LONDON (Alliance News) - Stocks in London ended higher on Thursday as the pound fell after the Bank of England kept interest rates on hold and cut its forecasts for inflation and growth.The FTSE 100 index closed up 0.5%, or 38.45 points at 7,700.97. The FTSE 250 ended up 0.1%, or 17.46 points, at 20,699.41, and the AIM All-Share closed up 0.2%, or 2.05 points, at 1,077.18.The Cboe UK 100 index closed up 0.6% at 13,070.09. The Cboe UK 250 closed up flat at 18,944.02, and the Cboe UK Small Companies closed flat at 12,671.71"The FTSE 100 has been given a boost by the dip in the pound. Sterling has tumbled in the wake of the latest Bank of England meeting, where interest rates were kept unchanged. The UK central bank also lowered its forecast for GDP and wage growth," said David Madden, market analyst at CMC Markets.On the London Stock Exchange,
Next ended as the best blue chip performer up 6.2% after the clothing and homewares retailer delighted investors by raising its full year guidance following a strong first quarter. Next said full-price sales were up 6.0% year-on-year in its first quarter, driven by a strong performance in online sales. Sales were "better than expected" standing at GBP40 million ahead of the company's forecast due to the recent warm weather in the UK. The "overperformance" added GBP12 million to the company's full year profit.Next said it is now expecting sales for its full financial ending January 26, 2019 to grow 2.2%. The company had previously expected a growth by 1.0%. Annual pretax profit is expected to be GBP717 million, up from its previous guidance of GBP705 million but down from GBP726.1 million in financial 2018.
ITV was just behind closing up 5.0% after starting the year in a positive fashion, with expectations high that the broadcaster can reap benefits in advertising from this summer's football FIFA World Cup tournament. The group said its first quarter performance was as expected with total revenue up 6% at GBP908 million from GBP853 million in the first quarter last year. Total external revenue was up 5% at GBP772 million from GBP734 million last year, with continued growth across all parts of the business.Revenue from ITV Studios was up 11% at GBP382 million from GBP343 million in the first quarter last year, with organic revenue up 9%."Over the full year we are on track to deliver double digit growth in online revenue and good organic revenue growth in ITV Studios," Chief Executive Carolyn McCall said. McCall also said ITV's half year results - scheduled in July - are set to benefit from the timing of the Football World Cup.
Royal Bank of Scotland closed up 3.8% after the state-backed lender agreed to pay a USD4.90 billion penalty to settle a US Justice Department investigation over issuance of residential mortgage-backed securities in the run up to the financial crisis in 2008. Analysts had originally estimated the DoJ would hit RBS with a fine of up to USD12 billion.RBS said that USD3.46 billion of the amount will be covered by existing provisions, with an incremental charge of USD1.44 billion in the second quarter. Chief Executive Ross McEwan said the agreement in principle with the US Justice Department was "a milestone".
RSA Insurance closed up 2.8% after the insurer's first-quarter pretax profit was higher than in the year-ago period, although it didn't provide the actual figure.First quarter gross written premiums totalled GBP2.09 billion, up 1% at constant exchange rates and in line with the year ago period.
Coca-Cola HBC closed up 2.7% after the soft drinks bottler enjoyed a "solid" first quarter in which its sales revenue and volumes increase.For the quarter ended March 30, the soft-drinks bottling company achieved 4.5% currency-neutral net sales revenue growth to EUR1.35 billion from EUR1.30 billion.Volumes sold were up 2.3% to 453.2 million from 442.8 million, helped by the Easter holiday falling inside the first quarter this year. The company saw its developing segment volumes grow by 12%, driven by "very strong growth" in Poland.At the other end of the large cap index,
BT ended as the worst performer down 7.9% after aggressive cost-cutting measures set out by the telecommunications giant alongside disappointing earnings did little to please investors. BT said it would cut 13,000 back office and middle management jobs as part of a broader restructuring plan to save GBP1.50 billion over the next three years and invest GBP3.70 billion in improving mobile infrastructure. As part of the restructuring measures, BT will also vacate its iconic headquarters in St Paul's, central London which has been its home since 1874.For its financial year ended March, BT recorded a pretax profit of GBP2.62 billion, up 11% from GBP2.35 billion in the year ago period. Adjusted pretax profit came in at GBP3.44 billion, level with company-compiled consensus figures for 2018. However, this was down from GBP3.53 billion reported the year prior.BT's annual revenue of GBP23.72 billion was down from GBP24.06 billion reported the year before, and lower than the consensus estimate of GBP23.83 billion.
Randgold Resources closed down 2.9% after the gold miner reported a soft first quarter in which the gold miner encountered "multiple challenges".Group production was lower in the first quarter of the year at 286,890 ounces, which was below the 340,958 ounces recorded in the fourth quarter of 2017 and 322,470 ounces in the first quarter of 2017.Gold sales totalled USD391.8 million in the three months to March, down from USD409.6 million a year before. Profit attributable to equity shareholders came in at USD57.5 million, down from USD69.8 million last year.Gold was firm quoted at USD1,318.60 an ounce at the London equities close against USD1,314.20 late Wednesday.The pound was sharply lower against the dollar at USD1.3476 at the London equities close, compared to USD1.3577 at the same time on Wednesday, in the wake of the latest monetary policy decision by the Bank of England.However, sterling had risen to an intraday high of USD1.3617 versus the greenback in the run up to the interest rate decision. The central bank decided to keep its key interest rate and quantitative easing unchanged and downgraded its near-term growth outlook.The Monetary Policy Committee voted 7-2 to maintain the benchmark rate at 0.50%. The bank had previously raised its key rate in November 2017, which was the first hike in a decade. Policymakers unanimously decided to maintain quantitative easing at GBP435 billion.Dissenters Ian McCafferty and Michael Saunders preferred a quarter point rate hike as they judged the weakness in the first quarter GDP data to be temporary or erratic, heavily affected by adverse weather.The economy is projected to grow 1.4% by the second quarter of 2018 instead of 1.8% estimated in February. Growth is seen at 1.7% each in the next three years.At the subsequent press conference, Governor Mark Carney said the outlook for the UK remains clouded by Brexit uncertainties. Further, he said inflation is projected to fall back slightly more quickly than in February, reaching the 2% target in two years."Governor Mark Carney was keen to stress in the press conference that, despite today's decision, policy makers are confident that domestic inflationary pressures are building gradually and appeared relatively comfortable with the expectation of roughly two rate hikes over the next 18 months and three over the next three years. This is unchanged from February and further reiterates the bank's belief that the timing of the next hike isn't as important as is suggested," said Oanda senior market analyst Craig Erlam.The bank forecast inflation to slow to 2.1% by the second quarter of 2019 before easing to 2% by mid-2020."The horizon over which the MPC intends to bring inflation back to target has drawn closer. In this case, that appears to mean less of an imperative to act sooner to hit the target on time, given that slower growth and softer sterling are now expected to help steer price growth to 2% more than foreseen just months ago. As well, despite the UK economy's 'limited degree of slack', the Bank conveyed much reduced urgency to tighten policy," said City Index analyst Ken Odeluga."It qualified faster than expected improvements in the pace of growth and sterling depreciation impact with mild diminutives. In sum, 'ongoing tightening' that policymakers still envisage now has a longer time-frame than before," Odeluga added. In Paris the CAC 40 ended up 0.2%, while the DAX 30 in Frankfurt ended up 0.6%. The euro was firm at USD1.1895 at the European equities close, against USD1.1855 the prior day.Stocks in New York were higher at the London equities close, following the release of US inflation data. The DJIA, the S&P 500 index and the Nasdaq Composite were all up 0.7%. Consumer prices in the US increased by slightly less than expected in the month of April, the Labor Department revealed in a report.The Labor Department said its consumer price index rose by 0.2% in April after edging down by 0.1% in March. Economists had expected consumer prices to climb by 0.3%.Compared to the same month a year ago, consumer prices were up 2.5% in April, reflecting an acceleration from the 2.4% growth in March. The annual rate of growth for core consumer prices in April was unchanged from the previous month at 2.1%."Whilst the dollar initially sold off in response to the release, it has since climbed back. However, the weaker inflation outlook has eased fears of a more aggressive Federal Reserve, boosting stocks," said City Index analyst Fiona Cincotta.Brent oil was broadly flat quoted at USD77.08 a barrel at the London close Thursday from USD77.17 at the close Wednesday. The North Sea benchmark hit an intraday high of USD77.94 in afternoon trade, its highest level since late 2014. In Friday's thin corporate calendar,
BBA Aviation releases a trading statement.In the economic calendar on Friday the US export and import price index is at 1330 BST, while the Michigan consumer sentiment index is at 1500 BST and the Baker Hughes oil rig count is at 1800 BST. European Central Bank President Mario Draghi speaks at 1415 BST in Florence.
Last checked at 
