UK Supply Constraints Could Hit Pound
The U.K.'s supply constraints could send the pound lower even
though the market has recently priced in more interest rate rises
by the Bank of England for next year, MUFG Bank says. The
seriousness of supply side bottlenecks was underlined by the U.K.
government's decision to offer temporary visas to fuel tanker and
food truck drivers, and to poultry workers, MUFG currency analyst
Lee Hardman says. "The latest developments are creating a more
negative combination of weaker growth and higher inflation in the
U.K. which we believe is a bad mix for pound performance." GBP/USD
could weaken, especially if it falls below the 1.3600 support
level, he says.
Companies News:
Shield Therapeutics Appoints Jose A. Menoyo Vice President,
Chief Medical Officer
Shield Therapeutics PLC said on Monday that Jose A. Menoyo has
been appointed vice president and chief medical officer with
immediate effect.
---
SpaceandPeople 1H Pretax Loss Narrowed on Lower Costs
SpaceandPeople PLC on Monday reported a narrowed pretax loss for
the first half of the year on lower costs and said its U.K. and
German markets are rebounding.
---
Ukrproduct Swung to 1H Loss From Operations; Shares Fall
Shares in Ukrproduct Group Ltd. drop on Monday after the company
said that it swung to a loss from operations for the first half as
revenue fell.
---
Beeks Financial FY 2021 Pretax Profit Rose; Shares Rise
Shares in Beeks Financial Cloud Group PLC rose Monday after the
company reported a significantly higher pretax profit for fiscal
2021, and said its outlook is strong.
---
Made Tech Group Prices IPO at GBP1.22 a Share; Market
Capitalization GBP180.7 Mln
Made Tech Group PLC on Monday priced its initial public offering
on London's junior AIM at 122 pence (167 cents) a share, implying a
market capitalization of GBP180.7 million, equivalent to $247.1
million.
---
Harland & Wolff Nonexecutive Chairman Clive Richardson Steps
Down
Harland & Wolff Group Holdings PLC said on Monday that
Nonexecutive Chairman Clive Richardson was stepping down from the
board, and that his notice period will run until mid-December.
---
Alkemy Capital Investments Shares Rise on London Market
Debut
Shares of Alkemy Capital Investments PLC rose 20% on Monday as
the company started trading on the London Stock Exchange, implying
a market capitalization of 3.6 million pounds ($4.9 million).
---
Cornerstone FS 1H Pretax Loss Widened; Confident on Higher FY
2021 Revenue
Cornerstone FS PLC reported on Monday a significantly widened
pretax loss for the first half of 2021 but said that it expects to
post revenue growth for the full year on higher trading volumes in
the second half.
---
Journeo 1H Pretax Profit Rose; Supply-Chain Issues Could Hurt
2022 Profit
Shares in Journeo PLC fell 13% in early trade Monday after the
company said that supply-chain issues could hurt next year's
profit, as it reported a higher pretax profit for the first half of
2021.
---
Aldi U.K. 2020 Pretax Profit Slips; Will Invest GBP1.3 Bln Over
Two Years
Aldi U.K. said Monday that its 2020 pretax profit slipped
despite recording its highest-ever sales, and pledged to invest 1.3
billion pounds ($1.78 billion) in the business.
---
After Early Investors Flee SPAC Deals, Day Traders Rush In
Day traders are targeting some companies that recently closed
SPAC mergers, reinvigorating some of the meme-stock excitement that
helped make such deals popular early in the year.
---
London Security 1H Pretax Profit Rose as Coronavirus Disruption
Subsides
London Security PLC said Monday that first-half pretax profit
and revenue rose as operations largely returned to normal after the
disruption of the coronavirus pandemic.
---
Renishaw Delays FY 2021 Results; Confirms Figures in Line With
Views
Renishaw PLC said Monday that its fiscal 2021 results have been
delayed by three weeks to Oct. 21, but that they are expected to be
in line with recently updated expectations.
Market Talk:
Investors Sell Gilts as Inflation Pressures Intensify
1011 GMT - Investors are ditching U.K. government bonds across
the board as they price in an earlier interest rate rise amid
intensifying inflation pressures. The two-year gilt, which is more
sensitive to changes in interest rate expectations, extends losses
Monday, trading close to its lowest level since late February last
year. The decline in the price of the bond has pushed the yield to
0.401% Monday, according to Tradeweb. Intensifying inflation
pressures as the country grapples with a supply chain crisis that
has left store shelves empty and motorists scrambling for petrol
are likely to be feeding into the selling of gilts. "The market has
overtaken us and the implied pricing [for higher interest rates] is
faster than we anticipate," says RBC Capital Market.
---
Rolls-Royce's B-52 Engine Replacement Contract Looks Like a Good
Win
0935 GMT - Rolls-Royce has been chosen for the B-52 engine
replacement program by the U.S. Department of Defense and analysts
at Jefferies consider this a good win for the engineering company.
The DoD reports on its website that the contract is worth $500
million with a six-year base period and a potential total of $2.6
billion if all options are exercised, and this will highlight the
company's ability to execute on the numerous opportunities in their
Defense business, the U.S. bank says. "We suspect there will be
little change to consensus forecasts on the back of this contract
announcement, but it provides additional comfort to longer-term
consensus forecasts and is a positive for sentiment," the bank
says. Jefferies rates the stock buy.
---
Boohoo's International List Seen as Step Forward Toward ESG
Commitments
0916 GMT - Boohoo's publication of its international factory
list is another encouraging step for the online fashion retailer,
Jefferies says. The company, which has reiterated its commitment to
addressing work malpractice issues along its supply chain, is
progressing with its ESG credentials and meeting the targets laid
out in its 'agenda for change' plan, Jefferies says. "While no
specific detail has been provided, we assume that, like the U.K.,
the mapping process has resulted in supplier consolidation and cost
prices have been protected," Jefferies says. Boohoo also intends to
sign the International Accord for Health and Safety, which would
replace the Bangladesh Accord. Shares are up 1.9% at 264.60
pence.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
September 27, 2021 06:38 ET (10:38 GMT)
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