Sterling soon recovers from brief drop after CPI drop


Sterling soon recovers from brief drop after UK CPI drop

0731 GMT – The British pound stabilizes after a brief decline, following data showing the UK’s annual CPI slowed slightly to 3.1% in September from 3.2% in August. This drop should not affect the likelihood of an upcoming rise in interest rates, analysts say. “The big picture remains that inflation is causing headaches for the Bank of England, especially without any sign of easing the surge in energy prices,” said Richard Carter, head of the Bank of England. fixed interest rate research at Quilter Cheviot. It seems likely that an interest rate hike will happen soon, although the BOE will steer clear of overly aggressive tightening, he said. GBP / USD is last flat at 1.3792, after dropping to around 1.3774 after the data. EUR / GBP is stable at 0.8436. ([email protected])

Companies News: 

Segro Rental Income Third Quarter Rose

Segro PLC said on Wednesday that the rental income it contracted in the third quarter of 2021 increased by 63% and that its vacancy rate fell further due to strong demand for space.

Antofagasta expects copper production to decline in 2022

Antofagasta PLC forecast a drop in copper production for 2022 on Wednesday, reflecting a lack of rainfall and lower grades at its Centinela Concentrates operation.

Avast Q3 revenue, increased Adjusted EBITDA; Reaffirms the outlook for the year

Avast PLC said on Wednesday that its adjusted EBITDA and revenue for the third quarter of 2021 was up from the previous year period, and reiterated its outlook for the full year.

Deliveroo 3Q orders, gross transaction value increased; Increases transaction value forecast for the entire year

Deliveroo PLC said on Wednesday it saw an increase in orders and gross transaction value in the third quarter of 2021, and raised its gross transaction value forecast for the year.

Burberry appoints Jonathan Akeroyd of Versace as new CEO

Burberry Group PLC announced on Wednesday that it has appointed Jonathan Akeroyd, currently Managing Director of Gianni Versace SpA, as the new CEO.

Real Good Food sees positive 1H Ebitda as revenue returns to pre-pandemic levels

Real Good Food PLC said on Wednesday it achieved profitability at the EBITDA level in the first half of the fiscal year as revenue returned to pre-pandemic levels.

Anglo American says De Beers rough diamond sales have plummeted

Anglo American PLC said on Wednesday that sales of rough diamonds by its majority-owned De Beers group fell 6.1% in the eighth sales cycle of 2021 from the previous cycle, but said sales were higher than those of the same cycle last year.

Market Talk: 

RBC now expects first UK rate hike in December

0753 GMT – Recent comments by Bank of England Governor Andrew Bailey warning that the central bank will need to act to curb inflation prompted RBC Capital Markets to expect interest rates to rise in December. The Canadian bank now expects a 25 basis point hike in December, followed by a 15 basis point hike in February and another 25 basis point hike in August. Taking into account the recent sequencing review of the BOE, it considers that the passage of the discount rate to 0.5% in February 2022 triggers the reduction of the BOE’s balance sheet via the end of reinvestments of the purchasing facility. of assets. RBC estimates the yield for 10-year gilts at 1.20% at year-end, 1.35% in 1Q22 and 1.45% in 2Q22. The yield on 10-year gilts is currently trading at 1.155%. ([email protected])

UK inflation break won’t last, says Berenberg

0746 GMT – The temporary break in British inflation in September mainly reflects particular factors, according to Berenberg. This does not change the likely upward trend over the next few months or reduce the chances of a Bank of England rate hike before the end of the year, said Kallum Pickering, senior economist at Berenberg. Pickering says September’s annual rate drop is in part due to a base effect, resulting from higher hotel and restaurant prices a year earlier after the August 2020 Eat Out to Help Out program ended. . “Soaring producer prices driven by global supply shortages and robust demand growth, as well as local issues such as rising energy costs, have not yet fully passed on to consumers. consumer prices, ”Pickering said, predicting that UK inflation is expected to rise. ([email protected])

UK gilt auction in 2031 is expected to attract demand

0731 GMT – The expected Wednesday sale of £ 2.25 billion by the UK debt management office, the conventional 0.25% gilt of July 2031, is expected to attract sufficient demand to ensure a sale in sweetness, according to RBC Capital Markets. “We think this offer should be removed as this is the bond’s last regular tap,” analysts at the bank said. Factors supporting the auction more are the purchases of mid-maturity gilts by the Bank of England’s asset-buying facility and the fact that the bond has recently fallen on most parameters, they say. . ([email protected])


Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newspapers; [email protected]

(END) Dow Jones Newswires

October 20, 2021 04:10 ET (08:10 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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