Pedestrians leave and enter the London Stock Exchange in London, Britain August 15, 2017. REUTERS/Neil Hall/File PhotoRegister now for FREE unlimited access to Reuters.comSummaryCompaniesHSBC reverts to paying dividendsQuilter soars on report of NatWest considering bidInflation expectations ease again in JulyFTSE 100 up 0.5%, FTSE 250 adds 0.2%Aug 1 (Reuters) - UK's top share index extended its winning run on Monday as HSBC surged after providing an upbeat outlook, while easing inflation expectations raised doubts over the chances of a super-sized rate hike from the Bank of England (BoE) this week.The blue-chip FTSE 100 (.FTSE) climbed 0.5%, hitting fresh seven-week highs as earnings optimism boosted European markets.HSBC (HSBA.L) jumped 5.9% after Europe's biggest bank announced a higher profitability target and bullish dividend outlook. It also pushed back on a proposal by top shareholder Ping An Insurance Group Co of China (601318.SS) to split itself. read more Register now for FREE unlimited access to Reuters.comThe wider banking index (.FTNMX301010) added 3.8%.Pearson (PSON.L) rose 6.8% as the education group reiterated its full-year profit outlook and said its new integrated structure under boss Andy Bird was helping to save costs and grow the top line. read more Investors were awaiting the BoE's policy decision on Thursday. The British public's expectations for inflation fell again in July, a survey showed on Monday, potentially adding to the case for only a quarter percentage point increase in interest rates. read more Hawkish comments from BoE rate-setters recently have raised the prospect for the first half percentage-point rate hike since 1995. read more "In our forecast, we expect a 25 bp hike next week to be the last in this hiking cycle, but the risks are now clearly skewed to the upside," Unicredit analysts said in a recent note."The MPC would likely need to see some spare capacity opening up in the labour market in order to feel confident that the risk of high inflation becoming entrenched has diminished. We still think this will happen in 2H22, but uncertainty is very high."Another survey showed British manufacturing output and new orders declined in July at the fastest rate since May 2020 as factories across Europe struggled with rising costs and slowing demand. read more The domestically focused midcap index (.FTMC) gained 0.2%, also holding near seven-week highs hit last week.Quilter (QLT.L) jumped 12.3% after a media report said NatWest Group (NWG.L) is considering a bid for the fund manager. NatWest gained 2.1%Register now for FREE unlimited access to Reuters.comReporting by Sruthi Shankar in Bengaluru; editing by Uttaresh.VOur Standards: The Thomson Reuters Trust Principles.
HSBC lifts FTSE 100 to fresh June highs, Quilter surges on takeover chatter.