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"Markets may more forcefully test the BOJ's resolve to defend the 0.25% ceiling, which may prompt the bank to modify its approach and allow the 10-year yield to rise more."

The BOJ's first offer for unlimited bond buying in the morning failed to prevent the 10-year JGB yield from hitting a six-year high of 0.250% on Monday - the level the bank has set as an implicit cap around its yield target.

https://www.reuters.com/world/asia-pacific/boj-offers-buy-unlimited-10-year-bonds-defend-yield-ceiling-2022-03-28/

Oil prices tumble as Shanghai shuts down amid surging Covid-19 cases rallies the share price for IAG

The Government has ceded its control of banking group NatWest Group for the first time since the bank – then known as Royal Bank of Scotland Group – was rescued by the Treasury during the financial crisis.
The Treasury has sold off more than £1.2bn worth of shares, taking its stake to less than 50 per cent for the first time in nearly a decade-and-a-half.

Inflation great news for banks let’s hope governor Andrew Bailey hikes rates to 3.75% this will rally the share price and dividend pay outs

Money markets are assigning an 80% probability of a 50 bps rate hike in May and about 200 basis points in cumulative hikes by the end of 2022 after the Fed raised rates by a quarter point last week.

Goldman Sachs expects as much as seven rate hikes in 2022 and as many as five in 2023.

Citi expects the Fed to continue hiking into 2023, reaching a policy rate target range of 3.5-3.75%.

"It appears that 50-bp would have been delivered in March if not for acute uncertainty related to geopolitical tensions," Citi said.

Bank of America (BofA) and Citi have joined a small but growing number of top investment banks calling for more aggressive interest rate increases from the U.S. Federal Reserve against a backdrop of soaring inflation data and hawkish comments from policymakers.

BoFA now expects two hikes of 50 basis points each at the Fed's June and July meetings with "risks" of those expectations being pulled forward into May and June respectively.

Citi, on the other hand, sees 50 basis-point increases in May, June, July, and September. The bank also expects 25 basis-point tightening in October and December.

"Our economists also now expect the Fed to keep hiking each meeting until they reach a 3-3.25% range in May '23," economists at the bank said. "This represents a 25 bps higher terminal rate achieved 7 months earlier vs previously forecast."

https://www.reuters.com/business/finance/bofa-citi-expect-multiple-50-bps-fed-hikes-this-year-inflation-bites-2022-03-25/

Soaring energy bills to drag on UK economy

Brits are already bracing to absorb a 54 per cent uplift to their annual energy bills next month. However, in October they will rise again to account for the Russia-Ukraine war sending oil and gas prices soaring, hitting a shade under £2,500, up over £1,000 from their current level.

https://www.cityam.com/soaring-energy-bills-to-drag-on-uk-economy-new-forecasts-reveal/

The index of UK blue chips looks set to kick off the week in positive territory. The spread betters are predicting it will open 11 points higher at 7,494.35

Credit Suisse sticks to 'small overweight' on European banks, Lloyds as 'top pick'

https://www.sharecast.com/amp/news/broker-recommendations/credit-suisse-sticks-to-small-overweight-on-european-banks-lloyds-as-top-pick--9446433.html

Lloyds Banking Group Plc and HSBC Holdings Plc are among the lenders best positioned to benefit from a rise in interest rates under the coverage of equity analysts at Credit Suisse Group AG.

The Bank of England raised its key base rate last week for a third time in four months to curb inflation. The market anticipates rates may rise from 0.75% to 2% by the end of the year.

https://www.proactiveinvestors.co.uk/companies/news/977850/lloyds-in-poll-position-to-gain-from-rate-rises-analysts-say-977850.html

The FTSE 100 was being called slightly lower as raised concerns over the Ukraine conflict weighed on investor sentiment.

Financial spread firms had the UK index down 0.1% ahead of the open of trading. In the U.S., the S&P 500 Index closed up 1.4%, while the Hong Kong’s Hang Seng slipped 2.5%

Faster service sector growth boosts UK economy in March, but prices charged inflation hits record high and business optimism slumps to 17-month low

Key findings:
Flash UK PMI Composite Output Index(1) at 59.7 (Feb: 59.9). 2-month low.
Flash UK Services PMI Business Activity Index(2) at 61.0 (Feb: 60.5). 9-month high.
Flash UK Manufacturing Output Index(3) at 52.6 (Feb: 56.9). 5-month low.
Flash UK Manufacturing PMI(4) at 55.5 (Feb: 58.0). 13- month low.
Data were collected 11-22 March
S&P Global / CIPS Flash UK PMI Composite Output Index

Chris Williamson, Chief Business Economist at S&P Global said:
“The UK PMI surveys indicated a sustained robust pace of expansion in March as the further reopening of the economy from COVID-19 containment measures helped offset headwinds from the Ukraine war, Brexit and rising prices. However, the outlook darkened as concerns over Russia's invasion exacerbated existing worries over soaring prices, supply chains and slowing economic growth. Business expectations are now at their lowest for almost one and a half years, pointing to a marked slowing in the pace of economic growth in coming months.

https://www.markiteconomics.com/Public/Home/PressRelease/8e0a38ebc44a4406bff757e0a12c170c

Sky News has learnt that abrdn, the FTSE-100 asset manager, has written to listed companies including Barratt Developments and Persimmon to encourage them to ease the financial cost for leaseholders who have been left unable to sell their properties.

In the letter to the industry's biggest players, abrdn head of UK equities Andrew Millington said it wanted them to "carefully consider providing additional financing for all affected buildings built by [you] in the last 30 years, regardless of their height or current ownership, in order to accelerate remediation work to remove the burden on leaseholders".

https://news.sky.com/story/amp/top-city-investor-urges-housebuilders-to-foot-cladding-bill-12573452

International Consolidated Airlines Group (LSE:IAG) SA, owner of British Airways, fell 3.1% on Deutsche Bank’s downgrade of its stock from a ‘buy’ recommendation to ‘hold.’

https://www.proactiveinvestors.co.uk/companies/news/977695/ftse-100-remains-green-but-pegged-back-by-next-disappointment-us-markets-to-advance-977695.html

Hollywood’s Sunset Studios is moving ahead with its plans to pump around £700m in a new film studio in Waltham Cross, a project that should generate around 4,500 jobs and create the largest film studio in Europe.
The Hollywood giant has submitted a range of plans and proposals to the local council, after holding a consultation last autumn.
The new complex, which will be located close to the M25, is designed with “this century and the next” in mind, according to the developers’ plans.

https://www.cityam.com/hollywood-takes-over-waltham-cross-as-700m-plan-for-europes-largest-film-studios-with-4500-jobs-moves-ahead/

The Society of Motor Manufacturers and Traders (SMMT) has called on the UK Government to deliver more investment in electric vehicle (EV) charging infrastructure to ease this decade’s “charging anxiety.”
According to data, the ratio between charging infrastructure and number of electric vehicles has worsened in the last year.
“Last year, it was about one for every 16 EVs on the road, this year it’s more likely to be one for every 32,” SMMT’s chief executive Mike Hawes told journalists during a press conference. “Things are getting worse because of that pace of market transition for EV sales.

https://www.cityam.com/automotive-industry-calls-government-deliver-ev-infrastructure-ease-charging-anxiety/

A member of the Civil Aviation Authority (CAA) was forced to step following a conflict of interest, the aviation regulator announced yesterday.
A former British Airways’ (BA) director of engineering, Garry Copeland resigned after a CAA audit of the members’ financial interest found he was holding some shares in BA’s parent company IAG instead of an IAG or BA pension scheme.
“It is with regret that we have not been able to resolve a potential conflict of interest to our mutual satisfaction,” the CAA said in a statement on Monday.

https://www.cityam.com/caa-board-member-steps-down-over-iag-conflict-interest/?amp=1

March 23 (Reuters) - British inflation hit a 30-year high of 6.2% last month, at the top end of expectations among analysts, according to data published on Wednesday hours before finance minister Rishi Sunak announces how he will help ease a cost-of-living crisis.

The median forecast in a Reuters poll of economists had pointed to a reading of 5.9%. Only three of the 39 respondents had expected such a strong reading.

The Office for National Statistics highlighted household energy bills and petrol as the biggest drivers of inflation in February.

The FTSE 100 is seen starting on the front foot as global equities rally
IG Markets makes the FTSE 100 about 40 points higher

brugel

With interest rates rising buying Lloyds at 50p is a no brainer