Welcome to taking stock on.... Wednesday 2nd August 2023
Taking Stock: Is a look at today's top business news & investment views plus we cover the winners, losers, the most read company news & the most followed. Today this includes:
Will the markets rally, strongly, if the Bank of England raise rates by the expected 0.25% tomorrow?
The Bank of Enlgand are expected to raise the interest rate by 0.25% - they have to do this anything would spook the market.
However all measures of inflation are coming down, so this could be the last interest rate rise.
Yesterday we covered:
- UK house prices dropped at their fastest annual pace for 14 years in July, according to Nationwide.
- Food price inflation has slowed to its lowest level this year
- UK factory output falls at fastest pace in seven months, cost pressures ease
Also look at the PPI....
The annual inflation rate of producer input prices decreased by 3.1% from a rise of 0.4% in May 2023 to a fall of 2.7% in June 2023. This is the lowest the annual rate has been since August 2020.
RISERS
Blancco - Recommended Cash Offer
Blancco Shareholder will be entitled to receive 223 pence in cash for each Blancco Share held, representing a premium of approximately:
- 24.6% to the Closing Price of 179 pence per Blancco Share on the Latest Practicable Date;
Hochschild Mining - Inmaculada Environmental Permit Approved
Inmaculada Environmental Permit Approved by Peruvian Government
Highlights
§ Inmaculada's Modified Environmental Impact Assessment approved for an additional 20 years
§ Enables development of high-grade reserves and resources close to Inmaculada's operations
§ Resumption of brownfield exploration strategy at Inmaculada
CyanConnode Holdings - Order for 300,000 Omnimesh Modules
CyanConnode Holdings, a global leader in Narrowband Radio Frequency (RF) Smart Mesh Networks, is pleased to announce the receipt of an order for 300,000 Omnimesh Modules from Dakshin Gujarat Smart Metering Private Limited, a subsidiary of IntelliSmart Infrastructure Private Limited.
FALLERS
Deltex Medical - Fundraising completion, trading restoration & TVR
Completion of £1.89M Fundraising and Capital Reorganisation, Director shareholdings and change to total voting rights
The Board of Deltex Medical Group is pleased to announce the completion of the Fundraising and Capital Reorganisation, as announced by the Company on 14 July 2023.
As a result, trading in the Company's shares has now resumed on AIM.
Highlights
· Equity raise of £1.67M to enable restructuring and balance sheet strengthening
· Supported by existing Institutional investors and Board contribution of £100k
· Identification of up to approximately £1.0 million of annualised costs savings predominantly through headcount reduction
· £350k of debt converted to equity at the Issue Price
· Next generation TrueVue System now CE marked and released in the UK and EU; revenues expected from November 2023
MOST READ RNS
Vast Resources - Baita Plai Q2 Production Report
55% of this production took place in June as a result of preparations made in April & May to access the new mining area in sub level 5 as well as drilling activity required for the exploration programme. June concentrate production was also marked by an increase in copper grade up to 22% Cu concentrate.
Bushveld Minerals - Q2 and H1 2023 Operational Update
Group Highlights
§ Craig Coltman appointed Chief Executive Officer and board member, effective July 1, 2023.
§ H1 2023 production of 1,784 mtV (H1 2022: 1,641 mtV).
§ Improvement measures implemented at Vanchem.
§ H1 2023 weighted average production cash cost1 (C1) of US$26.6/kgV (H1 2022: US$28.3/kgV).
§ Q2 2023 sales of 1,068 mtV (Q2 2022: 787 mtV), H1 2023 of 2,096 mtV (H1 2022: 1,644 mtV)
2023 Group Guidance
§ Group production guidance for 2023 revised to between 3,700 mtV and 3,900 mtV (previously between 4,200 mtV and 4,500 mtV).
§ Group weighted average production cash cost (C1) guidance revised to between US$26.6/kgV and US$26.9/kgV, (ZAR481/kgV and 487/kgV). (Previously between US$26.1/kgV and US$27.0/kgV, (ZAR447/kgV and 438/kgV)).
RNS WORTH READING
Taylor Wimpey - Half year results 2023
Ibstock - Interim results
Top Business Stories
Cost of living - latest: Three major lenders slash mortgage rates
NatWest, Halifax and Virgin Money are all making cuts from today. It comes as mortgage rates remain sky high - the average two-year fixed is 6.83% and for five years it's 6.34%, according to Moneyfacts.
The US government's credit rating has been downgraded following concerns over the state of the country's finances and its debt burden.
Fitch, one of three major independent agencies that assess creditworthiness, cut the rating from the top level of AAA to a notch lower at AA+.
Investors use credit ratings as a benchmark for judging how risky it is to lend money to a government. The US is usually considered a highly secure investment because of the size and relative stability of the economy.
However, this year saw another round of political brinkmanship over government borrowing.
In June the government succeeded in lifting the debt ceiling to $31.4 trillion (£24.6 trillion) but only after a drawn-out political battle, which threatened to push the country into defaulting on its debts.
Bank of England caught between inflation fight and recession risk
The Bank of England, which looks set to raise interest rates again on Thursday, must weigh up the need to fight an inflation rate running at more than four times its target against the hit to the economy from 13 back-to-back rate hikes so far.
Analysts and investors are mostly expecting a quarter-point increase in Bank Rate, taking it to a 15-year high of 5.25%. They will also be watching for the signals the BoE sends about further increases in the coming months.