UKX FTSE 100 Index

Pound Could Fall After BOE Rate Decision Thursday

The pound could weaken after the Bank of England's policy decision on Thursday as there is a high bar for the central bank to exceed the market's expectations for interest rate rises, MUFG Bank says. "The BOE would either have to outline plans for more front loaded tightening to keep inflation expectations in check and/or provide a stronger signal that rates could raise much further beyond 1.00% in the coming years," MUFG currency analyst Lee Hardman says. Interest rate expectations have gone "too far" with the overnight index swap forward market implying 45 basis points of rate rises at the next two meetings and 60bps beyond February, he says.

 
Companies News: 

Dalata's New CEO Dermot Crowley Takes Role

Dalata Hotel Group PLC said Tuesday that Dermot Crowley has succeeded Pat McCann as chief executive officer, effective Nov. 1.

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Zenith Energy to Raise GBP3 Mln via Discounted Share Placing

Zenith Energy Ltd. said Tuesday that it has issued 272.7 million subscription shares at a discount price to raise gross proceeds of around 3 million pounds ($4.1 million).

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Cambridge Cognition CFO Michael Holton Steps Down

Cambridge Cognition Holdings PLC said Tuesday that Chief Financial Officer Michael Holton will leave the board with immediate effect to focus on other opportunities.

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Greencoat UK Wind to Acquire Stake in Wind Farm; Launches Equity Raise

Greencoat UK Wind PLC said Tuesday that it has agreed to acquire a 25% stake in the Burbo Bank Extension offshore wind farm in England from AIP in partnership with certain pension funds, and that it will acquire a net 15.7% stake in the wind farm for 250 million pounds ($341.6 million) in cash.

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Berkeley Energia's London-Listed Shares Fall on $65 Mln Note Repayment Call

London-listed shares in Berkeley Energia Ltd. fell as much as 38% in early trade Tuesday after the company said that it has received a claim from Singapore Mining Acquisition Co. Pte. Ltd. requesting the immediate repayment of US$65 million.

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Schroder BSC Social Impact Trust to Raise Around GBP26.3 Mln via Placing

Schroder BSC Social Impact Trust PLC said on Tuesday that it will raise around 26.3 million pounds ($35.9 million) via a placing.

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Up Global Sourcing Holdings CFO Graham Screawn to Retire in 2H 2022

Up Global Sourcing Holdings PLC said Tuesday that Chief Financial Officer Graham Screawn will retire in the second half of 2022.

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Marks Electrical to Raise GBP2.6 Mln in London IPO

Marks Electrical Group PLC said Tuesday that it is raising 2.6 million pounds ($3.6 million) as part of its initial public offering on London's junior AIM, with trading expected to start on Nov. 5.

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Scotgold Resources Nonexecutive Chairman Nathaniel Le Roux Steps Down

Scotgold Resources Ltd. said Tuesday that Nonexecutive Chairman Nathaniel Le Roux is stepping down after more than six years in the role and that he will be replaced by the Nonexecutive Director Peter Hetherington.

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Jaywing CFO Caroline Ackroyd to Step Down April 2022

Jaywing PLC said on Tuesday that Chief Financial Officer Caroline Ackroyd will leave in April to pursue new opportunities.

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Eneraqua Technologies to List on AIM in Late November

Eneraqua Technologies PLC said Tuesday that it plans to list on London's junior AIM market on Nov. 22.

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Daily Mail Close to GBP400 Mln Pensions Deal Ahead of Buyout

Daily Mail & General Trust PLC said Tuesday that it is close to a 400 million pound ($546.6 million) deal with the trustees of its three pension plans, the last major pre-condition necessary to take its business private.

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DSW Capital to Raise GBP5 Mln on Admission to London's AIM

DSW Capital PLC will raise five million pounds ($6.8 million) on its admission to London's AIM, according to a regulatory filing released on Tuesday.

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Byotrol CFO Nic Hellyer Resigns

Byotrol PLC said Tuesday that its part-time Chief Financial Officer Nic Hellyer has resigned to pursue other interests, and that it is in advanced talks for a full-time CFO to replace him.

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Serabi Gold COO Retires; Position Abolished and Responsibilities Divided

Serabi Gold PLC said Tuesday that Chief Operating Officer Roney Almeida has stepped down and it has discontinued the position, and named Helio Tavares as its general manager of projects and operations.

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SSE, Equinor Sell 20% Stake in World's Largest Offshore Wind Farm to ENI

SSE PLC and Equinor ASA said Tuesday that they will sell a combined 20% stake in offshore wind farm Dogger Bank C to Italian energy company ENI SpA for around 140 million pounds ($191.3 million).

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DP Poland to Raise GBP3 Mln in Premium-Priced Share Offer

DP Poland PLC said on Tuesday that it will raise 3 million pounds ($4.1 million) via a placing and a subscription conducted through an accelerated bookbuild.

 
Market Talk: 

Linde Is Outpacing Peers in 2021

1111 GMT - Linde has delivered growth and earnings margin expansion well ahead of peers in 2021, and this should continue in the next few years, UBS says. The multinational gas company is expected to register organic growth of 5.5% over 2022-25, compared to 4.5% at Air Liquide, according to UBS analysis. Linde's $3.5 billion gases backlog should also deliver 1%-2% volume growth each year, translating into mid-single-digit EPS growth, UBS adds. In addition, the bank expects Linde to deliver higher prices and better cash conversion than its peers, alongside low debt that means it should consistently return cash to shareholders. UBS retains its buy rating with an increased target price of EUR350, from EUR325 previously. Shares in Frankfurt rise 0.7% to EUR281.25.

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BP Shares Volatility Points to Low Confidence Over 2030 Oil, Gas Production Targets

1106 GMT - BP's share-price volatility shows that investors seem to have little confidence in the energy company being able to meet CEO Bernard Looney's plans for a 40% reduction in oil and gas production by 2030, Michael Hewson, chief market analyst at CMC Markets U.K., says. The rise in oil and gas prices is a good thing for the FTSE 100 listed major, Hewson notes. "Almost all of BP's profit comes from its oil and gas operations and productions businesses, which is great news while prices remain high," Hewson says. However, even though demand is likely to hold up into the winter months, management needs to have a plan other than returning cash to shareholders, he says. Shares are down 2.4% at 348.45 pence.

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Sterling Falls as Thursday's BOE Rate Decision Approaches

0953 GMT - Sterling drops to its lowest in around three weeks against the dollar and euro as investors look ahead to the Bank of England's interest-rate decision on Thursday. "Recent price action continues to highlight that the pound has failed to fully benefit from the recent sharp adjustment higher in U.K. rates," MUFG Bank currency analyst Lee Hardman says. MUFG expects the BOE to lift rates by 15 basis points on Thursday followed by increases of 25 basis points in February and 25 basis points in August. GBP/USD falls 0.1% to a near three-week low of 1.3628, according to FactSet. EUR/GBP rises 0.1% to 0.8498 after hitting a three-week high of 0.8508 earlier.

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Iron Ore Slumps on Faltering Chinese Steel Output

0951 GMT - Iron ore prices slump on concerns about weak demand from steelmakers. Iron ore futures drop 6% to $93.59 a metric ton, hovering close to their previous one-year low hit in September. Chinese steel smelters, facing efforts by Beijing to clamp down on energy consumption and carbon emissions, have been cutting back on output, reducing demand for iron ore, a key ingredient in steel making. Stocks of the metal in Chinese ports have risen to a two-and-a-half-year high, Commerzbank says in a note published Monday, citing data from Steelhome. "Until Chinese steel production recovers, we expect demand for iron ore to remain muted. We therefore see virtually no potential for rising iron ore prices at present," the bank says.

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Island Nations Welcome Infrastructure Resilience Initiative At COP26

0936 GMT - "Because of our selfish behavior over the last few decades, the unnatural side of nature that has come to the fore has affected small island nations who are not to blame for it," says India's Narendra Modi at COP26, sitting alongside the U.K.'s Boris Johnson and Australia's Scott Morrison, at the launch of the Resilient Island States initiative for developing the infrastructure of small island nations. Prime Minister Modi says India's space agency will provide data about coasts, coral, and cyclones to vulnerable island nations. "Jamaica sees capital investment both as a tool of economic growth but also a tool for climate proofing," says Jamaican Prime Minister Andrew Holness. The initiative "reflects our own thinking around the pivotal role played by infrastructure in building resilience," he adds.

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

November 02, 2021 08:38 ET (12:38 GMT)

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