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IPFS News Link • United Kingdom

Bank of England's Stimulus: Winners and Losers

• http://www.bloomberg.com

WINNERS:

1) Stocks

U.K. stocks rose in a broad-based rally. A weaker pound lifted shares of multinational companies in the FTSE 100 Index, sending the benchmark to its first advance in four days, while optimism over the economy boosted the FTSE 250 Index of mid-sized firms with more domestic exposure.

U.K. bank stocks as a group headed for their highest level since the Brexit vote in part because the BOE mitigated the pain of lower rates with a 100 billion-pound loan program. Standard Chartered Plc led the rally, set to close at its highest price since November, with a 5.6 percent jump. HSBC Holdings Plc, up 2.5 percent, was poised for its highest close since January. Both Standard Chartered and HSBC have international businesses which should benefit from the weaker pound. Still, HSBC said beforehand that it would lose $100 million of net interest income from 2016 from a 25-basis point cut, while Lloyds Banking Group Plc said such a move would cost it 100 million pounds over the next 12 months.


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