FTSE 100 Rises as Ukraine Fears Ease
The FTSE 100 rises 0.2% to 7622 points as hopes for a diplomatic solution to Russia's standoff with Ukraine boost risk appetite across global markets. Travel stocks and mining shares are among the biggest risers. Supermarket stocks fall after stronger-than-expected U.K. inflation data fueled concerns about a squeeze on real household incomes. House builders are also weaker as high inflation cements the case for further interest rate rises by the Bank of England. Inflation accelerated to an annual rate of 5.5% in January, the highest since March 1992, data showed Wednesday. "Inflation is building and is now expected to reach a crescendo of over 7% in April, heaping pressure on consumers, businesses and savers," AJ Bell analysts say in a note.
Companies News:
Indivior Swing to 4Q, Full-year Pretax Profit; Mulls Additional US Listing
Indivior PLC said Wednesday that it swung to a fourth-quarter pretax profit as revenue rose, and that it is considering an additional U.S. listing.
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Arbuthnot Banking Sees 2021 Pretax Profit in Line with Market Views
Arbuthnot Banking Group PLC said Wednesday that it expects to report 2021 pretax profit in line with market expectations after a good performance on the fourth quarter.
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Coca-Cola Europacific Partners 2021 Revenue, Pretax Profit Grew
Coca-Cola Europacific Partners PLC said Wednesday that revenue and pretax profit rose on year in 2021 amid strong performance in a challenging environment and the acquisition and integration of Coca-Cola Amatil.
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Ocean Outdoor 2021 Revenue Rose
Ocean Outdoor Ltd. said Wednesday that 2021 revenue rose, and that it expects 2022 revenue and adjusted Ebitda to be ahead of that reported in 2019.
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Kerry Group 2021 Pretax Profit, Revenue Rose
Kerry Group PLC said Wednesday that its 2021 pretax profit and revenue rose, and that it expects to achieve further growth in 2022.
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RA International Sees 2021 Revenue Decline Due to Coronavirus Restrictions
RA International Group PLC said Wednesday that it expects 2021 revenue to decline, citing the impact of the coronavirus pandemic on in its business.
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Primary Health Properties 2021 Pretax Profit, Net Income Rose
Primary Health Properties PLC said Wednesday that its 2021 pretax profit rose together with its net rental income.
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DP Eurasia Proposes Additional Takeover Protections for Minority Shareholders
DP Eurasia NV said Wednesday that the board has proposed additional takeover protections for minority shareholders after the U.K. Takeover Code and Dutch takeover rules ceased to apply to the company as a consequence of Brexit.
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Franchise Brands Buys Filta Group for GBP49.8 Mln in All-Share Deal
Franchise Brands PLC said Wednesday that it has agreed to buy Filta Group Holdings PLC in an all-share deal that values the U.K. commercial-kitchen-services provider at 49.8 million pounds ($67.4 million).
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Treatt Appoints Ryan Govender as CFO-Designate
Treatt PLC said Wednesday that it has appointed Ryan Govender as chief financial officer-designate to replace Richard Hope.
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Tritax EuroBox Acquires Logistics Asset for EUR144 Mln -- Deal Digest
ACQUIRER: Tritax EuroBox PLC, a real-estate investor
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Clean Power Hydrogen Shares Rise in Stock Market Debut
Shares of Clean Power Hydrogen PLC rose as much as 47% on Wednesday as the company started trading on London's junior AIM, implying a market capitalization of 175.2 million pounds ($237.2 million).
Market Talk:
UK Inflation Data Unlikely to Have Much Implication For Pound
0911 GMT - January's U.K. inflation figures are unlikely to alter the Bank of England's forecasts over coming meetings so should have a minimal impact on sterling, MUFG Bank says. Inflation was only slightly higher than expected in January with consumer prices rising 5.5% on year, compared to the market forecast 5.4% increase, MUFG analysts say in a note. "The BOE forecast for annual inflation in Q1 2022 is 5.73% and based on January alone, the annual inflation rate in Q1 2022 to date versus Q1 2021 is at 5.26%," they say. "So, while this is stronger than expected, we doubt this will have much implication for the financial markets today." GBP/USD rises 0.2% to 1.3567 but EUR/GBP is flat at 0.8395.
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UK Inflation Peak Expected in April, Squeezing Household Incomes
0909 GMT - U.K. annual inflation rose again, reaching 5.5% in January, suggesting that underlying price trends are running fairly hot, with month-on-month rates still materially above seasonal norms, HSBC Global Research says. The bank says the peak hasn't been reached yet. The 54% increase in regulated utility prices set for this April is likely to lift annual inflation above the 7% mark that month, according to HSBC. "The cost of living squeeze, which tightened a little further in January, is set to get materially worse in April," HSBC says. January's inflation increase is consistent with HSBC's expectation of 25 basis-point bank-rate rises in March, May and August, taking the rate to 1.25%, economists at HSBC say.
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UK Inflation Expected to Continue Rising, BoE Seen Rising Rates
0906 GMT - U.K. inflation came in at 5.5% in January, with one of the largest contributors being the price of fuel, BRI Wealth Management says. "This hasn't been helped by the ongoing escalation between Russia and Ukraine," BRI Wealth Management adds. While part of the inflation increase was driven by a rise in prices, the base effect continues to play a large role, as prices were depressed last January due to lockdowns across the U.K., the wealth management company says. Data continue to point towards another few months of inflation rises but inflation should start to ease by April or May. Given the strength of the economy, the Bank of England will continue down the path of further rate rises, BRI says.
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UK January Inflation Data Reinforces Expectations of Short-Term Rate Increases
0850 GMT - The acceleration in U.K. inflation rate to 5.5% in January will further cement markets' expectations for additional interest rate increases at both the Bank of England's March and May meetings, ING says. "The Bank [of England] is keen to act pre-emptively against the risk that the current high rates of inflation become more sustained," the Dutch bank says. However, by pricing six interest rate increases in 2022, markets are likely overestimating the pace of tightening required this year as policymakers may become more relaxed when inflation begins to fall in 2H, it says. ING expects two or three additional rate rises this year.
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UK Inflation Is Expected to Rise Further in the Coming Months
0829 GMT - The U.K. inflation rate is set to accelerate in the next few months as retailers continue to pass on higher producer prices to consumers and as utility bills rise, Pantheon Macroeconomics says. Inflation is likely to peak at between 7.5% and 8% in April compared with January's 5.5%, it says. "Thereafter, however, CPI inflation should fall back steadily, potentially reaching 5% by January 2023 and then slightly undershooting the 2% target from April 2023," Pantheon says. Price pressures for many goods have clear scope to subside as the impact of Covid-19 on supply chains and shipping costs gradually eases, while lower energy prices and a stronger sterling should also contribute to the fall in the inflation rate, the economic-research firm says.
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BOE Is Seen Lifting Rates Less Than Market Expects as Inflation Exceed Wage Growth
0811 GMT - The Bank of England is likely to raise interest rates by less than the market expects as real household incomes are squeezed, analysts at HSBC's private banking and wealth division say. "With inflation exceeding wage growth, real household income will probably fall by 2.5% this year," they say. Lower real income will threaten economic growth, they say. The analysts expect the BOE to raise its key rate to a peak of 1.25% from 0.5% currently, compared with the market's forecast of around 1.75%. U.K. inflation accelerated to an annual rate of 5.5% in January, the highest since March 1992, data showed Wednesday. Data on Tuesday showed average weekly earnings excluding bonuses rose 3.7% year-on-year in the final quarter of 2021.
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Sterling Stays Higher After UK Inflation Data
0749 GMT - Sterling stays higher after data showed U.K. inflation accelerated in January to the highest rate in 30 years, fuelling expectations the Bank of England will raise interest rates further. Consumer prices rose 5.5% on year in January after a 5.4% rise in December, above the BOE's 2% target and the 5.4% rise expected by economists in a WSJ survey. "This new high in inflation will put further pressure on the Bank of England to continue to raise interest rates," Premier Miton Monthly Income Fund says in a note. GBP/USD last trades at 1.3557, little changed after the data but up 0.1% on the day. EUR/GBP is at 0.8386, also little moved after the data but down 0.1% on the day.
Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com
(END) Dow Jones Newswires
02-16-22 0431ET
