UK Services Inflation Easing Hints at End of BOE Tightening

UK Services Inflation Easing Hints at End of BOE Tightening

0754 GMT - U.K. data that showed easing services inflation raises the prospect that the Bank of England's tightening policy might be coming to an end, Ruth Gregory, deputy chief U.K. economist at Capital Economics, says in a note. CPI headline inflation fell to 10.1% in January from 10.5% in December, though the easing in services inflation--which slipped to 6.0% from 6.8%--will do most to reassure the central bank that inflation is moderating as it had hoped, she says. The figure is still too high for the BOE, "but it is clearly moving in the right direction", Gregory says. Indeed, the overall message is clear: disinflationary pressures are building and broadening, suggesting the end of the BOE's tightening cycle just got a bit closer, she says. ([e-mail])

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

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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.

 
Market Talk: 

Glencore 2022 Earnings Seen as Solid Despite Working Capital Drag

0747 GMT - Glencore has reported a solid set of 2022 results with Ebitda rising 60% to a record $34.1 billion largely on the back of coal, Citi says. The commodity mining and trading company's working capital has been a drag for free cash flow given continued build in the second half, but that has been partially offset by higher earnings in its marketing business, Citi analysts say in a research note. "We believe that markets are likely to look through the working capital build in the context of stronger EBIT in marketing," the U.S. bank says. Citi retains its buy rating and 700 pence target price on the stock. Shares closed Tuesday at 515.9 pence. ([e-mail])

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Easing UK Core Inflation Likely to Please BOE Officials

0751 GMT - January U.K. inflation data brings good news for the Bank of England, particularly the fall in core inflation--the rate that excludes the more-volatile categories of food and energy--Raymond James Investment Services' European strategist Jeremy Batstone-Carr says in a note. "This is incredibly welcome news for the Bank...as it suggests that the lagged effect of rate rises is finally having its desired impact," he says. BOE officials may be sighing with relief after January's data, but inflation is high and wage growth in the private sector--one of the factors fueling price pressures--is far too high for the central bank, Batstone-Carr says. "The Bank will now wait and see whether this is truly the beginning of a downward trajectory," he says. ([e-mail])

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Sterling Falls After Lower-Than-Forecast UK Inflation

0752 GMT - Sterling falls after data showed U.K. inflation eased by more than expected in January. Inflation decelerated to an annual rate of 10.1% in January from 10.5% in December, compared to expectations of 10.3% in a Wall Street Journal survey of analysts. "The easing in services inflation will do the most to reassure the Bank of England that inflation is moderating as it had hoped," Capital Economics economist Ruth Gregory writes. "This suggests the chances of interest rates rising from 4.00% now to our forecast of 4.50% are now a bit slimmer." GBP/USD falls to 1.2087 after the data from 1.2139 beforehand and EUR/GBP rises to 0.8859 from 0.8822. ([e-mail])

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

02-15-23 0313ET