The 10-year yield was last down 3 basis points at 3.774%.

The euro earlier fell to a five-month low against the pound at 86.62 pence but was last down just 0.2% at 86.84 pence.īritain's 2-year government bond yield - which is sensitive to changes in interest rate expectations - cut some of an earlier fall and was last down 2 basis points on the day at 3.804%. Traders see interest rates peaking at around 4.87% in November, reflecting very little change on what had been priced earlier in the day. 'The BoE kept its forward guidance, which suggests that the door is very much open for further increases at the coming meetings,' said Mohit Kumar, chief European economist at Jefferies. In the post-announcement press conference, BoE Governor Andrew Bailey said the bank will ' stay the course' to ensure inflation falls back towards target, but that the impact of prior rate hikes will weigh more on the economy in coming quarters. Federal Reserve will pause their programme of rate hikes,' said David Morrison, senior market analyst at Trade Nation. dollar for as long as the consensus holds for higher UK rates, along with the prediction that the U.S. 'Sterling should continue its rally against the U.S.

On Wednesday, it hit its highest level in over a year at $1.2679. Jefferies cut its price target to 3,800p from 4,000p alongside the rating downgrade.Sterling, which had been around 0.5% lower against the dollar prior to the decision, was last down 0.3% at $1.2590. The broker sees a risk that the industry pauses for breath after three higher than average years. It noted spirits are “recession resilient not recession proof,” and highlighted there are some early signs of downtrading in categories such as high-end tequila.

Jefferies highlighted three key challenges for the US business – can it grow off a higher base, the risk of destocking and the recession risk. “As we enter a period of hiatus for Diageo’s US growth, we see a risk that the shares tread water until growth returns to the med-term trend 4-5%,” the broker said in a note. While accepting Diageo is a stronger business now than before the pandemic Jefferies pointed out recent data indicates that growth in the US continues to moderate. The broker predicts organic sales growth in the US of just 1% in financial 2024 below the consensus of 4.5% reflecting a slowdown after what it calls the “pandemic super cycle,” the risk of inventory realignment and the slower macroeconomic environment. The US business accounts for nearly 40% of sales and close to 50% of profits at the spirits maker. The owner of Johnnie Walker, Guinness and Baileys has been moved to hold from buy by Jefferies over concerns of the near-term outlook for the key US market. Diageo PLC (LSE:DGE) held the unwelcome spot at the top of the FTSE 100 fallers Friday morning after being downgraded by investment bank, Jefferies.

Jefferies after london