Sterling Soon Recovers From Brief Drop After CPI Edges Lower
20 Oktober 2021 - 10:25AM
Dow Jones News
Sterling Soon Recovers From Brief Falls After UK CPI Edges
Lower
0731 GMT - Sterling steadies after briefly edging lower,
following data that showed U.K. annual CPI slowed slightly to 3.1%
in September from 3.2% in August. This fall shouldn't alter the
likelihood that interest rates will rise soon, analysts say. "The
bigger picture remains that inflation is causing the Bank of
England a headache, especially coupled with no sign of an easing in
the energy price surge," Richard Carter, head of fixed-interest
research at Quilter Cheviot, says. It looks likely an interest rate
increase will happen soon, although the BOE will avoid tightening
too aggressively, he says. GBP/USD is last flat at 1.3792, having
dropped to around 1.3774 after the data. EUR/GBP is flat at 0.8436.
(jessica.fleetham@wsj.com)
Companies News:
Segro Third-Quarter Rental Income Rose
Segro PLC said Wednesday that the rental income it contracted
during the third quarter of 2021 rose 63%, and its vacancy rate
declined further on the back of strong demand for space.
---
Antofagasta Expects Copper Production to Fall in 2022
Antofagasta PLC on Wednesday forecast lower copper production
for 2022, reflecting a lack of rainfall and lower grades at its
Centinela Concentrates operation.
---
Avast 3Q Revenue, Adjusted Ebitda Rose; Reaffirms FY Outlook
Avast PLC said Wednesday that its adjusted Ebitda and revenue
for the third quarter of 2021 increased when compared with the
year-earlier period, and reiterated its full-year outlook.
---
Deliveroo 3Q Orders, Gross Transaction Value Rose; Raises
Full-Year Transaction Value Guidance
Deliveroo PLC said Wednesday that it saw a rise in orders and
gross transaction value in the third quarter of 2021, and raised
its guidance for gross transaction value for the year.
---
Burberry Appoints Versace's Jonathan Akeroyd as New CEO
Burberry Group PLC said Wednesday that it has appointed Jonathan
Akeroyd, currently Gianni Versace SpA's chief executive, as its new
CEO.
---
Real Good Food Sees Positive 1H Ebitda as Revenue Returns to
Pre-Pandemic Levels
Real Good Food PLC said Wednesday that 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 Fell
Anglo American PLC said Wednesday that rough-diamond sales by
its majority-owned De Beers Group fell 6.1% in the eight sales
cycle of 2021 compared with the previous cycle, but said sales were
higher compared with the same cycle last year.
Market Talk:
RBC Now Expects First UK Rate Rise in December
0753 GMT - Recent comments by Bank of England Governor Andrew
Bailey warning that the central bank will have to act to curb
inflation have prompted RBC Capital Markets to expect an
interest-rate rise in December. The Canadian bank now expects a 25
basis-point rise in December, followed by 15 basis-point increase
in February and another 25 basis-point rise in August. Given the
BOE's recent sequencing review, it sees the move in the Bank Rate
to 0.5% in February 2022 as triggering the reduction of the BOE's
balance sheet via the cessation of Asset Purchase Facility
reinvestments. RBC estimates the 10-year gilt yield at 1.20% by
year-end, at 1.35% in 1Q22 and 1.45% at 2Q22. The 10-year gilt
yield currently trades at 1.155%. (lorena.ruibal@wsj.com)
UK Inflation Pause Won't Last, Berenberg Says
0746 GMT - The temporary pause in U.K. inflation in September
mostly reflects special factors, Berenberg says. It doesn't change
the likely upward trend for the next few months or lower the chance
of a rate hike by the Bank of England before year end, Berenberg's
senior economist Kallum Pickering says. Pickering says the dip in
the September annual rate is partly due to a base effect, arising
from a rise in prices for hotels and restaurants a year earlier
after August 2020's Eat Out to Help Out Scheme ended. "Surging
producer prices driven by global supply shortages and robust demand
growth, as well as local issues such as rising energy costs,
haven't yet fully passed through into consumer prices," Pickering
says, forecasting that U.K. inflation is set to rise.
(maria.martinez@wsj.com)
UK 2031 Gilt Auction Likely to Attract Demand
0731 GMT - The U.K. Debt Management Office's planned sale of
GBP2.25 billion the 0.25% July 2031 conventional gilt Wednesday
should attract enough demand to ensure a smooth sale, says RBC
Capital Markets. "We think this supply should get taken down well
given that it's the final regular tap of the bond," analysts at the
bank say. Factors further supporting the auction are gilt purchases
of medium maturities by the Bank of England's Asset Purchase
Facility and the fact that the bond has cheapened-up on most
metrics recently, they say. (lorena.ruibal@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
October 20, 2021 04:10 ET (08:10 GMT)
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