UK Inflation Data Could Mean 'Substantial' Rate Increases
1029 GMT - Data showing U.K. annual consumer price inflation
rose to 5.4% in December, its highest in nearly three decades,
should be of "real concern" to the Bank of England and could mean
rate rises are "more substantial" than currently expected, says
Jamie Niven, senior fund manager at Candriam. "Interest rates will
have to go up this year, as expected, but figures such as this,
especially with the forthcoming rise in the energy cap, raises the
prospect of rate rises being even more substantial," he says. Niven
adds that the BOE could "come under political pressure to protect
the consumer." (jessica.fleetham@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:
BOE's Stance is Accommodative, Market Overestimates Rate Rises,
Says Invesco
1015 GMT - The Bank of England's stance on interest-rate
increases is very accommodative and likely to undershoot market
expectations, says Invesco. "Bearing in mind the balance sheet
expansion that has taken place during the pandemic, we view the
BOE's stance as very accommodative," says Paul Jackson, global head
of asset allocation research at Invesco. He expects the U.K.'s key
base rate to hit 1% by the end of 2022 from 0.25% at present and
move higher again in 2023. "Markets are currently pricing in a rate
of 1.25% by the end of the year, with the next rate hike likely
coming at the 3 February meeting," he says, adding that a
stronger-than-feared inflation reading for December raises the odds
for a rate increase next month. (lorena.ruibal@wsj.com)
Post-Lockdown Luxury Goods Rebound Boosts Burberry
1013 GMT - Shares in Burberry rise 6.4% after the luxury-goods
group reported higher third-quarter retail revenue and comparable
store sales as it benefited from strong growth in mainland China
and the Americas. "There's a lot to like in Burberry's latest
trading update, not least improved margins driving guidance for a
much larger-than-forecast increase in full-year profit," AJ Bell
investment director Russ Mould says. "As we emerge from the
pandemic and people start to socialize and travel more, it appears
the wealthy are lapping up luxury items, with Burberry the latest
name in this sector to report strong trading."
(philip.waller@wsj.com)
Burberry Unlikely to Face More Like-For-Like Pandemic
Disruption, Citi Says -- Market Talk
0954 GMT - Citi expects Burberry to benefit from an upgrade of a
mid to high-single digit percentage to fiscal 2022's Ebit market
expectation of GBP472 million, following its third-quarter trading
update and improved guidance. The British luxury-goods company's
third-quarter was possibly the last period of quarterly comparison
disruption--like for like disruption--as Citi says. This is due to
Burberry's slight third-quarter revenue beat, higher wholesale
guidance, industrial efficiencies and reduced foreign exchange
headwinds, the U.S. bank adds. Citi maintains its neutral rating
and has a target price of 2,080 pence. Shares are up 5.8% at
1,858.00 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)
Another Month, Another Big Upside UK Inflation Surprise
0911 GMT - U.K. inflation rose from 5.1% in November to 5.4%
on-year in December, 0.2 percentage points higher than consensus,
following upside surprises of 0.3 percentage points in both October
and November, HSBC says. Like in those two months, the news can be
accounted for by the core inflation rate, HSBC's senior economist
Chris Hare says. Economists have been expecting month-on-month
inflation to fall toward average rates, but this hasn't yet
happened, he says. "What's more, the strength is broad-based, it
not only relates to the prices of goods that are subject to global
logistics disruption, but also services, particularly those which
have come into high demand as the economy has recovered," Hare
says. (maria.martinez@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
paul.larkins@wsj.com
(END) Dow Jones Newswires
January 19, 2022 05:45 ET (10:45 GMT)
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