UK Recovery Remains Much More Sluggish Than BOE Anticipated

UK Recovery Remains Much More Sluggish Than the BOE Anticipated

0724 GMT - The continuation of modest UK GDP growth in August should convince the Monetary Police Committee of the Bank of England that the economy doesn't need to be cooled immediately by raising interest rates, Pantheon Macroeconomics says. Following a 0.4% expansion in August, GDP would have to rise by 2.2% month-on-month in September for the MPC's forecast of 2.1% quarter-on-quarter growth in the third quarter to be realized. "That's implausible, given that the composite PMI was only marginally above its long-run average in September, and the Office for National Statistics' Business Impact of Covid-19 survey pointed to similarly sluggish growth in early September," Pantheon's chief U.K. economist Samuel Tombs says. Pantheon expects the MPC will cut its 3Q growth forecast to 1.5%. ([e-mail])

 
Companies News: 

NatWest Pledges $136 Bln Climate and Sustainable Funding and Financing by 2025

NatWest Group PLC on Wednesday pledged to provide 100 billion pounds ($135.88 billion) of climate and sustainable funding and financing, or CSFF, by the end of 2025.

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Barratt Developments' 1Q Forward Sales Rose, New CFO Incoming

Barratt Developments PLC said Wednesday that total forward sales rose 7.9% at the start of fiscal 2022, and named a new chief financial officer.

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Centrica Says Performance in Line With Views; Well Hedged for Winter and Beyond

Centrica PLC said Wednesday that performance since July has been in line with expectations, and that it is well hedged for the coming winter and beyond.

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THG PLC Knows No Reason for Share-Price Fall

THG PLC said Wednesday that it doesn't know of any reason for the recent fall in its share price.

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Darktrace 1Q Revenue Rose; Slightly Raises Full-Year Revenue Forecast

Darktrace PLC on Wednesday reported strong sales performance and improved revenue in its first quarter, and broadly reiterated its full-year guidance, though with slightly improved revenue expectations.

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Marston's FY 2021 Pub Sales Slipped; Returned to Growth in Final Quarter

Marston's PLC said Wednesday that overall pub sales in fiscal 2021 fell due to significant coronavirus pandemic-driven disruption, but returned to growth in the final quarter.

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Rainbow Rare Earths to Raise GBP6.4 Mln via Premium-Priced Share Placing

Rainbow Rare Earths Ltd. said Wednesday that it is planning to raise 6.4 million pounds ($8.7 million) via a share placing and will use the money towards the Phalaborwa and Gakara projects, as well as to repay a loan.

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Man Group's Funds Under Management Rose in 3Q

Man Group PLC said Wednesday that funds under management at the end of the third quarter were 3.1% higher than at the end of the second quarter, and that the board sees positive momentum carrying over into the fourth quarter.

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Kerry Group Targets 4%-6% Revenue Volume Growth in 2022-2026

Kerry Group PLC said Wednesday that it has updated its average revenue volume growth target to 4%-6% for 2022-2026.

 
Market Talk: 

Barratt Developments' 1Q Meets Expectations -- Market Talk

0721 GMT - Barratt Developments' first-quarter trading update was in line with expectations and is unlikely to significantly change the market consensus, Citi analyst Ami Galla says. The house builder looks set to benefit from housing-market demand trends, and house prices continue to look solid, with cost headwinds and supply chain challenges being well-managed, Ms. Galla says. Barratt looks to be on track to hit its full-year targets, with the main constraint now being the pace of construction activity, with 71% of its full-year private completions already forwards sold, Ms. Galla says. Citi retains its buy rating and target price of 910 pence. Shares are up 3.2% at 662.2 pence. ([e-mail])

UK Recovery Moves Into Lower Gear After Sluggish August Growth

0715 GMT - The U.K. economy may have weathered the surge in Delta cases better than feared, but the recovery is nevertheless slowing, ING's developed markets economist James Smith says. Gross domestic product expanded 0.4% compared with July, the Office for National Statistics said Wednesday. This means that the overall third-quarter GDP figure is set to come in around half the Bank of England's 3% forecast. "Recent BoE's commentary suggests growth is unlikely to be the biggest factor in the committee's decision to hike interest rates over coming months," Smith says. This is one of the reasons why ING says the BoE will wait until 2022 before hiking, the economist says. ([e-mail])

Pound to Fall if Market Scales Back Rate-Rise Bets After UK GDP Data

0702 GMT - Sterling is little moved after U.K. economic growth data missed forecasts but could fall later if the figures prompt the market to scale back interest rate rise expectations, Silicon Valley Bank says. The U.K. economy grew 0.4% month-on-month in August, below the 0.6% growth expected by economists in a WSJ survey. The miss will stoke concerns about slower growth combined with high inflation, or stagflation, Silicon's vice president Sam Cooper says. "While sterling was largely unchanged in the immediate aftermath, any indication that the miss could cast doubts on expectations for the Bank of England to raise interest rates in the near future will see the pound come under pressure." GBP/USD last trades at 1.3616 and EUR/GBP is at 0.8484. ([e-mail])

Contact: London NewsPlus, [e-mail]

(END) Dow Jones Newswires

10-13-21 0345ET