Pound rises against euro, dollar on Europe’s energy fears, Fed decision

0848 GMT – Sterling rose to a three-month high against the euro and to a near one-month high against the dollar as investors worried about Europe’s gas supply woes and digested the latest Federal Reserve policy decision. EUR/GBP falls to as low as 0.8369 and GBP/USD rises to as high as 1.2193. A quiet UK economic data calendar ahead of the Bank of England’s policy meeting next Thursday means GBP/USD will be driven by the dollar and EUR/GBP by the euro, ING analysts said in a note. “GBP/USD remains at risk of a return to or below 1.2000 in the coming weeks, while EUR/GBP could remain around 0.8400 but faces downside risks due to uncertainty over Russian gas supply.” (renae.dyer@wsj.com)

Companies News: 

Shell launches $6 billion share buyback as second-quarter earnings hit record high

On Thursday, Shell PLC reported a jump in its profit to a record high in the second quarter and announced a $6 billion share buyback while keeping the dividend unchanged.

Segro 1H adjusted pre-tax profit, revenue up

Segro PLC reported a rise in first-half adjusted pre-tax profit and revenue on Thursday as the company benefited from high customer demand and low supply.

Barclays 2Q Pretax Profit Drops Significantly, Missing Market Views; Costs set to continue to rise

Barclays PLC reported a significant drop in second-quarter pre-tax profit on Thursday, missing market views, after the British bank discussed higher operating costs and impairments that it said would rise.

ITV 1H pre-tax profit, revenue rose with strong performance in studios, media and entertainment

ITV PLC said on Thursday that pre-tax profit and revenue rose in the first half as it achieved strong performances in the studios and media and entertainment divisions.

St. James’s Place swung to 1H pre-tax loss, funds under management fell

St. James’s Place PLC reported a swing to a pre-tax loss for the first half of 2022 on Thursday, saying funds under management fell due to the effects of reversals in global investment markets.

BT Group 1Q Pretax Profit Falls, Adjusted Ebitda Rose

BT Group PLC said on Thursday that profit before tax fell in the first quarter of fiscal 2023, but that adjusted Ebitda rose due to revenue flow-through and continued strong cost control.

Airtel Africa 1Q Pre-Tax Profit Up 6.5%; To grow ahead of the market this year

Airtel Africa PLC on Thursday reported a 6.5% rise in first quarter pre-tax profit and said it is still growing ahead of the market target this year.

Rentokil Initial 1H Pretax Profit Rose on strong pest control and hygiene growth

Rentokil Initial PLC said on Thursday that pre-tax profit rose for the first half of the year, driven by a positive performance across its pest control and hygiene businesses, and it increased its dividend payout.

Centrica resumes dividend as 1H earnings jump

Centrica PLC on Thursday reinstated the dividend and reported improved earnings for the first half of 2022.

Schroders 1H Pretax Profit Slipped; Assets under management rose

Schroders PLC on Thursday reported a drop in pre-tax profit for the first half of the year, while assets under management rose.

BAE Systems appoints Cressida Hogg from Land Securities as Chairman Designate

BAE Systems PLC said on Thursday that Land Securities Group PLC chairman Cressida Hogg will join its board as chairman-designate, effective November 1.

RELX 1H net profit, revenue up amid strategy shift

RELX PLC said Thursday that net profit and revenue rose in the first half as a result of its strategy to focus on the organic development of its analytics and decision tools.

BAE Systems launches $1.8bn buyback, 1H pre-tax profit falls on higher costs

BAE Systems PLC said on Thursday it was starting a three-year share buyback of up to 1.5 billion pounds ($1.82 billion) as it reported a drop in pre-tax profit for the first half of 2022 after discussing higher costs .

Smith & Nephew PLC sees fall in 1H pre-tax profit

Smith & Nephew PLC said Thursday that pretax profit fell in the first six months of the year and is backing its guidance for the rest of 2022.

Aveva 1Q Revenues fell on a constant currency basis; Sales pipeline solid for FY 2023

Aveva Group PLC said Thursday that revenue on a constant currency basis fell by a mid-single-digit rate in the first quarter of fiscal 2023, and that its sales pipeline was solid for the rest of the fiscal year.

Diageo FY 2022 Pre-tax profit rises on strong sales growth; Increase Dividend

Diageo PLC on Thursday reported a rise in pre-tax profit for fiscal 2022 on strong sales growth, although the push missed expectations and said it increased its dividend payout.

Barclays sets aside GBP1.3bn for trading error, hampering fee rise – Financial News

Error takes the shine off positive results in trading unit

Weir Group 1H Pretax Profit Rose 26%; Hikes Dividend

Weir Group PLC reported a 26% rise in pre-tax profit for the first half of the year on Thursday and said it expected full-year operating profit to top analysts’ estimates.

Hammerson swung to 1H pre-tax profit on continued pandemic recovery

Hammerson PLC said on Thursday it swung to a first-half pre-tax profit as footfall recovered to near pre-pandemic levels and costs fell.

Metro Bank 1H Pre-Tax Loss Narrows; Monthly breakeven seen in 1Q 2023

Metro Bank PLC said on Thursday that the first-half pre-tax loss narrowed and that the strategic plan remains on track, with monthly break-even expected during the first quarter of 2023.

Market Talk: 

Rentokil Initial’s Terminix acquisition could boost numbers

0802 GMT – Rentokil Initial shares rose 2.8% after reporting a robust 1H ahead of expectations and remains a good defensive stock given its underlying business, RBC Capital Markets analysts Andrew Brooke and Karl Green said in a research note . The acquisition of pest control company Terminix makes strategic and financial sense as it can bring continued potential upside to the underlying business and its synergies, they add. “The outlook remains positive on growth and inflation mitigation, with the Terminix deal still expected to close at the end of September. We would expect pre-tax profit consensus for 2022 to push up by the measure today,” they say. RBC has an outperform recommendation on the stock and a price target of 645 pence. (michael.susin@wsj.com)

Anglo American shares rise after 1H results were better than feared

0801 GMT – Shares in Anglo American rose 4.8% after the multinational mining company reported lower profits for the first half of the year. Its financial performance was better than expected, RBC analyst Tyler Broda said in a note. Ebitda of $8.7 billion beat expectations of $8.3 billion and earnings per share of $3.11 also topped the $2.64 forecast. Net debt was also better than expected due to lower than forecast capital spending, he says. Overall, expectations were very low heading into the results and no change in guidance should be taken positively, says Broda, reiterating a sector perform rating on the stock. (jaime.llinares@wsj.com)

Diageo faces economic uncertainty despite strong financial year

0759 GMT – Spirit group Diageo’s full-year results were very strong with earnings before tax before interest 5.5% ahead of consensus expectations and earnings per share 6.7% ahead, Citigroup says. “Having spoken to the company, the group unsurprisingly expects growth rates to slow in the new financial year from those achieved in FY22,” Citi analysts said in a note. “Nonetheless, we expect the combination of today’s mid-single digit beat against market estimates and favorable mark-to-market benefits from FX mid-to-high single-digit upgrades to materially drive FY23 consensus earnings. After recent lackluster share – price performance, these results should move shares higher today.” Still, Citi says economic uncertainty is prompting it to maintain a neutral recommendation on the shares, which are up 0.4% at 3781p. (philip.waller@wsj.com)

Rentokil initial shares rise after strong 1H

0758 GMT – Shares in Rentokil Initial gains of 3% to 517 pence after the pest control and hygiene group reported higher first-half pre-tax profit and increased its dividend payout. The company had a strong 1H, with pricing offsetting cost pressures, Citigroup says. “We remain confident that the [Terminix Global Holdings acquisition] stack up strategically and financially,” Citi analysts said in a note. “Higher-than-expected synergies could potentially drive two years of quarterly earnings beats, we think,” they say. Citigroup maintains a buy rating on the stock and target price of 650p. ( philip.waller@wsj.com)


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

(END) Dow Jones Newswires

July 28, 2022 05:07 ET (09:07 GMT)

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

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