Intu Debenture PLC said Wednesday that it has agreed to settle previously announced additional liabilities with its administrators found during the administrators' due-diligence process.


Market Talk: 

AstraZeneca Seen Upgrading EPS Guidance After Alexion Deal Closure

1118 GMT - AstraZeneca's closure of its Alexion acquisition is expected to prompt an upgrade to EPS guidance, likely when the company reports results on July 29, UBS says. The acquisition is expected to add about $0.40 to the pharma company's standalone EPS guidance this year, which now stands in a range of between $4.75 and $5, says UBS. Confidence in AstraZeneca's research-and-development productivity is seen returning as a result of the acquisition and after the unhelpful Covid-19 vaccine dynamics that the company has been going through, UBS says. This should in turn boost confidence in AstraZeneca's growth profile, according to the Swiss bank. (cecilia.butini@wsj.com)

BOE Seen Facing Pressure to React to Inflation, Lifting Pound

1114 GMT - June's higher-than-expected U.K. inflation lifted sterling versus the dollar as this means the Bank of England faces the same pressure as the Federal Reserve to respond to rising prices, Silicon Valley Bank says. The data provide evidence that inflation is running hot in the U.K. and the U.S., encouraging the BOE and the Fed to monitor price pressures and potentially tighten monetary policy, Silicon's Sam Cooper says. "The upside surprise in the U.K.'s consumer price index reading could question the BOE's view that inflation is transitory as the consumer price gauge recorded its second beat in two consecutive months." Annual U.K. rose to 2.5% in June, beating the 2.2% expected by economists in a WSJ survey. GBP/USD rises 0.4% to 1.3865. (renae.dyer@wsj.com)

BofA Raises UK 2021 Inflation Forecasts After June's Upside

1059 GMT - Bank of America raises its inflation forecasts for the U.K. in 2021 after earlier stronger-than-expected prices data for June, though it lowers its projections for 2022. The U.S. bank now expects the consumer price index and retail price index to reach 3.3% and 2.0% this year, revising its forecasts 4 basis points and 11 basis points higher respectively. "We raise our 2021 inflation forecasts again after inflation surprised on the upside in June," the bank says. CPI inflation rose from 2.1% in May to 2.5% in June, well above the consensus of 2.2% and still above BofA's higher call of 2.4%. Yet the bank lowers its CPI inflation forecast by 10 basis points to 2.3% in 2022, as the prospect of higher prices this year will create tougher base effects for next year. (lorena.ruibal@wsj.com)

SSP Group Trading Continues to Recover in the Wake of the CEO Departure

0951 GMT - SSP Group trading continues to pick up as CEO Simon Smith announces his departure at the end of 2021, Shore Capital says. The company's recovery is being driven by domestic and leisure travel, as expected, and most notably in North America, where U.S. airport passenger volumes have been running at 80% of 2019's level recently, the U.K. investment group says. "Vaccines and variants will likely dominate sentiment and the pace of recovery from here but as global travel recovers, we believe that the group, and Mr. Smith's successor, will be well-positioned to take advantage of the favorable structural backdrop," Shore says. Shore Capital rates the stock to buy and has a 264 pence target price. (anthony.orunagoriainoff@dowjones.com)

McBride's FY Debt, Profits Expected to Be in Line With Views

0941 GMT - McBride's fiscal 2021 profits and net debt are expected to be in line with consensus, reflecting the 2H's tougher volume environment and cost inflation, Peel Hunt says. These conditions are continuing and the company is discussing margin-recovery actions with customers as these were affected by a lower volumes, higher cost environment, the U.K. brokerage says. This was most acute in the liquids category and the supplier of household and personal-care products aims to apply an immediate variable pricing surcharge to sales contracts, the broker says. "The shares are currently trading at close to our target price of 89 pence, which we do not expect to change until the pricing environment becomes clearer," the broker says. Peel Hunt has an add rating on the stock. (anthony.orunagoriainoff@dowjones.com)

UK Builders Have Mixed Reaction to Housing-Market News

0938 GMT - U.K. house-builders respond in mixed fashion to corporate and macro-economic news from the sector. Barratt Developments rises 0.7% after the construction group forecast better-than-expected full-year adjusted pretax profit. Still, others fall as official house-price data shows prices rising 10% in the year to May, with property prices in London weakest and north-west England strongest. Such rapid price growth can't continue forever and the data may well represent a peak, Garrington Property Finders says. "With the stamp-duty holiday now ended in Wales and Scotland, and tapering away in England and Northern Ireland, the temporary stimulus it provided is fading fast," Garrington's Chief Executive Jonathan Hopper says. "The more conventional market dynamics of demand and supply are likely to drive prices from here." (philip.waller@wsj.com)

Barratt Developments Medium-Term Delivery Looks on Track

0915 GMT - Barratt Developments has posted a positive trading update, Citi's Ami Galla says, as the home builder reported increased full-year completions in fiscal 2021 and raised underlying pretax profit guidance. Underlying consensus expectations for Barratt's fiscal 2021 earnings are likely to move up around 3% to 4% on the back of completions, the bank says. Barratt is progressing well toward driving higher volume growth, and focus will likely remain on the underlying cost headwinds and progress on outlet growth--driving volume performance in the medium term, Galla says. Citi retains a buy rating on stock, with a target price of 878 pence. Shares are up 0.6% at 701.0 pence. (joseph.hoppe@wsj.com)

Barratt Developments Offers Strong Mix of Returns and Targets

0915 GMT - Barratt Developments' recent performance has remained strong, the balance sheet has strengthened and the forward order book looks to be in great shape, with the house builder delivering a good balance of returns and sustainability targets, Peel Hunt says. While Barratt's balance between selling-price increases and cost pressures in fiscal 2022 is likely to be favorable, the biggest challenge will be build rates and, as such, the brokerage expects to make few changes to its forecasts. "However, having seen the shares drift back by 11% in the past month, we believe it is time to upgrade from hold to add," Peel Hunt says, retaining its 800 pence price target. Shares are up 0.6% at 701.0 pence. (joseph.hoppe@wsj.com)

Barratt Developments Seen as in Good Position Though Some Sector Caution Remains

0911 GMT - House builder Barratt Developments is well positioned going into the new financial year despite some caution around the sector, Interactive Investor analyst Richard Hunter says. Barratt's share price rose by 29% over the last year, compared with a 15% rise in the wider FTSE 100, the online investment platform says. Barratt is upbeat, though the withdrawal of coronavirus-related government aid programs hasn't yet been felt, strong inflation readings remind of interest rates rises and completions have been temporarily inflated by the stamp-duty property tax holiday--but business is still robust, Interactive Investor says. "With strong demand and a promising outlook in evidence, market consensus also remains positive on prospects, coming in at a strong buy," Hunter says. Shares are up 0.8% at 702.0 pence. (joseph.hoppe@wsj.com)

UK Inflation to Trend Upward in Midterm

0901 GMT - Structural factors such as an aging population, continued deglobalization in goods trade and fiscal activism are expected to reinforce the inflationary dynamic in the U.K., Berenberg economists say. The bank projects sustained core inflation within the 2.5% and 3% range by the middle of the decade, with risks to the outlook tilted to the upside. "Given the long-run outlook for persistent inflation modestly above central bank targets in the U.K. and the U.S., a stronger-than-expected near-term inflation impulse could turn into a sustained trend," Berenberg says. "The warning from history is clear--all periods of high sustained inflation appear temporary at first," the bank says. (xavier.fontdegloria@wsj.com)

Dunelm Seen Benefiting From Continued Strong Demand

0856 GMT - Dunelm Group has been successful in capitalizing on its expanding e-commerce amid the coronavirus pandemic, which bodes well for further progress, according to Interactive Investor analyst Keith Bowman. The homeware retailer has used the challenges of the pandemic and closed stores to successfully boost its digital related sales, Bowman says. "A buoyant housing market and more time spent at home due to the Covid crisis are likely playing into its hands. Demand for bedding, curtains, bathroom textiles and cushions, and newer categories such as dining furniture has proved strong," the analyst says. (matteo.castia@dowjones.com)

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-931

(END) Dow Jones Newswires

07-14-21 1214ET