Inflation Data Both Positive And Negative For Pound

08/17/2022 | 03:31am

UK Inflation Data Both Positive And Negative For Pound

0700 GMT - Wednesday's higher-than-expected U.K. inflation data has both positive and negative implications for sterling, Ebury says. Higher inflation should trigger a more aggressive policy response from the Bank of England, which is a "bullish signal" for sterling, Ebury strategist Matthew Ryan says in a note. "On the other hand, however, higher prices present a clear downside risk to economic activity, and raises the possibility of a potentially prolonged U.K. recession, which is clearly bearish for GBP." U.K. inflation rose to an annual rate of 10.1% in July from 9.4% in June, exceeding the 9.8% expected by analysts in a WSJ survey. GBP/USD is last up 0.1% at 1.2108 and EUR/GBP falls 0.2% to 0.8395. (renae.dyer@wsj.com)

 
Companies News: 

GSK Says Plaintiff to Drop Zantac Case

GSK PLC said late Tuesday that the plaintiff's counsel in the first of the U.S. lawsuits over discontinued heartburn drug Zantac plans to file a notice of voluntary dismissal.

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ASOS CFO to Step Down as Company Restructures Executive Team

ASOS PLC said Wednesday that Chief Operating Officer and Chief Financial Officer Mat Dunn has agreed to step down as the company looks to restructure its executive team.

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Boohoo Group Buys 7.1% of Revolution Beauty Shares

Boohoo Group PLC said Wednesday that it has bought 22.1 million shares in Revolution Beauty Group PLC, or 7.1% of its issued share capital, and plans to be a long-term supportive partner.

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Persimmon 1H Pretax Profit Fell; Backs 2022 Legal-Completions Target

Persimmon PLC said Wednesday that pretax profit and revenue fell in the first half of 2022, and that it anticipates delivery volume to increase in the second half as the company rebuilds its outlet position.

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Glanbia 1H Pretax Profit Rose on Favorable Pricing, Higher Volumes; Updates Guidance

Glanbia PLC said Wednesday that its pretax profit for the first half of fiscal 2023 rose on favorable pricing and an increase in volumes, and updated its guidance for the year.

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Plus500 1H Pretax Profit Rose; Launches $60.2 Mln Share Buyback Program

Plus500 Ltd. said Wednesday that pretax profit for the first six months of 2022 rose, adding that it has launched a share buyback program and updated its shareholders return policy.

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Predator Oil & Gas to Raise GBP3.3 Mln to Fund Drilling

Predator Oil & Gas Holdings PLC said Wednesday that it is raising 3.3 million pounds ($4 million) via a share placing and will use the money toward drilling.

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Cineworld Anticipates Significant Share Dilution After Weak Admissions

Cineworld Group PLC said Wednesday that it is in funding talks that will likely result in a significant dilution for existing shareholders, as recent admissions have been below expectations.

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Gem Diamonds 1H Revenue Fell From Previous Six Months

Gem Diamonds Ltd. said Wednesday that revenue fell in the first half of 2022 from the second half of 2021, and that strong demand and robust prices are driving a continued positive sentiment in the sector.

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Balfour Beatty 1H Pretax Profit Rose as Costs Fell

Balfour Beatty PLC said Wednesday that pretax profit for the first half of fiscal 2023 rose on lower costs, and that for the full 2022 calendar year, its UK construction division looks set to deliver industry-standard margins in the 2% to 3% range.

 
Market Talk: 

Ten-Year Gilt Yields Rise After July U.K. Inflation Surge

0707 GMT - U.K. 10-year gilt yields rise after annual inflation rose to a four-decade high of 10.1% in July from 9.4% in June. The 10-year gilt yield is trading more than 2 basis points higher at 2.160%, according to Tradeweb. "Every upwards inflation surprise tightens the bind the BOE [Bank of England] finds itself in, with mounting inflation pressure combined with growing recessionary headwinds," says Luke Bartholomew, senior economist at abrdn. He expects the Bank of England will deliver another 0.5% interest rate increase at its next meeting. With monetary policy having to tighten even in the face of bad economic news, investors continue to have little in the way of a safety net from central banks, which is likely to keep markets volatile, he says. (emese.bartha@wsj.com)


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

(END) Dow Jones Newswires

08-17-22 0330ET

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