Fed Could Tighten Before BOE, Denting Pound Vs Dollar
1229 GMT - The Federal Reserve is likely to tighten monetary
policy sooner than the Bank of England and that could weigh on the
pound versus the dollar, Capital Economics says. "The risks to our
forecast that the pound will stay close to $1.40 for the next
couple of years are on the downside," Capital Economics economist
Ruth Gregory says. GBP/USD falls 0.2% to 1.3897. Capital Economics
expects the Fed to tighten policy in 2023 and the BOE to rein in
support in 2024 as it sees upward pressures on inflation being
greater and longer lasting in the U.S. than in the U.K.
Companies News:
Scirocco Energy Extends Investment Facility Until End of
2021
Scirocco Energy PLC said Friday that it has extended its
investment facility with Prolific Basins LLC until the end of
2021.
---
Ukrproduct 2020 Pretax Loss Narrowed
Ukrproduct Group Ltd. said Friday that its 2020 pretax loss
narrowed as revenue rose, and that it plans to pursue stronger
margins and further increase sales of processed cheese and
spreads.
---
Altitude Group CFO to Leave in December
Altitude Group PLC said on Friday that Chief Financial Officer
Graeme Couturier has resigned from his role, effective Dec. 10, and
that it has launched a formal search for his replacement in both
the U.K. and the U.S.
---
AEX Gold COO Martin Menard to Leave
AEX Gold Inc. said Friday that its chief operating officer,
Martin Menard, will leave the company on June 30.
---
A.G. Barr Names Mark Allen as Chairman Designate
A.G. Barr PLC said Friday that it has appointed Mark Allen
chairman designate, effective July 1.
---
Diversified Energy Appoints Teresa Odom to New ESG Officer
Role
Diversified Energy Co. said Friday that its current vice
president of investor relations, Teresa Odom, will fill the
newly-created role of vice president of ESG and sustainability.
---
Powerhouse Energy Appoints Paul Emmitt Chief Technical
Officer
Powerhouse Energy Group PLC said Friday that Paul Emmitt has
been appointed chief technical officer with immediate effect.
---
Crystal Amber Fund Shareholders Won't Pass Continuity Vote
Crystal Amber Fund Ltd. said Friday that a vote on the
continuity of the company won't be passed at the annual
meeting.
---
Quantum Blockchain Technologies Loss Widened in 2020
Quantum Blockchain Technologies PLC on Friday reported a widened
loss for 2020.
---
Sabien Technology Appoints Tom Sprunt as Permanent Managing
Director
Sabien Technology Group PLC said Friday that it has appointed
Tom Sprunt as managing director of its operating company Sabien
Technology Ltd.
Market Talk:
Aveva Has Growth Potential, Shares Look Attractive
1253 GMT - Aveva Group shares look more appealing than rivals,
says HSBC, increasing its recommendation on the industrial-software
developer to buy from hold and its price target to 4345 pence from
3870p. HSBC says the valuation is attractive, especially versus
peers, and it's optimistic the combination of a new chief executive
and revenue savings from the company's acquisition of OSIsoft
should boost growth. "The key downside risks include potential
weakness in key end markets could see growth stall and margins
weaken, integration challenges and lower-than-expected synergies
from the OSISoft acquisition," says HSBC analyst Michael Tyndall.
Shares rise 1.4% to 3740p.
---
BOE Is More Hawkish than Markets Interpreted, says BofA
1232 GMT - The Bank of England's communication at its latest
meeting was interpreted by markets as reinforcing looser monetary
policy but Bank of America says the central bank was more
aggressive than it was perceived. "Our proprietary BoE mood
indicator, based on natural language processing of the minutes,
rose to the most hawkish since 2006," BofA rates strategists say.
"In our economists' view, the Bank of England downgraded further
its already very weak forward guidance on Thursday by stating that
some members will now not 'look through' inflation readings over
the next few months or necessarily wait for post-Furlough labour
market data before deciding guidance no longer applies."
---
WPP's Structural Issues Take Back Seat Amid Advertising
Recovery
1228 GMT - WPP still faces structural challenges but a strong
advertising recovery is overriding concerns about the
agency-holding companies, Credit Suisse says. Ad-buying companies
GroupM and Magna are predicting a record advertising recovery for
2021, and this could continue for some time, CS says. While
structural concerns about WPP persist given a digital shift in
marketing, fee pressures and rising competition from consultants
and new entrants, the London-based ad group has moved to address
them and made progress on its simplification, the bank says. CS ups
the stock to neutral from underperform and lifts its target price
to 1,060 pence from 835 pence. Shares rise 2.2%.
---
Offer Process for UDG Healthcare Looks Closer to Being
Finalized
1159 GMT - UDG Healthcare's announcement regarding a possible
increased final offer from Clayton, Dubilier & Rice, LLC
affiliate Nenelite Ltd. will likely result in the company being
taken over by CDT at GBP10.80 a share, Goodbody says. The
healthcare services provider said Friday that if the final offer is
made it intends to recommend it and confirmed that it hasn't
received any proposals from third parties to acquire the company,
which, according to Goodbody, points to some finality in the offer
process for UDG. The Irish brokerage has a buy rating on the stock
and a GBP10.46 target price. Shares in UDG are up 1.1%, at 1,057
pence.
---
Stable U.K. Consumer Confidence Data Could Suggest Moderating
Recovery
1153 GMT - U.K. consumer confidence, which stabilized in June to
still-subdued levels, adds evidence to other surveys such as the
PMI signaling that the economic recovery is starting to lose steam,
economists from Citi say. "While a rapid rebound was always likely
assured, the key question was whether this would translate into a
more complete recovery," the U.S. bank says. Weaker-than-expected
readings at the current stage suggest that a full recovery in the
U.K. could likely take longer and require more support, Citi
says.
---
UK Consumer Spending May Have Hit a Wall
1121 GMT - The Confederation of British Industry's Distributive
Trades Survey for June painted an upbeat picture for U.K. retail
sales but other data suggest consumer spending has hit a wall,
Pantheon Macroeconomics says. The CBI's measure of retail sales
rose to +25 in June from May's +18, the highest since August 2018.
"Other timely indicators, however, are less positive," Pantheon
economist Gabriella Dickens says. Data from the Bank of England
showed the value of credit and debit card transactions in the seven
days to June 17 was 9.5% below its February 2020 level while the
GfK's measure of consumer confidence remained steady at -9 in June,
she says.
Contact: London NewsPlus, Dow Jones Newswires;
+44-20-7842-931
(END) Dow Jones Newswires
June 25, 2021 09:33 ET (13:33 GMT)
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