FTSE 100 Led Lower By Energy Stocks, Miners
0800 GMT - The FTSE 100 falls 1.3% to 7057 points with mining
and energy stocks among the worst performers on lower oil and metal
prices, while JD Sports Fashion and Berkeley Group decline after
posting final results. JD Sports shares slip 1.1% after the
sportswear retailer said it expects flat earnings in the current
financial year amid economic headwinds. Berkeley falls 1.6% after
the house builder said it plans to slow land acquisitions.
Meanwhile, data on Wednesday showed U.K. inflation accelerated to a
40-year high of 9.1% on year in May from 9.0% in April. "There is
no doubt consumers are badly squeezed by higher inflation numbers
and there is no sign of any peak in sight," AvaTrade analyst Naeem
Aslam writes. (renae.dyer@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:
UK Inflation Seen at Double-Digit Levels in Autumn After
Reprieve in May
0809 GMT - A modest rise in U.K. inflation to 9.1% in May is a
temporary reprieve, says Tom Stevenson, investment director at
Fidelity International, adding that inflation remains at a 40-year
high and double-digit price rises are ahead in the autumn. The Bank
of England expects inflation to peak above 11% later this year as
the next rise in the energy-price cap kicks in, Stevenson says. The
BoE is battling a "toxic combination" of high inflation and
stagnant growth, he says, adding that rate setters are facing an
impossible balancing act. "Rates look likely to rise to 3% next
year, but while this may take the heat out of inflation, it will
come at a heavy cost," he says, seeing a recession increasingly
likely. (emese.bartha@wsj.com)
UK Inflation Is Set to Remain Elevated This Year
0753 GMT - U.K. inflation will likely remain near the current
9.1% for the remainder of the year, although prices could
accelerate further in October due to a new rise in utility bills,
Berenberg's senior economist Kallum Pickering says in a note.
Higher production costs for firms but weakening demand amid
sluggish economic growth will make it difficult for firms to pass
on higher costs to consumers, he says. "The combination of rising
cost pressures and weakening demand points to a severe margin
squeeze for U.K. firms," Pickering says. Inflation is set to fall
sharply in 2023 and should be back to the Bank of England's 2%
target by the end of next year, he says.
(xavier.fontdegloria@wsj.com)
Micro Focus 1H Mixed, But Unchanged Expectations a Positive
0754 GMT - Micro Focus International's first-half results were
mixed as organic growth came in at minus 8.7%, but it is a positive
that expectations were maintained, Jefferies' analysts Charles
Brennan and Alex Nguyen say in a research note. "Looking forwards,
it is encouraging to note that management expectations for
revenues, costs, and cash for FY22 remain unchanged," they say. The
U.K.-based software provider reiterated that strategic priorities
for the fiscal 2023 exit trajectory remain unchanged, and that
should mean an adjusted free-cash-flow run rate of $500 million,
they add. Jefferies has a buy rating on the stock with a 600 pence
price target. Shares trade down 11.4% at 316.60 pence.
(kyle.morris@dowjones.com)
UK Core Inflation Should Fall in the Coming Months
0740 GMT - U.K. headline inflation will keep hovering at
four-decades high levels in the short term, but core rate--which
excludes the more volatile components of food and energy--is likely
to decrease, Pantheon Macroeconomics' chief U.K. economist Samuel
Tombs says in a note. "The decline in core CPI inflation should
gather momentum later this year, as recent falls in shipping costs
are passed on to consumers and global producer output price
inflation rolls over, now that both the inventory rebuilding cycle
and the recovery in consumer demand are petering out," he says.
Pantheon expects the Bank of England to stop raising interest rates
once the monthly increases in core CPI slow to their long-term
average rate, which is likely to be reached in autumn.
(xavier.fontdegloria@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
June 22, 2022 05:10 ET (09:10 GMT)
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