UK Gilt Yields Fall Further Following BOE Decision

0946 GMT - U.K. borrowing costs fall for a second consecutive day after the Bank of England's policy statement Thursday was perceived as softer than expected. Bank officials raised interest rates by 25 basis points to 0.75% in a decision that had been widely anticipated. However, one policymaker unexpectedly voted to leave rates on hold and the tone of the press release was more cautious than previous communication in February, given an uncertain economic outlook. The 10-year gilt yield trades last at 1.553%, down from Thursday's close at 1.572%, according to Tradeweb. 


 
Companies News:

ContourGlobal Posts Record 2021 Earnings; Sees 2022 Performance Ahead of Expectations

ContourGlobal PLC on Friday reported record high earnings for 2021 and said that performance in the current year is better than expected.

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Essentra Swung to 2021 Pretax Profit on Higher Revenue; Strong Start to 2022

Essentra PLC said Friday that it swung to a pretax profit for 2021 as revenue rose, and that it had made a strong start to the year with sales and its order book ahead of 2021.

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Eurocell Swung to 2021 Pretax Profit; Starts 2022 With Strong Sales, Performance

Eurocell PLC reported on Friday a swing to a pretax profit for 2021 and said that it has started 2022 in a strong position, with sales volumes to the end of February up 6% on the previous year.

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IAG Agrees to Give Air Europa's Owner EUR100M Loan for Potential 20% Stake in Airline -- Update

International Consolidated Airlines Group SA said it has signed a deal with Air Europa's conglomerate owner Globalia Corporacion Empresarial SA to provide a 100 million euro ($110.3 million) seven-year unsecured loan in exchange for a potential stake of up 20% in the Spanish airline.

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Cenkos 2021 Profit Rose on Higher Transactions

Cenkos Securities PLC on Friday reported a profit rise for 2021, reflecting growth in transactions and clients.

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J.D. Wetherspoon 1H 2022 Pretax Loss Narrowed on Higher Revenue

J.D. Wetherspoon PLC said on Friday that its pretax loss narrowed for the first half of fiscal 2022 as revenue rose, and that trade in the last three weeks to March 13 was 2.6% below the equivalent period in 2019, reflecting an improving trend in the sector.

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Investec PLC Raises FY 2022 Earnings Guidance; Sees Operating Performance Above Pre-Pandemic Levels

Investec PLC on Friday raised its earnings guidance for fiscal 2022, citing strong momentum in the second half, and said its operating performance is better than pre-pandemic levels.

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Harland & Wolff Appoints Malcolm Groat as Chairman

Harland & Wolff Group Holdings PLC said Friday that it has appointed Malcolm Groat as chairman.

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Sycamore Partners Considers Bid for Ted Baker

Sycamore Partners Management LP on Friday confirmed that it is considering making a bid for the clothing brand Ted Baker PLC.

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Xeros Technology CEO to Step Down

Xeros Technology Group PLC said Friday that Chief Executive Officer Mark Nichols has informed the company that he intends to step down.

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Impact Healthcare Buys Two Care Homes in Mansfield, England, for GBP11.1M

Impact Healthcare REIT PLC said Friday that it has acquired two care homes for 11.1 million pounds ($14.6 million) from Woodleigh Care in Mansfield, Nottinghamshire, in England.

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Symphony International Swung to a 2021 Pretax Profit, Positive EPS

Symphony International Holdings Ltd. reported on Friday a swing to a pretax profit, as well as positive earnings per share for 2021 as a whole.

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Ferrexpo's Deadline for Publishing 2021 Results Extended to June 30

Ferrexpo PLC said Friday that the deadline for publishing its 2021 accounts has been extended to June 30 due to the impact of Russia's invasion of Ukraine. 


 
Market Talk:

BOE Expected to Unwind QE More Aggressively

1014 GMT - After a more cautious-than-expected Bank of England rate decision Thursday, Mizuho analysts expect the central bank to unwind its GBP895 billion portfolio more aggressively than previously anticipated. Mizuho analysts expect policymakers to raise the bank rate by 25 basis points again in May, taking the key interest rate to 1%, the level at which the central bank said it would start selling the bonds it holds. "We keep our 25bp hike call for May and August, but can now envisage a more aggressive sales programme of BOE assets, after the May Monetary Policy Committee [meeting]." By then, the Retail Price Index, used as the benchmark for inflation-linked government bonds, is likely to be 10%, they say.

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Nickel Prices Could Stabilize Around $30,000 a Ton

1013 GMT - Nickel prices could stabilize around $30,000 a ton on the London Metal Exchange, Rystad Energy reckons. It notes that trading in LME nickel was halted the previous two days after prices hit the daily lower limit of5% on Wednesday and 8% on Thursday. The daily price limit was revised to 12% effective Friday, and prices already reached that new threshold at $36,915 a ton. The energy consulting company adds that LME nickel prices are likely to remain supported by low inventories amid disruptions to Russian nickel supply.

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BoE Dovish Policy Tweak Suggests Unease Over Economic Outlook

0820 GMT - The Bank of England's more prudent approach when talking about further interest rate increases over the next months signals that policy makers are increasingly concerned about a squeeze on household incomes, Pantheon Macroeconomics says. "The Committee now is placing more weight on the adverse impact that high inflation will have on domestic demand than on the risk that it will cause inflation expectations and wage growth to drift higher over the medium term," the economic-research firm says. Pantheon expects the rate increase cycle will stall once the rate reaches 1% from the current 0.75%, which is still likely to happen in May. "By the meeting in June 16, it should be clear enough that the economy is struggling," Pantheon says.

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Quick End to Conflict Would Allow Markets to Return to Growth

0746 GMT - A quick resolution to the Russian-Ukrainian conflict and a continued fall in commodity prices could make the overall economic damage quite limited, and markets could return to their growth trajectory, Candriam says. In that case, inflationary pressures would fall and the economic environment would improve, while central banks could pursue their normalization path more serenely, it says. Conversely, the deterioration of the current situation could weigh on growth and inflation forecasts, reinforcing the risk of stagflation and leading ultimately to a recession, it says. "In this context, the allocation to risky assets should be reduced, while the yield curve should flatten before inverting."


Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

03-18-22 0639ET