Sterling May Weaken on Expectations of BOE Rate Pause
New York, NY – In a note to clients, ING analyst Francesco Pesole stated that the British Pound (GBP) could weaken due to raised expectations of an interest rate pause by the Bank of England (BOE). This comes in response to recent comments by the central bank, which indicated that interest rates are nearing their peak.
Following the central bank’s Parliament testimony on Wednesday, there is growing doubt among market participants about whether the BOE will raise rates at its September 21 meeting. Pricing for a rate hike has dropped below 20 basis points, according to Pesole.
Pesole also mentioned that the EUR/GBP pair has upside potential, meaning that the euro could gain strength against the pound. As of now, the EUR/GBP pair has risen 0.2% to 0.8589.
Currys Reports Decline in Revenue Due to Weak Nordics Performance
Currys, the consumer electronics retailer, announced a decrease in first-quarter revenue attributed to the continued decline in its Nordics markets. The company’s Nordics markets have been facing ongoing challenges, leading to a decrease in revenue.
Beazley Affirms Full-Year Guidance After Record-High Pretax Profit
Insurance company Beazley has backed its full-year guidance after reporting a record-high pretax profit for the first half of the year. The company’s strong financial performance in the aerospace division contributed to the positive results.
British American Tobacco Sells Russian and Belarusian Businesses
British American Tobacco (BAT) has sold its Russian and Belarusian businesses to a consortium led by members of BAT Russia’s management team. The exact sum of the deal has not been disclosed. BAT aims to streamline its operations and focus on core markets.
Direct Line Reports Widened Pretax Loss, Plans to Sell Commercial Insurance Business
Direct Line Insurance Group announced a widened pretax loss due to lower motor business earnings. In an effort to improve motor margins, the company has taken steps to enhance its business operations. Additionally, Direct Line has agreed to sell its brokered commercial insurance business to Intact Financial Corp. for potentially up to £550 million ($687.9 million).
Melrose Industries Narrows Pretax Loss, Upgrades Guidance
Melrose Industries reported a narrowed pretax loss for the first half of the year, driven by strong revenue performance in its aerospace division. As a result, the company has upgraded its guidance for the full year.
These are just some of the key news headlines in the business world today. Stay informed to make better financial decisions.
