UK Inflation Could Ease to 3% by End of 2023
0735 GMT - There are good reasons why U.K. inflation is set to tumble to as low as 3% by Christmas, says Steven Bell, chief economist EMEA at Columbia Threadneedle Investments, in a note. First and most obviously, household energy bills won't rise further and will probably be falling from July onward, he says. Secondly, sterling was weak for most of last year, adding to inflation, and collapsing after Kwasi Kwarteng's budget in September, but since then it's been appreciating, Bell says. Third is that wage inflation will slow from the summer, when student numbers, which have swelled during the pandemic, enter the workforce. But this trend won't prevent the Bank of England from raising interest rates further, he adds. (edward.frankl@wsj.com)
Companies News:
AB Foods Backs FY 2023 Views After 1H Sales Rose, Although Profit Fell
Associated British Foods PLC said Tuesday that adjusted operating profit for the first half of fiscal 2023 fell, but backed its full-year guidance amid robust sales growth and less volatile inflation, and raised its dividend payout.
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Travis Perkins 1Q Sales Fell On Challenging Market Conditions
Travis Perkins PLC said Tuesday that sales fell in the first quarter of 2023 due to challenging market conditions.
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Anglo American 1Q Production Rose 9% On Year; Backs 2023 Guidance
Anglo American PLC on Tuesday said its first-quarter production rose 9% compared with the same period the previous year driven by copper production at its new mine in Peru as well as improvements in its steelmaking coal and iron ore business operations.
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JD Sports Fashion Appoints Darren Shapland, Angela Luger as Nonexecutive Directors
JD Sports Fashion PLC said Tuesday that it has appointed Darren Shapland and Angela Luger as nonexecutive directors from June 1.
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Whitbread FY 2023 Pretax Profit Rose; Launches GBP300 Mln Buyback Program
Whitbread PLC said Tuesday that pretax profit rose for fiscal 2023, and that it was launching a 300 million pounds ($374.6 million) buyback.
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Jupiter Fund Management 1Q Assets Under Management Rose
Jupiter Fund Management PLC on Tuesday posted a rise in its assets under management over the first quarter of 2023 compared with the previous quarter, propped up by positive market movements performance.
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Loungers FY 2023 Revenue Reaches Record Level After 2H Like-For-Like Sales Rose
Loungers PLC said Tuesday that revenue for fiscal 2023 reached a record level after a 12% rise in like-for-like sales in the second half and a strong final 12 weeks of the year.
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Coca-Cola Europacific Partners 1Q Sales Rose
Coca-Cola Europacific Partners PLC said Tuesday that its revenue rose 12% in the first quarter of 2023 on strong demand in Europe.
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IWG Backs 2023 Views After Record 1Q Revenue
IWG PLC said Tuesday that its outlook for 2023 remains unchanged after the group reported a record revenue for the first quarter and continues to focus on reducing debts.
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Eurowag 1Q Net Revenue Rose 31% on Growth of Active Customers
W.A.G Payment Solutions PLC on Tuesday posted a 31% rise in net revenue in the first quarter of 2023 as its number of active customers and trucks grew, and backed its medium-term guidance.
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Quilter 1Q Assets Under Management and Administration Edged Up On-Quarter
Quilter PLC on Tuesday said its first-quarter assets under management and administration rose slightly on net inflows, a modest pick-up in equity markets and slightly lower bond yields in the period.
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Next 15 Swung to Pretax Profit in FY 2023 on Acquisitions, Contract Wins
Next 15 Group PLC said Tuesday that it swung to a pretax profit in fiscal 2023, as revenue was boosted by acquisitions and contract wins.
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RWS Holdings Sees FY 2023 Adjusted Pretax Profit at Lower End of Views; Shares Fall
RWS Holdings PLC shares fell on Tuesday after the group said it expects adjusted pretax profit for fiscal 2023 to be at the lower end of market expectations due to reduced levels of activity.
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AB Dynamics 1H Pretax Profit Fell Despite 30% Revenue Growth
AB Dynamics PLC said Tuesday that pretax profit fell in the first half of fiscal 2023, but that revenue rose 30% due to strong performances in main segments.
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Hammerson 1Q Rental Income Increased as Footfall, Sales Rose
Hammerson PLC said Tuesday that its rental income rose in the first quarter as more people visited and shopped at its centers.
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Smoove PLC Says Third-Party Talks Have Ended
Smoove PLC said Tuesday that talks with a third party over a possible deal have ended following separate takeover talks with PEXA Group Ltd.
Market Talk:
Ocado Takes Step Toward Better Efficiency With Halt to Hatfield Operations, JPM Says
0806 GMT - Ocado's announcement that operations will be halted at Hatfield Customer Fulfillment Centre is a sensible step toward better efficiency with very limited financial impacts, JPMorgan analysts Marcus Diebel and Karin So say in a note. The online grocer's Hatfield operations currently fulfills around 20% of Ocado's current 400,000 orders per week, which will be moved to next-generation facilities, particularly the nearby Luton CFC, they say. With additional Luton capacity coming through, Ocado Retail will increase total capacity to 525,000 orders per week, they add. Despite the limited one-off impact on cash costs for 2023, the decision is expected to havepositive margin impacts from 2024, it added. (michael.susin@wsj.com)
AB Foods Steers Inflationary Storms Bolstered by Primark
0738 GMT - AB Foods' 1H shows that the group is managing to navigate through persistent inflationary pressures as Primark remains a key driver of its recovering profits, Interactive Investor head of markets Richard Hunter says in a note. The British conglomerate benefits from a diversified business, which also helps to mitigate some of the pressures, and its food businesses managed to increase both revenue and adjusted operating profit despite considerable headwinds, he adds. However, both net cash and net debt have deteriorated, although these are expected to be relatively temporary dips, Hunter says. (michael.susin@wsj.com)
Anglo American's Unchanged Guidance Implies Production Recovery
0733 GMT - Anglo American's unchanged production and cost guidance for 2023 implies a sharp recovery in production throughout the year, Citi says in a note after the London-listed miner posted a set of mixed first-quarter production figures with weaker copper output, which was offset by higher diamonds and iron ore. "Although production volumes have declined for the group as a whole vs last quarter, weakness in copper production was relatively large with 27% decline," says analyst Ephrem Ravi, noting that despite the ramp-up in Peru, the lower grades at its Chilean site that dented production was a read-across from other companies and appears to be a sector-wide issue. Citi has a buy rating on the stock. Shares fall 1.8% at 2,468.5 pence. (elena.vardon@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
04-25-23 0434ET
