U.K. Inflation Seen Keeping BoE's Tightening at 25-BP Pace

0716 GMT - Headline U.K. inflation should remain elevated because of food prices, though core inflation should continue declining from the current level, keeping the Bank of England's tightening at a 25-basis-point pace, Morgan Stanley analyst Bruna Skarica says. May CPI inflation came in at 9.1%, below The Wall Street Journal's poll forecast of 9.2%. "Long story short, this print was all about food prices," she says. Clothing, culture and recreation prices dragged core inflation lower, while service inflation ticked up, almost entirely due to airfares, she says. Utility prices will rise again in October, and food inflation has further to go, she adds. (emese.bartha@wsj.com)

 
Companies News: 

Micro Focus 1H Pretax Loss Narrowed on Lower One-Off Costs, Gain on Digital Safe Disposal

Micro Focus International PLC said Wednesday that its pretax loss for the first half narrowed, driven by a significant reduction in exceptional spending and a $63.0 million profit on the disposal of Digital Safe.

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Anglo American's De Beers Reports Higher Diamond Sales for Cycle 5

Anglo American PLC on Wednesday reported diamond sales of $650 million for the fifth sales cycle of 2022 running between June 6 and June 21.

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Berkeley Group FY 2022 Profit Rose on Robust Homes Demand; Backs FY 2023 Views

Berkeley Group Holdings PLC said Wednesday that pretax profit and revenue rose in fiscal 2022, and backed its fiscal 2023 expectations.

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Frasers Group Increases Investment in Hugo Boss

Frasers Group PLC said Wednesday that it has recently increased its investment in Hugo Boss AG to around 900 million euro ($948.0 million).

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UK Government Extends NatWest Trading Plan to August 2023

UK Government Investments Ltd. said Wednesday that it has extended the trading plan under which it will sell Her Majesty's Treasury's shareholding in NatWest Group PLC by a year to Aug. 11, 2023.

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Churchill China Confident in 2022 View on Continued Record Demand

Churchill China PLC said Wednesday that it remains confident of delivering an on-year improvement in performance for 2022 as the record demand noted in its preliminary results has continued.

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Bonhill to Sell Business Solutions and Governance Arm; Focus on Financial Services

Bonhill Group PLC said Wednesday that it has decided to sell its business solutions and governance division to focus on financial services.

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JD Sports Fashion FY 2022 Pretax Profit Rose but Missed Market Views

JD Sports Fashion PLC said Wednesday that pretax profit for fiscal 2022 rose, though it was below market expectations, and the company warned of headwinds due to macroeconomic uncertainties.

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Intelligent Ultrasound Sees 2022 Revenue in Line With Expectations

Intelligent Ultrasound Group PLC said Wednesday that it continues to be confident in the upgraded market expectations for 2022 revenue.

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Liontrust FY 2022 Pretax Profit Rose, Raises Dividend

Liontrust Asset Management PLC reported on Wednesday a rise in both pretax profit and revenue for fiscal 2022, and raised its dividend payout.

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Team PLC 1H Pretax Loss Narrowed on Organic Growth, Maintained Positive Momentum

Team PLC said Wednesday that pretax loss for the first half of fiscal 2022 narrowed and revenue increased on organic growth and maintained positive momentum after completing two acquisitions.

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System1 Group to Return Up to GBP1.5 Mln Via Tender Offer

System1 Group PLC said Wednesday that it will seek to return up to 1.5 million pounds ($1.8 million) of excess cash via tender offer, and going forward it will pay annual distributions via buyback or tender offer rather than by way of a dividend.

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Wentworth Resources Backs 2022 Gas Production Guidance

Wentworth Resources PLC said on Wednesday that its gas production guidance for 2022 remains unchanged as its rate remains robust.

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Roquefort Therapeutics to Buy Oncogeni in All-Share Deal

Roquefort Therapeutics PLC shares rose Wednesday after it said that it has conditionally agreed to buy Oncogeni Ltd. in return for shares, and it will also place shares at a premium to raise 1 million pounds ($1.2 million) to fund development of the enlarged group.

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Impact Healthcare REIT to Raise Undisclosed Amount to Buy Care Homes

Impact Healthcare REIT PLC said Wednesday that it will raise funds, in a share placing and offer for subscription, to acquire an identified pipeline of care homes.

 
Market Talk: 

BOE Seen Facing Dilemma With High Inflation and Rising Household Costs

0738 GMT - With U.K. inflation at such high levels, 9.1% in May, the Bank of England faces a dilemma, says Mike Bell, global market strategist at J.P. Morgan Asset Management. Real wages are already being squeezed by higher prices, while increasing borrowing costs, on top of rising food and energy prices, "could feel like rubbing salt in the wound for some households and increases the risk of a recession," he says. However, Bell sees a risk that, without further rate rises, a wage price spiral could develop, he says. Still, JPM AM expects the BOE to keep raising rates until there are clear signs that the labor market is weakening, he says. (emese.bartha@wsj.com)

Berkeley Group FY 2022 Results Seen as Reassuringly in Line

0735 GMT - Berkeley Group's fiscal 2022 came in broadly as expected with build progress on track, cost headwinds being managed and plenty of scope for significant earnings growth as it works through its regeneration sites, Citi says. The house builder's reassuring progress is partially due to resilient market trends with reservations in fiscal 2022 up 25% in value and slightly ahead of prepandemic levels, Citi analyst Ami Galla says in a research note. "We do not expect significant changes to consensus on the back of this update, though estimates at the bottom end are likely to edge up in line with the current guidance," the U.S. bank says. Citi retains its buy rating and 4,765.0 pence price target on the stock. (joseph.hoppe@wsj.com)

JD Sports Should Further Strengthen Position Among Major Brands

0730 GMT - JD Sports Fashion's FY 2022 results were broadly in line with expectations while its guidance, warning about a difficult market backdrop ahead, should be helped by easier comparatives in the U.S. and the ease of logistic disruptions, RBC Capital Markets analysts Richard Chamberlain and Manjari Dhar say in a research note. The analysts expect that JD's robust retailing skills, appeal to more-urban customers and its ability to enhance its apparel offers should further strengthen its position as a preferred partner of major brands such as Nike and Adidas. Recent acquisitions should also broaden JD's customer demographic, they add. (michael.susin@wsj.com)

Berkeley Group Looks Healthy But Choppy Waters Lie Ahead

0719 GMT - Berkeley Group is in good shape, with solid results for fiscal 2022, but it seems much less sure about the year ahead, Freetrade says. The U.K. house builder could be susceptible to slowing demand for housing, a trend set to continue as the cost of living bites and interest rates are expected to rise further while cost inflation is expected to stay, Freetrade senior analyst Emilie Stevens says in a research note. While Berkeley has absorbed cost increases in full this year, the market in the coming year might not be so susceptible to 10% price rises, the financial-technology company says. "While there are certainly choppier waters ahead, the great developer sell-off still feels a touch overplayed," Stevens says. Shares are down 1.1% at 3,752 pence. (joseph.hoppe@wsj.com)

 

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

(END) Dow Jones Newswires

June 22, 2022 03:54 ET (07:54 GMT)

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