FTSE down, pound likely to ignore any negative Brexit headlines for now


Pound is likely to ignore negative Brexit headlines for now

Brexit could hurt economic growth and inflation in the UK in the longer term, but it is not currently a “major load factor” for the pound, according to Commerzbank. “The effects on the economy are likely to be felt in the longer term, but other factors are likely to be decisive for short and medium term monetary policy decisions,” said You-Na Park-Heger, currency analyst at Commerzbank. Brexit developments are still worth watching as they could contribute to more lasting bottlenecks that could affect growth and inflation, she says. However, Brexit is not a “negative factor” for the pound at the moment, she says. This means the pound’s reaction to any headlines negative on Brexit will be limited, she said.

 
Companies News: 

AJ Bell assets under administration for fiscal 2021 increase and increase dividend

AJ Bell PLC said on Thursday that total assets under administration for fiscal 2021 had increased, increased dividend payouts and announced a new chief financial officer.

Digitalbox sees 2021 profits significantly above market expectation; Rise in shares

Shares of Digitalbox PLC rose on Thursday after it said it expected income and earnings before interest, taxes, depreciation and amortization for 2021 to be well above market consensus.

ULS technology Extended 1 hour loss before taxes; Rose Income

ULS Technology PLC said on Thursday that the pre-tax loss for the first half of fiscal 2022 had widened significantly, although revenue increased due to higher demand.

SRT Marine Systems Extended 1H Loss; Expects strong performance for fiscal 2022

SRT Marine Systems PLC said on Thursday that its loss widened in the first half of fiscal 2022 after recording higher costs, but expects a significantly improved annual result.

Thames Water 1H net loss widened despite 10% increase in EBITDA

Thames Water Utilities Ltd. on Thursday announced an expanded loss for the first half of fiscal 2022, due to a non-monetary loss on financial instruments and a one-time deferred tax charge.

Induction Healthcare 1H 2022 Extended loss before tax; Revenue for fiscal year 2022 in line with views

Induction Healthcare Group PLC said Thursday that its pre-tax loss widened for the first half of fiscal 2022 after recording higher costs, and revenue for the year was in line with market expectations.

Views of Belvoir’s performance management over 10 months; Increased annual profit

Belvoir Group PLC said Thursday that its performance in the first ten months of the year was ahead of its expectations, and it expects an increase in profit for the entire year.

Bigblu Shares Rise on Higher Profits and Revenue Expectations for Fiscal 2021

Shares of Bigblu Broadband PLC rose on Thursday after it said it expected to report higher adjusted earnings and continuing operating income for fiscal 2021, and that it was confident the progress would continue during fiscal year 2022.

Rambler Metals Accepts $ 5 Million Fund Raising To Complete Ming Mine Financing

Rambler Metals & Mining PLC announced Thursday that it has accepted a revised financial package for the redevelopment of its Ming copper-gold mine in Canada.

Digitalbox sees 2021 profits significantly above market expectation; Rise in Shares – Update

Shares of Digitalbox PLC rose on Thursday after the company said it expects 2021 revenue and earnings before interest, taxes, depreciation and amortization to be significantly above market consensus.

Sistema 3Q profit fell despite 22% revenue growth

Sistema JSFC said on Thursday that its profits fell in the third quarter.

Toople Raises GBP 380,000 in Investment; Proposes a reorganization of the capital

Toople PLC said Thursday it has raised about 380,000 pounds ($ 504,564) in a stock offering, intended to be used for working capital purposes, and has proposed a capital reorganization.

Inland Homes refinances its lines of credit for the development of the site

Inland Homes PLC said Thursday it has refinanced its lines of credit for its Cheshunt Lakeside development, reducing financing costs to develop the Hertfordshire site.

ITV CFO Chris Kennedy takes on additional COO role

ITV PLC said Thursday that the group’s chief financial officer, Chris Kennedy, had also assumed the role of chief operating officer with immediate effect.

Abrdn buys Interactive Investor for £ 1.49 billion

Abrdn PLC announced Thursday that it has agreed to acquire UK investment platform Interactive Investor Ltd. for 1.49 billion pounds ($ 1.98 billion).

Capita says cooperative bank terminated mortgage services contract

Capita PLC said Thursday that Co-operative Bank PLC has decided to terminate its mortgage services contract with the company, as the bank returns its mortgage services operations to its business in 2022.

Hammerson sees adjusted profit of as much as £ 60million for fiscal 2021

Hammerson PLC said Thursday it now expects adjusted FY2021 profit of at least 60 million pounds ($ 79.7 million), assuming there are no more disruptions linked to Covid-19.

 
Market Talk: 

UK Energy Bills Could Increase 50%, Says RBC Capital Markets

10:44 GMT – UK customer invoices could increase by around 50% from current levels of £ 1,277 per year, reflecting the impact of rising commodity prices on price caps and associated cost pooling to bankruptcy, according to RBC Capital Markets. And that probably won’t go unnoticed by politicians and could lead to further unwanted interventions, the bank warns. Zog Energy this week became the 25th UK energy supplier to go bankrupt since August. “If we include Bulb and its 1.7 million customers, we now have approximately 3.7 million customers who have been affected by the current crisis,” said RBC.

Fashion’s squeeze on supply could mean higher prices in the long run

10:18 a.m. GMT – Supply issues pose a threat to fashion’s likely rapid recovery beyond profit levels before next year’s pandemic, and could lead to lasting price increases for consumers, says McKinsey in its State of Fashion 2022 report alongside the Business of Fashion trade publication. A vast majority of fashion executives surveyed by the report’s authors expect supply chain disruption to squeeze margins next year, with material shortages, transportation bottlenecks and higher shipping costs increasing costs across the industry. The resulting imbalance between supply and demand will lead to price increases that may persist in the longer term, according to the report.

The pound is likely to rise against the euro and remain stable against the dollar if the BOE raises rates

1008 GMT – The pound is expected to rise against the euro, but will move sideways against the dollar in 2022, as the Bank of England is expected to start raising interest rates in December, according to Commerzbank. BOE will only see “very moderate” rate hikes over the next few quarters, but EUR / GBP will drop as BOE is still ahead of European Central Bank in its tightening policy, You-Na Park says -Heger of Commerzbank. “Against the dollar, we expect a more or less lateral movement, as the two central banks will exit their expansionary monetary policies, the BOE a little earlier, but the Federal Reserve then at a higher pace.” By December 2022, Commerzbank sees the GBP / USD change little to 1.33 and the EUR / GBP drop to 0.81, from 0.8506 currently.

Oil stocks rise as crude prices rise ahead of OPEC meeting

1004 GMT – Oil stocks thwart market downtrend due to rising crude prices ahead of OPEC and allies meeting. Oil is down about 15% from the announcement of the omicron coronavirus variant, as capitulation trades – speculators abandoning hopes of higher prices and selling – put pressure on brokers in options for them to sell futures contracts to hedge their exposure, according to BDSwiss. “I think there is a good chance that they will decide to suspend their planned production increase of 400,000 barrels per day in response to the Omicron virus,” said Marshall Gittler, analyst at BDSwiss. Brent crude is up 2.1% to $ 70.31 a barrel. BP, Eni, Repsol, Royal Dutch Shell and TotalEnergies are all rising.

UK economy set to experience strong growth next year, but not as much as in 2021

09:45 GMT – UK economic growth in 2022 is expected to be strong by recent historical standards, provided the Omicron variant does not result in further restrictions, said Andrew Goodwin, UK chief economist at Oxford Economics. GDP growth is likely to slow from the pandemic economic rebound in 2021, and the recovery will enter a more difficult phase with the withdrawal of political support, he said. However, household consumption and business investment are expected to support growth in 2022, as deductions encourage businesses to spend some of their money and consumers some of their excess savings, according to Goodwin. Inflation fears are expected to subside in the second half of the year as there is little evidence of a build-up of underlying pressures and commodity prices are expected to fall back, he said.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

December 02, 2021 06:56 ET (11:56 GMT)

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