LONDON (Alliance News) - Despite slipping into the red at midday, the dollar-earner heavy FTSE 100 reversed its losses as the pound dropped following the Bank of England's latest rate decision and forecasts.The BoE voted 7-2 to hold rates at 0.50%, while also cutting its inflation and growth outlook for the year ahead.The second quarter 2018 GDP growth forecast was cut to 1.4% from 1.8%, though 2019 and 2020 were both held at 1.7%.The second quarter 2018 CPI inflation forecast was cut to 2.4% from 2.7%, with 2019 to 2.1% from 2.2% and 2020 to 2.0% from 2.1%."Overall the tone appears to be fairly dovish and it looks increasingly like it will be a case of one-and-done as far as hikes are concerned," said XTB chief market analyst David CheethamThe BoE's latest interest rate decision will be followed by a press conference with Governor Mark Carney at 1230 BST.Sterling was quoted at USD1.3532 Thursday midday following the BoE, down compared to USD1.3577 at the London equities close on Wednesday. The pound had climbed to an intraday high of USD1.3617 prior to the BoE's announcement.The FTSE 100 was up 0.1% or 4.29 points, at 7,666.81 following the BoE. The FTSE 250 was up 0.1%, or 14.90 points at 20,696.85, while the AIM All-Share was up 0.2% at 1,077.67.The Cboe UK 100 index was up 0.1% at 12,997.67. The Cboe UK 250 was up 0.1% at 18,961.39, and the Cboe UK Small Companies down 0.1% at 12,660.91.Released prior to the Bank of England's decision, the Office for National Statistics showed UK industrial production grew marginally again in March, though came in short of forecasts.Industrial output rose 0.1% month-on-month in March, the same pace of increase as seen in February, and below expectations to gain 0.2%.Meanwhile, manufacturing output dropped 0.1% after easing 0.2% a month ago, though this slightly improved on forecasts to fall 0.2%.On a yearly basis, growth in industrial output improved to 2.9% in March from 2.1% in February. Nonetheless, this was slower than the forecast of 3.1%. Manufacturing output advanced 2.9% on an annual basis, in line with expectations, and faster than February's 2.5% increase.At the same time, the ONS said the UK visible trade deficit widened notably in March to the largest deficit since November.The trade in goods showed a deficit of GBP12.28 billion compared to a shortfall of GBP10.4 billion seen in February, larger than the expected GBP11.3 billion shortfall.The overall total trade deficit, including goods and services, widened to GBP3.09 billion in March from GBP1.17 billion in February.In mainland Europe at midday, the CAC 40 in Paris and DAX 30 in Frankfurt were down flat and up 0.5% respectively. France and Germany celebrate Ascension Day on Thursday, but stock markets are open.Stocks in New York on Thursday were pointed to a flat to higher positive open, having finished firmly in the green on Wednesday.The Dow Jones Industrial Average was seen flat - having closed up 0.8% on Wednesday - with the S&P 500 called up 0.1% and the Nasdaq Composite set to gain 0.2%. In the US, initial jobless claims are at 1330 BST with the consumer price index due at the same time. After Wall Street closes, Dow Jones-owner News Corp releases earnings.In London's FTSE 100 index at midday, gains for
Next,
RBS and
ITV were being offset by losses for
Randgold Resources,
BT Group and ex-dividend stocks.At the top of the index was
Next, 6.7% higher after raising its annual guidance following a sales "overperformance" in the first quarter.Sales in the 14 weeks to May 7 were around GBP40 million ahead of internal forecasts, Next said, boosted in recent weeks by "unusually warm weather". This sales "over-performance" has added around GBP12 million to the company's full-year profit.Next said its central guidance now sees total full-price sales growth of 2.2% year-on-year for the 12 months to January 2019, compared to guidance of 1.0% previously.The company now also expects pretax profit of around GBP717 million, as opposed to the GBP705 million guided previously, following its outperformance in the first quarter. This would mark a 1.3% decline on last year, while the previous guidance would have meant a 2.9% fall.In second place was
RBS, gaining 4.3% on news of a USD4.9 billion settlement in principle with the US Department of Justice over historic mis-selling of residential mortgage-backed securities."It could signal the return of ordinary dividends, thus making the stock potentially appealing to income funds which have had to ignore the bank for the past decade thanks to the absence of any dividends since 2008," said Russ Mould, investment director at AJ Bell.
ITV was 4.2% higher after the broadcaster said total external revenue for the three months ended March 31 was GBP772 million, up from GBP734 million in the year ago period.Total advertising, including net advertising revenue, online and sponsorship, increased by 3% in the quarter. ITV Studios grew revenue by 11%.At the other end of the index was
BT, 8.8% lower as it set out drastic restructuring plans to cut 13,000 staff and move its London headquarters alongside the release of its annual results.The telecommunications firm is planning a three year reduction of 13,00 back office and middle management roles, though will hire 6,000 new employees to support network deployment and customer service, resulting in 7,000 net job losses.The company also said it plans to exit its headquarters in central London."Cutting jobs as a means of reducing costs is a good first step, but BT has a number of large mountains to climb, with no real sign that the current plans can really turn the ship around," said IG chief market analyst Chris Beauchamp.For the financial year ended March 31, BT recorded a pretax profit of GBP2.62 billion, up 11% from GBP2.35 billion in the year ago period, on a revenue of GBP23.72 billion and GBP24.06 billion, respectively."BT delivered a solid set of financial results in the fourth quarter, with growth in our consumer divisions offset by declines in our enterprise businesses, due to both challenging market conditions and our decision to exit lower margin business," said Chief Executive Gavin Patterson.
Randgold Resources fell 8.2% after the gold miner reported a soft first quarter.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.Profit from mining dropped by 19% to USD179.9 million from the previous quarter, and by 11% on the corresponding quarter of 2017. Also lower in the FTSE 100 at midday were
Centrica, down 5.8%,
BP, down 2.1%, and Royal Dutch
Shell 'B' shares, down 1.4%. All went ex-dividend on Thursday, meaning new buyers no longer qualify for the latest payouts.At the bottom of the FTSE 250 was
Superdry, down 19%. The fashion retailer said global brand revenue was up 22% for the year ended April 28, with group revenue up 16%.Store-based revenue remained under pressure in the period, the company said, with revenue in the fourth quarter hit by snow disruption in "key markets" and lower year-on-year average temperatures at the start of the Spring/Summer season.Store revenue fell 6.0% in the fourth quarter, as Ecommerce revenue rose 18% and Wholesale climbed 27%.Underlying full year pretax profit - after the distribution centre migration and development market investment - will be in the range of GBP96.5 million to GBP97.5 million, "representing another year of double-digit profit growth.""While the consumer environment remains challenging, we are confident that Superdry's reputation for quality, design detail and strong value for money, underpinned by our continued investment in the business, leaves us well placed. We remain focused on the growth opportunities ahead and confident in the quality of sustainable earnings growth we can deliver over the long-term," said Chief Executive Euan Sutherland.
On the Beach was down 13% at midday on Thursday after it said revenue rose 19% in the six months to March 31, while pretax profit up 9%, as it took a GBP1.1 million hit following the failure of Monarch airlines late last year."As referenced in our AGM update on 8 February 2018, the flight capacity constriction following Monarch's collapse has driven an increase in seat prices and a corresponding reduction in bookings. The position regarding flight capacity continues to recover as incremental capacity has been scheduled which alleviates this constriction," Chief Executive Simon Cooper said.
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