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.

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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: 

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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