BOE Expected to Raise Interest Rates Further Amid Strength of Services Inflation

0823 GMT - The Bank of England is expected to increase interest rates further as the small fall in inflation recorded in December masks underlying price pressures in the services sector, Capital Economics' senior U.K. economist Ruth Gregory says in a note. Goods inflation is fading fast, but the strength of services inflation is a problem for the central bank, she says. "Today's release provided further confirmation that inflation is falling, but the 2.0% inflation target is still a long way from being hit," Gregory says. "With underlying inflation, activity and wage growth all ending last year a bit stronger than expected, we doubt the Bank of England will call time on rate hikes," she says. (xavier.fontdegloria@wsj.com) 


 
Companies News:

Pearson to Report Rise in 2022 Underlying Sales

Pearson PLC said Wednesday that it expects to report a rise in underlying sales for 2022, and that it finished the year ahead of the board's expectations.

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Burberry 3Q Store Sales Rose but Missed Market Views Due to China Covid-19 Disruption

Burberry Group PLC said Wednesday that third-quarter comparable store sales rose slightly, but missed market views due to the impact of the Covid-related disruption in China, while retail revenue rose.

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Smiths Group Raises FY 2023 Forecast After Strong 2Q Performance

Smiths Group PLC on Wednesday raised its full-year guidance after a strong second-quarter performance.

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Antofagasta Expects Higher Costs in 2023; 2022 Output in Line With Guidance

Antofagasta PLC on Wednesday said that it expects both its net cash costs and production to rise in 2023, and reported that production for 2022 was in line with its guidance.

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QinetiQ Says 3Q Operational Performance Was Good; FY 2023 in Line With Views

QinetiQ Group PLC said Wednesday that its operational performance in the third quarter of fiscal 2023 was good, and that it remained on track to deliver results in line with expectations for the year.

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Currys Christmas Sales Slipped, Backs FY 2023 Guidance

Currys PLC on Wednesday said sales during its peak Christmas period fell as weak performance in its international market was partly compensated by stronger U.K. and Ireland sales, and backed its full-year guidance.

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Vistry Sees 2022 Adjusted Profit Rising, Increased Order Book

Vistry Group PLC said Wednesday that it expects to report that full-year 2022 adjusted pretax profit rose in line with guidance on higher selling prices, and that its order book grew on year.

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H&T Says 2022 in Line With Views After Strong 4Q

H&T Group PLC said Wednesday that its performance in the fourth quarter remained strong, and that the board was confident full-year results will be in line with market forecasts.

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WH Smith Sees Further Growth in FY 2023 Driven by Travel-Business Performance

WH Smith PLC said Wednesday that revenue for the 20 weeks to Jan 14. rose, supported by a robust start to the financial year, and that it is confident for growth in fiscal 2023.

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Ibstock 2022 Revenue Rose; Sees 2023 Demand Hurt by Inflation, Market Uncertainty

Ibstock PLC said Wednesday that it expects to report a 25% rise in 2022 revenue with adjusted Ebitda seen ahead of the board's expectations, and that it expects demand in 2023 to be hurt by inflation, high interest rates, and market uncertainty.

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Rathbones Group Funds Under Management and Administration Fell in 2022

Rathbones Group PLC said Wednesday that total funds under management at Dec. 31 fell as market volatility hit its investments.

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S4 Capital 4Q Performance Met Views; Expects 2022 Operational Ebitda Rose

S4 Capital PLC said Wednesday that its fourth-quarter performance met its expectations, and that it expects to repost at least 120 million pounds ($147.4 million) of operational earnings before interest, taxes, depreciation and amortization in 2022.

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Team17 Group to Beat 2022 Revenue, Adjusted Ebitda Forecasts After Strong 2H

Team17 Group PLC said Wednesday that it expects to beat revenue and adjusted Ebitda market forecasts for 2022 after a strong second-half performance.

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Liontrust 3Q Assets Under Management Edged Up

Liontrust Asset Management PLC said Wednesday that assets under management and advice for the third quarter of fiscal 2023 rose 2.9% over the period.

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Gateley 1H Pretax Profit Rose on Higher Consultancy Services Revenue

Gateley (Holdings) PLC said Wednesday that pretax profit rose for the first half of fiscal 2023 as revenue from its consultancy services grew, but flagged a more challenging second half.

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Galliford Try 1H Met Views; Well Placed for Fiscal 2023

Galliford Try Holdings PLC said Wednesday that its performance in the first half of fiscal 2023 was in line with its expectations, and that it was well placed for the full year.

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Streaks Gaming New Registrations Soared in 2022 on AI Improvements

Streaks Gaming PLC said Wednesday that it has seen a significant increase in 2022 key metrics compared with the previous year driven by further investment in artificial intelligence.

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Midwich Shares Rise on Expected 2022 Revenue, Profit Growth

Shares of Midwich Group PLC rose Wednesday after the company said that it expects to report strong 2022 revenue growth and adjusted pretax profit comfortably ahead of market expectations following a positive finish to the year. 


 
Market Talk:

Currys Update Signals Progress Ahead

0811 GMT - Currys's progress will become self-evident in the next fiscal year, Citi says in a note. The retailer of technology products' trading update for the 10 weeks to Dec. 31 and guidance reiteration should reassure, the U.S. bank says, noting that it sees the mix positively. "We view its progress in the U.K. to be underpinned by structural gross margin gains--credit, services, etc.--contrasting with the transitory headwinds of excess market inventory in the Nordics," Citi says, maintaining a buy rating on the stock. Shares are up 2.9% at 61.70 pence. (elena.vardon@wsj.com)

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BOE May Need to Show More Resolve to Fight Inflation After Data

0807 GMT - The latest U.K. consumer prices and labor market data will add pressure on the Bank of England to demonstrate it's serious about tackling inflation at the February 2 meeting, JP Morgan Asset Management says. "Markets are currently split on whether the Bank's next rate hike will be 25 or 50 basis points," JP Morgan market strategist Hugh Gimber says in a note. "This week's evidence would suggest that bold action is required." Data Wednesday showed U.K. inflation fell to 10.5% year-on-year in December from 10.7% in November but core inflation held at 6.3%. Data on Tuesday showed U.K. wage growth excluding bonuses accelerated to 6.4% in the three months to November. (renae.dyer@wsj.com)


Contact: London NewsPlus; paul.larkins@wsj.com

(END) Dow Jones Newswires

01-18-23 0340ET