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Wednesday, 7 August 2013
U.K. Stocks Pare Decline Before Carney’s Guidance Review
By Namitha Jagadeesh - Aug 7, 2013 12:58 PM GMT+0400
U.K. stocks pared their decline as investors awaited Bank of England Governor Mark Carney’s review of guidance for interest rates.
Randgold Resources Ltd. (RRS) slid 4.1 percent after reporting that second-quarter net income slumped. Rio Tinto Group, the world’s second-biggest commodity producer, lost 1.7 percent.Old Mutual Plc (OML) advanced 5.3 percent after Africa’s biggest insurer said profit rose 14 percent in the first half.
Aug. 7 (Bloomberg) -- Rob Wood, an economist at Berenberg Bank, discusses the outlook for Bank of England Governor Mark Carney's first inflation report today, interest rates and expectations for the U.K. economy. He speaks with Mark Barton on Bloomberg Television's "Countdown." (Source: Bloomberg)
Aug. 7 (Bloomberg) -- Nick Hungerford, chief executive officer of Nutmeg.com, talks about the outlook for Bank of England Governor Mark Carney's inflation report today and U.K. equities. He speaks with Mark Barton on Bloomberg Television's "Countdown." (Source: Bloomberg)
The FTSE 100 Index (UKX) slipped 10.36 points, or 0.2 percent, to 6,593.85 at 9:55 a.m. in London, paring a drop of as much as 0.6 percent. The equity benchmark has still rallied 9.4 percent from a low on June 24 as the Federal Reserve said it remains flexible on the pace of bond buying and as the BOE gave forward guidance on interest rates for the first time. The broader FTSE All-Share Index also retreated 0.2 percent today, while Ireland’s ISEQ Index lost 0.4 percent.
In his first press conference since taking office in July, Carney will discuss policy makers’ analysis of future interest rates and the thresholds governing its quantitative-easing program. The BOE’s Monetary Policy Committee last week left its target forbond purchases at 375 billion pounds ($574 billion) and its key rate at 0.5 percent, a record low.
Carney speaks at 10:30 a.m. in London, after the MPC releases its quarterly report on inflation.