FTSE Edges Lower, Sterling Rises as Inflation Surges Before BOE Decision

12/15/2021 | 05:58am

Sterling Rises as UK Inflation Surges Before BOE Decision

Sterling rises after data showed U.K. inflation surged to a 10-year high in November before the Bank of England's interest rate decision Thursday. Consumer prices jumped 5.1% year-on-year in November following a 4.2% increase in October and beating the 4.9% rise expected in a WSJ survey of economists. "Given the BOE has positioned itself as ready to move policy (unlike the European Central Bank for example) we suspect a higher price environment can keep GBP money rates and the pound supported," ING analysts say. GBP/USD rises 0.3% to a one-week high of 1.3283 and EUR/GBP falls 0.1% to a two-week low of 0.8486, according to FactSet.

 
Companies News: 

Cineworld Shares Fall After Losing Lawsuit Against Cineplex

Shares in Cineworld Group PLC fell in early trade Wednesday after the Ontario Superior Court of Justice ruled in favor of rival Cineplex over the cancellation of a takeover deal in June 2020.

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Bunzl Sees High Single-Digit Growth in 2021 Underlying Revenue From 2019

Bunzl PLC said Wednesday that it expects 2021 underlying revenue to show high single-digit growth when compared to 2019, and that it expects 2022 revenue to be slightly higher than in 2021 at constant exchange rates.

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IAG in Advanced Talks to Cancel Air Europa Purchase Agreement

International Consolidated Airlines Group SA said Wednesday that discussions to terminate the agreement to buy Spanish airline Air Europa from Globalia Corporacion Empresarial were at an advanced stage.

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Hollywood Bowl FY 2021 Pretax Profit Dropped; Confident About FY 2022 Growth

Hollywood Bowl Group PLC on Wednesday reported a more-than-halved pretax profit for fiscal 2021, and said that it is confident about its performance for fiscal 2022.

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Currys 1H Pretax Profit Rose; Backs FY 2022 Guidance Despite Soft Holiday Run-Up

Currys PLC on Wednesday reported a 6.7% rise in pretax profit for the first half of fiscal 2022, and said it remains on track to meet adjusted-pretax-profit expectations for the year, despite softer demand in the run-up to Christmas.

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Restore Buys Capture All for GBP900,000; 11-Mo Performance in Line With Board Views

Restore PLC said Wednesday that it has acquired Capture All Ltd. for 900,000 pounds ($1.2 million), and that the performance for the 11-month period to November is in line with board's expectations.

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Likewise Group to Buy Wholesale Flooring Company for Up to GBP30 Mln

Likewise Group PLC said Wednesday that it has entered into a conditional agreement to acquire Valley Wholesale Carpets for a maximum amount of 30.0 million pounds ($39.7 million).

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In the Style Group 1H Pretax Profit Decreased on Supply-Chain Disruption

In the Style Group PLC said Wednesday that pretax profit for the first half of the fiscal 2022 fell by half because of the impact in the industry from supply-chain disruption, though revenue rose in the period.

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Made Tech Group Says 1H Performance Was In Line With Expectations

Made Tech Group PLC said Wednesday that the company's performance in the first half of fiscal 2022 was in line with views, and that it expects momentum to extend into the second half of the year.

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Goodwin's Mechanical Engineering Division Hit by Low Activity; 1H Pretax Profit Rose

Goodwin PLC said Wednesday that its pretax profit rose for the period as revenue increased, but that its Mechanical Engineering division experienced low activity levels in the period.

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Eckoh to Buy Syntec for GBP31 Mln; Raise GBP13.7 Mln via Share Placing

Eckoh PLC said Wednesday that it is buying payments solutions company Syntec Holdings Ltd. for 31.0 million pounds ($41 million), to be part-funded via a share placing.

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Bens Creek Raised $6 Mln via Unsecured Convertible Loan Notes

Shares in Bens Creek Group PLC fell on Wednesday after the company said it had raised $6 million via the issue of unsecured convertible loan notes to ACAM GP Ltd.

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Time Finance Says 1H Performance in Line With Strategic Objectives

Time Finance PLC said Wednesday that its performance for the first half of fiscal 2022 is in line with its strategic objectives as the group continued to benefit from strong momentum.

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Baltic Classifieds Group Swung to 1H Pretax Loss on Higher Costs

Baltic Classifieds Group PLC on Wednesday posted a swing to pretax loss for the first half of the fiscal 2022 due to higher costs despite higher revenue, and said that intends to propose a dividend for the full year.

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LBG Media Shares Rise in Stock Market Debut

Shares in LBG Media PLC rose as much as 15% in early trade Wednesday as the company started trading on London's junior AIM, implying a market capitalization of 415.5 million pounds ($549.75 million).

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Clarkson PLC Chairman Bill Thomas to Step Down

Clarkson PLC said Wednesday that Chairman Bill Thomas is stepping down from his position to focus on other roles, but will remain on the board until a replacement has been found.

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Haydale Graphene FY 2021 Pretax Loss Narrowed on Lower Costs

Haydale Graphene Industries PLC said on Wednesday that its pretax loss for fiscal 2021 narrowed as the company continued to reduce costs, and added that it is cautious about short-term revenue.

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Facilities by ADF PLC to Float on London's AIM

Facilities by ADF PLC said Wednesday that it plans to float on London's junior AIM, with trading expected to start on Dec. 31.

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Shell Increases Solar-Energy Footprint -- ESG Insight

Commentary by Gonçalo Lousada, research analyst, ESG & impact investing

 
Market Talk: 

UK Shorter-Dated Gilts Set to Rally if BOE Holds Rates

1039 GMT - Shorter-dated U.K. government bonds are set to rally if the Bank of England votes to keep monetary policy on hold this Thursday, says TD Securities. The bank's base case is that the BOE leaves the official interest rate on hold and notes that the decision was close but uncertainty over the Omicron variant puts an interest-rate rise off for now. This would support "a rally in U.K. rates with the very front end of the curve steepening as markets push back [expectations for interest-rate] hikes," analysts at the bank say. However, they expect gilts to be vulnerable to the outcomes of the meetings of the Federal Reserve today and the European Central Bank Thursday.

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

(END) Dow Jones Newswires

12-15-21 0557ET

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