Pound to Rise if BOE's Bailey Reacts to Higher Inflation
Risks
0955 GMT - Sterling could receive a boost if a speech by Bank of
England Governor Andrew Bailey later follows Federal Reserve Chair
Jerome Powell in acknowledging increased inflation risks, ING says.
Bailey "may feel emboldened" by Powell who on Tuesday suggested
retiring the term "transitory" for inflation, ING analysts say.
"Having moved to price out a December 16 BOE rate hike, investors
may start to put a 15 basis points hike back into UK money market
rates." Unless equities fall considerably further, which would hit
the risk-sensitive pound, the theme of high inflation and monetary
policy normalization should support the currency, the analysts say.
Bailey speaks at 1400 GMT. EUR/GBP falls 0.2% to 0.8506 and GBP/USD
gains 0.1% to 1.3321. (renae.dyer@wsj.com)
Companies News:
STV Group Sees 2021 Advertising Revenue Rise on Stronger 4Q
STV Group PLC said Wednesday that it expects total advertising
revenue for 2021 to be at a record level, with a
stronger-than-expected fourth quarter.
---
Online Blockchain Swung to FY 2021 Pretax Profit
Online Blockchain PLC on Wednesday reported a profit for the
year ended June 30.
---
Drax Sees 2021 Adjusted Ebitda at Top End of Expectations
Drax Group PLC on Wednesday forecast that its 2021 adjusted
earnings before interest, taxes, depreciation and amortization will
be around the top end of current analysts' expectations.
---
Brickability 1H Profit, Revenue Rose; Names New COO
Brickability Group PLC said Wednesday that pretax profit more
than doubled and revenue nearly tripled for the first half of
fiscal 2022, and named Paul Hamilton as its new chief operating
officer.
---
Blue Prism Agrees to Improved GBP1.23 Bln Offer from SS&C;
Withdraws Vista Recommendation
Blue Prism Group PLC said Wednesday that it has agreed a new,
higher 1.23 billion-pound ($1.64 billion) takeover by SS&C
Technologies Holdings, Inc. and withdrawn its recommendation for
Vista Equity Partners' offer.
---
S4 Capital Acquires Maverick Digital
S4 Capital PLC said Wednesday that U.S. Salesforce specialist
Maverick Digital is merging with the company's Media.Monks
subsidiary.
---
Loungers 1H Pretax Profit, Revenue Rose
Loungers PLC said Wednesday that first-half pretax profit rose
on higher revenue, and that while it is mindful of the Omicron
coronavirus variant it is optimistic about the Christmas period and
beyond.
---
Springfield Properties Buys Tulloch Homes; Proposes Placing to
Help Fund
Springfield Properties PLC said Wednesday it has conditionally
acquired private house builder Tulloch Homes for 56.4 million
pounds ($75.0 million), and proposed a placing to help refinance
part of the cash consideration.
---
Amedeo Air Four Plus to Return GBP30 Mln to Shareholders;
Reinstate Dividends in 2022
Amedeo Air Four Plus Ltd. said Wednesday that it will return 30
million pounds ($39.9 million) to shareholders via a partial
compulsory redemption of ordinary shares on Dec. 8, and that the
board intends to reinstate dividends in 2022.
---
Drax Aims to Double Biomass Pellet Production, Sales by 2030
Drax Group PLC on Wednesday set targets to double both its
biomass pellet production and sales by 2030.
---
IG Group Proposes Sale of Small Exchange Stake and Nadex for
$216 Mln
IG Group Holdings PLC said Wednesday that it has proposed the
sale of North American Derivatives Exchange, Inc. or Nadex, and its
stake in Small Exchange, Inc. for around $216 million.
---
Beowulf Mining Shares Rise on Positive Comments From Swedish
Government
Beowulf Mining PLC said Wednesday that it has noted its share
price rise in Stockholm and London after recent positive comments
from the new Swedish government.
---
Marechale Capital Swung to 1H Profit on Investment Gains
Marechale Capital PLC said Wednesday that it swung to a
first-half pretax profit primarily on the back of investment gains,
and that revenue significantly rose.
Market Talk:
UK Regulator's Pressure on Water Companies Isn't Seen as Risk
for Listed Names
1024 GMT - Ofwat continues to put pressure on the operations and
structure of some of the U.K. private water companies, RBC Capital
Markets says after The Guardian reported that the regulator raised
a red flag over the financial health of Southern Water, Yorkshire
Water and SES Water. However, the bank's analysts don't see this as
a risk for the listed companies, which continue to be some of the
most efficient in the sector. Furthermore, recent half-year results
highlighted good progress on the key performance measures that
Ofwat has set for the sector, RBC says.
(jaime.llinares@wsj.com)
Drax's Expanded Targets Should Be Well Received
1015 GMT - Drax's capital markets day should be received
positively by investors, with expanded targets for pellet
production and BioEnergy Carbon Capture and Storage, as well as the
Cruachan pumped storage project in Scotland, RBC Capital Markets
says. The GBP3 billion of planned investment can be self-funded
from operating cash flows, the bank says, estimating that Drax has
ambitions for growing Ebitda in excess of GBP700 million by 2030.
Moreover, the update also points to short-term positives, with 2021
Ebitda expected around the top end of analyst expectations. Shares
in the power generation company jump 7.8% to 593 pence.
(jaime.llinares@wsj.com)
UK Manufacturing Input Prices Rise at Record Pace in
November
1014 GMT - U.K. manufacturing activity grew at slightly slower
pace than previously thought in November and input prices rose at a
record rate due to supply chain pressures, according to the IHS
Markit/CIPS purchasing managers' index survey. "Manufacturers are
facing a challenging backdrop, with rising supply chain
disruptions, staff shortages and inflationary pressures stifling
growth while ongoing difficulties caused by Brexit and logistical
headaches restrict opportunities to expand into overseas market,"
Markit director Rob Dobson says. "New export sales fell for the
third straight month." November's manufacturing PMI was revised to
58.1 from 58.2 previously, compared to 57.8 in October, with a
level above 50 signalling expansion. GBP/USD and EUR/GBP are little
changed after the data at 1.3317 and 0.8503
respectively.(renae.dyer@wsj.com)
UK's Factory Activity Gathered Steam in November, Price
Pressures Intensified
0959 GMT - U.K. manufacturing activity accelerated slightly in
November, but stretched supply chains drove up input prices to the
greatest extent in at least three decades, IHS Markit's purchasing
managers survey shows. The manufacturing PMI jumped to a
three-month high in November, to 58.1 from 57.8 in October, despite
labor and input shortages constraining production. The data shows a
survey-record increase in average purchase prices, with around
three-quarters of manufacturers reporting price rises and less than
1% seeing falls. "The survey highlights how the subdued rate of
manufacturing growth and export decline leaves industry in a
vulnerable position to any new headwinds, not least the Omicron
variant," IHS Markit Director Rob Dobson says.
(xavier.fontdegloria@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka
Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
December 01, 2021 05:43 ET (10:43 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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