Unchanged BOE Rates on Thursday Would Weaken Pound
The Bank of England may unexpectedly hold off on raising
interest rates at Thursday's meeting, causing sterling to extend
its recent losses versus the euro, Danske Bank says. "We continue
to see either an unchanged Bank Rate or a dovish hike as the most
likely outcomes on Thursday when the Bank of England announces its
monetary policy decision (no rate hike being our base case), which
would send EUR/GBP further up," Danske Bank analyst Lars Sparreso
Lykke Merklin says. A 'dovish hike' would mean the BOE raising
interest rates but issuing a cautious message that could dampen
expectations for further rate increases. EUR/GBP rises 0.1% to
0.8511, near the three-week high of 0.8515 reached on Tuesday,
according to FactSet.
Companies News:
Conduit Holdings 9-Month Gross Written Premiums Were $291M
Conduit Holdings Ltd. said Wednesday that gross written premiums
for the first nine months of the year were $291.2 million, and that
losses related to Hurricane Ida and floods in Europe were
limited.
---
Wilmington Says FY 2022 Started Well, Sees Performance in Line
with Views
Wilmington PLC said Thursday that it has made a good start to
fiscal 2022, noting that it expects to perform in line with its
expectations for the full year.
---
Quilter 3Q Net Inflows Rose; To Return Around GBP350 Mln to
Shareholders
Quilter PLC said Wednesday that net inflows for the third
quarter rose and that it plans to return around 350 million pounds
($476.5 million) to shareholders from the disposal of Quilter
International.
---
Nightcap Expects to Report Market-Beating FY 2022 Earnings;
Shares Rise
Shares of Nightcap PLC rose Wednesday after the company said it
expects to report market-beating earnings for fiscal 2022 on
pent-up socializing demand and income following coronavirus-related
lockdowns.
---
Esken 1H 2022 Pretax Loss Narrowed; Aviation's Outlook Turning
Positive
Shares in Esken Ltd. rose Wednesday after it said that its
first-half fiscal 2022 pretax loss narrowed after booking lower
costs, and that the outlook for aviation is becoming more positive
on eased travel restrictions and the rollout of coronavirus
vaccination programs.
---
Pipehawk FY 2021 Profit Narrowed on 1H Pandemic Hit But 2H
Improved
Pipehawk PLC said on Wednesday that its profit for fiscal 2021
more than halved as revenue fell but its performance during the
second half of the year returned to near pre-pandemic levels.
---
Airtel Africa Sells Madagascar Tower Company to Helios Towers
for $51.7M
Airtel Africa PLC said Wednesday that it has sold its
telecommunications tower company in Madagascar to Helios Towers PLC
for $51.7 million.
---
Kodal Minerals Acquires Minority Shareholdings in Mali Project
for $1.2 Mln
Kodal Minerals PLC said on Wednesday that it has acquired the
minority shareholdings of Mali's Bougouni lithium project for $1.2
million, and that this has resulted in the company having a 100%
interest in all of the project's concessions.
---
Energean Says FY Performance Beat Record, 3Q Was Strong
Energean PLC said Wednesday that it continued to deliver strong
operational and financial results in the third quarter of the year,
boosted by higher commodity prices and above-expectations
production.
---
Goldplat Says 1Q Combined Operating Profit From Recovery
Operations Unchanged
Goldplat PLC said Wednesday that its recovery operations
achieved the same combined operating profit for the first quarter
of fiscal 2022 when compared with the year-earlier period.
---
Dalata Hotel Agrees on Debt Extension; Appoints Conal O'Neill
COO
Dalata Hotel Group PLC said Wednesday that it has agreed on a
one-year extension on its debt facilities with its banking
partners, and that Conal O'Neill has been appointed chief
operations officer effective Jan. 1.
---
Pelatro's Nic Hellyer Becomes Full-Time CFO
Pelatro PLC said Wednesday that part-time Chief Financial
Officer Nic Hellyer has agreed to increase his commitment to a full
time role.
---
Braemar Shipping 1H Pretax Profit, Revenue Rose; On Track to
Meet Views
Braemar Shipping Services PLC said Wednesday that its pretax
profit and revenue rose after refocusing on its core shipbroking
and corporate finance business, and said it was on track to meet
upgraded expectations.
---
Nanoco Group FY 2021 Pretax Loss Narrowed After Cost Cuts
Nanoco Group PLC said on Wednesday that its fiscal 2021 pretax
loss narrowed as it booked lower costs after restructuring part of
the business.
---
Financial System Makes Big Promises on Climate Change at COP26
Summit--Update
Most of the world's big banks, its major investors and insurers,
and its financial regulators have for the first time signed up to a
coordinated pledge that will incorporate carbon emissions into
their most fundamental decisions.
Market Talk:
CLS Maintains High Rent Collections Amid Improving Activity
1055 GMT - CLS Holdings continues to achieve sector-leading rent
collection rates with improving activity levels in the U.K.,
Germany and France expected to lead to a reduction in vacancy by
year-end, Liberum says. The commercial-property investment
company's portfolio repositioning continues with good progress on
developments and refurbishments, while a further update on
real-estate trust conversion for the U.K. business is expected in
the next few weeks, Liberum says. CLS's shares look cheap with a
sizeable 28% discount to its net development value, which doesn't
reflect earnings upside from improving market conditions over the
next year, the brokerage says. Liberum retains its buy rating and
target price of 290.0 pence. Shares are up 0.2% at 219.5 pence.
---
Land Securities Signals More Moves into Mixed-Use
Development
1044 GMT - Land Securities' strategic acquisition of a 75% stake
in the MediaCity hub in Greater Manchester for GBP425.6 million
heralds another major move into mixed-use development, Goodbody
says. The commercial-property developer and investment company's
strategic acquisition of the site includes 11 buildings, comprising
workspace, studios, labs, residential and ancillary leisure and
retail space, all of which is 96% let and generates GBP31.1 million
in net operating income a year, the Irish brokerage says.
"LandSec's purchase of MediaCity adds further significant
mixed-used exposure from an immediately income producing asset,
with further development potential in a strong, dynamic regional
city," Goodbody says, retaining its buy rating on the stock.
---
Supply Chain Issues Hit Business Optimism in UK Services
Sector
0958 GMT - U.K. services activity grew at a faster pace than
previously thought in October but business optimism fell to its
lowest level since March, according to the IHS Markit/CIPS
purchasing managers' index survey. "Escalating business costs
remain deeply concerning as salaries rocketed along with fuel and
energy costs and material shortages as a result of supply chain
disorder," CIPS director Duncan Brock says. Many supply chain
managers struggled to find the right staff from a falling number of
job seekers, he says. An expected U.K. interest rate rise on
Thursday could ease inflation but also add pressure on some
household budgets, he says. October's services PMI was revised to
59.1 from 58.0 previously, versus 55.4 in September, indicating
growth.
---
GlaxoSmithKline's Growth Seen Underpinned by Vaccines
0957 GMT - GlaxoSmithKline's growth is set to ramp up from 2022,
with 5% to 6% revenue growth and double-digit underlying EPS
growth, Jefferies says. For New GSK--the company remaining after
the spinoff of the consumer health division--the revenue compound
annual growth rate until 2026 should be 6.6% and the EBIT compound
annual growth rate is set at 11%,Jefferies says. Vaccines are set
to underpin growth aims, the investment bank says. The British
pharma major should be able to achieve high-single-digit vaccine
sales growth until 2026, with doubling sales of the shingles
vaccine Shingrix already reflected in the estimate, Jefferies
says.
---
UK Service Sector Recovery Gains Momentum
0954 GMT - U.K. service providers indicated a sharp rise in
business activity in October, driven by a strong increase in new
work, the services purchasing managers index shows. The headline
IHS Markit/CIPS U.K. services PMI rose to 59.1 in October from 55.4
in September, signaling the strongest pace of recovery since July.
"Looser international travel restrictions and greater domestic
mobility helped to lift the U.K. service sector recovery out of its
recent malaise in October," IHS Markit's economics director Tim
Moore says. Average prices charged increased at a survey-record
pace, reflecting pressures on operating expenses, Moore says.
Record rates of input price and output charge inflation appear to
have dampened business optimism, which eased to its lowest since
January, IHS Markit says.
---
BOE Likely to Lift Base Rate in December or February, Says
Pimco
0944 GMT - The Bank of England is more likely to wait until
December or February to deliver its first post-pandemic rate rise,
says Peder Beck-Friis, portfolio manager at Pimco. Markets are
almost fully pricing in a 15 basis-point rise to 0.25% on Thursday,
when the Monetary Policy Committee is due to announce their policy
decision. "We have low conviction in the precise timing of the
first hike," Beck-Friis tells Dow Jones Newswires. "Either the BoE
increases its policy rate on Thursday, or slightly more likely in
our view, sends a strong signal that it will hike in December or
February." He expects the bank rate to reach a pre-pandemic level
of around 0.75% by the end of 2022, unless above-target inflation
persists.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
November 03, 2021 07:23 ET (11:23 GMT)
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