FTSE 100 Expected to Open Higher as UK Inflation Accelerates

0632 GMT - The FTSE 100 is expected to track gains in Asian and U.S. stocks overnight with the latest U.K. inflation data in focus. IG futures data see London's top-tier stocks index opening 16 points higher. U.K. inflation accelerated to an annual rate of 10.1% in July from 9.4% in June, beating the 9.8% expected in a WSJ survey of analysts. "There are fears that we are near the end of summer, demand is likely to increase for energy and there isn't enough supply of gas, the winter may actually fuel the inflation situation further," AvaTrade analyst Naeem Aslam writes.(renae.dyer@wsj.com)

 
Companies News: 

GSK Says Plaintiff to Drop Zantac Case

GSK PLC said late Tuesday that the plaintiff's counsel in the first of the U.S. lawsuits over discontinued heartburn drug Zantac plans to file a notice of voluntary dismissal.

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ASOS CFO to Step Down as Company Restructures Executive Team

ASOS PLC said Wednesday that Chief Operating Officer and Chief Financial Officer Mat Dunn has agreed to step down as the company looks to restructure its executive team.

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Boohoo Group Buys 7.1% of Revolution Beauty Shares

Boohoo Group PLC said Wednesday that it has bought 22.1 million shares in Revolution Beauty Group PLC, or 7.1% of its issued share capital, and plans to be a long-term supportive partner.

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Persimmon 1H Pretax Profit Fell; Backs 2022 Legal-Completions Target

Persimmon PLC said Wednesday that pretax profit and revenue fell in the first half of 2022, and that it anticipates delivery volume to increase in the second half as the company rebuilds its outlet position.

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Glanbia 1H Pretax Profit Rose on Favorable Pricing, Higher Volumes; Updates Guidance

Glanbia PLC said Wednesday that its pretax profit for the first half of fiscal 2023 rose on favorable pricing and an increase in volumes, and updated its guidance for the year.

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Plus500 1H Pretax Profit Rose; Launches $60.2 Mln Share Buyback Program

Plus500 Ltd. said Wednesday that pretax profit for the first six months of 2022 rose, adding that it has launched a share buyback program and updated its shareholders return policy.

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Predator Oil & Gas to Raise GBP3.3 Mln to Fund Drilling

Predator Oil & Gas Holdings PLC said Wednesday that it is raising 3.3 million pounds ($4 million) via a share placing and will use the money toward drilling.

 
Market Talk: 

Sterling Remains Higher After UK Inflation Data Exceed Forecasts

0647 GMT - Sterling stays higher on the day after data showed U.K. inflation accelerated by more than expected in July. Inflation rose to an annual rate of 10.1% in July from 9.4% in June, exceeding the 9.8% expected by analysts in a WSJ survey. "Inflation printing above forecasts adds to the mounting pressure on the Bank of England to tighten monetary policy and continue to raise interest rates," Silicon Valley Bank analyst Sam Cooper writes. "Expect sterling to remain volatile in response as markets grapple with a cost of living crisis, a fall in real wages, rampant price growth and a bleak outlook for economic activity," Cooper says. GBP/USD and EUR/GBP trade at 1.2113 and 0.8398 respectively, both little changed after the data. (renae.dyer@wsj.com)

UK Inflation Expected to Ease Temporarily in August, September

0642 GMT - U.K. headline inflation continued to rise in July, boosted by a wide range of components, Pantheon Macroeconomics' chief U.K. economist Samuel Tombs says in a note. Consumer prices were 10.1% higher in July than a year earlier, up from 9.4% in June. Looking ahead, the headline rate looks set to fall a little in August and September, as the recent fall in oil prices gets passed on to consumers at the petrol pump, Tombs says. But the headline rate then will soar to around 13% in October, when U.K. energy regulator Ofgem will increase its default tariff price cap by about 80%, the economist says. (maria.martinez@wsj.com)

Spirent Seen as Good Stock to Own in a Recession

0543 GMT - Spirent Communications is a favorable stock to own through a consumer recession as telecom carriers and network equipment makers are unlikely to reduce their 5G network build-out plans given the significant capex already spent on spectrum and R&D, Berenberg analysts say in a research note. The fact that the company hasn't changed its full-year expectations looks conservative given the 1H growth expectations beat, and the current order book offers good visibility for this year and beyond, they say. Berenberg expects the company to beat consensus top line and EPS numbers for the year. Berenberg raises its rating on the stock to buy from hold and has a target price of 300 pence.(kyle.morris@dowjones.com)

 

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

(END) Dow Jones Newswires

August 17, 2022 03:07 ET (07:07 GMT)

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