BOE Meeting Could Push Sterling in Either Direction
The Bank of England's policy decision later on Thursday
represents a major risk event for sterling, says Lukman Otunuga,
senior research analyst at FXTM. Markets widely expect the central
bank to leave monetary policy unchanged, with traders' focus likely
to turn to bank officials' comments on inflation, he says.
Sustained weakness in GBP/USD below 1.3670 could open a path back
down towards the July low at 1.3570, he says. Conversely, a solid
move above 1.3670 could prompt an advance towards 1.3750. GBP/USD
is last up 0.3% at 1.3668.
Companies News:
AdEpt Technology Says 1Q Performance Was In Line With Views;
Warns of Effects of Supply Chain Issues
AdEpt Technology Group PLC said Thursday that its start to
fiscal 2022 was positive and its current performance is in line
with management expectations.
---
Petards Shares Jump on Swing to 1H Pretax Profit
Shares of Petards Group PLC rose as much as 16% in early trade
Thursday after the company reported a swing to pretax profit for
the first half of 2021, and said trading remains broadly in line
with market expectations.
---
Anglo Asian Mining Hit by Higher Fuel, Reagents Costs --
Commodity Comment
Higher costs are threatening the profitability of some mining
companies, as evidenced by Anglo Asian Mining's first-half results.
Shares in the company, which owns precious-metals mines in
Azerbaijan, fell 6.5% after it reported inflation in consumables
such as diesel and reagents. Here's what AAM had to say:
---
Zaim Credit Systems Says 2Q Was Profitable Even as Weighted
Average Default Rate Rose
Zaim Credit Systems PLC said Thursday that its subsidiary
Zaim-Express LLC continued to be profitable in the second quarter
even as the weighted average default rate rose to 20.8% due to a
greater number of first-time customers.
---
Ecotricity's Improved Bid for Good Energy Gets 2.5%
Acceptance
Ecotricity Group Ltd. said Thursday that its latest offer for
Good Energy Group PLC has been accepted by 2.5% of the energy
supplier's shareholders.
---
CVS Group's FY 2021 Profit Rose Significantly, Early FY 2022
Sales Strong
CVS Group PLC reported on Thursday a significant rise in pretax
profit for fiscal 2021 and said that sales grew significantly in
the first two months of its current financial year.
---
Xeros Technology 1H Pretax Loss Narrowed Slightly
Xeros Technology Group PLC on Thursday reported a slightly
narrowed pretax loss for the first half of the year, and said that
it is confident that revenue will grow in 2022 and beyond despite
suffering royalty income delays.
---
Eve Sleep 1H Pretax Loss Widened; Full Year on Track to Meet
Board's Views
Eve Sleep PLC said Thursday that its pretax loss widened for the
first half after booking higher costs, but that it was on track to
deliver the board's expectations for the full year.
---
Marley Group to Proceed With London IPO
Marley Group Ltd. said Thursday that it will proceed with its
planned initial public offering on the London Stock Exchange, as
first indicated last week.
---
XLMedia Swung to 1H Pretax Loss; Backs Guidance
XLMedia PLC said on Thursday that it swung to a pretax loss for
the first half after booking higher costs, and backed its guidance
for the year.
---
Aquis Exchange 1H Pretax Profit More Than Doubled
Aquis Exchange Ltd. on Thursday reported a more-than-doubled
pretax profit for the first half on the back of higher revenue, and
said that its current performance is in line with market
expectations for the full year.
---
Attraqt Group 1H Pretax Loss Widened
Attraqt Group PLC said Thursday that its pretax loss widened for
the first half after booking higher costs, and that it expects
full-year revenue performance on a constant currency basis to be in
line with expectations.
---
Distribution Finance Capital 1H Pretax Loss Narrowed
Materially
Distribution Finance Capital Holdings PLC reported on Thursday a
significantly narrowed pretax loss for the first half of 2021 and
said that momentum has started to build in growing its loan
book.
---
Eve Sleep 1H Pretax Loss Widened; Full Year on Track to Meet
Board's Views
Eve Sleep PLC said Thursday that its pretax loss widened for the
first half after booking higher costs, but that it was on track to
deliver the board's expectations for the full year.
---
GreenRoc Mining Prices IPO at 10 Pence a Share; Trading to Start
Sept. 28
GreenRoc Mining PLC on Thursday priced its initial public
offering on London's junior AIM at 10 pence a share and said that
trading is expected to start on Sept. 28.
---
Civitas Social Housing Shareholders Reject Pre-emption
Resolution at AGM
Civitas Social Housing PLC said Thursday that all resolutions
proposed at its annual meeting passed except for resolution 13,
which failed to receive enough shareholder support.
---
3i Infrastructure to Sell Four European Liquid Storage Terminals
to Evos
3i Infrastructure PLC said Thursday that it has agreed to the
conditional sale of a 45% stake in four European liquid storage
terminals to energy storage company Evos, and that this is expected
to be completed in the fourth quarter.
---
Lloyds Nonexecutive Directors Nick Prettejohn, Stuart Sinclair
to Step Down
Lloyds Banking Group PLC said Thursday that Nick Prettejohn and
Stuart Sinclair intend to step down as nonexecutive directors.
---
French Connection Group Gets GBP29 Mln Bid Approach
French Connection Group PLC said Thursday that it has received a
29 million pound ($39.5 million) takeover approach from a
consortium that includes its second-largest shareholder.
Market Talk:
Online Delivery to Continue Boosting Royal Mail After
Covid-19
0957 GMT - Royal Mail's domestic parcel delivery volumes are
normalizing after the lifting of lockdown restrictions, but total
delivery volumes are still up 18% from 2019 levels, with parcel
revenue up a third, Adam Vettese from eToro says. This suggests
that either volumes are going to rebase at a higher level
post-pandemic, or that the pandemic boost is temporary and volumes
are just taking longer than expected to return to normal, the
analyst says. "We believe the former to be more likely, with online
delivery becoming an increasingly important revenue generator for
retailers and supermarkets," Vettese says.
---
Royal Mail Revenue Tops Hopes, Consensus Rises Likely
0935 GMT - Royal Mail's revenue in the first five months of
2021/22 topped forecasts as the U.K. mail and parcel courier's
letter and international businesses did better than expected,
Citigroup says. Group revenue in the five months to August
increased 8.2% year-on-year versus consensus expectations of a 5%
rise and Citi's 6% forecast, mainly driven by better-than-expected
trading in letters and GLS. Citi says it expects
low-to-mid-single-digit percentage consensus upgrades. "We see the
outlook on margin as a sentiment positive, given the market
concerns on wage pressure," Citi analysts say. Shares rise
0.8%.
---
Weak BOE Tightening Signals Could Nudge Sterling Lower
0911 GMT - The Bank of England may fail to meet market
expectations regarding the path of interest rate rises, which could
cause sterling to fall, says ING. "The BOE may not deliver on
market expectations of a first hike next April and 40bp of
tightening for 2022," it says. A failure by rate-setters today to
support those expectations could see EUR/GBP rise towards the
0.8615 level and break the well-defined range of 0.8500-0.8610 of
recent weeks, the Dutch bank says. EUR/GBP is last up 0.1% at
0.8583. Similarly, it could cause GBP/USD to fall towards a big
chart support level at 1.3570/3600, from 1.3663 at present,
especially given that the Fed's upbeat announcement Wednesday
should support the dollar, ING says. The BOE's announcement is due
at 1100 GMT.
---
Sterling Little Moved by Weaker UK PMI Data as Market Awaits
BOE
0904 GMT - Sterling is little moved by provisional U.K.
purchasing managers' surveys showing a loss of momentum in activity
as traders focus on the upcoming Bank of England announcement at
1100 GMT. The U.K.'s composite PMI index fell to a seven-month low
of 54.1, from 54.8 in August and below the consensus in a WSJ poll
for 54.5. Rates of expansion in output and new orders weakened,
although job creation remained elevated and inflationary pressures
"showed little sign of abating," says IHS Markit, which compiles
the survey. Investors are waiting to see whether a stronger economy
and concerns about inflation prompt the BOE to signal it is coming
closer to raising interest rates. EUR/GBP is last flat at 0.8583,
while GBP/USD recovers from overnight falls, last up 0.3% at
1.3660.
---
UK's Business Activity Slows Further in September, PMIs
Signal
0855 GMT - Economic activity in the U.K.'s private sector
continued to lose growth momentum in September, according to data
from the PMI survey compiled by IHS Markit. The composite PMI,
which gauges both manufacturing and services sectors, stood at 54.1
in September, still signaling expansion but down from 54.8 in
August. Rates of expansion in both output and new orders were the
weakest in seven months, job creation remained high and
inflationary pressures showed little sign of abating, the data
show. "The September PMI data will add to worries that the U.K.
economy is heading towards a bout of 'stagflation', with growth
continuing to trend lower while prices surge ever higher," IHS
Markit's chief business economist Chris Williamson said.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 23, 2021 06:15 ET (10:15 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024