More BOE Rate Rises Loom as Wage Growth Stays High Despite Cooling Inflation
0950 GMT - The Bank of England is likely to raise interest rates again next month, with a risk of further increases beyond that as high wages remains a key risk for rate-setters despite evidence that inflation is "heading back down fast," HSBC Asset Management says. "Despite a slowing economy, wages are still rising rapidly in a backdrop of stagnant labour supply, which risks keeping services inflation elevated," HSBC Asset Management strategist Hussain Mehdi says in a note. Further tightening beyond March is possible if wage growth measures "remain inconsistent with the Bank's 2% target." Data Wednesday showed U.K. inflation eased to 10.1% year-on-year in January from 10.5% in December, below expectations of 10.3% in a WSJ poll. (jessica.fleetham@wsj.com)
Companies News:
Barclays 4Q Pretax Profit Misses Consensus
Barclays PLC on Wednesday reported fourth-quarter pretax profit below market views as it declared a higher total dividend for the year and said it intends to launch a share buyback.
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Hargreaves Lansdown Beat 1H Revenue Expectations as Net Interest Margin Levels Rose
Hargreaves Lansdown PLC said Wednesday that it beat revenue expectations for the first half of fiscal 2023 as net interest margin levels increased, in turn leading to a rise in pretax profit for the period.
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Dunelm 1H Pretax Profit Slipped as Expected; Declares Increased Dividends
Dunelm Group PLC said Wednesday that pretax profit fell for the first half of fiscal 2023 as expected, though revenue rose and it declared increased special and interim dividends.
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LPA Group Sees FY 2023 in Line With Its Views; Wins GBP5.3 Mln Order
LPA Group PLC said Wednesday that it has received a 5.3 million pounds ($6.5 million) order to supply electro-mechanical products to the U.K. rail industry and that it is on track to deliver results for fiscal 2023 in line with its expectations.
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Brighton Pier Reports Strong Trading Across All Units Over 78-Week Period
Brighton Pier Group PLC said Wednesday that it performed well over the 78 weeks ended Dec. 25 with strong trading across all its divisions, helped by the acquisition of Lightwater Valley in June 2021 as well as government Covid-19 support and pent-up demand.
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Serinus Energy Wins Arbitration Case Against Former Romanian Partner
Serinus Energy PLC said Wednesday that it has won an arbitration case against Oilfield Exploration Business Solutions SA, its former partner in the Satu Mare Concession in Romania, taking control of its stake.
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Gattaca Warns of 2H Permanent Hiring Weakness; 1H Net Fee Income Rose
Gattaca PLC said Wednesday that permanent hiring in the second half of fiscal 2023 is likely to be hurt but that net fee income for the first half rose.
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Barclays 4Q Pretax Profit Misses Views, Issues 2023 Guidance -- Update
Barclays PLC on Wednesday reported fourth-quarter pretax profit below market expectations and issued guidance for the year ahead.
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Zephyr Energy Sees Williston Assets 2022 Revenue Beating Guidance
Zephyr Energy PLC said Wednesday that it expects 2022 revenue from its Williston Basin assets in North Dakota, U.S., to beat guidance as fourth-quarter net revenue to the company totaled $7.4 million.
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Sondrel's 2022 Revenue, New Orders Significantly Rose
Sondrel (Holdings) PLC said Wednesday that its 2022 revenue rose significantly on year, and it received an all-time high number of new design orders.
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Barclays' investment bank profit slides 23% as dealmaking fees slide -- Financial News
Barclays' dealmaking fees slipped by 39% to GBP2.2bn, which was the smallest drop of its Wall Street and European rivals
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Barclays Profit Falls as Deal Making Declines -- Update
By Josh Mitchell
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Getech CEO Jonathan Copus to Step Down at End of February
Getech Group PLC said Wednesday that Chief Executive Officer Jonathan Copus will step down from the role and board at the end of February, and Nonexecutive Chairman Richard Bennett will assume the role of interim executive chairman.
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Bidstack Group Names Thomas Bullen as New CFO
Bidstack Group PLC on Wednesday appointed Thomas Bullen as chief financial officer and said current interim CFO Bhavesh Hirani will resume his role as head of finance.
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Doric Nimrod Air Two Names Fiona Le Poidevin As New Chair
Doric Nimrod Air Two Ltd. on Wednesday said its board will be chaired by Fiona Le Poidevin as of March 1 as Geoffrey Hall stepped down from his position as chair.
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Corero Network CEO Lionel Chmilewsky Resigns
Corero Network Security PLC said Wednesday that Chief Executive Officer Lionel Chmilewsky has resigned with effect from Feb. 28 to pursue other opportunities, but will remain at the company until May 31 to ensure a smooth handover.
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Jubilee Metals Shares Fall on 1H Production Difficulties; Lowered Guidance for Platinum Group Metals
Jubilee Metals Group PLC shares fell Wednesday after the company said production difficulties in Zambia led to first-half copper production missing guidance, and lowered its full-year platinum group metal production guidance.
Market Talk:
UK Inflation and Wage Data Provides Enough Evidence for March Rate Hike
0915 GMT - U.K. inflation data provides enough evidence for the Bank of England to raise rates once more, TD Securities economists say in a note. Headline inflation fell to 10.1% on year in January, from 10.5% in December, driven by a sharp deceleration in the services sector, they say. However, food and core-goods inflation provided notable upside pressure on the print, with food prices expanding to a series high of 13.2% and core goods decelerating slightly to 5.6%, but still well above the BOE's prediction of 5.2%, they say. The inflation data and Tuesday's wage data should offer the BOE enough evidence to hike the key bank rate once more in March to 4.25% from 4%, with this expected to be the terminal rate, they add. (edward.frankl@wsj.com)
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Pound Vulnerable as Easing Inflation May Soften BOE's Stance
0919 GMT - Sterling faces further losses as an easing in price pressures may persuade the Bank of England to take a softer stance at upcoming meetings, Ebury says after Wednesday's lower-than-forecast U.K. inflation data. "Swap markets now see just two more 25 basis points rate hikes from the BOE, with a 50/50 chance of a first rate cut by year end," Ebury strategist Matthew Ryan says in a note. This is less aggressive than expected from the Federal Reserve and European Central bank, which could present some near-term downside for sterling, he says. U.K. inflation eased to 10.1% year-on-year in January from 10.5% in December. GBP/USD falls 0.6% to 1.2098 and EUR/GBP rises 0.5% to 0.8863. (renae.dyer@wsj.com)
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UK Inflation Remains Far from BOE's Forecast of 3% in 1Q 2024
0941 GMT - U.K. inflation is beginning to fall but it remains high and a long way above the 3% which the Bank of England forecasts for the first quarter of 2024, says AJ Bell head of personal finance Laura Suter in a note. "We still have inflation in the double digits and sitting at almost double what it was this time last year," she says. "It feels like a long journey from here to the Bank of England's prediction of 3% inflation in the first few months of 2024," Suter says. (miriam.mukuru@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires;
(END) Dow Jones Newswires
02-15-23 0512ET
