FTSE 100 Falls as Data Show UK Real Wages Remain Squeezed

The FTSE 100 falls 0.9% to 7550 points as traders react to U.K. employment data and look ahead to the latest U.S. inflation print. The U.K. unemployment rate fell to 3.8% in the three months to February from 3.9% in the previous three months, while growth in average weekly earnings excluding bonuses accelerated to 4.0% over the same period from 3.8% previously. "Real regular pay is already running 1% behind inflation, which means declining living standards for working people, and with inflation on the rise, that's only going to get worse," AJ Bell's Laith Khalaf says. Data at 1230 GMT are expected to show U.S. inflation accelerated in March, supporting bets for aggressive interest rate rises by the Federal Reserve. 


 
Companies News:

Deliveroo 1Q Orders, Gross Transaction Value Rose

Deliveroo PLC said Tuesday that growth in orders and gross transaction value accelerated in the first quarter of 2022, and backed its full-year guidance.

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Pennon Sees FY 2022 Performance in Line With Expectations

Pennon Group PLC said Tuesday that its performance for the year ended March 31 was in line with management expectations despite a challenging macro-economic environment.

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Hornby Says Sales Are Being Hurt by Supply Issues But Expects FY 2022 Profit

Hornby PLC said Tuesday that although it expects to report a profit for fiscal 2022 the availability of electronic components and lead times have hurt its ability to increase sales further in the fiscal year.

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Moneysupermarket.com 1Q Revenue Rose Despite Drop in Home-Services Unit

Moneysupermarket.com Group PLC said Tuesday that first-quarter revenue rose 8%, with growth in its money and travel segments offsetting a fall in its home-services unit due to energy-market disruption.

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Electrocomponents 4Q Comparable Revenue Grew 23%; Backs FY 2022 Guidance

Electrocomponents PLC said Tuesday that like-for-like revenue for fiscal 2022 grew 23% over the fourth quarter, and backed its full-year guidance.

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Liontrust FY 2022 Assets Under Management Rose; FY 2023 Sales Strong

Liontrust Asset Management PLC said Tuesday that assets under management and advice increased in fiscal 2022 and said that it has delivered positive sales at the start of fiscal 2023.

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M Winkworth 2021 Pretax Profit Doubled on Rental Performance, High Sales

M Winkworth PLC said Tuesday that its 2021 pretax profit more-than doubled on a good performance in rentals and with sales income exceeding its records.

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Gresham House Says 1Q Fundraising Was Strong

Gresham House PLC said Tuesday that positive fundraising momentum has continued into the first quarter of the year, with the pipeline for the remainder of the year remaining strong.

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Warpaint Sees 2021 Strong Performance Persisting into 2022

Warpaint London PLC said Tuesday that positive momentum from a strong 2021 has continued into the first quarter of 2022, with sales for the first three months up 60% on year.

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EasyJet Expects Narrowed 1H Headline Pretax Loss on Improved Performance

easyJet said Tuesday that it expects a narrowed headline pretax loss for the first half of fiscal 2022 as its performance improved, and that its summer plans for capacity to reach near 2019's level are unchanged.

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Plus500's 1Q Revenue Rose; Sees 2022's Ahead of Market Views

Plus500 Ltd. said Tuesday that its performance for the first quarter of 2022 was excellent thanks to strong costumer income, and added that it expects to surpass revenue market views for the whole year.

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Supreme Expects Revenue, Adjusted Ebitda Growth for FY 2022

Supreme PLC said Tuesday that it expects to report improved revenue and underlying earnings for fiscal 2022, and anticipates that profitable growth will continue in fiscal 2023.

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Parsley Box 2021 Pretax Loss Widened on Higher Costs

Parsley Box Group PLC said Tuesday that its 2021 pretax loss widened after booking higher costs as growth in the second half of the year was limited after reducing its marketing spend in the period.

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Nanoco 1H Pretax Loss Narrowed, Revenue Rose; Says Commercialization Progress Made

Nanoco Group PLC said Tuesday that its first-half pretax loss narrowed while revenue rose slightly, and that it has made good progress toward commercializing its products.

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Victoria's FY 2022 Revenue, Underlying Profit Seen Surpassing Views

Victoria PLC said Tuesday that revenue and underlying profits are expected to come in ahead of market views for fiscal 2022 and that demand for its products continues to be strong.

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EasyJet Expects Summer Capacity to Near Prepandemic Level

easyJet said Tuesday that it expects summer flight capacity to near prepandemic levels this year, and that it has recovered well since the U.K. government said in January that it was removing pandemic travel restrictions. 


 
Market Talk:

Deliveroo's 1Q Update Fails to Impress, Jefferies Says

0836 GMT - Deliveroo's first-quarter update was disappointing, failing to buck market expectations, with total order growth of 18%, Jefferies says. The food-delivery company's 1% constant-currency growth in orders and gross transaction value in the U.K. and Ireland are indicative of tough competition and lower consumer appetite, the U.S. bank says. While Deliveroo's international markets prop up the group's growth, it isn't by much, Jefferies says. "We expect a neutral impact on the price today, as the stock is still too depressed for any further shocks," Jefferies says, retaining its buy rating on the stock with a 240-pence price target. Shares are down 2.4% at 106.85 pence.

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UK 10Y Gilt Yield Climbs to Six-Year High

0814 GMT - Ten-year U.K. government bond yields rise to their highest level in more than six years as the selloff in gilts intensifies amid expectations that global central banks may move harder to stamp down on inflation. The 10-year gilt yield climbs further, to 1.880%, its highest level since January 2016 after official data Tuesday showed a tighter labor market in March. Gilt yields have been largely mirroring their U.S. counterparts, as investors ditch U.S. government debt in anticipation of a possible 50 basis-point rate rise at the May 3 and 4 Federal Open Market Committee meeting. The BOE is expected to lift its key borrowing rate by 25 basis points to 1% in May.

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EasyJet's 1H Update Is Ahead of Consensus

0804 GMT - Budget airline easyJet's expectations of a narrowed pretax loss for 1H in the GBP535 million to GBP565 million range is significantly better than consensus of GBP618 million, Citi says. This is because the company projects revenue of GBP1.5 billion, which is ahead of consensus at GBP1.48 billion, and forecasts operating costs in the range of GBP2.04 billion to GBP2.07 billion, lower than consensus of GBP2.09 billion, Citi says. "We think the shares will react positively, given the momentum in summer trading," the bank says. Citi has a sell rating on the stock.

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Deliveroo's 1Q Results Missed Consensus

0750 GMT - Deliveroo's first-quarter update looked slightly weak, with gross transaction value and orders both 2% below market consensus and unchanged full-year guidance, Citi says. The food-delivery company continues to expect gross transaction value growth of 15%-25%, and second-half growth is expected to be stronger than the first, the U.S. bank says. "We expect limited change to FY22e consensus at this stage, but expect focus to be on confidence surrounding 2H22 growth in the context of the weakening consumer outlook," Citi says, adding that it expects a neutral to slightly negative share price reaction to the results. Citi retains its buy and high-risk ratings on Deliveroo stock, and a 230 pence price target. Shares are down 3.2% at 106.0 pence.

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UK 10Y Gilt Yield Rises as UK Labor Market Tightens

0746 GMT - U.K. ten-year borrowing costs rise after official data showed the country's labor market tightened in March. The 10-year gilt yield climbed almost four basis points to 1.880% after the announcement from Monday's close, according to Tradeweb. U.K. employers added 35,000 jobs in March, while the unemployment rate fell to 3.8% in the three months through February, from 3.9% in the previous three-month period and the lowest reading since December 2019, data from the Office of National Statistics showed. The 10-year gilt yield trades last at 1.877%, according to Tradeweb.

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Mining Capex May Nearly Double by 2028 From 2021 Levels

0745 GMT - Mining capital expenditure should rise materially over the next few years as calls for miners to raise production volumes grow louder, Jefferies analysts say in a note. It tips rising pressure from policymakers and shareholders "as perceptions change regarding the sustainability of high prices" for commodities. Mining capex--adjusted for the size of the industry--has been roughly flat in real terms for six years, the bank notes. But "we believe mining capex in real terms can nearly double from 2021 to 2028, peaking at a level close to the prior peak of 2012," Jefferies says.


Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

04-12-22 0456ET