The strongest factors influencing the direction and momentum of the FX rate are major macroeconomic indicators, chief among them the changes in the key interest rates. Higher interest rates make the currency more attractive and lead to a stronger Pound. In the UK, interest rate policy is determined by the Bank of England’s (BoE) Monetary Policy Committee (MPC),…
Shares in WPP are 8.8% to the good this morning despite a lacklustre Q1 report card: Q1 net revenues -5.1% (6.1% FX headwind as GBP recovers), like-for like group sales fell -0.1%, key North American sales fell 12.3% (a whopping 10.6% FX drag) and net debt rose 8%. The positive reaction likely derives from a…
Can anything put the brakes on the oil rally? Brent Crude and its cousin WTI have continued advancing throughout 2018, with seemingly nothing holding them back. With Brent’s June futures contracts trading just shy of $75 per barrel, oil prices have reached the highs last seen all the way in November 2014. And as the…
We’re bang in the middle of Q1 earnings season and the UK’s UK 100 index of blue-chip equities has rallied another 1.6%, easily outperforming global peers to hit its highest since early February. It’d be easy to assume that the driver was great results from big name companies, but it was actually a fall in…
27 April Reuters “We’ve been able to focus much more the earnings season and underlying trends,” Mike van Dulken, head of research at Accendo Markets, said, adding that companies can be more cautious in the first quarter. https://uk.reuters.com/article/us-europe-stocks/european-shares-eye-fifth-week-of-gains-as-results-season-gathers-pace-idUKKBN1HY0TQ 26 April The Telegraph However Mike van Dulken, who runs Accendo Markets’ research division, noted that the…
A tripling in Q1 profits for Royal Bank of Scotland failed to serve as the silver lining to the UK lender’s otherwise cloudy prospects, with a sharp fall in mortgage lending, and how much it will ultimately cost to settle litigation from across the Pond. Pre-tax operating profits +70% to £1.21B easily beat consensus of…