Pound Falls as Recession Risks Grow, Shrugs Off Likely Interest-Rate Increases

Pound Falls as Recession Risks Grow, Shrugs Off Likely Interest-Rate Increases

0931 GMT - The pound falls to its lowest in 16 months against the dollar and hits a six-day low against an otherwise beleaguered euro as investors worry that likely interest-rate rises won't sufficiently temper inflation, raising recession risks, MUFG says in a research note. Interest-rate futures show inflation fears due to Russia's invasion of Ukraine are greatest in the U.K., with markets expecting the Bank of England will have to "act more aggressively" to counter inflation, MUFG says. Usually prospects of higher rates would lift sterling, but they aren't helping because already-high inflation plus a likely "huge increase" in utility bills later this year increase risks of recession. GBP/USD earlier hit a low of 1.3083 while EUR/GBP rises to 0.8327. ([e-mail])

 
Companies News: 

Direct Line Pretax Pft Fell in 2021 on One-Off Costs; Declares Buyback

Direct Line Insurance Group PLC said Tuesday that pretax profit fell in 2021 because of restructuring and one-off costs, and it raised its final dividend and declared a share buyback.

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Ashtead Group 3Q Pretax Profit Rose on Higher Revenue

Ashtead Group PLC said Tuesday that pretax profit rose for the third quarter of fiscal 2022 as revenue increased, and that it expected results for the full year to be ahead of the board's previous expectations.

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British Land Enters Into JV With AustralianSuper After Selling London Project Stake

British Land Co. said Tuesday that it has sold 50% of its share in the Canada Water Masterplan for 290 million pounds ($380 million) to AustralianSuper, and entered into a joint venture with the pension fund.

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M&G 2021 Pretax Profit Fell, Announces GBP500 Mln Share Buyback

M&G PLC reported Tuesday a fall in 2021 pretax profit, but also an increase in its assets under management, and declared a return to shareholders via a share buyback.

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Fresnillo 2021 Results Boosted by Higher Precious-Metals Prices

Fresnillo PLC on Tuesday reported an 11% rise in 2021 pretax profit on revenue that was boosted by higher precious-metals prices.

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Made.com 2021 Pretax Loss Widened on Higher Costs; Outlook Seen Stronger

Made.com Group PLC reported on Tuesday a significantly widened pretax loss for 2021, noting that its performance was hit by industry wide global freight inflation and supply-chain disruptions.

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Johnson Service Swung to 2021 Pretax Profit; Outlook Positive on Strong Sales Pipeline

Johnson Service Group PLC reported Tuesday a swing to a pretax profit for 2021 and said the business is well-positioned for medium- to long-term growth given its strong sales pipeline.

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Foxtons to Start a GBP3 Mln Share Buyback Program

Foxtons Group PLC said Tuesday that it will begin a share buyback of up to 3 million pounds ($3.9 million), funded from accumulated cash resources.

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Predator Shares Rise After Update on Morocco Gas Exploration

Predator Oil & Gas Holdings PLC shares were up on Tuesday after the company said that development of the MOU-1 well in Morocco remains on track, and that it seeks to accelerate monetization as gas prices surge due to geopolitical tensions.

 
Market Talk: 

Ashtead 3Q Earnings Top Expectations; Shares Rise

0929 GMT - Ashtead Group advances 3% after the plant-hire firm reported higher third-quarter pretax profit and forecast full-year results ahead of its previous expectations. EBITDA of $877 million in the quarter exceeded a company-provided consensus forecast of $861m by 2%, Citigroup says. "We admire Ashtead's ability to sustain attractive organic top-line growth, its potential to consolidate markets and track record of achieving double-digit EPS CAGR. We reiterate our buy rating," Citi says. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

03-08-22 0514ET