Pound's Post-BOE Fall Likely to Remain Limited
0916 GMT - Sterling's weakness after the Bank of England's
policy decision Thursday is likely to remain limited, MUFG Bank
says. The "hawkish" shift some market participants were expecting
from the BOE's policy statement failed to materialize but the
central bank is certainly moving in that direction, MUFG analyst
Derek Halpenny says. "The upgrades to both real GDP growth in the
second quarter and inflation this year could well have implications
for inflation over the medium-term that compels the Monetary Policy
Committee to alter its monetary stance (taper) or guidance at the
next meeting on August 5 when the Monetary Policy Report will be
released with updated forecasts." GBP/USD falls 0.1% to 1.3910 and
EUR/GBP rises 0.2% to 0.8585.
CMA Weighs Probe of TravelSupermarket-Icelolly Merger
The U.K. Competition and Markets Authority said Friday that it
is considering whether the merger between TravelSupermarket and
Icelolly Marketing Ltd. will result in competition issues.
Arc Minerals Granted Extension to Results Filing Deadline Due to
Arc Minerals Ltd. said Friday that it has been granted an
extension to its filing deadline for the nine-month period ended
Dec. 31, 2020, to Sept. 30 from a previous date of June 30.
Prospex 2020 Loss Widened on Asset Revaluations
Prospex Energy PLC on Friday reported a widened loss for 2020,
driven by negative revaluations of financial assets.
Scirocco Energy Extends Investment Facility Until End of
Scirocco Energy PLC said Friday that it has extended its
investment facility with Prolific Basins LLC until the end of
Ukrproduct 2020 Pretax Loss Narrowed
Ukrproduct Group Ltd. said Friday that its 2020 pretax loss
narrowed as revenue rose, and that it plans to pursue stronger
margins and further increase sales of processed cheese and
Altitude Group CFO to Leave in December
Altitude Group PLC said on Friday that Chief Financial Officer
Graeme Couturier has resigned from his role, effective Dec. 10, and
that it has launched a formal search for his replacement in both
the U.K. and the U.S.
AEX Gold COO Martin Menard to Leave
AEX Gold Inc. said Friday that its chief operating officer,
Martin Menard, will leave the company on June 30.
A.G. Barr Names Mark Allen as Chairman Designate
A.G. Barr PLC said Friday that it has appointed Mark Allen
chairman designate, effective July 1.
Diversified Energy Appoints Teresa Odom to New ESG Officer
Diversified Energy Co. said Friday that its current vice
president of investor relations, Teresa Odom, will fill the
newly-created role of vice president of ESG and sustainability.
Powerhouse Energy Appoints Paul Emmitt Chief Technical
Powerhouse Energy Group PLC said Friday that Paul Emmitt has
been appointed chief technical officer with immediate effect.
Crystal Amber Fund Shareholders Won't Pass Continuity Vote
Crystal Amber Fund Ltd. said Friday that a vote on the
continuity of the company won't be passed at the annual
Quantum Blockchain Technologies Loss Widened in 2020
Quantum Blockchain Technologies PLC on Friday reported a widened
loss for 2020.
UK Gilt Yield Curve Could Widen
0836 GMT - The U.K. government bond yield curve could widen
driven by long-term interest rates increasing at a faster rate than
short-term rates, says Mizuho. "We see the prospect for renewed
Gilt bear-steepening building ahead," analysts at the Japanese bank
say, commenting on Thursday's Bank of England's decision to leave
monetary policy unchanged while revising up its growth and
inflation forecasts. "Consumer price index [inflation] is now
expecting to exceed 3% temporarily, peaking higher than previously
thought, while 2021 GDP growth was revised up to 5.5% from 4.25%,"
they say, noting that the central bank expects a muted effect from
the country's delay in relaxing Covid-19 restrictions.
Serica Energy 2022 Production Guidance Beats Expectations
0836 GMT - U.K. North Sea gas producer Serica Energy has
provided its first production guidance for 2022 at 27,100-33,600
oil-equivalent barrels a day. The midpoint suggests 20% upgrades to
the consensus estimate of 26,100 barrels, Jefferies says. These
forecasts are doubly important because from January 2022, Serica's
share of net cash flow from its largest asset increases to 100%
from the current 60%, the bank notes. Jefferies has a buy rating on
the stock, with a 166-pence target price.
BOE to Raise Rates Twice in 2022, HSBC Forecasts
0831 GMT - Following the Bank of England's decision on Thursday,
HSBC now expects the central bank to raise interest rates twice in
2022. It sees a 15 basis-point rise to 0.25% in May and then
25-basis point hike to 0.50% in November. At least one more
interest rate rise in 2023 is likely, it says. "We now forecast
wage growth of 5.3% this year and consumer price index inflation
staying above target throughout this year and next. Against this
backdrop, a gradual reversal of the 65bps worth of cuts in 2020
hardly seems excessive," the bank says. It also expects the BOE to
give itself some leeway to start reducing its balance sheet,
possibly as soon as the second half of 2022, though probably in
2023, it says.
Pound Falls as Traders Continue to Assess BOE Decision
0748 GMT - Sterling falls as investors continue to mull over the
Bank of England's decision Thursday to keep its loose policies
unchanged and downplay inflation risks. The BOE voted unanimously
to hold its benchmark interest rate at 0.1% and voted 8-1 to
maintain its bond-buying program, whereas some market participants
were expecting more policymakers to back a tapering of purchases.
"The BoE was not particularly dovish, but it looked as though the
market had got ahead of itself in pricing BOE hikes from summer
2022," ING analysts say. "Expect EUR/GBP to continue to trade a low
volatility 0.8535-0.8600 range, while a default Cable [GBP/USD]
range looks something like 1.3890-1.4010." GBP/USD drops 0.1% to
1.3910 and EUR/GBP rises 0.2% to 0.8589.
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
June 25, 2021 06:32 ET (10:32 GMT)
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