UK Inflation May Have Peaked at 9%

0752 GMT - While there are plenty of upside risks to U.K. inflation, ING says April's 9% figure will mark the peak. That said, inflation is unlikely to fall quickly, James Smith, developed markets economist at ING, says in a research note. The downward pressure from certain goods categories will be offset by increases in food prices as well as services, he says. Inflation is unlikely to dip far below 8% for the majority of this year, Smith says. "However, the headline rate will fall dramatically next April assuming we don't get another leg higher in electricity prices and indeed inflation will probably be a little below target by the end of 2023," he says. (maria.martinez@wsj.com)

 
Companies News: 

Burberry Reports FY 2022 Profit Rise Despite China Lockdowns Hit in 4Q

Burberry Group PLC on Wednesday reported an improved profit for the year ended April 2, although coronavirus restrictions in China severely affected the business in the fourth quarter.

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Experian FY 2022 Pretax Profit Rose; Raises Dividend

Experian PLC on Wednesday reported a rise in pretax profit in fiscal 2022 driven by strength in organic revenue across North and South America, the U.K. and Ireland, and raised its dividend payout.

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British Land Swung to FY 2022 Pretax Profit on Covid-19 Recovery

British Land Co. said Wednesday that it swung to a pretax profit in fiscal 2022 as coronavirus pandemic-related hits to its property value were reversed.

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Anglo American's De Beers Diamond Sales Rose in Fourth Cycle

Anglo American PLC on Wednesday reported an increase in diamond sales from its De Beers subsidiary for the fourth sales cycle of 2022.

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Aviva 1Q General Insurance Sales Rose; Backs Dividend Guidance

Aviva PLC said Wednesday that sales in general insurance rose in the first quarter and reiterated its dividend views for 2022 and 2023.

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Premier Foods FY 2022 Pretax Profit, Revenue Fell

Premier Foods PLC said Wednesday that pretax profit fell in fiscal 2022 as revenue decreased, and that it expects further input cost inflation.

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Marston's Swung to 1H Pretax Profit, Revenue Rose on Covid-19 Recovery

Marston's PLC said Wednesday that it swung to a pretax profit for the first half of fiscal 2022 and posted a significant revenue increase as it recovered from the coronavirus pandemic.

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Vistry Raises 2022 Profit Expectations on Strong Demand Across Business

Vistry Group PLC said Wednesday that early 2022 has seen strong demand across all areas of its business, and that it expects to deliver full-year profit at the top end of market forecasts.

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Burberry FY 2022 Profit Rose Despite 4Q Hit From China Lockdowns -- Update

Burberry Group PLC on Wednesday reported an improved profit for the year ended April 2, although coronavirus restrictions in China severely affected the business in the fourth quarter.

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Watches of Switzerland FY 2022 Revenue Rose on Strong Demand for Luxury Watches and Jewelry

Watches of Switzerland Group PLC said on Wednesday that revenue for fiscal 2022 jumped, driven by strong demand for luxury watches and jewelry in the U.S. and U.K.

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Keller Group Has Had Mixed Start to Year; Backs 2022 Guidance

Keller Group PLC said Wednesday that it has had a mixed start to the year and backed its full-year guidance.

 
Market Talk: 

British Land's Strong FY 2022 Results Leave Scope for Upgrades

0738 GMT - British Land's results show FY 2022 was strong for the company as its repositioned portfolio benefited from improving retail values and healthy investor appetite for prime assets, Goodbody says. The real estate investor's growth, similar to sector peers, was driven by a better 2H, up 4.0% compared with 2.9% in 1H. Although interestingly, London office growth slowed in 2H while retail improved, Goodbody analyst Colm Lauder says in a research note. "We see room for net asset value upgrades of around 4% for fiscal 2023 and fiscal 2024," the Irish brokerage says. Goodbody retains its hold rating on the stock. Shares are up 0.4% at 508.6 pence.

UK Inflation Jumped in April, Expected to Ease Slightly Over the Coming Months

0737 GMT - U.K. inflation reached its highest level since November 1981 in April, rising to 9.0%, but was lower than the Bank of England's Monetary Policy Committee forecast of 9.1%, Samuel Tombs, chief U.K. economist at Pantheon Macroeconomics, says in a research note. Looking ahead, the headline rate of inflation is likely to edge down over the coming months, probably to around 8.5% by August, Tombs says. Pantheon's forecast takes into account further rises in food and core goods prices signaled by producer prices, but assumes that price rises in the services sector will ease. (maria.martinez@wsj.com)

UK Inflation Set to Hit Poorest Households Hardest

0721 GMT - The cost-of-living crisis in the U.K. is inflicting more financial pain on poorer households as they spend a larger proportion of their budgets on utility bills, an area in which inflation is rising sharply, Institute for Fiscal Studies research economist Heidi Karjalainen says in a note. U.K. inflation stood at 9% in April, but IFS analysis shows that the poorest 10% of households faced a rate of 10.9%, while the richest saw prices increase by 7.9%. "Continuing pressures... are likely to push the October tariff cap, as well as other prices including food prices, even higher later this year," Karjalainen says. "We are likely to be in a prolonged period during which poorer households are facing rates of inflation even higher than the headline figures would suggest." (xavier.fontdegloria@wsj.com)

Burberry FY 2022 Results Were in Line With Expectations

0719 GMT - Burberry's results for the year ended April 2 were in line with expectations, and the acceleration of the Americas and EMEIA (Europe, the Middle East, India, and Africa) regions in 4Q is encouraging, Piral Dadhania from RBC says in a note. The luxury brand is guiding for significant currency tailwinds at the operating profit level for fiscal 2023, the analyst says. "We retain our sector perform rating, as we await further clarity on the strategic direction of Burberry, and evidence it can close the growth gap with luxury peers," Dadhania says. Shares rise 1.7% to 1,610 pence. (jaime.llinares@wsj.com)

UK 10Y Gilt Yields Steady Despite UK Inflation Jump

0715 GMT - U.K. borrowing costs over the next 10 years remain largely unchanged after official data showed U.K. consumer prices jumped to a 40-year high in March. The 10-year gilt yield trades last at 1.881%, according to Tradeweb. The consumer price index measure of inflation rose to 9% in the 12 months to March, driven by rising petrol and food prices, according to the Office for National Statistics. This is up from 7% the previous month though it was marginally below the consensus in a WSJ poll for 9.1%. Higher inflation and a strong labor market put the Bank of England in a difficult position, as raising rates too quickly at a time when consumers are already struggling could crimp demand and push the economy into recession, says JP Morgan Asset Management's Ambrose Crofton in a note. (lorena.ruibal@wsj.com)

British Land Offers Robust Outlook

0712 GMT - British Land's fiscal 2022 exceeded both market consensus and RBC Capital Markets' expectations, with positive comments from management about its outlook. The real-estate company highlights the potential for further yield declines, particularly in retail, and expectations for rent growth across its portfolio, while the company's strategic advantage in sectors with pricing power means it can look ahead with confidence, despite elevated macro uncertainties, RBC analysts say in a research note. "We believe British Land's share price multiples fully reflect the various strengths of its business given the current risk/reward of its key markets and its plans to increase its exposure to urban logistics in a competitive market," the bank says, retaining its sector perform rating and 475 pence price target. (joseph.hoppe@wsj.com)

 

Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

May 18, 2022 04:17 ET (08:17 GMT)

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