The UK Economy Is Likely to Stagnate if Energy Prices Stay Elevated
0807 GMT - The rise in energy prices following Russia's attack on Ukraine has darkened the outlook for the U.K. economy, Pantheon Macroeconomics says. The surge in prices, if sustained, is set to boost inflation by an additional 1.5 percentage points this year, while consumption could be hit as households' net disposable incomes are expected to fall by about 2.2% this year, the economic-research firm says. Even if households' real expenditure drops, the economy still might avoid a recession because businesses plan to invest more and stock up on finished goods, Pantheon says. "But with households' spending equal to 60% of GDP, a period of below trend growth, which will obviate the need for much higher interest rates, surely lies in store," it says. (xavier.fontdegloria@wsj.com)
Companies News:
Evraz Confirms Potential Exposure to Sanctions Against Russia
Evraz PLC said Friday that it is exposed to the effects of policies adopted by the Russian government, and that the worsening situation in Ukraine increases the risk of sanctions which could affect its operations.
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Rightmove 2021 Profit Rebounded to Above Pre-Pandemic Levels Amid Housing Boom
Rightmove PLC said Friday that pretax profit for 2021 rose above pre-pandemic levels on the back a housing boom driving up revenue per advertiser.
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Frasers Group Acquires Troubled Studio Retail's Operating Business for GBP26.8 Mln
Frasers Group PLC said Friday it has acquired digital retailer Studio Retail Group PLC's main operating subsidiary Studio Retail Ltd. and certain other assets for a consideration of 26.8 million pounds ($35.9 million).
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Pearson 2021 Pretax Profit Fell; To Buy Back Shares of Up to GBP350 Mln
Pearson PLC said Friday that pretax profit fell in 2021, raised its dividend payout and said it planned to buy back shares.
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IAG Expects 1Q Operating Loss, Return to 2Q Profit After 2021 Net Loss Narrowed
International Consolidated Airlines Group SA said Friday that it expects a significant operating loss in the first quarter before a return to profit in the second quarter, as it reported a narrowed net loss for 2021.
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Babcock International's Performance in 10 Months to Jan. 31 Was in Line With Views
Babcock International Group PLC said Friday that its performance in the first 10 months to Jan. 31 was in line with expectations, and that its outlook for fiscal 2022 was unchanged.
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Lukoil Buys 50% Stake in Area 4 Oil Project Offshore Mexico
Lukoil PJSC said Friday that it has completed the acquisition of a 50% stake in the Area 4 oil project offshore Mexico for $435 million plus expenditures of around $250 million.
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Alliance Trust 2021 Profit Rose Against Weak Comparative Year
Alliance Trust PLC said Friday that its 2021 pretax profit rose significantly on higher revenue and a weak comparative year, but missed its own performance benchmark.
Market Talk:
Rightmove's Results Don't Give Any Cause for Worry
0840 GMT - Rightmove's 2021 results didn't have anything particularly anomalous or worrying, despite market weakness and a volatile backdrop, which will likely drive an increase in share price, Jefferies says. The U.K. online property-portal profit and revenue rose on-year, with the main driver of its outperformance being revenue that doesn't fall under its agency or new homes divisions, beating expectations by 5.1%, the U.S. bank says. Rightmove's agency revenue of GBP224.5 million--its largest source--met expectations, while average revenue per advertizer of GBP1,189 was almost exactly in line with soft guidance given at its interim results, Jefferies says. Jefferies retains its underperform rating and 445.0 pence price target on Rightmove's stock. Shares are up 3.6% at 636.8 pence. (joseph.hoppe@wsj.com)
Pearson Seems Comfortable With Market Expectations
0833 GMT - Pearson has delivered a performance for 2021 in line with expectations, but also surprised with cash returns and guidance for 2022, Citi says. The launch of a GBP350 million share buyback program takes the overall cash return planned for 2022 to more than 10% of the FTSE 100 education company's market capitalization, Citi says. Pearson has also signaled that it is comfortable with 2022 market expectations and revenue margin growth for 2025, the U.S. bank adds. Citi has a buy rating on the stock and a target price of 9.30 pence. Shares are up 6.4% at 638.4 pence. (michael.susin@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
02-25-22 0446ET
