Bank of England policy and today's big results
21st June 2018 11:20
by Lee Wild from interactive investor
Today's Bank of England policy meeting is a non-event. There's no way the MPC will raise interest rates at lunchtime, and even August is looker doubtful now. Hot money's shifting to a November hike, or even later.
Alongside receding inflation concerns, political mismanagement of the Brexit process and dollar buying, it's no wonder sterling remains glued to a seven-month low.
That may change if Donald Trump continues his game of brinkmanship with the Chinese over trade tariffs. It's a dangerous policy not just for China and the US, but for Europe, Canada and America’s other trading partners.
There's still a good chance this is just more Trump chest-beating and not a situation that will spiral out of control, which explains why we're seeing buying on any dips in equity markets.
Saga
A bland update is a little disappointing, but the absence of bad news does at least keep alive the prospect of further recovery since Saga's December profits warning.
However, investors need further convincing that new chairman Patrick O'Sullivan's recent heavy buying of Saga shares is worth following.
Source: interactive investor Past performance is not a guide to future performance
Chemring
Much like the England football team, a string of decent results is increasing optimism at Chemring.
Even including a negative currency impact, underlying profit was up 31% in the first half at nearly £15 million, and a slice of a record $700 billion US defence budget in 2019 will have Chemring's name on it.
The UK remains subdued, but China's neighbours are justifiably nervous and the Middle East predictably volatile, so expect Chemring to remain busy.
Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
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Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.