FTSE 100 Seen Easing Lower; Traders React to Inflation Data

FTSE 100 Seen Opening Lower After UK Inflation Data

0732 GMT - The FTSE 100 is seen opening lower as investors react to the latest U.K. inflation data. IG futures data show the London index of blue-chip stocks opening down 6 points. U.K. inflation fell to an annual rate of 10.5% in December from 10.7% in November, as expected by economists in a WSJ survey. Core inflation held at 6.3%, as forecast. The small fall in headline inflation and unchanged core inflation suggests it's "too early for the Bank of England to declare victory in its fight against inflation," Capital Economics economist Ruth Gregory writes. "This supports our view that the Bank will raise Bank Rate from 3.50% now to a peak of 4.50% in the coming months." ([e-mail])

 
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.

 
Market Talk: 

Antofagasta's Cost Guidance Will Temper Optimism Despite Strong 4Q

0757 GMT - Antofagasta has reported a strong set of fourth-quarter operational results, with better-than-expected copper production and sales, and higher-than-forecast gold and molybdenum by-product output, Citi says. The miner's cost gains from these factors haven't filtered through to cost guidance of $1.65 a pound for 2023, however, Citi analyst Ephrem Ravi says in a note. "[The] share price for Antofagasta has rallied significantly, reflecting the optimism priced in for better operational performance leading to lower costs and higher copper prices supported by China reopening-led demand recovery. [The] latest cost guidance in that context is likely to temper some of this optimism on unit costs, in our view," the U.S. bank says. Citi retains its 1,700 pence price target and neutral view on Antofagasta's stock. ([e-mail])

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Burberry's Revenue Miss Seen as Transitory

0756 GMT - Burberry's 3Q retail revenues were below consensus estimates largely due to Asia-Pacific and China weakness, while other regions were slightly ahead of expectations, RBC Capital Markets analysts say in a note. "The market is likely to view the miss as transitory, with the prospect to improve in 2023," they say. In the EMEIA region, retail revenue rose 19% compared with consensus estimates of 15%, as the British luxury-goods company benefited from inbound tourists, while China declined by 23% compared with RBC's estimates of a 20% fall, they say. Burberry's shares are outperforming the sector and could face some near-term profit taking, RBC adds. ([e-mail])

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Sterling Rises After UK Inflation Data

0745 GMT - Sterling rises after data showed U.K. inflation eased slightly in December but remained elevated, supporting the case for the Bank of England to raise interest rates further. U.K. inflation fell to 10.5% year-on-year in December from 10.7% in November while core inflation remained at 6.3%, as expected by economists in a WSJ survey. "This level of inflation is likely to mean the Bank of England continues to keep a tight rein on financial conditions," Premier Miton Monthly Income Fund fund manger Emma Mogford writes. GBP/USD rises to a one-month high of 1.2337 after the data, from 1.2290 beforehand, according to FactSet. EUR/GBP falls to a two-week low of 0.8764 after the data, from 0.8779 beforehand.([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

01-18-23 0317ET