Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Hargreaves Lansdown plc
  6. News
  7. Summary
    HL.   GB00B1VZ0M25

HARGREAVES LANSDOWN PLC

(HL.)
  Report
Delayed Quote. Delayed London Stock Exchange - 12/03 11:37:30 am
1310 GBX   +0.23%
12/03London's FTSE 100 down as miners weigh; Wickes group soars
RE
12/03FTSE 100 to Open Higher
DJ
12/03Hargreaves Lansdown Appoints Virgin Group CFO to Same Position
MT
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

Hargreaves Lansdown : Inflation lower than expected but goldilocks economy goal still elusive and stagflation fears persist

10/20/2021 | 11:09am EST

Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown

''The latest CPI reading has come in a touch lower than August at 3.1%, after the artificial blip from last year's Eat Our to Help Out scheme dropped out of the figures

It is forecast to reach 4%, double the Bank of England's target by the end of the year, and potentially 5% by next April. With prices staying stubbornly high and another surge expected, a gentle rise in interest rates before the end of the year still looks likely if there is any chance of keeping a Goldilocks economy within reach.

Too much inflation in the mix risks the economy getting too hot, leading prices to spiral upwards. If rates are pushed up rapidly, there's a risk it gets too cold, freezing off economic growth. A 2% inflation target is considered just right, as long as the economy also keeps growing.

But the recovery is already judged to be cooling rapidly due to supply chain issues, labour shortages and energy price surges. Avoiding the bad dream of stagflation will still be the priority, rather than the lofty aims of a goldilocks economic utopia. If gas prices continue to spike and power rationing is introduced by energy intensive industries, economic growth could be knocked back into a downturn. While there is still dissent around the table, and there is a chance this slightly lower reading may hold off members of the Monetary Policy Committee from voting for a rate rise in November, the financial markets have largely priced a rate rise in by the end of 2021, followed by further rises next year.

A certain amount of nervousness ripples through the financial markets at the very thought of a rate hike, given that investors have become somewhat used to this era of ultra-low rates, so this edge downwards in CPI in September may provide some short term relief.

But even if the Bank of England does raise the base rate by a few notches in the months to come, it isn't forecast that it will go much beyond 1% next year.

That is because central bank policymakers still believe inflation is transitory. Like porridge without enough milk, it's sticking around for a lot longer than was previously thought, but is expected to ease off as pandemic supply chain issues finally lift.

However ultimately we still don't know if rising prices will become the new 'new normal' or if they're just a temporary result of us emerging from a pandemic and a year of lockdowns and restrictions. There are worries they will linger for a lot longer. Make UK , the manufacturers organisation has warned that inflation risks becoming baked in, and the Food and Drink Federation has also warned that soaring ingredients prices will lead to a bubbling up of prices in bars and restaurants.

Even if there is a rise of the base rate to 1% it would see interest rates back at 2009 levels, a time when the economy was in the recovery position following the financial crisis, but would still be very low on a historic basis.

Even so unwinding mass bond buying programmes, which has made borrowing cheap is also likely to be a slow process. The last shock governments want right now is to see the rate of interest they have to pay on their debts escalate, and central banks will be keen to avoid any kind of 'taper tantrum' on the bond markets, witnessed in 2013 when US treasury yields rose sharply after the Federal Reserve announced a roll back of its quantitative easing programme. So rate rises are likely to be incremental, accompanied by soothing words of assurance that soaring inflation will ultimately end up being fleeting.''

NOTES FOR EDITORS

Media Contact:

Susannah Streeter

Senior Investment and Markets Analyst, Hargreaves Lansdown

susannah.streeter@hl.co.uk

07527 384747

@StreeterNews

About us

Over 1.67 million clients trust us with £138.0 billion (as at 30 September 2021), making us the UK's number one platform for private investors. More than 98% of client activity is done through our digital channels and over 600,000 access our mobile app each month.

Our purpose is to empower people to save and invest with confidence and help them build their financial resilience over the long-term. We provide a lifelong, secure home for people's savings and investments that offers great value and an incredible service making their financial life easy.

Clients rate our service highly, 90% say we are good, very good or excellent. Our expert research has been helping investors for almost 40 years through thick and thin.

In 2018, we also launched Active Savings, an online cash savings platform that lets savers move money easily between partner banks and building societies to help their money work harder without the hassle.

Find out more about HL and our history, what it's like to work with us, and how we support our community, including our response to the COVID-19 pandemic.

.

(C) 2021 M2 COMMUNICATIONS, source M2 PressWIRE

All news about HARGREAVES LANSDOWN PLC
12/03London's FTSE 100 down as miners weigh; Wickes group soars
RE
12/03FTSE 100 to Open Higher
DJ
12/03Hargreaves Lansdown Appoints Virgin Group CFO to Same Position
MT
12/03Hargreaves Lansdown appoints Virgin Group's Amy Stirling as CFO
RE
12/03Hargreaves Lansdown plc Announces Executive Changes
CI
12/03Hargreaves Lansdown plc Announces Executive Changes
CI
11/30Covid woes and supply chain issues among the drivers in FTSE reshuffle
AQ
11/29JACK DORSEY : Twitter CEO Jack Dorsey hands reins to technology chief Agrawal
RE
11/29FTSE Closes Higher as It Recovers Some Losses From Black Friday
DJ
11/29Twitter's 'part-time' boss steps down but new CEO pick appears to underwhelm investors
AQ
More news
Analyst Recommendations on HARGREAVES LANSDOWN PLC
More recommendations
Financials
Sales 2022 605 M 801 M 801 M
Net income 2022 257 M 340 M 340 M
Net cash 2022 483 M 639 M 639 M
P/E ratio 2022 24,2x
Yield 2022 3,34%
Capitalization 6 210 M 8 211 M 8 216 M
EV / Sales 2022 9,46x
EV / Sales 2023 8,57x
Nbr of Employees 1 839
Free-Float 71,6%
Chart HARGREAVES LANSDOWN PLC
Duration : Period :
Hargreaves Lansdown plc Technical Analysis Chart | HL. | GB00B1VZ0M25 | MarketScreener
Technical analysis trends HARGREAVES LANSDOWN PLC
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 16
Last Close Price 1 310,50 GBX
Average target price 1 651,07 GBX
Spread / Average Target 26,0%
EPS Revisions
Managers and Directors
Christopher Frederick Hill Chief Executive Officer & Executive Director
Philip Michael Johnson Chief Financial Officer & Executive Director
Deanna Watson Oppenheimer Non-Executive Chairman
Mark William Dampier Head-Investment Research
Robert Byett Group Director-Risk & Compliance
Sector and Competitors
1st jan.Capi. (M$)
HARGREAVES LANSDOWN PLC-14.07%8 211
BLACKSTONE INC.117.93%96 654
KKR & CO. INC.81.82%43 068
LEGAL & GENERAL PLC7.40%22 436
THE CARLYLE GROUP INC.69.12%18 953
AMUNDI5.39%16 087