The Chart Show: GBP, IAG, Uber

TL;DR

Bank of England keeps rates on hold, pound suffers worst week since June. IAG reports earnings ahead of US travel reopening. Uber shares jump on adjusted profit figure.

Transcript

hello and welcome to the chart show i'm victoria scholar each week i'll be sharing my analysis on three key stories that are getting a lot of interest among investors i'll be breaking them down not just from a fundamental perspective but with technical analysis on the charts as well this week's three charts are the pound which has been suffering af... Read More

Key Insights

• 🥹 The Bank of England's decision to keep rates on hold surprised economists and caused the pound to suffer its worst week since June.
• 🛀 IAG's earnings report showed a larger-than-expected full-year loss, but the CEO remains optimistic about the reopening of travel and the restoration of capacity.
• 😋 Uber's adjusted profit figure and strong revenue growth in ride-hailing and food delivery drove its shares higher, despite a quarterly net loss and regulatory challenges.
• 🫥 The pound's performance against the US dollar is influenced by its descending trend line and the possibility of a rate hike in the near future.
• ✋ IAG's stock has failed to make higher highs since March, indicating ongoing downside pressure despite attempts to regain ground.
• 🤩 Uber's stock has been struggling to create fresh highs, but breaking above key resistance levels could lead to further gains.
• ☠️ Factors like labor market data, future economic strain, and potential rate hikes will continue to impact the pound's performance.

Questions & Answers

Q: Why did the Bank of England keep rates on hold?

The Bank of England voted to keep rates on hold in order to wait for further data on the labor market and avoid economic strain through hawkish policy. The next meeting could see a rate hike in December or early next year.

Q: How has the pound been performing against the US dollar?

The pound has been trading in a descending trend line with lower highs since June. A break below the September low could extend the downtrend, while a break above 1.36 could lead to near-term gains.

Q: What were the key highlights of IAG's earnings report?

IAG reported a larger-than-expected full-year loss of 3 billion euros. However, CEO Alex Cruz struck an optimistic tone, expecting to restore 100% capacity next year. The stock has failed to make higher highs since March.

Q: Why did Uber's shares jump despite a net loss?

Uber's shares jumped after reporting its first ever adjusted profit figure. While it still reported a net loss of 2.4 billion dollars due to investments and regulatory issues, its gross bookings in ride-hailing and food delivery increased.

Summary & Key Takeaways

• The Bank of England surprised economists by keeping rates on hold, delaying a rate hike and causing the pound to suffer its worst week since June.

• IAG, the parent company of British Airways, reported earnings ahead of the reopening of travel to the United States. It guided for a larger-than-expected full-year loss.

• Uber saw its shares jump after reporting its first ever adjusted profit figure, despite still reporting a quarterly net loss, impacted by investments and regulatory issues.