Pound Expected to Rise Vs Euro on BOE Tapering
The Bank of England is likely to leave its policies unchanged in
Thursday's decision but may further scale back bond purchases later
this year, sending sterling modestly higher versus the euro,
Rabobank says. "Assuming a fairly stable position for U.K. markets
through the summer and assuming the economic outlook remains
favorable, we see scope for some extra tapering from the BOE into
the autumn," Rabobank forex strategist Jane Foley says. The BOE,
which last month slowed the pace of its bond-buying, announces its
policy decision at 1100 GMT. Rabobank expects EUR/GBP to fall to
0.84 within six months, from 0.8553 at present.
Companies News:
Robinson Year-to-Date Earnings Lower Than in 2020; Shares
Fall
Shares in Robinson PLC fell Thursday after the company said that
year-to-date earnings are lower than in the year-earlier period,
and that this is a result of the short-term transitional effect of
the rise in the price of resin.
---
First Property Group Suspends Final Dividend After FY 2021 Loss,
Shares Drop
Shares in First Property Group PLC fell Thursday morning after
it reported a loss for fiscal 2021 and suspended the final
dividend.
---
UK Takeover Panel Agrees Extension to Augean, Morgan Stanley
Takeover Deadline
Augean PLC said Thursday that the U.K. Takeover Panel has agreed
to extend the deadline for Morgan Stanley Infrastructure Inc. to
make an offer for the U.K. waste-management company or walk away in
order that they can continue talks.
---
Atlas Copco Buys UK Air-Compressor Supplier
STOCKHOLM--Swedish industrial tool maker Atlas Copco AB said
Thursday that it has acquired U.K.-based Airflow Compressors &
Pneumatics Ltd (Airflow) for an undisclosed price.
---
San Leon Agrees to $8.5 Mln Investment in Nigerian Oil Export
Project; Shares Rise
Shares in San Leon Energy PLC rose Thursday morning after it
agreed to acquire a further interest in the Alternative Crude Oil
Evacuation System project in Nigeria.
---
CMO Group to Float on London's Junior AIM
Online building-material retailer CMO Group PLC said Thursday
that it plans to float on London's junior AIM early next month.
---
Edenville Energy on Track to Achieve Full Order Book for
Tanzanian Coal Mine
Edenville Energy PLC said Thursday that it expects to achieve a
full order book for its Rukwa coal project in Tanzania in the next
few months.
---
Alpha Financial Markets FY 2021 Pretax Profit Fell Slightly
Alpha Financial Markets Consulting PLC on Thursday reported a
small decrease in pretax profit for fiscal 2021 and said that all
of its regions performed well and revenue grew in the year.
---
Maternity-Wear Brand Seraphine Confirms London IPO Plan; To
Raise GBP61 Mln
British maternity- and nursing-wear brand Seraphine said
Thursday that it plans to raise 61 million pounds ($85.2 million)
of new money and proceed with an initial public offering on the
London Stock Exchange next month.
---
LungLife AI, Inc. to Float on London's Junior AIM
LungLife AI, Inc. said Thursday that it plans to float on
London's junior AIM early next month.
---
R.E.A. Holdings Agrees to Replace Current Loan, Working Capital
Facility
R.E.A. Holdings PLC said Thursday that its subsidiary PT REA
Kaltim Plantations has conditionally agreed with its Indonesian
bankers to replace its current loan with two new loans, and has
agreed a new working capital facility to replace its current
one.
---
Universe Group Chairman Buys Additional Stake for More Than GBP1
Mln
Universe Group PLC said Thursday that its Executive Chairman
Andrew Blazye has spent 1.1 million pounds ($1.5 million) to
acquire a further stake in the company.
---
San Leon Enters Talks to Merge With Nigerian Partner Midwestern
Oil & Gas
San Leon Energy PLC's trading on the AIM was suspended on
Thursday morning because it is in talks for Midwestern Oil &
Gas Co. to reverse into the company.
Market Talk:
BOE Unlikely to Raise Rates Until 2023
1004 GMT - U.K. inflation could accelerate in coming months but
should ease next year, prompting the Bank of England to defer is
first post-pandemic interest rate rise until 2023, Pantheon
Macroeconomics says. "We doubt that a period of above-target
consumer price inflation, caused by a rebound in commodity prices
and a snap back in prices in lockdown-hit sectors, will evolve into
a more deep-rooted problem," Pantheon economists say. Inflation
should peak at 2.8% later this year before falling below the BOE's
2% target in 12 months' time as labor market slack increases on the
withdrawal of jobs support, coronavirus-related costs ease and the
downward impact of sterling's recent appreciation builds to a peak
in mid-2022, they say.
---
Crest Nicholson's Operational Efficiency Program Drives Margin
Improvement
0936 GMT - Crest Nicholson's renewed focus on cost discipline
and operational efficiency should help to drive improved volumes,
profitability and margins for 2021 estimates, Barclays says. The
house builder's balance sheet has strengthened significantly after
a swing to GBP130 million net cash, which gives it scope to widen
its geographical footprint, the U.K. banks says. Furthermore, the
company has guided for gross margins of around 19% for fiscal 2021,
and over 21% for fiscal 2022, and upgraded its pretax profit
guidance, the bank says. "Crest's margins are beginning to yield
the benefits of fewer legacy sites and the operational efficiency
program," the bank says. Barclays rates the stock equal weight and
raises its target price to 420 pence from 375 pence.
---
Crest Nicholson Swings to 1H Profit, Rivals Gain
0911 GMT - Shares in Crest Nicholson Holdings rise 4% and rivals
also gain after the U.K. builder reported a swing to a first-half
pretax profit and voiced confidence about the market outlook. The
FTSE 250-listed group is making good progress on its turnaround,
with a much-improved balance sheet, focus on further margin
improvement and, in the longer-term, volume growth, Canaccord
Genuity says. "The share price has outperformed the wider sector
[in the] year to date, but valuation continues to look reasonable.
We expect the shares to react well," says Canaccord analyst Aynsley
Lammin. Crest's FTSE 100 rivals Berkeley Group, Barratt
Developments, Taylor Wimpey and Persimmon all rise.
---
Pound's Rise Seen as Limited if BOE Sounds More Upbeat
0902 GMT - The Bank of England could be slightly more upbeat
about the economy in its policy statement later but not enough to
give sterling a considerable boost, BDSwiss Group says. Since the
BOE's last meeting in May, economic growth has accelerated,
inflation has risen and unemployment has fallen but that's "pretty
much what they expected," BDSwiss analyst Marshall Gittler says.
The BOE must also be concerned about the recent pick-up in
coronavirus cases and the four-week extension of restrictions, he
says. That means the BOE might be a "bit more optimistic" but is
unlikely to change its policies or forward guidance, he says. "GBP
could benefit slightly from an improvement in tone." The BOE's
decision is at 1100 GMT.
---
Traders to Parse BOE's Minutes For Hawkish Tone
0858 GMT - Most investors will be looking for a hawkish tone at
Thursday's Bank of England rate decision that would point to future
tightening of monetary policy, and this could lead to
disappointment, says Mizuho. "The latest Consumer Price Index print
was a promising 2.1%, and if the BOE were to make a comment around
inflation expectations becoming less well-anchored this would be a
notable move," it says. Otherwise, an underwhelming BOE is most
likely to see sovereign bonds rally led by the gilts of
intermediate maturities and 10-year gilts, as pricing of interest
rate rises is eased off, Mizuho says. The closing paragraphs of the
minutes will be the place to look for any shift in tone.
---
BOE Unlikely to Announce Any Chances to Policy
0758 GMT - The Bank of England is unlikely to announce any
changes to the bank rate, the asset purchase target or guidance at
its meeting Thursday, says UniCredit. However, recovery prospects
could lead bank officials to adopt a more aggressive tone regarding
the tightening of monetary policy. "The rapid recovery in prospects
and the stronger-than-expected rise in consumer price index
inflation, by 0.6 percerntage points to 2.1% year on year in May,
could give the Monetary Policy Committee minutes a slightly hawkish
tone," it says. UniCredit expects the BOE to leave the bank rate
and the target stock of asset purchases unchanged through 2022, but
sees risks skewed towards action some time in 2022.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 24, 2021 06:41 ET (10:41 GMT)
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