CYBG Share News (CYBG)

(Alliance News) - London stocks on Wednesday pulled back from the previous session's rally, with attention lying fully on the US Federal Reserve in the wake of a dovish shift from the European Central Bank."Bets that the Fed will keep rates unchanged today are only at 60% versus a likelihood of a cut of 40%, but expectations that the central bank will tweak rates lower by July are now comfortably priced into forward rates. Still, the tone of the meeting will be crucial, particularly given that the domestic US economic data has been showing more weakness of late," said City Index senior market analyst Fiona Cincotta.The FTSE 100 index was down 18.50 points, or 0.3%, at 7,424.54 early Wednesday, having surged 1.2% on Tuesday in the wake of the ECB remarks.The FTSE 250 was down 17.94 points, or 0.1%, at 19,293.85, while the AIM All-Share was down 0.3% at 934.97.The Cboe UK 100 index was down 0.4% at 12,590.08. The Cboe UK 250 was down 0.2% at 12,590.16 while the Cboe UK Small Companies was up 0.1% at 11,655.71.In mainland Europe, the CAC 40 in Paris and DAX 30 in Frankfurt were down 0.1% and flat respectively in afternoon trade.Markets in Europe on Wednesday are "taking a breather" in the wake of a rally on Tuesday following dovish comments from European Central Bank President Mario Draghi, said Joshua Mahony, senior market analyst at IG.Draghi, speaking in Portugal, raised the possibility of more stimulus should the economic outlook not improve and inflation not pick up in the eurozone.Eyes now lie on another central bank, the US Federal Reserve. "Today's FOMC rate decision is widely heralded as the most notable event of the week, with the recent decline in US data highlighting a shift towards another phase of easing. With Donald Trump making it clear that he could remove Jerome Powell in the event that he does not start easing, today's rate decision with a clear test of Fed independence," said Mahony.The Fed will announce its latest policy decision at 1900 BST, followed by a press conference with Fed Chair Jerome Powell at 1930 BST.Prior to the Fed's meeting, Wall Street is pointed towards a directionless start, with the Dow Jones, S&P 500 and Nasdaq all called flat. Ahead of the UK's own interest rate decision, due on Thursday, official data showed inflation was in line with the Bank of England's target in May.The consumer price index rose 2.0% year-on-year in May, slower than April's 2.1% rise but in line with consensus forecasts, as cited by FXStreet.The Bank of England targets a 2.0% inflation rate for the UK.In a separate report, the ONS showed output producer prices were up 1.8% year-on-year in May, slower than the 2.1% reported for April. Finally, the ONS said house prices in the UK rose 1.4% in the year to April, slowing from 1.6% recorded in the year to March. "Over the past three years, there has been a general slowdown in UK house price growth, driven mainly by a slowdown in the south and east of England," the ONS observed. The pound was quoted at USD1.2572 following the data, up from USD1.2551 late Tuesday.On the London Stock Exchange at midday, ratings downgrades were weighing on the FTSE 100. Just Eat slipped 4.9% after UBS cut the takeaway platform to Neutral from Buy, while airlines easyJet and International Consolidated Airlines were down 4.2% and 4.0% respectively after HSBC cut both the stocks to Reduce from Hold. Housebuilder Berkeley traded 2.3% lower at midday despite beating profit expectations. For the 12 months to April 30, the FTSE 100 company posted pretax profit of GBP775.2 million, down 21% year-on-year, but well ahead of analyst consensus of GBP710 million and towards the top end of the range of analyst predictions.There has been a robust demand for well-located homes, Berkeley said, and it begins its new financial year "from a position of strength". In line with existing guidance, the company continued, pretax profit for its year ending March 2020 will fall by around a third year-on-year. In the FTSE 250, CYBG was up 4.1% after the lender raised its cost savings target. CYBG, at its capital markets day, said it will change its name to Virgin Money UK before the end of the year. The bank launched a "refreshed strategy" as it completes the full integration of Virgin Money into the group, with the re-launch of the Virgin Money brand and re-branding of the business to begin in late 2019.CYBG affirmed its 2019 guidance, and said it now expects GBP200 million in net cost savings by 2022, up from GBP150 million previously."Achieving our financial targets will create a significantly more efficient and profitable business with strong and sustainable returns for shareholders. Despite the ongoing Brexit headwinds and continued competitive pressures, the strength of the newly combined Group gives us every confidence we will deliver on our targets," said CYBG Chief Executive David Duffy.Saga remained the worst performer, sliding 13% to leave the stock 68% lower since the year began as the over-50s insurance and travel firm warned on its holiday unit. Saga said travel market conditions are "very competitive" and have suffered from "current political uncertainties". As a result, Tour Operations booked revenue for Saga's financial year to January 31 were down 4% as at June 15 versus the year before. Moreover, Tour Operations margins have been hit by competitive discounting.The over-50s insurance and travel company did note that Cruise bookings have been "more resilient" and are expected to align with target booking levels for its year."The company is in a sticky mess and is now reliant on flawless execution to try and put the business back on track," said Russ Mould, investment director at AJ Bell.He continued: "With outgoing CEO Lance Batchelor not scheduled to leave the business until January next year, it is quite a long wait for a new leader to be appointed and steer the company in a healthier direction."Elsewhere on the Main Market, luxury bag maker Mulberry was up 4.7% after the firm held its annual dividend despite slipping to an annual loss. For the 53 weeks ended March 30, the luxury leather goods maker sank to a GBP5.0 million pretax loss from a GBP6.9 million profit for the 52 weeks ended March 24, 2018. This was after revenue fell 2.0% to GBP166.3 million from GBP169.7 million the period before. Adjusted pretax profit narrowed to GBP1.0 million from GBP8.0 million the year prior. This was after excluding one-off costs, including those associated with its launch of the South Korean business and the administration of House of Fraser in the UK. Mulberry proposed a 5.0 pence per share full year dividend, unchanged on the year prior.