FTSE Gains, Potential BOE Rate Rise May Not Lift Sterling

10/25/2021 | 06:51am

Potential BOE Rate Rise May Not Lift Sterling

The Bank of England is likely to start raising interest rates in December but sterling may struggle to benefit given the market has already priced in this possibility, UBS Global Wealth Management says. "Only a hawkish statement by the BOE suggesting a faster sequence of hikes than the market currently expects might support the pound, but this is not something we are expecting," UBS forex strategist Thomas Flury says. UBS still expects EUR/GBP to fall to 0.82 by December 2022, from 0.8434 at present, due to the European Central Bank's accommodative policies. However, it predicts GBP/USD will drop to 1.34 by December 2022, from 1.3772 currently, on safe-haven flows and the BOE's more cautious stance compared to the Federal Reserve.

 
Companies News: 

Lenta 3Q Pretax Profit Rose on Higher Sales

Lenta International PJSC on Monday reported a higher pretax profit for the third quarter of 2021 as sales increased.

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Panthera Resources Says Labola Gold Project Estimate Positive

Panthera Resources PLC said Monday that it has completed the maiden mineral resource estimate for the Labola Gold Project, located in Burkina Faso, which showed positive results.

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Urban Logistics Recent Performance Was Good; Will Join Premium Listing

Urban Logistics REIT PLC said Monday that its recent performance has been positive with nearly all rent collected for the first half, and that it intends to move to the premium segment of the main market.

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Ashtead Technology to Float on London's AIM Next Month

Ashtead Technology Ltd. said Monday that it plans to float on London's junior AIM with trading expected to start in the second half of November.

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President Energy's Subsidiary Atome Is Progressing Toward London IPO

President Energy PLC said Monday that its hydrogen and ammonia-production subsidiary Atome Energy PLC is taking steps to float on London's Alternative Investment Market later this year, raising an undisclosed amount.

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Anglo Pacific 3Q Portfolio Contribution Hits Record High

Anglo Pacific Group PLC said Monday that its portfolio contribution for the third quarter of 2021 was the highest in its history.

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Atrato Onsite Energy to List on LSE

Atrato Onsite Energy PLC said Monday that it plans to float on the London Stock Exchange's main market next month, and that it expects to raise around 150 million pounds ($206.4 million) via a placing, and offer for subscription, and an intermediaries offer.

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Gensource Confirms Plans for London Listing in November

Gensource Potash Corp. confirmed Monday that it will float in London in early November, as a U.K.-listing with allow it to better access U.K. and European institutional investors.

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Ridgecrest Terminates Blue Air Negotiations on Airline's Inability to Raise Funds

Ridgecrest PLC said Monday that it has terminated the negotiations on its proposed reverse take over of Romanian airline Blue Air after the carrier failed to raise funding.

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Just Eat Shareholder Urges Sale or Spin-Off of Grubhub

Just Eat Takeaway.com NV investor Cat Rock Capital Management LP said Monday that it has urged the company to sell or spin-off Grubhub by the end of the year.

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Vast Resources Shares Fall on Delay to Planned Production Volumes at Romania Mine

Vast Resources PLC said Monday that the start of its planned higher production volumes at Romania's Baita Plai Polymetallic mine have had to be pushed back and it now expects it to become profitable on a monthly basis by the end of 2021.

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HSBC Says It Will Buy Back $2 Billion in Stock as Profit Jumps -- 2nd Update

HSBC Holdings PLC announced a $2 billion stock buyback and a surge in third-quarter net profit as the lender navigated rising geopolitical and property-market risks in China.

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CPPGroup Appoints Simon Pyper as CFO From January

CPPGroup PLC said Monday that it has appointed Simon Pyper as chief financial officer from Jan. 1, replacing Oliver Laird who resigned last month to take up a new role.

 
Market Talk: 

Sainsbury Made a Sensible Decision in Keeping Its Bank, Shore Says

1228 GMT - Sainsbury's decision not to sell its bank business is seen as sensible as the board rejected offers that didn't reflect what it perceived to be the real value of the business, Shore Capital says. Although the bank has appeared somewhat peripheral to the retailer's core strategy for some time, analysts at Shore say they applaud management being open to an approach for Sainsbury Bank set within the context of a strategy where the focus is on food and the structural modernization of the Argos business. "Whilst a little nervous on the Argos front, we remain supportive of the more medium-term strategy and potential cash and dividend flows for shareholders," Shore says.

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Whitbread Revenue, Costs Likely to Provide 1H Interest

1221 GMT - Whitbread investors are likely to focus on revenue and costs in the budget hotelier and pub-restaurant group's half-year results Tuesday. Revenue per available room in August and last month is likely to be of interest following the relaxation of all English lockdown restrictions, Numis Securities says. Annual consensus estimates for the company imply healthy upwards forecast momentum and still look excessively cautious, given expansion of room numbers, the brokerage adds. "We're mindful that the cost environment has started to deteriorate for all U.K. hospitality businesses," Numis analyst Tim Barrett says.

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Gensource Is Stirring Up the Potash Market, Peel Hunt Says

1138 GMT - Gensource is shaking up the potash fertilizer market with its selective mining modules, a highly innovative means of monetizing potash resources in a capital-efficient manner, Peel Hunt says. The Canadian potash company's modular approach allows it to grow capacity with market demand, investing capital only when it knows it has secured customers for the output, the brokerage says. Gensource's offtake agreement with Helm allows it access to retail potash price levels as well as specific customers, and a planned London listing will give U.K. investors access to a high-margin, high-return industry disruptor, Peel Hunt says. The brokerage initiates coverage with a buy rating and a target price of 60 Canadian cents. Shares in Canada closed at 36 Canadian cents.

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Allergy Therapeutics Trial Results De-Risk Shares

1133 GMT - Allergy Therapeutics's positive headline results for its grass pollen allergy treatment point to a statistically significant, clinically meaningful improvement over placebos--a major de-risking event for investors, FinnCap says. The biotechnology company's results will increase the probability of successfully completing the pivotal Phase 3 study in the U.S. and Europe, the brokerage says. Just as importantly, the results underpin the broader MATA MPL platform--which includes tree and ragweed pollen treatments, FinnCap says. Finally, the positive results also increase the likelihood of completing the therapy allergens ordinance registration process in Europe, the brokerage says, raising its price target to 65.0 pence from 50.0 pence. Shares are up 7.5% at 36.0 pence.

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President Energy Subsidiary's IPO Looks Promising for Investors

1123 GMT - President Energy is on track to list its green hydrogen and ammonia production company Atome in the fourth quarter, which is shaping up to be a good deal for investors, FinnCap says. The energy company will provide its existing shareholders a dividend in Atome shares ahead of its expected London float, the brokerage says. "Atome is pursuing two advantaged green hydrogen/ammonia projects that benefit from access to cheap and abundant renewable baseload power, providing investors with free and potentially significant exposure to the powerful hydrogen growth theme," FinnCap says, retaining its target price of 4.6 pence. Shares are up 6.9% at 1.95 pence.

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HSBC Outlook Improves, But Low Interest Rates Drag

0959 GMT - Shares in HSBC Holdings rise 1.1% after the bank said it would buy back up to $2 billion in stock after third-quarter net profit rose. HSBC is the latest bank to hint at an expected increase in interest rates, which helps improve the investor mood because higher interest rates improve the profitability of loans, Hargreaves Lansdown says. "All in, the picture is looking healthier for HSBC, but while interest rates remain on the floor, the group will continue to be held back," HL analyst Sophie Lund-Yates says.

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

(END) Dow Jones Newswires

10-25-21 0851ET

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