Pound dips against euro in front of key ECB meeting

  • Key European Central Bank decision due at 12.45pm Mario Draghi and co likely to postpone from announcing tighter financial policy
  • Pound dips from the euro in front of the decision strong euro getting down inflation likely to delay quantitative easing tapering
  • FTSE 100 nudges up into positive territory miners weigh heavily around the blue-nick index
  • Bovis Homes’ turnaround plan well-received by investors shares hop over 6pc

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9:39AM

Investors rally for unhappy Bovis as new boss sets out technique to fix the organization

Bovis shares leaped over 6pc in intraday buying and selling following its results

Bovis Homes’ share cost has soared greater than 8pc since it’s new leader updated investors on his proper review, that will include building less homes and having to pay out more money to shareholders, so that they can obtain the unhappy housebuilder back in line. 

Greg Fitzgerald, who became a member of the organization in May, described Bovis’s problems as “very fixable”. 

He stated he would streamline the company and it is balance sheet, reducing the amount of employees, getting rid of developments outdoors its core areas, and lowering infrastructure spending. 

Also, he added that the organization would merge operating regions to produce seven key areas, which the company would try to build just 4,000 homes annually, one step lower in the high-volume model by which the organization aimed to develop to six,000 per year. To impress investors, the organization will hike its dividend and plans to spend special dividends totalling £180m by 2020.

Read Isabelle Fraser’s full report here

Bovis Homes

9:25AM

Eurozone government bond yields move greater in front of key ECB decision

In anticipation from the decision in the ECB, eurozone government bond yields have leaped greater and a nervy euro is bouncing around on foreign currency markets today.

The euro all of a sudden spiked greater just after 8.30am as traders made an appearance to get very excited by Reuters’ news feed stating that the choice could be due after 12.45pm instead of bang around the us dot like normal.

The newswire agency has since remedied the error and emphasised the decision is anticipated to drop promptly. Traders actually are itching for something, are they not?

9:13AM

Markets were largely unconvinced by Draghi’s insistence on maintaining QE in the last policy decision

Deutsche Bank leader John Cryan stated yesterday the “era of cheap profit Europe may come for an finish”

Markets in the last policy meeting in This summer were largely unconvinced by Mr Draghi emphasising the necessity to continue the ECB’s large quantitative easing programme with the euro still jumping for an eight-month high from the pound.  

Whether or not the ECB delays its QE plans, a bullish phase around the eurozone’s strength could still send the euro soaring or perhaps a careful word on inflation could send it sinking on foreign currency markets. 

Worries the euro’s strength will weigh too heavily around the currency bloc’s inflation figures can be the primary roadblock inside the central bank but the effectiveness of the region’s recovery has produced an increasing clamour for tighter financial policy. 

Yesterday Deutsche Bank leader John Cryan and Germany’s finance minister Wolfgang Schäuble both used a celebration in Frankfurt to require a transfer of policy using the former stating that the “era of cheap profit Europe may come for an end” despite the present strength from the euro, that has spent the summer time evolving towards parity using the pound.

8:54AM

Tinker, taper, QE, bye?

Some analysts believe the central bank will postpone until December before revealing its quantitative easing plans

The consensus of economists think that the ECB holds removed from revealing its intends to taper the central bank’s €60bn-a-month quantitative easing programme until a minimum of October (some accept is as true will hold back until December) but the markets of course will hang to each word from ECB president Mario Draghi’s lips for just about any subtle transfer of tone. 

Mr Draghi’s fingers were burnt earlier within the summer time once the euro soared after he hinted the central bank’s policy would soon change because of the eurozone’s strength and also, since he then has continued to be tight-lipped, giving little away in the last policy decision or at his appearance in the Jackson Hole conference.

When the QE tapering plans aren’t revealed today, the ECB’s revised forecasts on inflation and growth is definitely worth keeping track of this mid-day to find out if the central bank believes the strong euro will weigh too heavily on already sluggish inflation.

So how exactly does quantitative easing work?

8:34AM

Agenda: Key ECB financial policy decision dominates markets

The ECB could hold back until December to show its plans because of its QE programme

Welcome to the live markets coverage.

Following a summer time of speculation and crucially a more powerful euro, today’s ECB policy decision could finish up being a non-event however the markets it’s still hanging to the central bank’s president Mario Draghi’s every word.

Mr Draghi and co are anticipated to carry removed from tightening financial policy this time around but traders is going to be looking for any clues around the central bank’s prognosis on inflation and growth.

In front of the key decision due at 12.45pm, the pound has nudged lower to €1.0928 against the euro, the primary offender for that ECB suppressing from tapering its quantitative easing programme.

Away in the action in Frankfurt, the FTSE 100 has edged up into positive territory with tobacco giant Imperial Brands jumping to the top leaderboard after selling a 10pc stake in Logista for£231m.

The mining stocks are weighing around the index most in early stages during the FTSE 250 Bovis Homes’ turnaround plan continues to be well-received by investors, its shares popping 6.3pc.

Interim results: Brady, Molins, Worldwide Public Partnership

Full-year results: Frontier Developments

AGM: Nakama Group, Sophos Group, Imaginatik, Alpha Real Trust

Financial aspects: Halifax HPI m/m (United kingdom), NIESR GDP Estimate (United kingdom), RICS House Cost Balance (United kingdom), Unemployment Claims (US), Revised Nonfarm Productivity q/q (US), Revised Unit Labor Costs q/q (US), ECB Policy Meeting (EU), Industrial Production m/m (GER)