UK February Inflation Rebound Likely Secures Bank of England
Hike
0740 GMT - The reacceleration of U.K. inflation may be enough to
tilt the Bank of England toward raising interest rates to 4.25%
from 4% on Thursday, despite the recent turmoil in the banking
system, Paul Dales, chief U.K. economist at Capital Economics, says
in a note. Overall CPI in February rose to 10.4% from 10.1%, but
more worrying is the rebound in core inflation to 6.2% from 5.7%,
which clearly isn't consistent with the BOE's target of 2%, he
says. However, the recent tightening in financial conditions caused
by the banking turmoil will probably weaken U.K. economic activity
and underlying price pressures, though the central bank may want to
see hard evidence of that before it stops raising rates, Dales
says. (edward.frankl@wsj.com)
Companies News:
Superdry to Sell Intellectual Property Assets in APAC for $50
Mln
Superdry PLC said Wednesday that it has signed an intellectual
property transfer agreement with South Korea-based Cowell Fashion
Co. Ltd. for the sale of its assets in certain countries within
Asia Pacific for an upfront payment of $50 million in cash.
---
XPS Pensions Sees 2023 Revenue Above Consensus
XPS Pensions Group PLC said Wednesday that it expects revenue
for fiscal 2023 to be ahead of current consensus and that the board
expects operational gearing to have improved after having managed
costs well.
---
Vistry 2022 Pretax Profit Fell on Exceptional Costs; Early 2023
Sales Improving
Vistry Group PLC said Wednesday that 2022 pretax profit fell on
exceptional costs and despite a rise in revenue, and it reported an
encouraging start to the year with a trend of improving sales.
---
Braemar to Report FY 2023 Rise in Revenue, Underlying Operating
Profit
Braemar PLC said Wednesday that it expects to report a rise in
revenue and underlying operating profit for fiscal 2023, and that
the board is looking at fiscal 2024 with confidence.
---
Fevertree 2022 Pretax Profit Fell on Glass, Freight Costs, Backs
2023 Views
Fevertree Drinks PLC said Wednesday that pretax profit for 2022
fell, mostly driven by increased glass costs and trans-Atlantic
freight costs, but backed its 2023 guidance and raised the dividend
payout.
---
Ten Entertainment 2022 Profit, Revenue Significantly Rose
Postpandemic
Ten Entertainment Group PLC said Wednesday that its 2022 pretax
profit significantly increased together with total sales, as it
delivered its first undisrupted trading year since 2019.
---
Pendragon 2022 Pretax Profit Fall on Cost Inflation, Increased
Interest Rates
Pendragon PLC said Wednesday that its 2022 pretax profit fell on
cost inflation and increased interest rates, although revenue grew
slightly, and that it won't proposed a final dividend.
---
Bytes Technology Sees FY 2023 Sales and Profit Rising on High
Demand
Bytes Technology Group PLC said Wednesday that it delivered
strong sales and profit growth in fiscal 2023, on strong demand for
its software and IT services.
---
Titon Holdings FY 2023 Performance in Line With Views; Sees 2H
Return to Profitability
Titon Holdings PLC said Wednesday that its performance in fiscal
2023 has been in line with the board's expectations and that
directors continue to expect a return to profitability in the
second half of the year ending Sept. 30.
---
Hostelworld 2022 Pretax Loss Narrows As Sector Recovers
Hostelworld Group PLC on Wednesday reported a narrowed pretax
loss for last year on revenue that rose more than four-fold due to
higher bookings on the back of a strong postpandemic recovery in
the travel sector.
---
Arrow Exploration Gets Better-Than-Expected Results at Colombia
Well
Arrow Exploration Corp. said Wednesday that initial production
rates from its new Rio Cravo Este-4 well in Colombia have been very
encouraging, with better-than-expected flow rates.
---
Mpac 2022 Pretax Profit Hurt by Supply-Chain Issues; CEO to Step
Down
Mpac Group PLC said Wednesday that despite a rise in revenue,
its pretax profit fell in 2022, blaming global supply-chain issues
and that Chief Executive Officer Tony Steels plans to step
down.
---
Judges Scientific 2022 Pretax Profit Rose; Says Supply-Chain
Disruptions Persist
Judges Scientific PLC said Wednesday that supply-chain
disruptions persist and that its 2022 pretax profit rose as revenue
increased on higher organic growth and an acquisition's
contribution.
Market Talk:
Sterling Rises as Strong UK Inflation Tips Balance Toward BOE
Rate Hike
0756 GMT - Sterling rises after U.K. inflation data was
unexpectedly strong, with headline annual CPI increasing by 10.4%
in February, making a rate increase by the Bank of England on
Thursday look more likely. Economists polled by The Wall Street
Journal had expected CPI to decline to 9.9%, from January's 10.1%.
"Tomorrow's decision by the MPC [BOE's Monetary Policy Committee]
was a coin flip before the red-hot data. These striking numbers
should be an important input and now tip the balance in favor of
another 25 basis-point rate hike," writes Jamie Dutta, market
analyst at online brokerage Vantage. GBP/USD is last up 0.4% at
1.2262, from 1.2230 before the data were released. EUR/GBP falls
0.4% to 0.8780, versus 0.8802 beforehand.
(jessica.fleetham@wsj.com)
---
Superdry's Intellectual Property Sale Likely to Boost Shares
0753 GMT - Superdry made a phenomenal deal in selling its
intellectual property rights in Asia-Pacific to a third party in a
movement that could deliver value for shareholders, Liberum
analysts say in a note. "This deal de-risks the balance sheet,
protects the profit and loss statement and whilst a lot of work is
yet to be done on its cost reduction program, is a very positive
step in the right direction. The shares should rise significantly
today," they say. The deal also comes after its exit of China in
2020, a territory that previously delivered low single digit pretax
profit, the analysts add. (michael.susin@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
March 22, 2023 04:18 ET (08:18 GMT)
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