FTSE 100 Falls as UK Inflation Soars
0853 GMT - The FTSE 100 falls 0.1% to 7558 points as investors
react to data showing U.K. inflation accelerated to its highest
level in nearly 30 years in December. U.K. consumer prices rose
5.4% year-on-year in December following a 5.1% increase in
November. "The Bank of England expects inflation to peak around 6%
in April, but unless there's significant intervention in the energy
market, there's every chance it could go as high as 7%," Hargreaves
Lansdown analyst Sarah Coles says. Antofagasta shares drop 2.4%
after the miner forecast annual copper production below 2021
levels. Pearson gains 5.9% after the education publisher raised its
profit outlook. Burberry rises 5.0% after the luxury fashion brand
said it expects a 35% jump in annual profit.
(renae.dyer@wsj.com)
Companies News:
GlaxoSmithKline Names Tony Wood CSO Designate
GlaxoSmithKline PLC said Wednesday that it has appointed Tony
Wood as chief scientific officer from August, replacing Hal Barron,
who will become nonexecutive director.
---
Smith & Nephew Buys Engage Surgical for Up to $135 Mln
Smith & Nephew PLC said Wednesday that it has acquired
Engage Surgical for up to $135 million, contingent on sales
performance.
---
Burberry's 3Q Comparable Retail Sales Rose Ahead of Market
Views
Burberry Group PLC said Wednesday that retail revenue and
comparable store sales rose in the third quarter of fiscal 2022,
with new customers driving double-digit full-price sales growth
across all of its product categories.
---
Antofagasta Expects Higher Costs in 2022; 2021 Output in Line
With Guidance
Antofagasta PLC on Wednesday warned that its operational costs
will jump this year, and reported that production for 2021 was in
line with its guidance.
---
Experian COO Kerry Williams to Retire; Craig Boundy Named
Experian PLC said Wednesday that Chief Operating Officer Kerry
Williams plans to retire from his role after 19 years with the
company, and will be replaced by Craig Boundy.
---
Wise 3Q Revenue Rose 34%
Wise PLC said Wednesday that its revenue grew 34% in the third
quarter of the fiscal year.
---
Pearson Expects Increased 2021 Sales, Adj Operating Profit
Pearson PLC said Wednesday that it expects to report increased
sales and adjusted operating profit for 2021.
---
J.D. Wetherspoon to Report 1H Loss Due to Coronavirus-Related
Restrictions
J.D. Wetherspoon PLC said Wednesday that sales for the second
quarter of fiscal 2022 were hurt by coronavirus-related
restrictions, and that it will be loss-making in the first half of
the year.
---
Christie Group Sees 2021 Operating Profit Significantly Ahead of
Market Expectations
Christie Group PLC said Wednesday that it expects to report
operating profit for 2021 significantly ahead of current market
expectations.
---
WH Smith Says Year-To-Date Revenue Is at 85% of Pre-Pandemic
Levels
WH Smith PLC said Wednesday that revenue for the 20 weeks to
Saturday was at 85% of 2019 revenue levels, with its high
street--or brick-and-mortar retail--business being in a stronger
position than its travel division due to the Covid-19 Omicron
variant.
---
Burberry's 3Q Comparable Retail Sales Rose Ahead of Market Views
-- Update
Burberry Group PLC said Wednesday that retail revenue and
comparable store sales rose in the third quarter of fiscal 2022,
with new customers driving double-digit full-price sales growth
across all of its product categories on a two-year basis.
---
Liontrust 3Q Assets Under Management Rose
Liontrust Asset Management PLC said Wednesday that assets under
management and advice for the third quarter of fiscal 2022 rose 20%
from a year earlier.
Market Talk:
Pearson's Growth Trends Into 2022 Better Than Expected, Says
Citi
0855 GMT - Pearson's trading update implies an upside to
consensus expectations for 2021 operating profit and overall growth
trends going into 2022 are more robust than expected, Citi says.
The FTSE 100 education company's update was encouraging and
indicated better revenue growth and profit than Citi expected.
There is strength in depth across the portfolio, and U.S.
higher-education courseware, a key segment, was more robust than
forecasts as print trends were more favorable, the U.S. bank says.
Citi has a buy rating on Pearson. Shares trade up 5.8% at 669.4
pence. (kyle.morris@dowjones.com)
UK Inflation Overshoot Strengthens Case for Another BoE Rate
Increase
0853 GMT - The pressure is building for another rate rise from
the Bank of England in February due to higher-than-expected
inflation, Royal London Asset Management's senior economist Melanie
Baker says. "Many of the sources of rising inflation could still be
described as transitory, but with inflation surprising on the
upside by so much, with core inflation higher and at such a high
level, worries about inflation expectations are also likely to
build," she says. U.K. inflation is expected to rise in the coming
months, and prospects of higher interest rates, high rates of
inflation and pay growth that isn't keeping pace will mean that the
financial situation of many households will worsen, Baker says.
(xavier.fontdegloria@wsj.com)
UK 10Y Gilt Yields Shoot Up After Record High Inflation
Reading
0842 GMT - U.K. borrowing costs jump after official data showed
consumer prices rose 5.4% year on year in December. "It was
generally expected that U.K. inflation wouldn't see much of a jump
in December, but that was not the case," says Neil Birrell, chief
investment officer & fund manager of the Premier Miton
Diversified Growth Fund. "The direction is still very much
upwards...[and] the Bank of England may have to revise up its
expectations again and act accordingly." The 10-year gilt yield
rises as high as 1.292% in reaction to inflation data, the highest
level since March 2019, according to Tradeweb.
(lorena.ruibal@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
January 19, 2022 04:12 ET (09:12 GMT)
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