FTSE Flat, Brexit and trade issues pose risks to British pound

Brexit and UK trade woes pose risks to British pound

Brexit and its impact on UK trade are expected to be a “bigger problem” for the pound than is currently the case, according to Marshall Gittler, analyst at BDSwiss Group. Indeed, the United Kingdom has a persistent current account deficit which must be covered by the surplus in its financial account or by entries in the financial markets, he says. UK interest rates could rise to push the pound up, but it is doubtful that an economy facing supply chain problems can withstand higher rates, he says. “I think it means problems for Britain and the pound sterling going forward.” UK trade deficit widened to £ 3.7bn in August from £ 2.9bn in July as Brexit and coronavirus-related shortages hampered exports, data shows Wednesday.

 
Companies News: 

Vertu Motors raises its profit forecast for fiscal 2020

Vertu Motors PLC on Wednesday raised its profit forecast for the current fiscal year despite warnings about vehicle supply constraints and cost pressures.

Mobile Streams Says Upgrade to LiveScores Revenue Forecast is Likely; Rise in shares

Shares of Mobile Streams PLC rose on Wednesday after the company said its LiveScores service hit the subscriber mark six months ahead of its expectations, which will likely lead to an upgrade in its revenue views.

Deutsche Bank challenges allegations in € 500million lawsuit – Update

Deutsche Bank AG plans to vigorously defend itself against claims by Spain’s Palladium hotel group, a company spokesperson said on Wednesday.

Novolipetsk Steel sales in Q3 fell despite higher production

Novolipetsk Steel posted lower sales volumes but higher production for the third quarter on Wednesday.

Deutsche Bank says claims by Spanish hotel group are unfounded

Deutsche Bank AG will vigorously defend itself against claims by Spain’s Palladium hotel group, a company spokesperson said on Wednesday.

WPP’s Glover Hering and rival Sard Verbinnen & Co agree to merger

WPP PLC announced on Wednesday that its majority-owned subsidiary Finsbury Glover Hering Corp. had entered into a merger agreement with Sard Verbinnen & Co to merge and create a major communications and strategic consulting company.

Adriatic Metals Raises $ 102 Million to Build Silver Project in Bosnia and Herzegovina

Adriatic Metals PLC said on Wednesday it has completed a $ 102 million equity financing, the largest for a London-listed mining company in 2021, to build its Vares silver project in Bosnia and Herzegovina.

Gulf Marine Services goes to 1 hour of profit before taxes

Gulf Marine Services PLC said on Wednesday that it has moved to a pre-tax profit in the first half of the year thanks to higher revenues and lower costs, and that it expects a significant improvement in EBITDA in the second half. .

Versarien president James Stewart to resign

Versarien PLC announced on Wednesday that non-executive chairman James Stewart will step down at the end of the year and that Diane Savory will be appointed in her place on January 1.

Pendragon appoints Ian Filby as non-executive chairman

Pendragon PLC announced on Wednesday that it has appointed Ian Filby as the new non-executive chairman.

Quartix Technologies expects 2021 revenue, profit in line with views

Quartix Technologies PLC said on Wednesday that it expects 2021 revenue, earnings and free cash flow to be in line with market consensus.

 
Market Talk: 

UK faces Christmas supply chaos as shippers avoid ports

1233 GMT – UK faces Christmas chaos as shortage of truck drivers caused by the country’s exit from the EU and the coronavirus forces shipping companies to divert ships from major UK ports, according to the site ParcelHero parcel delivery web. Maersk reroutes larger ships from Felixstowe in the east of England, which handles much of the country’s containerized freight, to EU ports for onward transit to the UK by smaller vessels or ground transportation, the newspapers reported. This means goods such as toys and gifts may not reach the UK for the festive holidays, ParcelHero says. “Britain’s acute shortage of truckers means containers are taking far too long to load onto trucks and leave ports. This will add further delays, especially with Brexit controls in place,” said David Jinks by ParcelHero.

The market loses confidence in the attitude of central banks to inflation

12:27 GMT – Movements in bond yields in recent days have made it clear that market participants are increasingly wary of central banks’ lack of urgency regarding the inflation trend, Metzler says. “While we concede to the Fed and the European Central Bank that there is likely to be significant price relief over the coming year, we cannot and must not lose sight of the fact that the market is currently very nervous and would like to see a (at least verbal) reaction from the monetary guardians to the concerns of the players, “says Metzler. The ECB’s endorsement of the argument that current price pressures are triggered in particular by severely disrupted and therefore unsustainable supply chains is of some concern, Metzler said.

Man Group’s third quarter net inflows exceeded market views, benefiting from a diversified asset mix

11:43 GMT – Man Group’s third-quarter net inflows, totaling $ 5.3 billion, far exceeded market expectations, Citi said, noting Visible Alpha’s consensus forecast of $ 1.6 billion. This will be the primary focus of the market in the investment manager’s update in the third quarter, as the bulk of the net inflows were in higher margin alternative assets, according to the bank. “Overall, we see the results as strongly positive, reinforcing our view that Man benefits from a diverse asset mix with underlying business resilience,” he says. Citi expects low to mid single digit upgrades for 2H estimates on higher assets under management and a combination of positive expense margin. Shares are up 7.5% to 217.90 pence.

Harbor Energy now owns two of the UK’s four offshore carbon storage licenses

11:10 GMT – Harbor Energy now owns two of the UK’s four offshore carbon storage licenses after securing a second on Monday, Jefferies said. The UK Oil and Gas Authority has granted Harbor a license to assess and store CO2 in the southern North Sea off Lincolnshire, covering the depleted Viking and Victor gas fields, according to the Bank. Harbor’s other license is located off the east coast of Scotland, as part of the Acorn CCS cluster, adds Jefferies.

Pound to drop against euro if market adjusts aggressive bets on UK rate hike

1104 GMT – Market expectations for Bank of England interest rate hikes appear too aggressive and may need to be revised downward, putting pressure on the pound against the euro in the near term, according to Danske Bank. Danske Bank raises its three-month forecast for EUR / GBP to 0.85 from 0.84, from the current level of 0.8482. A UK rate hike of 15 basis points is already expected before the end of the year with a total tightening of 87 basis points expected by the end of 2022, said Mikael Milhoj, analyst at Danske Bank. “I think the BOE will rise by around 65bp over the same period, so a revaluation is likely to send EUR / GBP higher.”

Man Group 3Q exceeds hopes and strengthens investment case

10:39 GMT – Man Group shares rise 7% after FTSE 250-listed investment manager announced third quarter increase in funds under management and said he expects positive momentum to continue in the fourth quarter. Net investment flows in the third quarter were well above Panmure Gordon’s expectations, according to the brokerage. Not only is the magnitude of the flows exceeding expectations, but the impact on the mix’s revenue margin should also be useful for the estimates, says Panmure. “The strength of the flows, the potential for large performance fees, a low valuation and an ongoing share buyback program provide considerable support to the investment case. Buy,” Panmure analysts say.

 

Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at [email protected]

(END) Dow Jones Newswires

October 13, 2021 09:31 ET (13:31 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.

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