Fed Could Tighten Before BOE, Denting Pound Vs Dollar

1229 GMT - The Federal Reserve is likely to tighten monetary policy sooner than the Bank of England and that could weigh on the pound versus the dollar, Capital Economics says. "The risks to our forecast that the pound will stay close to $1.40 for the next couple of years are on the downside," Capital Economics economist Ruth Gregory says. GBP/USD falls 0.2% to 1.3897. Capital Economics expects the Fed to tighten policy in 2023 and the BOE to rein in support in 2024 as it sees upward pressures on inflation being greater and longer lasting in the U.S. than in the U.K. 


 
Companies News:

Scirocco Energy Extends Investment Facility Until End of 2021

Scirocco Energy PLC said Friday that it has extended its investment facility with Prolific Basins LLC until the end of 2021.

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Ukrproduct 2020 Pretax Loss Narrowed

Ukrproduct Group Ltd. said Friday that its 2020 pretax loss narrowed as revenue rose, and that it plans to pursue stronger margins and further increase sales of processed cheese and spreads.

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Altitude Group CFO to Leave in December

Altitude Group PLC said on Friday that Chief Financial Officer Graeme Couturier has resigned from his role, effective Dec. 10, and that it has launched a formal search for his replacement in both the U.K. and the U.S.

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AEX Gold COO Martin Menard to Leave

AEX Gold Inc. said Friday that its chief operating officer, Martin Menard, will leave the company on June 30.

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A.G. Barr Names Mark Allen as Chairman Designate

A.G. Barr PLC said Friday that it has appointed Mark Allen chairman designate, effective July 1.

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Diversified Energy Appoints Teresa Odom to New ESG Officer Role

Diversified Energy Co. said Friday that its current vice president of investor relations, Teresa Odom, will fill the newly-created role of vice president of ESG and sustainability.

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Powerhouse Energy Appoints Paul Emmitt Chief Technical Officer

Powerhouse Energy Group PLC said Friday that Paul Emmitt has been appointed chief technical officer with immediate effect.

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Crystal Amber Fund Shareholders Won't Pass Continuity Vote

Crystal Amber Fund Ltd. said Friday that a vote on the continuity of the company won't be passed at the annual meeting.

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Quantum Blockchain Technologies Loss Widened in 2020

Quantum Blockchain Technologies PLC on Friday reported a widened loss for 2020.

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Sabien Technology Appoints Tom Sprunt as Permanent Managing Director

Sabien Technology Group PLC said Friday that it has appointed Tom Sprunt as managing director of its operating company Sabien Technology Ltd. 


 
Market Talk:

Aveva Has Growth Potential, Shares Look Attractive

1253 GMT - Aveva Group shares look more appealing than rivals, says HSBC, increasing its recommendation on the industrial-software developer to buy from hold and its price target to 4345 pence from 3870p. HSBC says the valuation is attractive, especially versus peers, and it's optimistic the combination of a new chief executive and revenue savings from the company's acquisition of OSIsoft should boost growth. "The key downside risks include potential weakness in key end markets could see growth stall and margins weaken, integration challenges and lower-than-expected synergies from the OSISoft acquisition," says HSBC analyst Michael Tyndall. Shares rise 1.4% to 3740p.

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BOE Is More Hawkish than Markets Interpreted, says BofA

1232 GMT - The Bank of England's communication at its latest meeting was interpreted by markets as reinforcing looser monetary policy but Bank of America says the central bank was more aggressive than it was perceived. "Our proprietary BoE mood indicator, based on natural language processing of the minutes, rose to the most hawkish since 2006," BofA rates strategists say. "In our economists' view, the Bank of England downgraded further its already very weak forward guidance on Thursday by stating that some members will now not 'look through' inflation readings over the next few months or necessarily wait for post-Furlough labour market data before deciding guidance no longer applies."

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WPP's Structural Issues Take Back Seat Amid Advertising Recovery

1228 GMT - WPP still faces structural challenges but a strong advertising recovery is overriding concerns about the agency-holding companies, Credit Suisse says. Ad-buying companies GroupM and Magna are predicting a record advertising recovery for 2021, and this could continue for some time, CS says. While structural concerns about WPP persist given a digital shift in marketing, fee pressures and rising competition from consultants and new entrants, the London-based ad group has moved to address them and made progress on its simplification, the bank says. CS ups the stock to neutral from underperform and lifts its target price to 1,060 pence from 835 pence. Shares rise 2.2%.

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Offer Process for UDG Healthcare Looks Closer to Being Finalized

1159 GMT - UDG Healthcare's announcement regarding a possible increased final offer from Clayton, Dubilier & Rice, LLC affiliate Nenelite Ltd. will likely result in the company being taken over by CDT at GBP10.80 a share, Goodbody says. The healthcare services provider said Friday that if the final offer is made it intends to recommend it and confirmed that it hasn't received any proposals from third parties to acquire the company, which, according to Goodbody, points to some finality in the offer process for UDG. The Irish brokerage has a buy rating on the stock and a GBP10.46 target price. Shares in UDG are up 1.1%, at 1,057 pence.

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Stable U.K. Consumer Confidence Data Could Suggest Moderating Recovery

1153 GMT - U.K. consumer confidence, which stabilized in June to still-subdued levels, adds evidence to other surveys such as the PMI signaling that the economic recovery is starting to lose steam, economists from Citi say. "While a rapid rebound was always likely assured, the key question was whether this would translate into a more complete recovery," the U.S. bank says. Weaker-than-expected readings at the current stage suggest that a full recovery in the U.K. could likely take longer and require more support, Citi says.

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UK Consumer Spending May Have Hit a Wall

1121 GMT - The Confederation of British Industry's Distributive Trades Survey for June painted an upbeat picture for U.K. retail sales but other data suggest consumer spending has hit a wall, Pantheon Macroeconomics says. The CBI's measure of retail sales rose to +25 in June from May's +18, the highest since August 2018. "Other timely indicators, however, are less positive," Pantheon economist Gabriella Dickens says. Data from the Bank of England showed the value of credit and debit card transactions in the seven days to June 17 was 9.5% below its February 2020 level while the GfK's measure of consumer confidence remained steady at -9 in June, she says.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

06-25-21 0933ET