Sterling Extends Losses After BOE Holds Rates, Seen Vulnerable
0927 GMT - Sterling continues to weaken after the Bank of England held its benchmark interest rate at 0.1% on Thursday, defying expectations for a 15 basis points rate rise. GBP/USD falls 0.3% to a five-week low of 1.3440 and EUR/GBP rises 0.3% to a five-week high of 0.8591, according to FactSet. "Downside risks for the pound would continue to build if market participants become more fearful that the BOE is falling behind the curve in responding to higher inflation in the U.K.," MUFG Bank currency analyst Lee Hardman says.(renae.dyer@wsj.com)
Companies News:
IAG 3Q Operating Loss Narrowed
International Consolidated Airlines Group S.A. said Friday that its third-quarter operating loss narrowed as revenue rose, and that it is planning for a return to profitability in 2022.
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U.K. Regulator Partially Clears Pennon's Acquisition of Bristol Water
The U.K. Competition and Markets Authority said Friday that it won't refer Pennon Group PLC's acquisition of Bristol Water Holdings UK Ltd. for a further review under the Enterprise Act 2002.
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Morgan Advanced Materials Expects 2021 Sales Growth at Top End of Guidance
Morgan Advanced Materials PLC said on Friday that sales for the first nine months of the year rose 8.9% on an organic constant-currency basis, and that it expects 2021 organic constant-currency growth to be around the top end of its previous guidance range of 7% to 9%.
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4imprint's FY Earnings Seen in Line with Views Despite Supply Chain Challenges
4imprint Group PLC said Friday that its full-year performance will be in line with expectations despite supply chain issues, adding that weekly order totals have been above 2019 levels in the second half of fiscal 2022.
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Simigon Studies Goldstein Real Estates and Investment's AGM-Resolutions Claim
Simigon Ltd. said Friday that it is studying a legal claim filed against the company by D.D Goldstein Real Estates and Investment Ltd.
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Nichols FY Adjusted Pretax Profit Seen to Beat Market Views
Nichols PLC said Friday that its performance for the first nine months of the year has been strong, with revenue ahead of market views, and that it now anticipates full-year adjusted pretax profit ahead of consensus.
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Beazley 3Q Gross Premiums Rose 29%, Renewal Rates Beat Expectations
Beazley PLC said on Friday that third-quarter gross premiums rose 29% with renewal rates exceeding the board's expectations.
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Mitie Group Announces $162 Mln Notes Offering
Mitie Group PLC said Friday that it will issue U.S. private placement notes worth 120 million pounds ($162.0 million).
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Gresham House Strategic Interim Chair Resigns; Bows Down to Shareholder Pressure
Gresham House Strategic PLC said Friday that Helen Sinclair has resigned as interim chair of the board and will be replaced temporarily by Charles Berry.
Market Talk:
UK Gilt Curve Steepens After BOE Unexpectedly Left Rates Unchanged
0925 GMT - The Bank of England's surprise decision to leave monetary policy unchanged Thursday, after warnings in previous weeks that the central bank will have to act to curb inflation, led to a sharp repricing of the country's borrowing costs, Tradeweb data show. "A more dovish-than-expected BOE meeting triggered a repricing of market expectations for rate hikes across the board and, more in general, a further correction in rates market," UniCredit says. As a result, the gilt yield curve "bull-steepened aggressively," the bank says, referring to a change caused by short-term yields falling faster than long-term rates. (lorena.ruibal@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
11-05-21 0547ET
