BOE's Decision to Buy Index-Linked Gilts Could Reduce Aggressive Selling

BOE's Decision to Buy Index-Linked Gilts Could Reduce Aggressive Selling

0855 GMT - The Bank of England's announcement on Tuesday that it will add index-linked gilts to its daily gilt-purchase operations could slow the recent aggressive selling in this section of the gilts market, say RBC analysts in a note. Yesterday's selloff in gilts was particularly pronounced with index-linked gilts, which was "reminiscent of the selloff seen on the 28th September, when the BOE decided to intervene," with real yields closing 78 basis points higher in the 20-year sector and breakevens dropping by 46 basis points, the analysts say. "The BOE's announcement this morning...could potentially put a cap to this recent aggressive selling." ([e-mail])

 
Companies News: 

PureTech Mutually Agrees to End Takeover Talks With Nektar Therapeutics

PureTech Health PLC said Tuesday that it has mutually agreed to terminate takeover talks with potential buyer Nektar Therapeutics.

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Reach CFO Simon Fuller to Step Down; 3Q Revenue Hit by Death of Queen

Reach PLC said Tuesday that Chief Financial Officer Simon Fuller will step down from his role on Dec. 31, and that revenue in the third quarter was hurt by the death of Queen Elizabeth II in September.

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Plus500 Sees 2022 Revenue and Ebitda Ahead of Views Thanks to Robust Customer Income

Plus500 Ltd. said Tuesday that it expects its fiscal 2022 performance to be ahead of market expectations, driven by robust levels of customer income and a flexible cost base.

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WSP Global Says RPS Group Offer Final; Won't Be Increasing Financial Terms

WSP Global Inc. said Tuesday that its offer for RPS Group PLC was now final as it wouldn't be increasing the financial terms of the offer.

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YouGov FY 2022 Pretax Profit, Revenue Rose; CEO to Take Chairman Role

YouGov PLC said Tuesday that its fiscal 2022 pretax profit and revenue both significantly rose on strong demand, and it named Chief Executive Officer Stephan Shakespeare as its next chairman.

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XP Power 3Q Orders, Revenue Rose; Sees Full Year in Line

XP Power Ltd. said Tuesday that orders and revenue rose in the third quarter of 2022 as supply chain issues eased, and that it expects to meet full-year market expectations.

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Sureserve's FY 2022 Results in Line With Views; Order Book Gives Good Earnings Visibility

Sureserve Group PLC said Tuesday that it expects financial results for the year ended Sept. 30 to be in line with management's expectations, and that its order book provided good visibility of future earnings.

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Foresight Group 1H Assets Under Management Rose on Robust Acquisition Activity

Foresight Group Holdings Ltd. said Tuesday that assets under management for the first half of fiscal 2023 rose sharply amid robust acquisition activity.

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Greencore Expects Higher FY 2022 Revenue But Sees Adjusted Profit at Low End of Guidance

Greencore Group PLC said Tuesday that it expects revenue for the year ended Sept. 30 to rise but that it forecasts adjusted operating profit and adjusted earnings per share to be at the lower end of its guidance range.

 
Market Talk: 

Positive Headline Figures of UK Jobs Report Mask Concerning Increase in Inactive People

0912 GMT - Despite all the concerns about a potential recession, there are few signs of it in the U.K. jobs market just yet, ING's developed markets economist James Smith says in a note. The unemployment rate fell to 3.5%, while wage growth accelerated. However, these positive figures mask some concerning underlying trends, the economist warns. Employment is still well below prepandemic levels and the number of people inactive--neither working nor actively seeking a job--has risen by more than half a million since Covid-19 began, Smith says. The number of people classified as long-term sick and out of the job market has continued to climb, up by almost 170,000 people in the past three months of data alone, he says. ([e-mail])

Drop in Workforce Keeps UK Labor Market Exceptionally Tight

0859 GMT - While there were tentative signs that the U.K. labor market is cooling from the "red-hot conditions" seen in recent months, the shortfall in labor supply is keeping it exceptionally tight, Ruth Gregory, senior U.K. economist at Oxford Economics, says in a note. There were some tentative signs that the weakening economy was filtering through to a cooling in labor demand, as the number of people claiming benefits rose for the second month in a row by 25,500 and the number of job vacancies fell to 1.246 million in September. Gregory says it was a drop in the workforce, rather than strong employment growth, which drove a 97,000 fall in unemployment in the three months to August.([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

10-11-22 0551ET