FTSE Rises, Pound's Post-BOE Fall Likely to Remain Limited

Pound's Post-BOE Fall Likely to Remain Limited

0916 GMT - Sterling's weakness after the Bank of England's policy decision Thursday is likely to remain limited, MUFG Bank says. The "hawkish" shift some market participants were expecting from the BOE's policy statement failed to materialize but the central bank is certainly moving in that direction, MUFG analyst Derek Halpenny says. "The upgrades to both real GDP growth in the second quarter and inflation this year could well have implications for inflation over the medium-term that compels the Monetary Policy Committee to alter its monetary stance (taper) or guidance at the next meeting on August 5 when the Monetary Policy Report will be released with updated forecasts." GBP/USD falls 0.1% to 1.3910 and EUR/GBP rises 0.2% to 0.8585.

 
Companies News: 

CMA Weighs Probe of TravelSupermarket-Icelolly Merger

The U.K. Competition and Markets Authority said Friday that it is considering whether the merger between TravelSupermarket and Icelolly Marketing Ltd. will result in competition issues.

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Arc Minerals Granted Extension to Results Filing Deadline Due to Pandemic

Arc Minerals Ltd. said Friday that it has been granted an extension to its filing deadline for the nine-month period ended Dec. 31, 2020, to Sept. 30 from a previous date of June 30.

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Prospex 2020 Loss Widened on Asset Revaluations

Prospex Energy PLC on Friday reported a widened loss for 2020, driven by negative revaluations of financial assets.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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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.

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Quantum Blockchain Technologies Loss Widened in 2020

Quantum Blockchain Technologies PLC on Friday reported a widened loss for 2020.

 
Market Talk: 

UK Gilt Yield Curve Could Widen

0836 GMT - The U.K. government bond yield curve could widen driven by long-term interest rates increasing at a faster rate than short-term rates, says Mizuho. "We see the prospect for renewed Gilt bear-steepening building ahead," analysts at the Japanese bank say, commenting on Thursday's Bank of England's decision to leave monetary policy unchanged while revising up its growth and inflation forecasts. "Consumer price index [inflation] is now expecting to exceed 3% temporarily, peaking higher than previously thought, while 2021 GDP growth was revised up to 5.5% from 4.25%," they say, noting that the central bank expects a muted effect from the country's delay in relaxing Covid-19 restrictions.

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Serica Energy 2022 Production Guidance Beats Expectations

0836 GMT - U.K. North Sea gas producer Serica Energy has provided its first production guidance for 2022 at 27,100-33,600 oil-equivalent barrels a day. The midpoint suggests 20% upgrades to the consensus estimate of 26,100 barrels, Jefferies says. These forecasts are doubly important because from January 2022, Serica's share of net cash flow from its largest asset increases to 100% from the current 60%, the bank notes. Jefferies has a buy rating on the stock, with a 166-pence target price.

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BOE to Raise Rates Twice in 2022, HSBC Forecasts

0831 GMT - Following the Bank of England's decision on Thursday, HSBC now expects the central bank to raise interest rates twice in 2022. It sees a 15 basis-point rise to 0.25% in May and then 25-basis point hike to 0.50% in November. At least one more interest rate rise in 2023 is likely, it says. "We now forecast wage growth of 5.3% this year and consumer price index inflation staying above target throughout this year and next. Against this backdrop, a gradual reversal of the 65bps worth of cuts in 2020 hardly seems excessive," the bank says. It also expects the BOE to give itself some leeway to start reducing its balance sheet, possibly as soon as the second half of 2022, though probably in 2023, it says.

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Pound Falls as Traders Continue to Assess BOE Decision

0748 GMT - Sterling falls as investors continue to mull over the Bank of England's decision Thursday to keep its loose policies unchanged and downplay inflation risks. The BOE voted unanimously to hold its benchmark interest rate at 0.1% and voted 8-1 to maintain its bond-buying program, whereas some market participants were expecting more policymakers to back a tapering of purchases. "The BoE was not particularly dovish, but it looked as though the market had got ahead of itself in pricing BOE hikes from summer 2022," ING analysts say. "Expect EUR/GBP to continue to trade a low volatility 0.8535-0.8600 range, while a default Cable [GBP/USD] range looks something like 1.3890-1.4010." GBP/USD drops 0.1% to 1.3910 and EUR/GBP rises 0.2% to 0.8589.

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(END) Dow Jones Newswires

June 25, 2021 06:32 ET (10:32 GMT)

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