Sterling Unlikely to Extend Gains Materially

Sterling Unlikely to Extend Gains Materially

0957 GMT - Sterling may struggle to extend its gains much further given the market's subdued U.K. interest rate rise expectations, MUFG Bank says. Reduced fears over the economic impact of the Omicron coronavirus variant and the BOE's decision to raise its key rate 15 basis points to 0.25% in December have encouraged the market to price in three 25 basis-point rate rises by summer, MUFG currency analyst Lee Hardman says. However, the market remains reluctant to price in much further tightening after the rate breaches 1.00%, he says. That will "make it challenging" for sterling to continue rising in the near-term, he says. GBP/USD rises 0.3% to 1.3510 and EUR/GBP falls 0.2% to a 22-month low of 0.8362, according to FactSet. ([e-mail])

 
Companies News: 

Wizz Air Passenger Numbers Rose 30% in 2021

Wizz Air Holdings PLC said Tuesday that its passenger numbers nearly quadrupled in December and rose 30% during 2021.

---

Tasty's December Trading Was Disappointing After Spread of Omicron Covid-19 Variant

Tasty PLC said Tuesday that second-half trading up to December 2021 was extremely encouraging, but that business for December, which is normally its strongest performing month, was disappointing after a rise in infection rates of the Omicron Covid-19 variant.

---

Amigo Holdings Confirms Early Redemption of GBP184.1M of Sr Secured Notes

Amigo Holdings PLC on Tuesday confirmed the early redemption of 184.1 million pounds ($248.2 million) of its 7.625% senior secured notes due in 2024.

---

Zenith Energy Reports Record Profitability for Italian Power Business

Zenith Energy Ltd. said Tuesday that its power-generation business in Italy achieved record profitability.

---

IQGeo Gets $4.5 Mln Contract With US Telecom Operator

IQGeo Group PLC said Tuesday that it has secured a five-year $4.5 million contract for fiber-network planning, design, and construction management with a major U.S. telecom network operator.

---

Avation PLC Says Philippine Airlines Has Exited Bankruptcy and Is Up to Date with Payments

Avation PLC said Tuesday that its customer Philippine Airlines has exited bankruptcy, has received court approval for its restructuring plan, and is up to date with its payments.

---

Genel Suspends Drilling at Qara Dagh Well in Iraq

Genel Energy PLC said Tuesday that it has suspended drilling operations at the QD-2 well of the Qara Dagh oil project in the Iraqi Kurdistan, where it holds a 40% stake.

---

GoldStone Resources Shares Fall After Update on Ghana Mine

Shares in GoldStone Resources Ltd. dropped Tuesday after the company provided on update on its Homase mine in Ghana, which started to produce gold in 2021.

 
Market Talk: 

UK Manufacturing Sector Kept Momentum at Year-End, PMI Signals

1021 GMT - Factory activity in the U.K. continued to expand solidly in December, with output increasing due to a rise in intakes of new work, according to a survey of purchasing managers from IHS Markit. The manufacturing PMI came in at 57.9 in December, marginally down from 58.1 in November and indicative of a robust growth rate. The survey showed that logistic disruptions and staff shortages continued to constrain factories, but also noticed a slight easing in supply-chain delays, which helped lift volumes. "Although supply chains remain severely stretched, there are at least signs that the situation is stabilizing, with vendor delivery times lengthening to the weakest extent for a year in December," IHS Markit's director Rob Dobson says. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

01-04-22 0541ET