UK

0946 GMT – Sterling traders appear to be eyeing earlier news that British Prime Minister Boris Johnson faces parliamentary questioning on Wednesday over allegations he attended a Downing Street party during lockdown last May, says ING. Francesco Pesol, forex strategist at ING says: “While arguably facing the most difficult period of his tenure, markets look very skeptical about pricing any political instability in the UK at the moment, with the pound continuing to be the best performing currency in 2016. 2022″. Barring any sudden policy adjustment or policy remarks by BoE Deputy Governor John Cunliffe at a later conference, sterling should continue to be unaffected by domestic events, Bisol says. EUR/GBP and GBP/USD settled at 0.8343 and 1.3632, respectively. (renae.dyer@wsj.com)

 
Companies News: 

Sainsbury upgrades views for FY 2022 on lower costs, increased Christmas grocery volumes

J Sainsbury PLC said Wednesday that like-for-like sales including fuel for the third quarter of fiscal 2022 fell, but raised full-year market expectations due to lower costs, market share growth and increased grocery volumes over Christmas.

Whitbread 3Q total sales up 5%

Whitbread PLC said on Wednesday that total sales for the third quarter of fiscal 2022 grew 5% and that its performance in the UK through January 6 was resilient despite the Omicron Covid-19 variant.

Bunzl acquires New Jersey PPE distributor for an undisclosed amount

Bunzl PLC said Wednesday that it has acquired New Jersey-based Tingley Rubber Corporation, a distributor of personal protective equipment, for an undisclosed amount.

UK antitrust regulator clears IAG and Air Europa Merger

The UK Competition and Markets Authority said on Wednesday that International Consolidated Airlines Group SA’s planned acquisition of Air Europa is not eligible for investigation under the Corporation Act 2002.

JD Sports Fashion – Returns 22 weeks to January 1 Rose; Generates a pre-tax profit for the 2022 fiscal year of $1.19 billion

JD Sports Fashion PLC said on Wednesday that revenue for the 22-week period to January 1 in its like-for-like business is up more than 10% compared to the same period in 2020, and that it expects major pre-tax earnings for the 2022 financial year. 875 million pounds ($1.19 billion).

Vestry says adjusted pre-tax earnings for 2021 rose as completed sales increased

Vistry Group PLC said Wednesday it expects full-year adjusted pre-tax earnings to rise in line with guidance, after a strong increase in completed sales.

PageGroup says operating profit for 2021 was above expectations

PageGroup PLC said on Wednesday it expects to report operating profit for 2021 marginally ahead of its previous guidance of around 165 million pounds ($225 million), buoyed by continued improvement during the year.

Denilm says 1-hour pre-tax earnings, total sales growth in the third quarter

Dunelm Group PLC said Wednesday that total sales rose in the third quarter of fiscal 2022, buoyed by strong performance from its stores, and that it expects to achieve pre-tax profit growth for the first half.

Trustpilot reports 2021 revenue at $131 million; Total bookings $150 million

Trustpilot Group PLC said Wednesday that it expects to report revenue of $131 million for 2021 and gross bookings of $150 million.

M Winkworth predicts 2021 Rev, Pft to win in Views; Announcing a special section

M Winkworth PLC said Wednesday that it expects 2021 revenue and pre-tax earnings to exceed expectations, and announced a special dividend.

S4 capital performance in line with market expectations; Media.Monks, 4 Mile Analytics for Integration

S4 Capital PLC said Wednesday that performance remains in line with market expectations and that Media.Monks and 4 Mile Analytics will merge.

DFS Furniture 1H sales are up 10% compared to fiscal year 2019; Supports fiscal year 2022 guidance

DFS Furniture PLC said Wednesday that sales for the first half of fiscal year 2022 were up 10% compared to the same period in fiscal year 2019, before the pandemic, and backed its guidance for the full year.

Hostelworld revenue rebounded in 2021, but hit Omicron

Hostelworld Group PLC said Wednesday that it recorded a steady recovery in bookings and revenue in 2021 compared to pre-pandemic levels, except for the latter part of the year amid the rise of the coronavirus variable Omicron.

Nichols’ revenue increased in 2021; Supports profit routing

Nichols PLC said Wednesday that 2021 revenue is up 22% and broadly in line with 2019 levels, supporting its earnings guidance for the year.

Investigation into Microsoft’s acquisition of Nuance Communications launched by the UK Antitrust Agency

The UK Competition and Markets Authority said on Wednesday it had launched a formal investigation into the planned acquisition of Microsoft Corp. On Nuance Communications Inc. To determine whether the merger will reduce competition within the UK market.

Savills 2021 achieves profit significantly ahead of its expectations

Savills PLC said Wednesday that it expects pre-tax profit for 2021 to be well ahead of the upper end of the board’s expectations, after a strong final run.

 
Market Talk: 

Darktrace’s Strong 1H confirms growth pathway

1027 GMT – Darktrace’s very strong 1H confirms that the volume of growth is exceeding expectations and that the quality of this growth is improving, Jefferies says. Jefferies says lower rates of change and increased net retention at the UK cybersecurity firm are answering the debate among investors regarding its products and the sustainability of growth. “We believe Darktrace is well positioned to benefit from structural growth in cybersecurity and achieve the fastest growth in the European technology sector,” the US bank says. Jefferies has a buy recommendation with a target price of 800 pence. Shares trading rose 5% to 443 pence. (kyle.morris@dowjones.com)

Dunelm benefits from online focus plus more DIY

1027 GMT – Shares in Dunham rose 5% after the British home appliances retailer reported higher second-quarter total sales and forecast better-than-expected full-year profit before tax. AJ Bell says the company has benefited from increased online sales as well as people making more home improvements during the shutdowns. “One of the key elements of Dunlam’s transformation under CEO Nick Wilkinson has been the improvement and expansion of online sales,” says Ross Mold, AJ Bell’s chief investment officer. “It really helped during periods when the footfall in their stores was down or completely wiped out thanks to restrictions or people’s reluctance to go out.” (philip.waller@wsj.com)

S4 Capital Mergers, Performance Look at Low Valuation Prospects

1004 GMT – S4 Capital’s reassuring update is a buying opportunity, according to Jefferies. The US bank says the London-listed digital advertising and marketing services group’s earnings and net revenue far outpace the company’s previous guidance of 40%, while growth similarly has been very strong. Jefferies explains that the current trading is showing a continuation of its strong trends, adding that the integration of 4 Mile Analytics with Media.Monks adds to the capabilities of S4’s data. Jefferies has a buy rating with a target price of 930 pence. Shares trading rose 4.3% to 553 pence.

BIVA Collaborate on Acquisition in 2022

0951 GMT – 2022 will be the year Biffa offers synergies by consolidating its newly acquired business and increasing its operating leverage, says HSBC, while reaffirming the stock’s buy rating. The UK waste management company has had a strong performance in 2021, but to date the stock is down 3%, HSBC notes. The bank says first-half results in November were a snapshot of the company’s performance after a year of rapid expansion. HSBC raises its target price for Biffa to 460p from 450p. (jaime.llinares@wsj.com)

Whitbread continues to gain market share

0935 GMT – Hotel and restaurant company Whitbread has shown market share gains and expects a further recovery in its like-for-like UK revenue per available room – an industry measure – through 2022, Jefferies says. Whitbread says total UK accommodation sales as of January 6 were 5.1% ahead of fiscal 2020, with an occupancy rate of 66%, and estimates inflation rising 7% to 8% for the 2023 financial year. This is expected to be more than offset by cost efficiencies and growth Real estate and higher annual recurring revenue, says the US bank. Analysts at Jefferies say they see an upward risk to fiscal year 2022 pre-tax earnings based on that. Jefferies is evaluating a buy stock and has a target price of 3,600 pence. Shares rose 0.2% to 3,206 pence. (anthony.orunagoriainoff@dowjones.com)

 

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones News; paul.larkins@wsj.com

(end) Dow Jones Newswires

January 12, 2022 06:05 ET (11:05 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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