The FTSE 100 closed down 1.1% on Wednesday after a loss of
momentum following comments from Federal Reserve chairman Jerome
Powell that the central bank is determined to regain the initiative
when it comes to reining in inflation, and a record high print for
U.K. inflation hasn't helped, says Michael Hewson, chief market
analyst at CMC Markets UK. Retailers are suffering the worst
effects of the 9% inflation print, with Ocado, JD Sports, Tesco and
B&M European Retail all slipping back, Hewson says. On the flip
side, Rolls-Royce shares ended the day as the biggest riser,
closing up 4.4%. Having slipped to 18-month lows earlier in the
month, Rolls-Royce has climbed back to its highest levels this
month.
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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:
Vistry Looks Set For Profit Upgrades
0903 GMT - Shares in Vistry Group rise 3% after the U.K.
house-builder formerly known as Bovis Homes reported strong demand
across all areas of its business in early 2022 and predicted
full-year profit at the top end of market forecasts. "Good momentum
in pricing has seen Vistry increase guidance again, with better
margins expected in both homebuilding and partnerships," Davy
analyst Colin Sheridan says in a note. "We would expect consensus
pre-tax forecasts for FY22 to be upgraded by circa-5% on the back
of today's announcement." (philip.waller@wsj.com)
Pound Weakens as UK Inflation Data Sparks Fresh Recession
Fears
0902 GMT - The latest U.K inflation data have sparked fresh
worries about a recession, sending sterling lower, Hargreaves
Lansdown says. "Soaring energy prices and higher wages are pushing
up costs for consumers to eye-watering levels, eroding their
spending power further," Hargreaves analyst Susannah Streeter says
in a note. With stagflation--weaker economic growth combined with
high inflation--looming, there are expectations the Bank of England
may be forced to take a softer approach to raising interest rates,
she says. U.K. inflation jumped to an annual rate of 9.0% in April,
the highest level in more than 40 years, from 7.0% in March.
GBP/USD falls 0.9% to 1.2377 and EUR/GBP rises 0.4% to 0.8482.
(renae.dyer@wsj.com)
Premier Foods Gains After Solid Year, But Costs Weigh
0851 GMT - Premier Foods gains 6% after the maker of Mr Kipling
cakes and Ambrosia rice reported higher annual adjusted pretax
profit, increased its dividend and said it had cut costs. The
results indicate healthy trading and bode well for further
expansion, Interactive Investor says. "However, like many
businesses, the inflationary backdrop is increasing Premier's cost
burden, which it's tackling through higher prices rather than
margin sacrifice," Interactive analyst Victoria Scholar says.
"Unfortunately, the stock has hardly moved since the start of 2021
and has recently struggled, falling sharply from the April high.
However this morning's pop will come as a welcome development for
investors." (philip.waller@wsj.com)
Inflation Could Be Below Central Bank Targets by 2023
0813 GMT - Headline inflation will more than likely come down by
4Q of this year, and by 2023 it could be undershooting central
banks' targets, Dean Turner, U.K. and European economist at UBS
Global Wealth Management said in a webinar on Tuesday. This is due
to base effects from recent high energy prices, he says. "We should
see inflation get back close to central banks' targets next year,"
he says. Inflation has been the top concern among clients recently,
alongside war in Ukraine and China lockdowns, he says. Data
Wednesday show U.K. inflation jumped to 9% in April, from 7% in
March, well above the Bank of England's 2.0% target.
(jessica.fleetham@wsj.com)
UK Inflation Jump in April Shouldn't Change BoE's Stance
0806 GMT - The acceleration in the U.K.'s inflation rate to 9%
in April is in line with the Bank of England's estimates and is
unlikely to bring any policy change in the short-term, Berenberg's
senior economist Kallum Pickering says in a note. Policymakers
aren't likely to be extremely worried about April's jump in
inflation as it was driven by the rise in energy prices, and the
sharp increase in wages for March was led by higher bonuses rather
than underlying pay growth, he says. "We continue to expect two
more 25 basis-points hikes this year," Pickering says.
(xavier.fontdegloria@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
May 18, 2022 13:12 ET (17:12 GMT)
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