FTSE 100 Falls Ahead of Fed Decision, Shrugs off Weaker UK Inflation

FTSE 100 Falls Ahead of Fed Decision, Shrugs off Weaker UK Inflation

0958 GMT - The FTSE 100 index falls 0.4% to 7472.68 as equity markets stay cautious ahead of an expected 50 basis-point interest-rate increase by the Federal Reserve after the market close. A bigger-than-expected fall in U.K. inflation to 10.7% in November fails to lift U.K. stocks as prices remain very high and the Bank of England is still expected to raise rates, most likely by 50 basis points on Thursday. However, the lower inflation figure does reduce the chances of a bigger 75 bps rise, says AJ Bell investment director Russ Mould in a note. British Airways owner International Consolidated Airlines is the biggest faller, down 2.8%, while retailers and property stocks are broadly lower. BT is the biggest riser, up 3.1%. ([e-mail])

 
Companies News: 

SThree Sees FY 2022 Double-Digit Net Fee Growth, Beating Management Views

SThree PLC said Wednesday that it expects to deliver strong growth in fiscal 2022 ahead of its expectations driven by double-digit growth across all regions.

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Watches of Switzerland Backs FY 2023 Guidance Amid Increased Demand, Higher Prices

Watches of Switzerland Group PLC backed its fiscal 2023 guidance on Wednesday after reporting a pretax profit increase in the first half amid robust revenue in the U.S. market.

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Mirriad Advertising Sees 2022 Revenue Below Hopes; Upbeat on US Growth Ahead

Mirriad Advertising PLC said it expects revenue for the full year to miss market expectations, but that it is confident of future growth as it strengthens its focus on the U.S. market.

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LoopUp Sees 2022 Revenue Beating Market Views, But Earnings Missing Consensus

LoopUp Group PLC said Wednesday that it expects 2022 revenue to be marginally above market expectations, though earnings to slightly miss market views.

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ProCook Swung to 1H Pretax Loss Amid Challenging Consumer Backdrop

ProCook Group PLC reported on Wednesday a swing to pretax loss in the first half of fiscal 2023 driven by a challenging consumer backdrop, and that it expects underlying pretax profit for fiscal to be break-even.

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Helium One Increases Fund Raising to GBP9.9 Mln on Investor Demand

Helium One Group Ltd. said Wednesday that it has increased its planned fund raising to 9.9 million pounds ($12.2 million) due to significant investor demand.

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Amedeo Air Four Plus Swung to 1H Pretax Profit On Higher Rent, Finance Income

Amedeo Air Four Plus Ltd. said Wednesday that it swung to a pretax profit for the first half of fiscal 2023 after bringing in more rent and finance income, and booking significantly lower credit losses.

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Dalata Hotel Sees Record-High Revenue in 2022 on Continued Robust Trading in 2H

Dalata Hotel Group PLC said Wednesday that it expects to report a record revenue driven by a better-than-expected performance during the second half.

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IntegraFin FY 2022 Pretax Profit Fell On VAT-Linked Costs

IntegraFin Holdings PLC on Wednesday reported a drop in pretax profit for fiscal 2022 due to higher expenses from backdated value-added tax, and said it sees the business remaining resilient in fiscal 2023.

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Volution Group Four-Month Revenue to End of November Rose on Year

Volution Group PLC said Wednesday that revenue for the four months to Nov. 30 was 112 million pounds ($138.5 million), 7.7% higher on year.

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Fulcrum Utility Shares Fall on Widened 1H Pretax Loss Amid Mounting Costs

Shares of Fulcrum Utility Services Ltd. fell Wednesday after the company reported a widened pretax loss for the first half of fiscal 2023 amid a turbulent energy market and a challenging macroeconomic backdrop.

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National Atomic Company Kazatomprom's CFO, Chief Commercial Officer Resign

National Atomic Company Kazatomprom said Wednesday that Chief Financial Officer Kamila Syzdykova and Chief Commercial Officer Askar Batyrbayev have resigned from their positions to pursue other opportunities.

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GetBusy Sees 2022 Revenue Ahead of Market Views

GetBusy PLC said Wednesday that it expects its revenue for 2022 to be ahead of market expectations thanks to strong consumer acquisition and monetization.

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Barryroe Offshore Energy CFO to Step Down in February

Barryroe Offshore Energy PLC said Wednesday that Chief Financial Officer Simon Brett will resign, effective from Feb. 28.

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Billington Sees 2022, 2023 Adjusted Pretax Profit Beating Management Views; Shares Rise

Billington Holdings PLC shares rose Wednesday after it said that it expects both 2022 and 2023 adjusted pretax profit to significantly exceed management expectations on improving performance.

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Videndum Finance Director Martin Green Steps Down; Andrea Rigamonti Named CFO

Videndum PLC said Wednesday that Group Finance Director Martin Green is stepping down from his role and that Andrea Rigamonti is appointed group chief financial officer with immediate effect.

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Cohort Swung to 1H Pretax Profit on Higher UK Defense Sales; Shares Rise

Shares of Cohort PLC rose Wednesday after the company said it swung to a first-half pretax profit and revenue rose on higher U.K. Defense Ministry sales, and raised its interim dividend.

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CyanConnode 1H Pretax Loss Widens; Sees Contracts Boosting 2H

CyanConnode Holdings PLC on Wednesday said that its pretax loss widened in the first half of fiscal 2023 as revenue dropped but it expects upcoming contracts to boost the revenue in the second half.

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Corcel Shares Increase Sharply After GBP466,000 Share Placement

Corcel PLC shares jumped as much as 43% on Wednesday after the company said it has raised 466,000 pounds ($576,209) via a high premium share placing from Auspect Investment.

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Britvic Names Former Greggs's Chair Ian Durant as Incoming Chair Designate

Britvic PLC said Wednesday that it named former Greggs PLC Chair Ian Durant as chair designate, effective from Feb. 1.

 
Market Talk: 

BOE Could Pause Tightening Cycle After Thursday's Move

0909 GMT - U.K.'s November lower-than-expected inflation print suggests price pressures have probably peaked, Berenberg's senior economist Kallum Pickering says in a note. "Although the outlook for inflation remains uncertain..., a growing confidence that inflation has probably peaked reduces the risk central banks will have to go much further than signalled to curb inflation," he says. November's inflation data is unlikely to change the Bank of England's decision on Thursday to increase rates by 50 basis points, but it might prevent the central bank to hike further beyond tomorrow's move, Pickering says. "It probably makes sense for policymakers to stand back and pause for a while until it becomes clear whether there remains any serious underlying inflation problem in the U.K.," he says. ([e-mail])

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Sterling Has Muted Reaction to Weaker UK Inflation

0922 GMT - Sterling's reaction to data showing U.K. annual inflation decelerated more than expected to 10.7% in November has been "quite muted" as it won't impact expectations for the Bank of England to raise interest rates on Thursday, ING says in a note. "The inflation figures do not suggest a different outcome for tomorrow's Bank of England meeting," currency analyst Francesco Pesole says. "Consensus and markets are expecting a 50 basis-point hike, and this is also our house call." Investors are also cautious ahead of a U.S. Federal Reserve rate decision later Wednesday, he says. GBP/USD rises 0.1% to 1.2377, having briefly fallen to around 1.2344 after the data, FactSet charts show. ([e-mail])

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TUI's Pricing Power Still Leaves It in Uncertain State

0940 GMT - TUI's fiscal 2022 numbers had plenty to celebrate, including a return to profit and a massive revenue rebound, but the question is whether pricing power will last, AJ Bell says. The travel operator's pricing will be a key test in 2023 as affordability for holidaymakers becomes an issue, and given people have shifted to booking holidays at shorter notice to avoid the risk of being caught off guard by disruption, the company has limited visibility on its future business, AJ Bell investment director Russ Mould says in a market comment. "Given the still somewhat perilous state of TUI's balance sheet, it can ill-afford any negative surprises in the coming 12 months," Mould says. Shares are down 5.9% at 139.0 pence. ([e-mail])

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UK 10-Year Gilt Yields Steady After UK November Inflation Drops

0950 GMT - U.K. 10-year gilt yields are largely unchanged even after official data showed that U.K. annual CPI inflation dropped more than expected to 10.7% in November from 11.1% in October, with analysts warning that prices remain very elevated. "The year on year increase in inflation is coming down but remains uncomfortably high," says Premier Miton Investors fund manager Emma Mogford in a note. The Bank of England is expected to keep raising interest rates to contain inflation, with a further increase expected on Thursday, and its decision on how high rates need to go "is a difficult one," Mogford says. The yield on the 10-year gilt last trades at 3.288% and is up by one basis point, according to Tradeweb. ([e-mail])

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Currys Likely to Report Lower Revenue Despite Increase in Market Share

1030 GMT - Currys is set to report its 1H results on Thursday and its market share is likely to have some contrast on the expected revenue decline, Shore Capital analysts Bradley Hughes and Clive Black say in a note. The retailer of technology products' market share rose to 31% in November from 29% in May, according to YouGov data, the analysts say. However, this increase could reflect a change in consumers behavior given the budget squeeze, with more reluctant clients returning to shops to see and touch products before buying them, they add. Evidence of a consumer switch to cheaper brands is also likely to have hit gross margins, they add. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

12-14-22 0551ET