The FTSE 100 closed down 0.3% on Wednesday as U.K. inflation continued its decline in December while still remaining in double-digit growth, despite rising interest rates and slowing economic activity. The FTSE 100 once again underperformed after the latest U.K. inflation served to put upward pressure on the pound, CMC Markets UK's Chief Market Analyst Michael Hewson says in a note. "On the plus side on the U.K. benchmark, basic resource stocks are leading the way higher, as copper prices rise to their highest levels since June last year, pulling the likes of Glencore, Antofagasta and Anglo American higher," Hewson says. Rising food price inflation, however, appears to be weighing on consumer staples and retailers, such as Unilever, Reckitt Benckiser, Haleon, JD Sports and Next, he adds.
Companies News:
Pearson to Report Rise in 2022 Underlying Sales
Pearson PLC said Wednesday that it expects to report a rise in underlying sales for 2022, and that it finished the year ahead of the board's expectations.
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Burberry 3Q Store Sales Rose but Missed Market Views Due to China Covid-19 Disruption
Burberry Group PLC said Wednesday that third-quarter comparable store sales rose slightly, but missed market views due to the impact of the Covid-related disruption in China, while retail revenue rose.
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Smiths Group Raises FY 2023 Forecast After Strong 2Q Performance
Smiths Group PLC on Wednesday raised its full-year guidance after a strong second-quarter performance.
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Antofagasta Expects Higher Costs in 2023; 2022 Output in Line With Guidance
Antofagasta PLC on Wednesday said that it expects both its net cash costs and production to rise in 2023, and reported that production for 2022 was in line with its guidance.
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QinetiQ Says 3Q Operational Performance Was Good; FY 2023 in Line With Views
QinetiQ Group PLC said Wednesday that its operational performance in the third quarter of fiscal 2023 was good, and that it remained on track to deliver results in line with expectations for the year.
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Currys Christmas Sales Slipped, Backs FY 2023 Guidance
Currys PLC on Wednesday said sales during its peak Christmas period fell as weak performance in its international market was partly compensated by stronger U.K. and Ireland sales, and backed its full-year guidance.
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Vistry Sees 2022 Adjusted Profit Rising, Increased Order Book
Vistry Group PLC said Wednesday that it expects to report that full-year 2022 adjusted pretax profit rose in line with guidance on higher selling prices, and that its order book grew on year.
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H&T Says 2022 in Line With Views After Strong 4Q
H&T Group PLC said Wednesday that its performance in the fourth quarter remained strong, and that the board was confident full-year results will be in line with market forecasts.
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WH Smith Sees Further Growth in FY 2023 Driven by Travel-Business Performance
WH Smith PLC said Wednesday that revenue for the 20 weeks to Jan 14. rose, supported by a robust start to the financial year, and that it is confident for growth in fiscal 2023.
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Ibstock 2022 Revenue Rose; Sees 2023 Demand Hurt by Inflation, Market Uncertainty
Ibstock PLC said Wednesday that it expects to report a 25% rise in 2022 revenue with adjusted Ebitda seen ahead of the board's expectations, and that it expects demand in 2023 to be hurt by inflation, high interest rates, and market uncertainty.
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Rathbones Group Funds Under Management and Administration Fell in 2022
Rathbones Group PLC said Wednesday that total funds under management at Dec. 31 fell as market volatility hit its investments.
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S4 Capital 4Q Performance Met Views; Expects 2022 Operational Ebitda Rose
S4 Capital PLC said Wednesday that its fourth-quarter performance met its expectations, and that it expects to repost at least 120 million pounds ($147.4 million) of operational earnings before interest, taxes, depreciation and amortization in 2022.
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Team17 Group to Beat 2022 Revenue, Adjusted Ebitda Forecasts After Strong 2H
Team17 Group PLC said Wednesday that it expects to beat revenue and adjusted Ebitda market forecasts for 2022 after a strong second-half performance.
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Liontrust 3Q Assets Under Management Edged Up
Liontrust Asset Management PLC said Wednesday that assets under management and advice for the third quarter of fiscal 2023 rose 2.9% over the period.
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Gateley 1H Pretax Profit Rose on Higher Consultancy Services Revenue
Gateley (Holdings) PLC said Wednesday that pretax profit rose for the first half of fiscal 2023 as revenue from its consultancy services grew, but flagged a more challenging second half.
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Galliford Try 1H Met Views; Well Placed for Fiscal 2023
Galliford Try Holdings PLC said Wednesday that its performance in the first half of fiscal 2023 was in line with its expectations, and that it was well placed for the full year.
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Streaks Gaming New Registrations Soared in 2022 on AI Improvements
Streaks Gaming PLC said Wednesday that it has seen a significant increase in 2022 key metrics compared with the previous year driven by further investment in artificial intelligence.
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Midwich Shares Rise on Expected 2022 Revenue, Profit Growth
Shares of Midwich Group PLC rose Wednesday after the company said that it expects to report strong 2022 revenue growth and adjusted pretax profit comfortably ahead of market expectations following a positive finish to the year.
Market Talk:
Dollar Strengthens Versus the Yen, Weakens Against Euro, Pound
0839 ET - The dollar bounces back versus the yen after the Bank of Japan decided to stick with its near-zero rate policy, frustrating analysts who expected some monetary tightening. The USDJPY cross rises 0.2%, even as the greenback weakens against other major currencies, including nearly 1% to the pound and 0.5% to the euro. (paulo.trevisani@wsj.com; @ptrevisani)
GSK's RSV Shot Should Boost Company, But Competition Is Strong
1107 GMT - RSV vaccines are a promising field for GSK and could become a driving force for the company, which is in need for replacements after some of its patent are set to expire, UBS analysts say in a note. Moderna just unveiled data on its own respiratory syncytal virus shot, which looks good at face value, but suggests this market will be more competitive than anticipated, the analysts say. In fact, Moderna's could have a competitive advantage since it can be administered together
Burberry's Sales Improvement in Americas Looks Encouraging
1102 GMT - Burberry's third-quarter update showed positive sales growth despite the restraint in the group's key market China, Deutsche Bank analyst Adam Cochrane and Matt Garland say in a note, as the luxury retailer's shares rise 2.3%. Burberry reported an encouraging improvement in Americas, especially given the robust tourist flows. "Excluding China, 3Q growth was more impressive at +11% and this is a better reflection of the underlying business," they say. With expectations of China sales recovering in 2023, a major drag on Burberry's prospects will be removed, the analysts add. Deutsche has a hold rating on the stock and a price target at 2,200.0 pence. (michael.susin@wsj.com)
Burberry Gains as 3Q Sales Rise Despite China Issues
1058 GMT - Burberry Group gains 2% after the fashion brand reported slightly higher third-quarter sales, with a double-digit revenue increase outside mainland China offsetting the impact of coronavirus-related disruption there. China's ultra-strict Covid restrictions were the biggest drag on sales growth for Burberry in the third quarter, financial-services firm eToro says. While Burberry increased overall like-for-like sales by 1%, it was 11% stripping out mainland China, eToro says, adding that Burberry expects high single-digit revenue gains in the near and medium-term. "Should Chinese consumer spending and economic growth prove resilient, that should be achievable," eToro analyst Adam Vettese writes. (philip.waller@wsj.com)
STM Group's 2022 Expectations In Line With FinnCap Forecasts
1026 GMT - STM Group's 2022 expectations are broadly in line with forecasts, says finnCap in a note. Director of research Mark Paddon points to the financial-services provider's expected revenue of GBP24.1 million against the GBP24.3 million in the brokerage's forecast. Adjusted Ebitda, to take into account the July acquisition, is now anticipated to be around GBP4.6 million, up from the GBP4.4 million finnCap had initially forecast, he says. Shares fall 5.2% to 27.5 pence. (elena.vardon@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
01-18-23 1255ET
