Equity leadership change
Macro & Overnight
US Treasury yields jumped after an unexpected 25bp rate hike from the Bank of Canada following the Royal Bank of Australia surprise earlier in the week.
With the debt ceiling behind us, the US bond market must find buyers of $tn of Treasury bills and bonds in the coming months.
US equity market leadership rotated from mega-cap tech to small-cap, with stronger showings from energy and REITs.
UK Company News
Altitude, a solutions provider for branded merchandise, expects results will be at least in line with market expectations representing a minimum year-on-year increase in revenue of c.49% and Adjusted EBITDA of c.74%.
Capita will dispose of its remaining five non-core software businesses to Vin Muria’s AdvancedAdvT for an enterprise value of £33m.
Churchill China says trading remains in line with its expectations. Export markets continue to perform well. It is on track to achieve full-year profit expectations.
Idox produced solid H1 results. (Click here).
Sopheon produced its AGM statement. (Click here).
RWS, the translation services and technology provider, had H1 results. Its revenue was up 2.5%, EPS fell 11%, and cash conversion reduced to 85%, with net cash down by £14m to £57.8m. Gross margins were broadly held at 45.7%. RWS anticipates a second-half weighting, and the full-year outlook should align with its latest guidance. They referred to further meaningful cost actions, which are expected to impact FY23 and FY24 positively. RWS made several references to its longstanding AI capability and expertise concerning localisation, language and content technology and content development with its pioneering machine translation solution.
Prognosticator
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