Sterling Pares Losses After UK PMI Data
22 October 2021 - 8:46PM
Dow Jones News
Sterling Pares Losses After UK PMI Data
0848 GMT - Sterling pares losses after data showed growth in
U.K. services and manufacturing activity accelerated by more than
expected in October. The IHS Markit/CIPS composite purchasing
managers' index rose to a three-month high of 56.8 in October from
54.9 in September, with a level above 50 indicating an expansion in
activity. Economists in a WSJ survey had expected a reading of
54.0. "The U.K. economy picked up speed again in October, but the
expansion is looking increasingly dependent on the service sector,
which in turn looks prone to a slowdown amid the recent rise in
Covid-19 cases," Markit economist Chris Williamson says. GBP/USD
rises to 1.3804 after the data, from 1.3776 beforehand. EUR/GBP
falls to 0.8436 from 0.8451 beforehand. (renae.dyer@wsj.com)
Companies News:
InterContinental Hotels 3Q Revenue Per Available Room 21% Below
Pre-Pandemic Levels
InterContinental Hotels Group PLC said Friday that its revenue
per available room increased 66% in the third quarter on year, but
that it was 21% below 2019 levels.
---
J Sainsbury Ends Talks to Sell Banking Arm
J Sainsbury PLC said Friday that it has ended talks to sell its
banking arm as it believes the business will deliver better value
for shareholders being kept within the group.
---
London Stock Exchange 3Q Total Income Rose
London Stock Exchange Group PLC said Friday that its performance
in the third quarter of 2021 was marked by income growth across all
its divisions.
---
JD Sports Acquires 80% Stake in Greek Retailer Cosmos Sport
JD Sports Fashion PLC said Friday that it has acquired 80% of
Cosmos Sport SA, a Greek retailer.
---
Hummingbird Resources Sees 2021 Production at Lower End of
Guidance Range, Costs at Higher End
Hummingbird Resources PLC said Friday that its full-year
production will be at the lower end of the guidance range, whereas
costs will be at the upper end.
---
Starcom PLC Raises GBP450,000 via Premium Share Subscription
Starcom PLC said Friday that it has raised 450,000 pounds
($620,730) via a premium share subscription and will use the money
towards its new business pipeline as well as for potential new
contracts.
---
SIG Sees FY Underlying Operating Profit Ahead of Views on 3Q
Sales Growth
SIG PLC said Friday that its full-year underlying operating
profit is now expected to be ahead of market views, as the strong
performance it benefited from in July and August continued through
September.
Market Talk:
UK Gilts Unmoved by Above-Forecast PMI Data
0912 GMT - U.K. government-bond investors shrug off
above-forecast preliminary U.K. purchasing managers' index data for
October on Friday. Borrowing costs remain steady at elevated
levels, after data showed activity in services and manufacturing
sectors expanded further in October. The IHS Markit/CIPS composite
purchasing managers' index rose to a three-month high of 56.8 in
October, comfortably exceeding the expectations of 54.0 in a WSJ
poll of economists. The 10-year gilt yield trades last at 1.204%,
having closed at 1.210% Thursday, its highest level since early May
2019. (lorena.ruibal@wsj.com)
UK Borrowing in Debt Markets Likely to Fall
0858 GMT - U.K. borrowing from debt market investors in the
current 2021-22 fiscal year is likely to fall below previous
official projections, as the government prepares to scale back
pandemic-era fiscal stimulus, says Deutsche Bank's Sanjay Raja. "We
expect 2021/22 borrowing to be revised down by around GBP60
billion, taking the deficit down to GBP174bn," he says. As a
result, he expects the gilt remit to be revised down to GBP212.5bn
from GBP234 billion forecast by the Office for Budget
Responsibility. Treasury chief Rishi Sunak is expected to present
the government's spending plans to members of parliament in the
House of Commons on Oct. 26. (lorena.ruibal@wsj.com)
UK Economic Growth Regains Traction Despite Supply-Chain
Bottlenecks
0849 GMT - The latest purchasing managers survey on U.K.'s
private sector points to an accelerated increase in business
activity. IHS Markit's flash composite PMI came in at 56.8 in
October, up from 54.9 in September and a three-month high. Survey
respondents reported buoyant business and consumer spending due to
the roll back of pandemic restrictions, the report said. Service
providers led the recovery, but manufacturers signaled another
slowdown in production growth due to severe shortages of staff and
materials. "The U.K. economy picked up speed again in October, but
the expansion is looking increasingly dependent on the service
sector, which in turn looks prone to a slowdown amid the recent
rise in Covid-19 cases," IHS Markit's chief business economist
Chris Williamson said. (xavier.fontdegloria@wsj.com)
IHG Drops After 3Q Revenue Falls Short of 2019 Levels
0844 GMT - InterContinental Hotels Group falls 2.3% after the
hotelier reported third-quarter revenue per available room 21%
below 2019 levels. Citigroup says the trading update was fairly
soft and investors are likely to give it a tempered reaction. IHG
has reported improvements in revenue per available room for 3Q, in
line with Citi forecasts but underperforming industry data, the
investment bank says. "Temporary cost savings may boost FY21
consensus, but we expect little change in FY22 and beyond," Citi
says. (philip.waller@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
October 22, 2021 05:31 ET (09:31 GMT)
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