Forum Energy Sells Assets Of ABZ, Quadrant Valve Brands To Anvil And Smith-Cooper – Quick Facts

01/04/2021

U.K. Mortgage Approvals Surge to 13-Year High During Lockdown

U.K. mortgage approvals reached the highest since 2007 in November as housing continued to boom in spite of a broader economic downturn.

The housing market is surging largely because of a tax cut on house purchases that is worth as much as 15,000 pounds ($20,000) to buyers. That may support demand through March, when the initiative ends.

However, analysts expect the housing market to slow this year, with unemployment rising and Britain facing the prospect of tighter restrictions to combat a resurgent coronavirus.

Lenders approved 104,969 loans, compared with a revised 98,338 in October, the Bank of England said Monday. Meanwhile, consumers repaid a net 1.54 billion pounds of debt. Restaurants, bars and and non-essential retailers close were closed in most of the country, curbing spending opportunities.

A separate report showed growth in the U.K.’s manufacturing industry grew slightly faster than expected in December. IHS Markit’s manufacturing PMI index reached highest since 2017 amid stockpiling before the end of the Brexit transition period.

Oil Prices Rise On Hopes Of Recovery In Fuel Demand

Oil prices rose on Monday, the first day of 2021 trading, despite OPEC+ warning of risks to the oil market from the resurgent pandemic.

As the coronavirus pandemic lingers, the alliance of producers led by Saudi Arabia and Russia will decide today whether it can continue to restore crude supplies without capsizing the price recovery.

Brent crude for March delivery jumped 1.4 percent to $52.52 a barrel, while U.S. West Texas Intermediate crude futures for February delivery were up 0.9 percent at $48.95 a barrel.

Crude oil prices also remain supported by optimism about a swift demand recovery in 2021 as the U.K. began the Oxford/AstraZeneca vaccine rollout.

The U.K.’s National Health Service (NHS) today began rolling out the Oxford University vaccine developed by AstraZeneca as protection against Covid-19, with an 82-year-old Oxford-born dialysis patient becoming the first to receive the new jab.

Six hospitals in England will administer the first of around 530,000 doses of the vaccine.

Gold Soars 2% As Dollar Declines

Gold prices jumped nearly 2 percent on Monday to hover near their highest level in almost two months, with a weaker dollar and renewed declines in real yields boosting the precious metal’s allure.

Spot gold rose 1.9 percent to $1,930.14 per ounce, while U.S. gold futures were up 2.1 percent at $1,934.25.

The decline in real rates is being driven by a rise in inflation expectations as vaccine rollouts begin.

Six hospitals in England will administer the first of around 530,000 doses of the vaccine.

An agreement on the long-awaited U.S. coronavirus relief bill has created downward pressure on the dollar, while boosting the appeal of commodities.

Investors are on the lookout for Tuesday’s runoff elections in the U.S. state of Georgia that will decide the control of the Senate.

Minutes of the Federal Reserve’s December meeting will be released on Wednesday, with investors looking for fresh guidance on its asset purchases.

COVID-19: Boris Johnson says ‘tougher measures’ set to be announced ‘in due course’

Tougher measures are coming in a bid to control the spread of coronavirus, the prime minister has said.

Boris Johnson said there were “tough tough” weeks ahead in the UK’s fight against COVID-19.

He added: “If you look at the numbers there’s no question we will have to take tougher measures and we will be announcing those in due course.”

FTSE 100 surges to nine-month high in first day of trading since end of Brexit transition

Oxford-AstraZeneca coronavirus vaccine begins rollout in the UK

The FTSE 100 gained more than 200 points in its first day of trading after the Brexit transition period ended. The more than 3 percent rise was followed by increases of 1.9 percent and 1.3 percent in the French and German main indexes.

Connor Campbell, an analyst at Spreadex, said: “Despite the rapid increase in daily COVID-19 case numbers and the impending need for a new national lockdown – be it immediately, as urged by Keir Starmer, or in a couple of weeks, as suggested by Boris Johnson – the FTSE was the most bombastic of the major indices after the bell.

“These gains can be tied to the rollout of the Oxford/AstraZeneca vaccine in the UK – the continuation of 2021’s great hope for ending the coronavirus pandemic.

“It is another step on the journey back to normality, and investors have seized upon it with all their might.”

He added: “It was announced in a slightly tricky time… maybe today is the first full-throated session for investors to fully react to the Brexit trade deal.”

More to follow…

Forum Energy Sells Assets Of ABZ, Quadrant Valve Brands To Anvil And Smith-Cooper – Quick Facts

Forum Energy Technologies, Inc. (FET) announced Monday that it completed the sale of assets associated with its ABZ and Quadrant valve brands to Anvil and Smith-Cooper International on December 31, 2020.

The total consideration for the transaction was $105 million in cash. As part of the transaction, Anvil and Smith-Cooper will employ the ABZ and Quadrant employees primarily located at the operations located in Madison, Kansas and Broussard, Louisiana.

Pro-forma for the sale proceeds, Forum Energy’s net debt would be reduced by over one-third from the $308 million level at September 30, 2020.

In 2020, the ABZ and Quadrant product families generated revenues of approximately $42 million and made an EBITDA contribution of approximately $12 million.

This divestiture increases Forum’s focus on the growing level of drilling and completion activity, with the U.S. drilling rig count up by over 40% since August 2020.