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FTSE Gains, Pound Rises After Inflation Data, Gains Limited Before Fed

06/16/2021 | 04:18am EDT

Pound Rises After UK Inflation Data, Gains Limited Before Fed

The pound rises after data showed annual U.K. inflation reached 2.1% in May, above a Wall Street Journal poll forecast of 1.9% and exceeding the Bank of England's 2.0% target for the first time in almost two years. Gains are limited, however, ahead of a U.S. Federal Reserve decision later Wednesday, which has the potential to boost the dollar and weigh on risk appetite, sending the pound lower. The U.K. data "remains supportive for the pound" but the dollar's reaction to the Fed "will of course be key as will any deterioration in the EU-U.K. relationship in regard to the Northern Ireland protocol," says Derek Halpenny, head of research for global markets for EMEA at MUFG. GBP/USD rises 0.2% to 1.4115. EUR/GBP falls 0.2% to 0.8593.

 
Companies News: 

Elixirr International Sees 2021 Revenue at Top End of Range After Strong Start

Elixirr International PLC said Wednesday that trading for the first five months of the year has been strong and it now expects to report revenue at the upper end of the previously indicated range.

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ScS Group Sees FY 2021 Results, FY 2022 Outlook Above Market Views; Declares 3p Dividend

ScS Group PLC said Wednesday that it expects both its results for fiscal 2021 and outlook for fiscal 2022 to beat market forecasts on the back of strong business, and that it is resuming dividend payments.

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Mercantile Ports & Logistics Restructures Debt Facility

Mercantile Ports & Logistics Ltd. said Wednesday that it has restructured its debt facility in terms which are favorable to the company as it recognizes the acute disruption in India caused by Covid-19.

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Oxford Instruments PLC Buys WITec Wissenschaftliche for Up to EUR42 Mln -- Deal Digest

ACQUIRER: Oxford Instruments PLC.

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Filta Group Says Demand Has Picked Up in All Operating Territories

Filta Group Holdings PLC said Wednesday that demand for its services has increased in all of its operating territories amid Covid-19 vaccine rollouts.

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Alpha Growth Clarifies Purchase of Northstar Shares

Alpha Growth PLC said Wednesday that it has acquired shares in Northstar Group (Bermuda) Ltd, not Northstar Financial Services Bermuda Limited, in response to shareholder queries.

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EverArc to Buy Perimeter Solutions Parent in $2 Bln Reverse Takeover

EverArc Holdings Ltd. said Wednesday that it has agreed to buy SK Invictus Intermediate Sarl, parent company of firefighting products and lubricant additives maker Perimeter Solutions, in a reverse takeover valued at around $2 billion.

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Best of the Best Shares Tumble on Declining Customer Engagement -- Update

Shares in Best of the Best PLC fell Wednesday after the company warned of declining customer engagement amid easing restrictions in the U.K.

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Origin Enterprises Sees FY 2021 Adjusted EPS on the Rise Despite Lower 3Q Revenue

Origin Enterprises PLC said Wednesday that it expects adjusted diluted earnings per share for fiscal 2021, following a decent third quarter given the inclement weather.

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Severfield FY 2021 Pretax Profit Fell

Severfield PLC said Wednesday that pretax profit fell for fiscal 2021 after booking higher costs, and that its high-quality order book for the U.K. and Europe supports continued growth throughout fiscal 2022 and beyond.

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Castings FY 2021 Profit, Revenue Fell on Covid-19 Disruptions

Castings PLC said Wednesday that pretax profit and revenue fell in fiscal 2021 as the coronavirus pandemic caused disruptions, but that it is now back to full production.

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Renold Shares Fall on FY 2021 Accounts Delay; Trading in Line with Views

Shares of Renold PLC fell as much as 12% on Wednesday after the company said that its fiscal 2021 earnings will be delayed while its auditors complete the audit process.

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Oilex Appoints Roland Wessel as CEO

Oilex Ltd. said Wednesday that Roland Wessel has been appointed chief executive officer effective June 16, and that Managing Director and Interim Chairman Joe Salomon will assume the position of executive chairman for an interim period.

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Political Summits Signal International Focus on Ransomware

The attention of world leaders to ransomware in a series of high-level meetings highlights how quickly the destructive cyberattacks have climbed the political agenda as a string of recent attacks disrupted companies and critical infrastructure in the U.S. and other countries.

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Invesco Star Fund Manager Duo to Retire From Fixed Income Team -- Financial News

Of Financial News

 
Market Talk: 

N. Brown's Prospects Are Getting Better, Shore Says

0859 GMT - U.K. clothing-and-footwear retailer N. Brown Group continues to be plagued by legacy issues but the outlook seems to be improving, according to Shore Capital. "There will undoubtedly be a feeling of frustration...as the group has been through a sustained period where legacy matters have involved cash outlays, from a dispute with HMRC through to a series of exceptional items," Shore says. However, the company has undertaken a good re-engineering work in fiscal 2021, which delivered a much stronger financial position, the investment group says.

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ScS Group Shares Still Seem Cheap, Says Peel Hunt

0858 GMT - ScS Group's stock has been enjoying big upgrades but it still remains far from fully reflecting the flooring-and-furniture retailer's strength, according to Peel Hunt. "We don't expect that the strong sector trends will ease quickly, and risk remains to the upside for our forecasts," the brokerage says. It is encouraging that ScS is returning to paying dividends while its cash position remains enviable, Peel Hunt says. The brokerage has a buy rating on the stock and a target price of 340 pence. Shares are up 13% at 327 pence.

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Higher UK Inflation Unlikely to Last

0855 GMT - U.K. inflation could accelerate further after rising above the Bank of England's 2% target in May but these price pressures won't last, EY Item Club says. "The risk of higher inflation in the short term has risen due to the escalation in price pressures further down the supply chain, largely caused by bottlenecks and component shortages," EY economist Howard Archer says. However, inflation should ease further out as a stronger pound is still to pass through to consumer prices and the large amount of spare capacity will weigh on wage growth and margins, he says. Consumer prices rose 2.1% year-on-year in May following a 1.5% increase in April, official data showed Wednesday.

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FireAngel Safety Technology's 1H Trading Guidance Encouraging

0847 GMT - FireAngel anticipating 1H trading in line with the board's expectations is encouraging despite the challenges it faces, Shore Capital says. On the demand side, some of the company's markets aren't yet fully opened due to Covid-19 restrictions, whereas the supply side has seen it deal with some global component shortages and international shipping disruptions, the U.K. investment group says. Demand for the company's products will be strong in the coming years following is GBP9 million fundraise, and will be partly driven by legislation and, or, regulation, Shore says. "The potential for gross margin improvement as a principal driver of improved profitability... combined with increased sales augurs well for enhanced shareholder returns in due course," Shore Capital says.

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Sustained Rise in UK Inflation Could Happen Sooner Than Expected

0839 GMT - Reopening of the U.K. economy could drive inflation up to 3% this year and the consumer-price index might not drop back below 2% next year, Paul Dales, chief U.K. economist at Capital Economics, says. The firm's forecast that inflation will fall back below 2% next year is based on the view that businesses can absorb higher costs, but the additional increases in producer-price inflation show that cost pressures are building up, he says. "The risk is that the sustained rise in inflation above 2% we expect in late 2023 or early 2024 happens sooner," Dales says.

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Pets at Home Seen Set for Further Growth

0814 GMT - Pets at Home's impressive growth seems bound to continue as the company can leverage both self-help and external tailwinds, according to Berenberg. The pet-care company ended fiscal 2021 with two-year like-for-like sales growth of circa 20% and if that momentum continues it should generate 9% to 10% like-for-like sales growth in fiscal 2022, Berenberg says. Meanwhile, the company continues to benefit from the increasing pet population in the U.K. and has plans to expand its store chain this year, the German brokerage says. Berenberg has a buy rating on the stock and a target price of 540.0 pence. Shares are up 0.4% at 458.4 pence.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

06-16-21 0618ET

Stocks mentioned in the article
ChangeLast1st jan.
ALPHA GROWTH PLC -6.25% 3 Delayed Quote.24.27%
AUSTRALIAN DOLLAR / US DOLLAR (AUD/USD) -0.28% 0.72415 Delayed Quote.-5.25%
BRITISH POUND / US DOLLAR (GBP/USD) -0.56% 1.3656 Delayed Quote.0.47%
CANADIAN DOLLAR / US DOLLAR (CAD/USD) -0.51% 0.77933 Delayed Quote.-0.32%
DJ INDUSTRIAL -2.33% 33805.27 Delayed Quote.13.00%
ELIXIRR INTERNATIONAL PLC 2.80% 550 Delayed Quote.59.23%
EURO / US DOLLAR (EUR/USD) -0.02% 1.17289 Delayed Quote.-4.00%
FILTA GROUP HOLDINGS PLC 1.81% 140.5 Delayed Quote.47.59%
INDIAN RUPEE / US DOLLAR (INR/USD) 0.06% 0.013578 Delayed Quote.-0.89%
INVESCO LTD. -9.36% 23.795 Delayed Quote.50.60%
NEW ZEALAND DOLLAR / US DOLLAR (NZD/USD) -0.20% 0.70211 Delayed Quote.-2.01%
ORIGIN ENTERPRISES PLC -3.37% 3.015 Real-time Quote.0.65%
OXFORD INSTRUMENTS PLC -3.47% 2365 Delayed Quote.22.99%
PETS AT HOME GROUP PLC -0.40% 502.5 Delayed Quote.21.22%
RENOLD PLC -3.90% 22.2 Delayed Quote.82.61%
S&P 500 -2.32% 4332.77 Delayed Quote.18.02%
SCS GROUP PLC -3.20% 272 Delayed Quote.32.55%
SEVERFIELD PLC 0.52% 78 Delayed Quote.11.17%
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