Lower FTSE and delayed BOE rate hike could make pound vulnerable to risk aversion


The delay in the BOE’s rate hike could make the pound vulnerable to risk aversion

11:55 a.m. GMT – Sterling would remain vulnerable to further selling pressure due to uncertainty over the Omicron coronavirus variant and increased volatility if the Bank of England keeps interest rates stable at its next meeting , according to TD Securities. “We expect the BOE to keep the discount rate at 0.10%, given the tightened restrictions on Covid-19 announced this week,” TD Securities analysts said. As a result, EUR / GBP is expected to stay near recent highs for longer, while GBP / USD could drop to 1.30 if risk appetite weakens, they say. EUR / GBP was flat at 0.8541 and GBP / USD fell 0.2% to 1.3195.

 
Companies News: 

Share of actual experience down after the pre-tax loss for fiscal year 2021

Shares of Real Experience PLC fell on Friday morning after the company said it would suffer a pre-tax loss in 2021 as part of its continued investments in technology, sales and marketing, without disclosing a figure.

AB Foods Predicts Improved Performance As Primark Sales Strengthen – Update 2

Associated British Foods PLC said on Friday that fashion retailer Primark’s performance since the end of fiscal 2021 on September 18 was above expectations thanks to stronger comparable sales compared to last quarter.

Pathfinder Minerals rises on the prospect of major damages award in Mozambique dispute

Shares of Pathfinder Minerals PLC rose on Friday after it said its consultants had estimated ex post damages to the company at $ 1.5 billion in its dispute over a mining concession in Mozambique.

Recycling Technologies aims for IPO early in Q1 2022

Recycling Technologies Group Ltd. said on Friday it now plans to complete its initial public offering on the London Stock Exchange early in the first quarter of next year, following interest from a wide range of investors.

Panther Metals completes the IPO of its Australian subsidiary

Panther Metals PLC has stated that its subsidiary Panther Metals Ltd. was listed on the Australian Securities Exchange on Friday.

Starcrest Education Cancels Acquisition of National Training Co. at Market Terms

Starcrest Education Ltd. said on Friday it had rescinded the non-legally binding conditions for the acquisition of National Training Co. due to the need for additional funds.

Lukoil buys 9.99% stake in Shah Deniz gas project after downgrading deal with Petronas

Lukoil PJSC announced on Friday that it would acquire a 9.99% stake in the Shah Deniz natural gas project off Azerbaijan from Petronas instead of the 15.5% previously announced.

Star Phoenix resolutions to appoint new directors rejected by shareholders

Star Phoenix Group Ltd. said on Friday that all resolutions to appoint directors appointed at its general meeting had failed and that the composition of its board remained unchanged.

Anglo American cuts outlook for platinum group metals, iron ore, coal and nickel

Anglo American PLC lowered its production outlook for platinum group metals, iron ore, metallurgical coal and nickel on Friday.

Shell shareholders approve end of dual share class

Royal Dutch Shell PLC announced on Friday that its shareholders had approved the modification of the group’s articles of association in order to simplify its shareholder structure.

Shell Shareholders Approve End of Double Share Class and Relocation of Headquarters to London – Update

Royal Dutch Shell PLC said on Friday that its shareholders had approved the modification of the group’s articles of association to simplify its shareholder structure and move the head office to the United Kingdom.

 
Market Talk: 

Anglo American’s new directions appear to be in line with expectations

0858 GMT – Anglo American’s forecast provided on Friday morning appears to be broadly in line with expectations, which will allay some market concerns about major divergences over time from current expectations, RBC Capital Markets said, noting that granular guidance have not yet been given in the presentation later in the morning. The Quellaveco copper project in Peru, delivering more tonnes earlier, is positive, and unit cost inflation of 4% for 2022 is expected to be close to consensus, according to RBC. “Anglo American remains a well diversified mining company with growth and strong underlying operations. We continue to believe that both this growth and further revaluation over time supports a compelling investment case, ”the bank said, reaffirming an outperformance rating for the stock. Stocks rose 0.2%.

AB Foods ignores Omicron variant in Q1 update

0908 GMT – Associated British Foods’ performance update for the first quarter of fiscal 2022 showed that the effects of the new variant of Covid-19 Omicron have been contained for the time being, Jefferies said. The reiteration by the British conglomerate of a major reconstruction of the group’s EBIT in 2021-2022 should help support the rise in valuations on the way to a return to normal, according to the American bank. Jefferies has a buy recommendation on the stock and a target price of 2,700 pence per share. Shares are up 0.6% to 1,946.00 pence.

British pound falls after weaker than expected UK GDP

0932 GMT – The British pound falls after data showed the UK economy grew 0.1% weaker than expected month on month in October. Economists polled by the WSJ were forecasting growth of 0.3%. The data will give the Bank of England “another reason to hesitate” to raise interest rates at the December 16 meeting, said UBS Global Wealth Management economist Dean Turner. The pound has been weak in recent days as investors reassess the chances of a rate hike this month, but it is not justified, he said. “Although the Bank is likely to delay the rate hike, the hikes are still coming,” he said. “We expect this to push the pound higher in the coming months, especially against the euro.” EUR / GBP rose 0.1% to 0.8550 and GBP / USD fell 0.2% to 1.3200.

Hilton Food’s acquisition of Foppen seems like a smart move

10:30 GMT – Hilton Food Group’s acquisition of Dutch salmon company Foppen looks strategically and financially attractive, according to RBC Capital Markets. The food packaging company will partially fund the acquisition through a £ 75million equity placement, which will put pressure on equities in the short term, but this will be offset in the long term by the attractiveness of the transaction, according to RBC. “[The deal] complements its existing seafood business and therefore provides revenue synergies. Despite the placement, it will be [earnings] accretive in the first twelve months and the return on invested capital of the Hilton Notes is greater than the cost of capital, ”the Canadian bank said. Maintains an outperformance rating and a target price of 1,500 pence. Shares are down 0.8% to 1,186.0 pence.

Anglo American’s detailed guidance for 2022-24 could prompt consensus downgrades

11:59 a.m. GMT – Anglo American has released a detailed three-year forecast, and with numbers generally lower than expected, that could suggest consensus downward revisions, according to RBC Capital Markets. The highlight for 2022 is a more flexible production forecast for almost all divisions and slightly higher costs, according to RBC. Copper production is expected to be better in 2023 and 2024, indicating an improvement in Chile’s production profile compared to the bank’s forecast. On capital spending, the outlook is 18% above expectations for 2023 and “significantly higher” for 2024. The underlying investment case is fundamentally attractive, ”says RBC. Shares of mining company FTSE 100 fell 1.0% to 2,944 pence.

YouGov looks like a powerful player, but the advantage is limited

1201 GMT – YouGov has had a strong performance recently and shares have risen, although this reduced the upside potential to around 10%, Peel Hunt said. The UK data research and analytics group’s acquisition of LINK Marketing Services is expected to boost profits and revenues and the brokerage firm raises its price target for YouGov shares to 1,630 pence from 1,480 pence, although strong growth has been incorporated. believe there will be short-term outperformance from delivery of larger contracts, as well as further expansion of margins, stocks have experienced a strong late rebound of over 30% since the October decline ” Peel Hunt said, lowering its rating on the action to add from buy. The shares are flat at 1,545 pence.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]

(END) Dow Jones Newswires

December 10, 2021 08:55 ET (13:55 GMT)

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