The FTSE 100 closed higher on Thursday after the Bank of England
held its benchmark interest rate steady and stuck to its guidance
that it is unlikely to tighten policy anytime soon. London's
blue-chip index ended the session up 0.51% at 7109.97. IG analyst
Joshua Mahony said the central bank's dovish stance helped to drive
the market higher, following a week dominated by uncertainty.
Betting and gambling group Flutter Entertainment was the FTSE 100's
top gainer, up 3.7%, while steel-making and mining company Evraz
was the worst performer, down 2.7%.
First Property Group Suspends Final Dividend After FY 2021 Loss,
Shares in First Property Group PLC fell Thursday morning after
it reported a loss for fiscal 2021 and suspended the final
UK Takeover Panel Agrees Extension to Augean, Morgan Stanley
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
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
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
Visa Buys Swedish Fintech Tink for More Than $2 Billion
Visa Inc. agreed to pay more than $2 billion for Tink, a Swedish
startup whose digital services connect more than 3,400 banks and
financial institutions in Europe.
Universe Group Chairman Buys Additional Stake for More Than GBP1
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.
Augean Says Tax Tribunal Sides With Company in Dispute With UK
Augean PLC said Thursday that a U.K. tax tribunal has decided in
the company's favor after it contested a preliminary issue with the
U.K. tax authority over how to interpret certain elements of
landfill tax law.
Heavitree Brewery Swung to 1H Pretax Loss as Lockdown Hit
Heavitree Brewery PLC said Thursday that it swung to a pretax
loss for the first half of fiscal 2021 as revenue took a hit from
coronavirus-related restrictions, and said support from customers
bodes well for its prospects.
BOE's Vote on QE Hits Sterling
1258 GMT - Sterling's decline after the Bank of England's policy
decision Thursday likely reflects a higher-than-expected number of
policymakers voting in favor of keeping quantitative easing
unchanged, TD Securities says. There was speculation that two
policymakers would vote to scale back bond purchases but just one
policymaker--economist Andy Haldane, who is leaving after
Thursday's meeting--voted in favor of the move, TD forex strategist
Ned Rumpeltin says. "With Haldane's departure imminent, the MPC
will either need to find a fresh hawk, or the default position of
the committee might revert to a unanimous consensus to keep QE
unchanged in August."
Bank of England Decision Spells Mixed Outlook For Firms
1244 GMT - The Bank of England's decision to keep interest rates
unchanged holds positives and negatives for up-and-coming U.K.
companies, Deepbridge Capital says. The central bank's announcement
will be welcome news to many early-stage businesses who feared
rising inflation could have triggered higher rates, the investment
firm says. "However, the bank did also suggest CPI could rise to as
much as 3%, raising the question of exactly how long it can hold
interest rates at current levels, with any rises directly impacting
how much businesses are able to borrow at a crucial time,"
Deepbridge Managing Partner Ian Warwick says. "Therefore, the
biggest problem for growing early-stage companies may be access to
UK Five-year Gilts Still Vulnerable to Policy shift
1244 GMT - Five-year U.K. benchmark government bonds remain
vulnerable from a trading perspective to both rate hikes and
expectation of any reduction in the stock of Bank of England's
assets, says TD Securities. "This is primarily driven by the
aggressive repricing of rate hikes in the front end of the [gilt]
curve," says senior European rates strategist Pooja Kumra. She
still believes that the slope of the yield curve between five and
30-year gilts could be still prone to more flattening. The
five-year gilt yield trades last at 0.352%, down from 0.386% before
the central bank announcement, according to Tradeweb.
Pound Falls as Imminent BOE Rate Rise Unlikely
1243 GMT - The Bank of England's policy statement Thursday
suggests the central bank clearly isn't minded to raise interest
rates any time soon and that has weakened sterling, online trading
provider Infinox says. The BOE's dismissal of inflation risks as
temporary has hit sterling like a "bucket of cold water," says Ulas
Akincilar, head of trading at the broker. "While it's hoping,
rather than certain, that inflation will ease off of its own accord
as the U.K. economy gets back into its stride, the Bank is clearly
not minded to raise interest rates any time soon," he says. GBP/USD
falls 0.4% to 1.3916 and EUR/GBP rises 0.5% to 0.8587.
BOE Unlikely to End QE Earlier than December
1207 GMT - Despite bank officials' split 8 to 1 vote to continue
quantitative easing, the Bank of England is unlikely to curtail the
program early, says ING. "The BoE remains on track to actively stop
expanding its balance sheet at the end of the year - having tapered
the pace of purchases last month," analysts at the Dutch bank say.
"Unexpectedly ending the scheme early would potentially set a
precedent in the eyes of investors, and risks limiting the potency
of future QE programmes," they say. Bank officials voted
unanimously for the central bank to maintain the stock of sterling
non-financial investment-grade corporate bond purchases at GBP20
billion, but chief economists Andrew Haldane voted again against to
continue with the GBP875 billion gilt-buying program.
BOE Seen in Holding Pattern For Now
1204 GMT - The Bank of England's latest policy statement is
cautiously upbeat but it's clear policymakers are in a holding
pattern for the time being, ING says. Thursday's statement was a
"little more upbeat" than expected, but "crucially offers no new
clues on rate hike timing," ING economist James Smith says. "The
central bank is caught between higher-than-expected inflation and
encouraging activity data, and mounting uncertainty surrounding
Covid-19." ING expects the first interest rate rise in early 2023,
based on the assumption that inflationary pressures ease through
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
June 24, 2021 12:22 ET (16:22 GMT)
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