UK Inflation Data Could Mean 'Substantial' Rate Increases

UK Inflation Data Could Mean 'Substantial' Rate Increases

1029 GMT - Data showing U.K. annual consumer price inflation rose to 5.4% in December, its highest in nearly three decades, should be of "real concern" to the Bank of England and could mean rate rises are "more substantial" than currently expected, says Jamie Niven, senior fund manager at Candriam. "Interest rates will have to go up this year, as expected, but figures such as this, especially with the forthcoming rise in the energy cap, raises the prospect of rate rises being even more substantial," he says. Niven adds that the BOE could "come under political pressure to protect the consumer." ([e-mail])

 
Companies News: 

GlaxoSmithKline Names Tony Wood CSO Designate

GlaxoSmithKline PLC said Wednesday that it has appointed Tony Wood as chief scientific officer from August, replacing Hal Barron, who will become nonexecutive director.

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Smith & Nephew Buys Engage Surgical for Up to $135 Mln

Smith & Nephew PLC said Wednesday that it has acquired Engage Surgical for up to $135 million, contingent on sales performance.

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Burberry's 3Q Comparable Retail Sales Rose Ahead of Market Views

Burberry Group PLC said Wednesday that retail revenue and comparable store sales rose in the third quarter of fiscal 2022, with new customers driving double-digit full-price sales growth across all of its product categories.

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Antofagasta Expects Higher Costs in 2022; 2021 Output in Line With Guidance

Antofagasta PLC on Wednesday warned that its operational costs will jump this year, and reported that production for 2021 was in line with its guidance.

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Experian COO Kerry Williams to Retire; Craig Boundy Named

Experian PLC said Wednesday that Chief Operating Officer Kerry Williams plans to retire from his role after 19 years with the company, and will be replaced by Craig Boundy.

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Wise 3Q Revenue Rose 34%

Wise PLC said Wednesday that its revenue grew 34% in the third quarter of the fiscal year.

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Pearson Expects Increased 2021 Sales, Adj Operating Profit

Pearson PLC said Wednesday that it expects to report increased sales and adjusted operating profit for 2021.

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J.D. Wetherspoon to Report 1H Loss Due to Coronavirus-Related Restrictions

J.D. Wetherspoon PLC said Wednesday that sales for the second quarter of fiscal 2022 were hurt by coronavirus-related restrictions, and that it will be loss-making in the first half of the year.

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Christie Group Sees 2021 Operating Profit Significantly Ahead of Market Expectations

Christie Group PLC said Wednesday that it expects to report operating profit for 2021 significantly ahead of current market expectations.

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WH Smith Says Year-To-Date Revenue Is at 85% of Pre-Pandemic Levels

WH Smith PLC said Wednesday that revenue for the 20 weeks to Saturday was at 85% of 2019 revenue levels, with its high street--or brick-and-mortar retail--business being in a stronger position than its travel division due to the Covid-19 Omicron variant.

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Burberry's 3Q Comparable Retail Sales Rose Ahead of Market Views -- Update

Burberry Group PLC said Wednesday that retail revenue and comparable store sales rose in the third quarter of fiscal 2022, with new customers driving double-digit full-price sales growth across all of its product categories on a two-year basis.

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Liontrust 3Q Assets Under Management Rose

Liontrust Asset Management PLC said Wednesday that assets under management and advice for the third quarter of fiscal 2022 rose 20% from a year earlier.

 
Market Talk: 

BOE's Stance is Accommodative, Market Overestimates Rate Rises, Says Invesco

1015 GMT - The Bank of England's stance on interest-rate increases is very accommodative and likely to undershoot market expectations, says Invesco. "Bearing in mind the balance sheet expansion that has taken place during the pandemic, we view the BOE's stance as very accommodative," says Paul Jackson, global head of asset allocation research at Invesco. He expects the U.K.'s key base rate to hit 1% by the end of 2022 from 0.25% at present and move higher again in 2023. "Markets are currently pricing in a rate of 1.25% by the end of the year, with the next rate hike likely coming at the 3 February meeting," he says, adding that a stronger-than-feared inflation reading for December raises the odds for a rate increase next month. ([e-mail])

Post-Lockdown Luxury Goods Rebound Boosts Burberry

1013 GMT - Shares in Burberry rise 6.4% after the luxury-goods group reported higher third-quarter retail revenue and comparable store sales as it benefited from strong growth in mainland China and the Americas. "There's a lot to like in Burberry's latest trading update, not least improved margins driving guidance for a much larger-than-forecast increase in full-year profit," AJ Bell investment director Russ Mould says. "As we emerge from the pandemic and people start to socialize and travel more, it appears the wealthy are lapping up luxury items, with Burberry the latest name in this sector to report strong trading." ([e-mail])

Burberry Unlikely to Face More Like-For-Like Pandemic Disruption, Citi Says -- Market Talk

0954 GMT - Citi expects Burberry to benefit from an upgrade of a mid to high-single digit percentage to fiscal 2022's Ebit market expectation of GBP472 million, following its third-quarter trading update and improved guidance. The British luxury-goods company's third-quarter was possibly the last period of quarterly comparison disruption--like for like disruption--as Citi says. This is due to Burberry's slight third-quarter revenue beat, higher wholesale guidance, industrial efficiencies and reduced foreign exchange headwinds, the U.S. bank adds. Citi maintains its neutral rating and has a target price of 2,080 pence. Shares are up 5.8% at 1,858.00 pence. ([e-mail]; @sabelaojeaguix)

Another Month, Another Big Upside UK Inflation Surprise

0911 GMT - U.K. inflation rose from 5.1% in November to 5.4% on-year in December, 0.2 percentage points higher than consensus, following upside surprises of 0.3 percentage points in both October and November, HSBC says. Like in those two months, the news can be accounted for by the core inflation rate, HSBC's senior economist Chris Hare says. Economists have been expecting month-on-month inflation to fall toward average rates, but this hasn't yet happened, he says. "What's more, the strength is broad-based, it not only relates to the prices of goods that are subject to global logistics disruption, but also services, particularly those which have come into high demand as the economy has recovered," Hare says. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires; [e-mail]

(END) Dow Jones Newswires

01-19-22 0545ET