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.
---
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.
---
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.
---
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).
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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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