FTSE gains, the pound expected to rise against the euro on the decline of the BOE

The pound is expected to rise against the euro on the decline of the BOE

The Bank of England is expected to leave its policies unchanged in Thursday’s decision, but could further reduce bond purchases later this year, sending the pound slightly higher against the euro, according to Rabobank. “Assuming a fairly stable position for UK markets throughout the summer and assuming the economic outlook remains favorable, we see the possibility of a further reduction in the BOE in the fall,” said Jane Foley , Rabobank Forex Strategist. The BOE, which slowed down the pace of its bond purchases last month, announced its policy decision at 11:00 GMT. Rabobank expects EUR / GBP to fall to 0.84 within six months, from 0.8553 currently.

 
Companies News: 

Cumulative Robinson earnings lower than 2020; Fall in shares

Robinson PLC shares fell on Thursday after the company said cumulative profits for the year were lower than the period a year earlier, and this was due to the short-term transient effect of the rising resin price.

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First Property Group Suspends Final Dividend After Fiscal 2021 Loss, Share Decline

Shares of First Property Group PLC fell on Thursday morning after reporting a loss for fiscal 2021 and suspending the final dividend.

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UK buyout panel agrees Augean extension

Augean PLC said on Thursday that the UK Takeover Panel had agreed to extend the deadline for Morgan Stanley Infrastructure Inc. to make an offer for the UK waste management company or to step down so they can continue talks.

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Atlas Copco buys UK supplier of air compressors

STOCKHOLM – Swedish industrial tool maker Atlas Copco AB announced Thursday that it has acquired UK-based Airflow Compressors & Pneumatics Ltd (Airflow) for an undisclosed price.

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San Leon Accepts $ 8.5 Million Investment in Nigerian Oil Export Project; Rise in shares

Shares of San Leon Energy PLC rose Thursday morning after agreeing to acquire a new stake in the Alternative Crude Oil Evacuation System project in Nigeria.

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CMO Group to float on Junior AIM in London

Online building materials retailer CMO Group PLC announced Thursday that it plans to go public on London’s junior AIM early next month.

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Edenville Energy on Track to Achieve Full Order Book for Tanzanian Coal Mine

Edenville Energy PLC said Thursday that it expects to secure a full order book for its Rukwa coal project in Tanzania in the coming months.

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Alpha Financial Markets pre-tax profit for fiscal 2021 decreased slightly

Alpha Financial Markets Consulting PLC on Thursday reported a slight decline in its pre-tax profit for fiscal 2021 and said all of its regions performed well and revenues increased during the year.

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Maternity Clothing Brand Seraphine Confirms London IPO Plan; To raise £ 61million

British maternity and nursing wear brand Seraphine announced Thursday that it plans to raise £ 61million ($ 85.2million) in new money and make an initial public offering on the London Stock Exchange next month.

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LungLife AI, Inc. to float on London Junior AIM

LungLife AI, Inc. said Thursday it plans to float on junior AIM from London early next month.

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REA Holdings commits to replace current loan, working capital facility

REA Holdings PLC announced Thursday that its subsidiary PT REA Kaltim Plantations had conditionally agreed with its Indonesian bankers to replace its current loan with two new loans, and agreed to new working capital to replace its current one.

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Universe group chairman buys additional stake for over £ 1million

Universe Group PLC said Thursday that its executive chairman Andrew Blazye had spent 1.1 million pounds ($ 1.5 million) to acquire a new stake in the company.

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San Leon begins talks to merge with Nigerian partner Midwestern Oil & Gas

San Leon Energy PLC’s trading on AIM was suspended Thursday morning because it is in talks for Midwestern Oil & Gas Co. to join the company.

 
Market Talk: 

BOE unlikely to raise rates until 2023

1004 GMT – UK inflation could accelerate in the coming months but is expected to slow next year, prompting the Bank of England to postpone its first post-pandemic interest rate hike until 2023, according to Pantheon Macroeconomics. “We doubt that a period of above target consumer price inflation, caused by a rebound in commodity prices and a price recovery in sectors affected by the foreclosure, will turn into a deeper problem. rooted, ”say the economists of the Pantheon. Inflation is expected to peak at 2.8% later this year before falling below the BOE’s 2% target in 12 months as the labor market slowdown increases with the withdrawal of employment support , the fall in coronavirus-related costs and the downward impact of the recent appreciation of the pound sterling peak in mid-2022, they say.

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Crest Nicholson Operational Efficiency Program Drives Improving Margins

0936 GMT – Crest Nicholson’s renewed focus on cost discipline and operational efficiency is expected to help improve volumes, profitability and margins for the 2021 estimates, Barclays said. The homebuilder’s balance sheet has strengthened considerably after a jump to £ 130million in net cash, giving it the opportunity to expand its geographic footprint, according to UK banks. In addition, the company forecast gross margins of around 19% for fiscal 2021 and over 21% for fiscal 2022, and improved its forecast for pre-tax profit, according to the bank. “Crest’s margins are starting to reap the benefits of a reduced number of existing sites and the operational efficiency program,” the bank said. Barclays assigns equal weight to the stock and increases its target price to 420 pence from 375 pence.

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Crest Nicholson goes 1 hour profit, his rivals win

0911 GMT – Shares of Crest Nicholson Holdings are up 4% and competitors are also gaining after the British automaker reported first-half profit before tax and expressed confidence in the market outlook. The group listed on the FTSE 250 is making good progress in its recovery, with a significantly improved balance sheet, is focused on further improving margins and, in the longer term, on volume growth, according to Canaccord Genuity. “The share price outperformed the entire sector [in the] since the start of the year, but the assessment continues to appear reasonable. We expect stocks to respond well, ”said Aynsley Lammin, analyst at Canaccord. Crest’s rivals on the FTSE 100 Berkeley Group, Barratt Developments, Taylor Wimpey and Persimmon are all on the rise.

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Pound rally seen limited if BOE looks more bullish

0902 GMT – The Bank of England might be slightly more bullish about the economy in its policy statement later, but not enough to give the pound a huge boost, the BDSwiss group said. Since the last BOE meeting in May, economic growth has picked up, inflation has risen and unemployment has fallen, but it is “about what they expected,” the analyst said. by BDSwiss Marshall Gittler. The BOE must also be concerned about the recent resumption of coronavirus cases and the four-week extension of restrictions, he said. This means that the BOE could be “a little more optimistic”, but that it is unlikely to change its policies or forecasts, he said. “GBP could benefit slightly from an improvement in tone.” The BOE’s decision is at 11:00 GMT.

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Traders analyze BOE minutes for a hawkish tone

0858 GMT – Most investors will look for a hawkish tone in Thursday’s Bank of England rate decision that would indicate future monetary policy tightening, which could lead to disappointment, Mizuho said. “The latest consumer price index print was promising 2.1%, and if the BOE were to comment on inflation expectations becoming less entrenched, that would be a notable move,” he says. -he. Otherwise, a disappointing BOE is most likely to see sovereign bonds rally under the impetus of mid-maturity gilts and 10-year gilts, as the pricing of interest rate hikes is eased, Mizuho said. . The final paragraphs of the minutes will be the place to look for any change in tone.

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BOE will likely announce no policy chances

0758 GMT – The Bank of England is unlikely to announce any changes to the discount rate, asset purchase target or guidance at its meeting on Thursday, UniCredit said. However, the outlook for a recovery could lead bank officials to take a more aggressive tone regarding tightening monetary policy. “The rapid recovery in the outlook and the sharper-than-expected rise in consumer price index inflation, 0.6 percentage point to 2.1% year-on-year in May, could lead to the lawsuit- minutes from the Monetary Policy Committee in a slightly hawkish tone, “he said. UniCredit expects the BOE to leave the discount rate and target stock of asset purchases unchanged until 2022, but sees risks skew towards action sometime in 2022.

Contact: London NewsPlus, Dow Jones Newswires; + 44-20-7842-931

(END) Dow Jones Newswires

June 24, 2021 06:41 ET (10:41 GMT)

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