Latest news with #BurghleyCapital
Reuters
4 days ago
- Business
- Reuters
Burghley Capital: BoE Rate Cut Signals Cautious Policy Path
LONDON, United Kingdom, August 13, 2025 (EZ Newswire) -- Burghley Capital, opens new tab positions the Bank of England's latest interest rate decision within the broader context of monetary policy recalibration, noting the complex trade-off between inflation control and growth stability. The Monetary Policy Committee votes by a narrow 5–4 margin to reduce the Bank Rate from 4.25% to 4.00%, a move requiring a second ballot not used since 1997. Sterling appreciates to $1.35 per £1, while short-dated gilt yields edge higher and equity markets close lower, reflecting a rebalancing of expectations for the remainder of the year. Division within the committee highlights differing assessments of the economic outlook Four members support holding rates at 4.25% due to concerns over slowing disinflation and the risk of inflation expectations embedding into wage dynamics. Four others favour a 0.25 percentage point cut, citing evidence of sustained underlying disinflation, while one member initially calls for a 0.50 percentage point cut before aligning with the quarter-point reduction in the final vote. The outcome underscores what Burghley Capital describes as a deliberate, step-by-step policy stance that avoids premature easing. Household impacts are uneven For borrowers on tracker mortgages, a typical outstanding balance of £140,000 (approximately $189,000) translates into monthly repayments falling by about £28.97 (around $39.11). However, 7.1 million of the UK's 8.4 million residential mortgages are fixed-rate, meaning most borrowers will not see immediate payment relief. Burghley Capital's analysis notes that the near-term boost to household spending is therefore likely to be modest. Inflation remains the key constraint on further easing Consumer price inflation reaches 3.6% year-on-year in June 2025, up from 3.4% in May. Food prices rise 4.5% year-on-year, the highest since February 2024, while services inflation stays elevated at 4.7%, reflecting persistent domestic cost pressures. Labour market conditions show early signs of cooling, with unemployment at 4.7% for the three months to May 2025 and the vacancy-to-unemployment ratio slipping below its equilibrium level. Markets respond with a measured repricing of assets The pound strengthens 0.4% against the U.S. dollar to $1.35 and 0.6% against the euro. Two-year gilt yields increase by 6 basis points to 3.887%, reflecting reduced expectations for rapid easing. The FTSE 100 ends lower. According to Burghley Capital's analysis, these moves indicate that while investors see the Bank's decision as measured, they remain cautious about the prospect of further cuts in 2025. Current market consensus anticipates no further adjustments until early 2026 Burghley Capital projects the Bank Rate settling at approximately 3.75% in the first quarter of next year, conditional on continued disinflation and stable employment data. The firm's analysis also highlights a growing divergence between the Bank of England and the European Central Bank, which has enacted eight rate cuts since June 2024, reducing deposit rates by around 50% from their peak. This divergence has potential currency and asset allocation implications for institutional investors. Economic growth indicators present a mixed picture UK GDP is forecast to expand by 1.25% in 2025, up from earlier 1% projections, but quarterly momentum slows sharply from 0.7% in Q1 to 0.1% in Q2. Corporate insolvencies rise 13% between the first and second quarters, while small business confidence remains in negative territory. Burghley Capital's analysis suggests that such conditions favour quality balance sheets, resilient cash flows, and prudent leverage strategies in both public and private markets. Conclusion Burghley Capital concludes that the Bank's cautious, data-dependent approach will remain the dominant feature of UK monetary policy into 2026. The firm notes that rate-sensitive assets, selective credit opportunities, and currency-aware strategies could benefit from this environment, provided investors maintain flexibility and a disciplined approach to capital allocation. About Burghley Capital Founded in 2017, Burghley Capital Pte. Ltd. (UEN: 201731389D) is a Singapore-based global investment management firm specialising in long-only asset management strategies. The firm delivers institutional-grade research, tailored portfolio design, and advisory services to both institutional and private investors. By combining rigorous analytical methods with disciplined investment practices, Burghley Capital seeks to deliver consistent returns and long-term portfolio resilience. For more information, visit opens new tab or our resources page at opens new tab. Media Contact Martin ### SOURCE: Burghley Capital Copyright 2025 EZ Newswire See release on EZ Newswire
Globe and Mail
05-06-2025
- Business
- Globe and Mail
Burghley Capital Reports Strong Growth in Boeing 737 MAX Manufacturing
Strategic production increases reflect Boeing's confident recovery outlook and renewed global aviation demand. Burghley Capital highlights Boeing's decisive move to increase the production rate of its flagship 737 MAX aircraft from 38 to 42 planes per month by mid-2025. This expansion aligns closely with investor expectations, reflected immediately by a 3.14% surge in Boeing's share price to USD 207.86 following the announcement. Boeing's ambitious production plans follow significant challenges earlier this year, including a first-quarter cash burn of approximately USD 2.3 billion. However, the company remains confident in its forecast to transition to cash-positive operations by the second half of 2025. 'The production increase is essential,' emphasises James Barker, Director of Private Equity at Burghley Capital, 'as it strategically positions Boeing to monetise its extensive backlog of orders, turning a significant commercial commitment into tangible financial gains.' Indeed, Boeing's backlog remains substantial, comprising nearly 1,200 orders for the MAX 10 and 332 for the MAX 7, collectively valued within a commercial backlog surpassing USD 438.94 billion. Crucially, Boeing's resumed deliveries to the Chinese market in June represent a pivotal development, significantly enhancing Boeing's global market presence and fortifying international sales capabilities. Barker highlights that the renewed deliveries to China offer compelling evidence of Boeing's improving operational outlook. 'China's re-entry as a customer greatly underpins the sustainability of Boeing's higher production targets. This development aligns perfectly with our strategic view on aerospace investments, particularly in the Asia-Pacific region, which forecasts demand for approximately 17,580 new aircraft by 2042.' In response to stringent Federal Aviation Administration (FAA) safety regulations, Boeing has adopted innovative manufacturing practices, such as assembly line pulsing, to validate readiness for escalated production rates without breaching regulatory restrictions. Early indications of this approach are reportedly positive, with Boeing achieving a notable 30% reduction in production defects year-to-date. Regulatory compliance remains central, however. The FAA continues to enforce strict oversight, currently capping Boeing's monthly 737 MAX production at 38 aircraft pending verification of consistent manufacturing quality improvements. Boeing's leadership has underscored that achieving stability at the present rate is crucial to obtaining approval for further increases, forecasting monthly output potentially reaching 47 aircraft by year-end. Looking ahead, Boeing also plans to raise the monthly output of its wide-bodied 787 aircraft from five to seven units, eventually targeting a production rate of ten per month. Barker notes, 'These structured increments offer investors clear visibility into Boeing's broader financial recovery and market stabilisation strategy.' Global travel recovery is further strengthening Boeing's market position, with global passenger traffic now exceeding pre-pandemic levels by 3.2%. Barker observes, 'The increasing global demand, particularly within the narrow-body market segment, positions the 737 MAX family as a critical driver of Boeing's future profitability.' Market optimism is mirrored in Boeing's share price performance, demonstrating a significant recovery of 62% since its lows in early April 2025 and an 18% appreciation year-to-date. This resurgence underscores burgeoning investor confidence amid operational enhancements and increased production clarity. Burghley Capital underscores Boeing's robust long-term value proposition in the aerospace sector, with Barker affirming that 'Boeing's commitment to increased production and stringent quality adherence provides a strong foundation for sustainable investment returns, especially in a recovering global aviation market.' About Burghley Capital Established in 2017, Burghley Capital Pte. Ltd. (UEN: 201731389D) is a distinguished global investment management firm headquartered in Singapore, known for its expertise in long-only asset management strategies. The firm delivers strategic advantages through precise analytical insights, bespoke investment solutions, and dedicated financial advisory services. Committed to disciplined investment practices, Burghley Capital consistently aims to generate superior returns and financial resilience for its global clientele, encompassing institutional investors and private clients. For further insights, please visit Disclaimer: This press release may contain forward-looking statements. Forward-looking statements describe future expectations, plans, results, or strategies (including product offerings, regulatory plans and business plans) and may change without notice. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements.
Yahoo
26-05-2025
- Business
- Yahoo
Burghley Capital: Singapore Tech Spending Set for Growth
SINGAPORE, SG / / May 26, 2025 / Singapore-based asset management firm Burghley Capital have identified strong resilience in Singapore's technology spending over the past 12 months, with projections indicating it will reach USD $19 billion (SGD $25.5 billion) by the end of 2025. Despite economic uncertainties and rising trade tensions in the region, the city-state continues to distinguish itself as a leading destination for digital investments within Asia Pacific, driven largely by substantial investments in artificial intelligence (AI) and digital infrastructure. AI investment remains a key growth driver, supported by the Singapore government's National Artificial Intelligence Strategy. Approximately USD $134 million (SGD $180 million) has been dedicated to AI research and development, resulting in AI integration in over half of Singaporean businesses, significantly surpassing the global average of 35%. Prominent sectors embracing AI include financial services (68%), healthcare (56%), and manufacturing (47%). James Barker, Director of Private Equity at Burghley Capital, identifies structured equity investments as essential tools for managing market volatility. These investment structures offer "flexible capital solutions that substantially reduce risk while enabling sustained growth," typically achieving returns in the mid-teens on an IRR basis. Barker further points out that structured equity allows companies to "maintain valuations more effectively during market shifts, greatly reducing dilution compared to conventional equity financing." Cloud computing and cybersecurity services are experiencing rapid demand growth, with annual increases of 12.5% and 15.2%, respectively, in the current fiscal period. In 2025, Singapore's cloud services market is projected to reach approximately USD $2.8 billion (SGD $3.8 billion), boosted by recent expansions in data centre capacity. Strong economic fundamentals continue to underpin Singapore's attractiveness. These include a notably low banking sector non-performing loan ratio of 1.3%, substantial international reserves, and record foreign direct investment levels at 31.8% of GDP in the preceding fiscal year. Barker emphasises that Burghley Capital integrates AI extensively into investment decision-making. The firm's "data-driven methods ensure early identification of strategic opportunities," positioning clients effectively within Singapore's evolving technology ecosystem. Singapore's focused investment strategies and significant infrastructure development reinforce its appeal to investors. Burghley Capital aligns client portfolios with critical growth sectors, including technology, healthcare, logistics, and green finance, thus enhancing returns in one of Asia Pacific's most stable technology markets. About Burghley Capital Established in 2017, Burghley Capital Pte. Ltd. (UEN: 201731389D) equips investors with insightful market analysis and strategic foresight. To learn more, visit or contact Martin Wei for media enquiries at SOURCE: Burghley Capital Pte. Ltd. View the original press release on ACCESS Newswire
