BOE May Deliver One Final Rate Rise After UK Inflation Data

BOE May Deliver One Final Rate Rise After UK Data

0730 GMT - Higher-than-expected U.K. wage growth and inflation data this week mean the Bank of England should raise interest rates in May but that may be the final rate increase, Monex Europe says. Data Wednesday showed inflation eased less than expected in March but there were "still signs of positivity," especially in the BOE's preferred measures with core services inflation continuing to grow a slower rate than the central bank anticipated, Monex forex analyst Nick Rees says in a note. "Given the preliminary signs of optimism, which will soon filter through into headline readings, we think another 25 basis points hike by the BOE in May will be the last of this cycle, leaving Bank Rate at a [peak] level of 4.5%." ([e-mail])

 
Companies News: 

ConvaTec Buys Tech Platform From 30 Technology for Initial GBP45 Mln

ConvaTec Group PLC said Wednesday that it has bought the anti-infective nitric oxide technology platform of 30 Technology Ltd. for an initial 45 million pounds ($55.9 million) to explore application of the technology across business categories.

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Antofagasta 1Q Copper Production Fell On Quarter as Expected; Backs Guidance

Antofagasta PLC said Wednesday that copper production for the first three months of the year fell as expected, and backed guidance for copper production and capital expenditure in 2023.

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Hunting PLC 1Q Earnings Rose; Backs 2023 View

Hunting PLC said Wednesday that it booked higher earnings in the first quarter of 2023, and confirmed its full-year guidance.

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Liontrust Sees FY 2023 Revenue, Adjusted Pretax Profit Ahead of Views

Liontrust Asset Management PLC on Wednesday said it expects to report revenue and adjusted pretax profit ahead of market views for fiscal 2023 although it posted a fall in its assets under management and advice, or AuMA, over the fourth quarter.

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Cake Box Sees FY 2023 Revenue Increase on Better Trading, Less Costs

Cake Box Holdings PLC said Wednesday that it expects to report a revenue increase in fiscal 2023 and adjusted pretax profit in line with market expectations on the back of improved trading conditions and easing cost pressures.

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M Winkworth 2022 Profit, Revenue Slipped as Postlockdown Boost Fades

M Winkworth PLC said Wednesday that its 2022 pretax profit and revenue fell as a postlockdown surge in real-estate activity faded, and it expects the property market to perform at the higher end of expectations in 2023.

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National Express 1Q Revenue Rose on ALSA Performance; Sets Out Improvement Program

National Express Group PLC said Wednesday that revenue rose in line with expectations in the first quarter due to continuing strong performance from Spanish subsidiary ALSA and that it is launching a productivity improvement and cost-reduction program targeting at least 25 million pounds ($31.1 million) in annualized savings.

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Pendragon 1Q Underlying Pretax Profit Rose; Sees Beat to Full-Year View

Pendragon PLC said Wednesday that its underlying pretax profit rose in the first quarter of 2023 ahead of board's expectations, as operating profit in all divisions grew, and that it now expects to exceed expectations for the full year.

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Cornerstone FS 1Q Revenue Rose, Turns Earnings Positive for First Time

Cornerstone FS PLC said Wednesday that revenue for the first quarter of the year rose and was earnings positive for the first time, though it expects trading to revert to normalized levels in the second quarter.

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Kainos Group Sees FY 2023 Performance in Line With Market Views

Kainos Group PLC said Wednesday that its fiscal 2023 performance is expected to be in line with market expectations, supported by robust trading across all divisions.

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Plus500 Posts 1Q Revenue, Ebitda Drop; Sees 2023 In Line With Views

Plus500 Ltd. on Wednesday said it sees its performance for 2023 in line with market views as it posted first-quarter revenue and core earnings figures that were lower than the previous year but improved on-quarter.

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Redde Northgate Sees FY 2023 Profit at Top of Market Expectations

Redde Northgate PLC said Wednesday that it expects to report adjusted pretax profit for fiscal 2023 around the top end of the market consensus range after a strong performance.

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Audioboom Shares Drop After Lower 1Q Revenue, Adjusted Earnings Amid Challenging Market Conditions

Shares in Audioboom Group PLC fell 9.5% on Wednesday after it said that it booked lower revenue and adjusted earnings for the first quarter of 2023 as market conditions proved challenging.

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ProCook Sees FY 2023 Pretax Profit, Revenue in Line With Expectations

ProCook PLC said Wednesday that its underlying pretax profit is expected to break even in the year ended April 2, and that revenue for the year came in the middle of its expected range.

 
Market Talk: 

UK Gilt Yields Rise After Above-Forecast Inflation Data

0732 GMT - U.K. gilt yields rise after official data showed March inflation was stronger than forecast, raising expectations that the Bank of England will raise interest rates further on May 11. U.K. March annual CPI inflation was 10.1%, above the 9.8% consensus by economists in a WSJ poll. Core inflation remained unchanged at 6.2%, above the 5.9% consensus expected. "Given the high print in U.K. inflation, we expect gilts to drive the rates complex higher," write Mizuho analysts. The 10-year gilt yield last trades at 3.817%, up 8 basis points, while the 2-year gilt yield rises 7 basis points to 3.782%, Tradeweb data show. ([e-mail])

UK's High Prices Aren't Reflecting Falling Commodity Costs

0730 GMT - U.K. inflation remains stubbornly high, as despite many global food-commodity prices easing dramatically over the past year, the declines aren't trickling through into the price of products on the shelves, Kevin Bright, Partner at McKinsey, tells Dow Jones Newswires. The slight decline in the overall inflation--to 10.1% in March from 10.4%--reflects the fall in price of wholesale energy costs, but even there the downward contribution from motor fuels and liquid fuels is likely to be short lived, given OPEC's recently announced oil-production cutbacks, Bright says. While the slightly cooling inflation rate might appear to be putting the country on the right path, it isn't material given the multitude of other economic factors, as sluggish growth and high interest rates put pressure on businesses, he adds. ([e-mail])

Antofagasta Could Make up for 1Q Production Shortfall Later

0727 GMT - Antofagasta's first-quarter copper production of 146,000 metric tons missed RBC and market consensus expectations by 14% and 8%, respectively, due to water restrictions reducing throughput, but it could make it up later, RBC Capital Markets says. The Chilean miner could make up the 10,000 to 15,000 ton shortfall throughout the rest of the year, especially in the second half once the planned desalination plant at Los Pelambres has been commissioned and the expansion ramps up, RBC analysts say in a research note. The lower production drove higher net cash costs, but with production losses higher than the cost hit this shows a reasonable underlying cost performance, the Canadian bank says. RBC retains its sector perform rating and 1,500-pence price target on the stock. Shares are down 1.9% at 1,605.5 pence. ([e-mail])

High UK Inflation Likely to Bring Another Interest-Rate Increase in May

0723 GMT - The unexpectedly high inflation print in March, together with still elevated wage growth, is likely to lean policymakers at the Bank of England toward another interest-rate increase in May, ING developed markets economist James Smith says in a note. Core inflation--the rate excluding the more-volatile categories of food and energy--remains too elevated for the Bank of England's liking, but inflation for services is stabilizing and price growth for goods, while more persistent than expected, should clearly subside in the short term, he says. "It's not quite a slam dunk for a May rate hike, though markets are fully pricing that outcome now," Smith says. "We agree that it's now probably more likely than not..., having up until now forecasted no change." ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

04-19-23 0407ET