- Carney and Haldane hint that raising rates a possibility
- Sterling on its longest winning streak since April 2015
The pound rose for a seventh day versus the dollar, set for its longest winning streak since April 2015, after Bank of England Governor Mark Carney said Wednesday that the Monetary Policy Committee may need to raise interest rates despite a weakening economy.
Sterling erased its post-election losses and rose against most of its 16 major peers Thursday after Carney appeared to rein back on some of his rhetoric from last week when he suggested that he was firmly placed among the other doves on the MPC. It extended gains past $1.30 as chief economist Andy Haldane told the BBC that the BOE needs to look seriously at raising rates. The U.K. currency could move up toward $1.35, according to Lee Hardman, a foreign-exchange strategist at MUFG in London.
By John Ainger and Stefania Spezzati
June 29, 2017, 11:20 AM GMT+3 June 29, 2017, 12:47 PM GMT+3
- Bank may buy back $3.2 billion of stock, KBW analysts estimate
- Shares trading near a four-year high in London after 4.9% jump
HSBC Holdings Plc surged to trade near a four-year high after the bank’s North American unit passed the Federal Reserve’s stress test, clearing the way for more than $3 billion of capital to be returned to shareholders, analysts estimate.
The Fed told Europe’s largest bank it has more than enough capital, sending the shares up as much as 4.9 percent, the most since November, on speculation that the bank will increase its buyback program. HSBC has already bought $3.5 billion of stock since August.
By Stephen Morris
June 29, 2017, 1:03 PM GMT+3
- Pound set for best streak since 2015 as shorts capitulate
- Dollar gauge hits near nine-month low with little demand seen
The euro extended its gains and rose to levels not seen since May 2016 as momentum buying kept the shared currency above $1.14 amid better-than-forecast German regional inflation data.
European Central Bank President Mario Draghi may have suggested that the ECB is moving toward a less inflation-sensitive stance, but investors couldn’t overlook beats in consumer prices in Saxony and other German regions. Profit-taking and fresh supply was met by model accounts buying the dip each time during the London session, traders in Europe said.
By Vassilis Karamanis
June 29, 2017, 12:40 PM GMT+3
- Culture Minister’s statement kicks off negotiation period
- Avoidance of worst-case scenario sends Sky shares higher
Rupert Murdoch faces drawn-out negotiations with U.K. regulators in his effort to take full control of Sky Plc for 11.7 billion pounds ($15.2 billion) after the government said it intended to refer the bid back for additional review unless 21st Century Fox Inc. offers steeper concessions.
The U.K. is inclined to refer the offer to the Competition and Markets Authority for a deeper investigation, Culture Secretary Karen Bradley said Thursday. However, she left the door open for a resolution by July 14 that would avoid a CMA review, if Fox strengthens proposals it’s made to ensure editorial independence at Sky News.
By Joe Mayes and Rebecca Penty
June 29, 2017, 2:23 PM GMT+3 June 29, 2017, 3:40 PM GMT+3