Inflation Data Both Positive And Negative For Pound
17 August 2022 - 5:45PM
Dow Jones News
UK Inflation Data Both Positive And Negative For Pound
0700 GMT - Wednesday's higher-than-expected U.K. inflation data
has both positive and negative implications for sterling, Ebury
says. Higher inflation should trigger a more aggressive policy
response from the Bank of England, which is a "bullish signal" for
sterling, Ebury strategist Matthew Ryan says in a note. "On the
other hand, however, higher prices present a clear downside risk to
economic activity, and raises the possibility of a potentially
prolonged U.K. recession, which is clearly bearish for GBP." U.K.
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.
GBP/USD is last up 0.1% at 1.2108 and EUR/GBP falls 0.2% to 0.8395.
(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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
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.
---
Cineworld Anticipates Significant Share Dilution After Weak
Admissions
Cineworld Group PLC said Wednesday that it is in funding talks
that will likely result in a significant dilution for existing
shareholders, as recent admissions have been below
expectations.
---
Gem Diamonds 1H Revenue Fell From Previous Six Months
Gem Diamonds Ltd. said Wednesday that revenue fell in the first
half of 2022 from the second half of 2021, and that strong demand
and robust prices are driving a continued positive sentiment in the
sector.
---
Balfour Beatty 1H Pretax Profit Rose as Costs Fell
Balfour Beatty PLC said Wednesday that pretax profit for the
first half of fiscal 2023 rose on lower costs, and that for the
full 2022 calendar year, its UK construction division looks set to
deliver industry-standard margins in the 2% to 3% range.
Market Talk:
Ten-Year Gilt Yields Rise After July U.K. Inflation Surge
0707 GMT - U.K. 10-year gilt yields rise after annual inflation
rose to a four-decade high of 10.1% in July from 9.4% in June. The
10-year gilt yield is trading more than 2 basis points higher at
2.160%, according to Tradeweb. "Every upwards inflation surprise
tightens the bind the BOE [Bank of England] finds itself in, with
mounting inflation pressure combined with growing recessionary
headwinds," says Luke Bartholomew, senior economist at abrdn. He
expects the Bank of England will deliver another 0.5% interest rate
increase at its next meeting. With monetary policy having to
tighten even in the face of bad economic news, investors continue
to have little in the way of a safety net from central banks, which
is likely to keep markets volatile, he says.
(emese.bartha@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
August 17, 2022 03:30 ET (07:30 GMT)
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