Pound to Rise if BOE's Bailey Reacts to Higher Inflation Risks

0955 GMT - Sterling could receive a boost if a speech by Bank of England Governor Andrew Bailey later follows Federal Reserve Chair Jerome Powell in acknowledging increased inflation risks, ING says. Bailey "may feel emboldened" by Powell who on Tuesday suggested retiring the term "transitory" for inflation, ING analysts say. "Having moved to price out a December 16 BOE rate hike, investors may start to put a 15 basis points hike back into UK money market rates." Unless equities fall considerably further, which would hit the risk-sensitive pound, the theme of high inflation and monetary policy normalization should support the currency, the analysts say. Bailey speaks at 1400 GMT. EUR/GBP falls 0.2% to 0.8506 and GBP/USD gains 0.1% to 1.3321. (renae.dyer@wsj.com)

 
Companies News: 

STV Group Sees 2021 Advertising Revenue Rise on Stronger 4Q

STV Group PLC said Wednesday that it expects total advertising revenue for 2021 to be at a record level, with a stronger-than-expected fourth quarter.

---

Online Blockchain Swung to FY 2021 Pretax Profit

Online Blockchain PLC on Wednesday reported a profit for the year ended June 30.

---

Drax Sees 2021 Adjusted Ebitda at Top End of Expectations

Drax Group PLC on Wednesday forecast that its 2021 adjusted earnings before interest, taxes, depreciation and amortization will be around the top end of current analysts' expectations.

---

Brickability 1H Profit, Revenue Rose; Names New COO

Brickability Group PLC said Wednesday that pretax profit more than doubled and revenue nearly tripled for the first half of fiscal 2022, and named Paul Hamilton as its new chief operating officer.

---

Blue Prism Agrees to Improved GBP1.23 Bln Offer from SS&C; Withdraws Vista Recommendation

Blue Prism Group PLC said Wednesday that it has agreed a new, higher 1.23 billion-pound ($1.64 billion) takeover by SS&C Technologies Holdings, Inc. and withdrawn its recommendation for Vista Equity Partners' offer.

---

S4 Capital Acquires Maverick Digital

S4 Capital PLC said Wednesday that U.S. Salesforce specialist Maverick Digital is merging with the company's Media.Monks subsidiary.

---

Loungers 1H Pretax Profit, Revenue Rose

Loungers PLC said Wednesday that first-half pretax profit rose on higher revenue, and that while it is mindful of the Omicron coronavirus variant it is optimistic about the Christmas period and beyond.

---

Springfield Properties Buys Tulloch Homes; Proposes Placing to Help Fund

Springfield Properties PLC said Wednesday it has conditionally acquired private house builder Tulloch Homes for 56.4 million pounds ($75.0 million), and proposed a placing to help refinance part of the cash consideration.

---

Amedeo Air Four Plus to Return GBP30 Mln to Shareholders; Reinstate Dividends in 2022

Amedeo Air Four Plus Ltd. said Wednesday that it will return 30 million pounds ($39.9 million) to shareholders via a partial compulsory redemption of ordinary shares on Dec. 8, and that the board intends to reinstate dividends in 2022.

---

Drax Aims to Double Biomass Pellet Production, Sales by 2030

Drax Group PLC on Wednesday set targets to double both its biomass pellet production and sales by 2030.

---

IG Group Proposes Sale of Small Exchange Stake and Nadex for $216 Mln

IG Group Holdings PLC said Wednesday that it has proposed the sale of North American Derivatives Exchange, Inc. or Nadex, and its stake in Small Exchange, Inc. for around $216 million.

---

Beowulf Mining Shares Rise on Positive Comments From Swedish Government

Beowulf Mining PLC said Wednesday that it has noted its share price rise in Stockholm and London after recent positive comments from the new Swedish government.

---

Marechale Capital Swung to 1H Profit on Investment Gains

Marechale Capital PLC said Wednesday that it swung to a first-half pretax profit primarily on the back of investment gains, and that revenue significantly rose.

 
Market Talk: 

UK Regulator's Pressure on Water Companies Isn't Seen as Risk for Listed Names

1024 GMT - Ofwat continues to put pressure on the operations and structure of some of the U.K. private water companies, RBC Capital Markets says after The Guardian reported that the regulator raised a red flag over the financial health of Southern Water, Yorkshire Water and SES Water. However, the bank's analysts don't see this as a risk for the listed companies, which continue to be some of the most efficient in the sector. Furthermore, recent half-year results highlighted good progress on the key performance measures that Ofwat has set for the sector, RBC says. (jaime.llinares@wsj.com)

Drax's Expanded Targets Should Be Well Received

1015 GMT - Drax's capital markets day should be received positively by investors, with expanded targets for pellet production and BioEnergy Carbon Capture and Storage, as well as the Cruachan pumped storage project in Scotland, RBC Capital Markets says. The GBP3 billion of planned investment can be self-funded from operating cash flows, the bank says, estimating that Drax has ambitions for growing Ebitda in excess of GBP700 million by 2030. Moreover, the update also points to short-term positives, with 2021 Ebitda expected around the top end of analyst expectations. Shares in the power generation company jump 7.8% to 593 pence. (jaime.llinares@wsj.com)

UK Manufacturing Input Prices Rise at Record Pace in November

1014 GMT - U.K. manufacturing activity grew at slightly slower pace than previously thought in November and input prices rose at a record rate due to supply chain pressures, according to the IHS Markit/CIPS purchasing managers' index survey. "Manufacturers are facing a challenging backdrop, with rising supply chain disruptions, staff shortages and inflationary pressures stifling growth while ongoing difficulties caused by Brexit and logistical headaches restrict opportunities to expand into overseas market," Markit director Rob Dobson says. "New export sales fell for the third straight month." November's manufacturing PMI was revised to 58.1 from 58.2 previously, compared to 57.8 in October, with a level above 50 signalling expansion. GBP/USD and EUR/GBP are little changed after the data at 1.3317 and 0.8503 respectively.(renae.dyer@wsj.com)

UK's Factory Activity Gathered Steam in November, Price Pressures Intensified

0959 GMT - U.K. manufacturing activity accelerated slightly in November, but stretched supply chains drove up input prices to the greatest extent in at least three decades, IHS Markit's purchasing managers survey shows. The manufacturing PMI jumped to a three-month high in November, to 58.1 from 57.8 in October, despite labor and input shortages constraining production. The data shows a survey-record increase in average purchase prices, with around three-quarters of manufacturers reporting price rises and less than 1% seeing falls. "The survey highlights how the subdued rate of manufacturing growth and export decline leaves industry in a vulnerable position to any new headwinds, not least the Omicron variant," IHS Markit Director Rob Dobson says. (xavier.fontdegloria@wsj.com)

 

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

(END) Dow Jones Newswires

December 01, 2021 05:43 ET (10:43 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Dec 2021 to Jan 2022 Click Here for more FTSE 100 Charts.
FTSE 100
Index Chart
From Jan 2021 to Jan 2022 Click Here for more FTSE 100 Charts.