FTSE gains and current account deficit make Pound vulnerable to sentiment shifts
UK current account deficit leaves pound vulnerable to sentiment shifts
The UK’s current deficit makes the pound vulnerable to any change in global risk appetite, according to Pantheon Macroeconomics. “The depreciation of the pound over the past week, despite rising expectations for UK interest rates, shows how the persistent current account deficit makes the pound sensitive to changes in global investor sentiment,” Pantheon economist Samuel Tombs said. The deficit narrowed to Â£ 8.6bn in the second quarter from Â£ 8.9bn in the first quarter, from Â£ 15.4bn expected by economists in a WSJ survey. However, the deficit will gradually widen as imports of travel services increase as Britons resume their holidays abroad and the UK’s dependence on natural gas imports increases this winter, according to Tombs.
Tortilla Mexican Grill IPO Price at 181 Pence Per Share; Beginning of trade on October 8
Tortilla Mexican Grill PLC on Thursday valued its initial public offering at 181 pence per share, implying a market cap of 70 million pounds ($ 94 million) when trading begins on London junior AIM on October 8.
Supply @ Me Capital 1H pre-tax loss shrinks
Supply @ Me Capital PLC said on Thursday that its pre-tax loss for the first half had narrowed after announcing a return to income.
Gore Street energy storage increases by Â£ 73.6million, more than expected
Gore Street Energy Storage Fund PLC said on Thursday it raised 73.6 million pounds ($ 98.8 million) in an oversubscribed fundraiser, slightly more than expected, and that the net proceeds will go to its pipeline of development.
Made Tech Group shares rise as they debut
Shares of Made Tech Group PLC rose 22% on Thursday as the company began trading on London-based junior AIM, implying a market cap of 219.9million pounds ($ 295.3million).
The best of the best presidents to step down; David Firth named successor
Best of the Best PLC announced Thursday it has appointed non-executive director David Firth as independent non-executive chairman, while chairman Michael Hindmarch will step down with immediate effect.
Ros Agro President Raised $ 275 Million By Selling GDRs In The Company
Ros Agro PLC said on Thursday that its majority shareholder – Granada Capital CY Ltd., a vehicle controlled by President Vadim Moshkovich – had managed to raise around $ 275 million through an offer of the company’s global certificates of deposit.
Ridgecrest Fiscal 2021 Results Delayed Due to Lengthy Audit Process
Ridgecrest PLC said on Thursday it would not be able to release its final results for fiscal 2021 before the London AIM rules deadline due to a lengthy audit process.
HICL Infrastructure appoints Mike Bane as president
HICL Infrastructure Co. said Thursday that Mike Bane has been selected to succeed Ian Russell as chairman effective July 31, 2022.
Bidstack CFO John McIntosh resigns and Bhavesh Hirani appointed interim CFO
Bidstack Group PLC said Thursday that CFO John McIntosh has informed the board of directors that he wants to step down as of today and that Bhavesh Hirani will act as interim CFO.
Diageo’s longer-term bonds seen as offering some value
0921 GMT – Diageo bonds offer some value at the longer end of the curve, according to ING. The world’s largest liquor maker, which owns Johnnie Walker whiskey and Tanqueray gin, said on Thursday it had a good start to the year and expects organic operating margins to benefit from ‘a new upturn in sales volumes. âWe fundamentally like Diageo and see potential for tightening in the long end of the credit curve,â said Alyssa Gammoudy of ING. In particular, it favors the Diageo bond of March 2032 which offers an asset swap spread, or ASW, of 39 basis points, which implies a reversal of 16 basis points against the bond of October 2031 traded at ASW + 23bp, she said.
UK house price growth expected to moderate in 2022
08:39 GMT – Recent UK tax changes, along with high inflation, are expected to weigh on housing demand due to their negative impact on disposable income, said Gabriella Dickens, senior UK economist at Pantheon Macroeconomics. House prices are expected to fall about 1.5% in the fourth quarter compared to the previous three-month period, but prices are expected to rise about 4% in 2022, she said. “Home prices are expected to be further supported next year by a further modest drop in mortgage rates, a shortage of new properties on the market and by some households drawing on their excess savings to make it easier to buy a home,” Dickens said.
Britain’s economy is no longer lagging behind the G-7
0823 GMT – The upward revision of gross domestic product in the second quarter aligns the performance of the UK economy with that of other G-7 economies, said UK chief economist at Pantheon Macroeconomics Samuel Tomb. The estimate of quarterly GDP growth has been revised to 5.5% from the previous estimate of 4.8%. The deficit of 3.3% of GDP compared to its peak in 4Q 2019 is identical to that observed in Germany, similar to the deficit of 3.2% in France, and better than the deficit of 3.8% in Italy, according to Tombs. Real household disposable income was only 0.8% below its 4Q 2019 level, highlighting a clear possibility of increased spending in the coming quarters, provided households move out of their condition of prudent mind, Tombs said.
UK gilts are among the most vulnerable fixed income markets
0709 GMT – UK sovereign bonds remain in the most vulnerable rate markets, according to Mizuho. Gilts have fallen dramatically in value as investors readjust their portfolios for the prospect of a Bank of England interest rate hike sooner than the end of the year, and they have failed to do so. recover Wednesday, according to analysts at the bank. A similar pattern is seen in indexed government bonds, also known as linkers. “UK linkers, which have generally been strong throughout the summer, suffered a sharp decline, suggesting that even the most popular UK fixed income products are increasingly aware of the significant upside risks to UK policy rates, âthey said. The yield on 10-year gilts is trading at 0.989%, according to Tradeweb.
The pound increases after an upward revision of UK GDP data in the second quarter
0706 GMT – The pound rises after the UK’s second quarter economic growth estimate was unexpectedly revised upward. The Office for National Statistics said the UK’s gross domestic product grew 5.5% quarter-on-quarter in the April-June period, compared to its preliminary estimate of 4.8% growth. “The upward revision of GDP in the second quarter brings the performance of the UK economy in line with that of other G7 economies,” said Samuel Tombs, economist at Pantheon Macroeconomics. However, monthly GDP data shows that the overall recovery essentially stagnated in July, he says. GBP / USD is 1.3458 after the data, compared to 1.3435 previously. EUR / GBP falls to 0.8624, from 0.8630.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]
(END) Dow Jones Newswires
September 30, 2021 06:12 ET (10:12 GMT)
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