U.K. Inflation Could Reach Double-Digit Rate Later This Year

U.K. Inflation Could Reach Double-Digit Rate Later This Year

0700 GMT - U.K. inflation accelerated in April to a 40-year high of 9% and this isn't likely to be the peak of the current cycle, Capital Economics' chief U.K. economist Paul Dales says. Inflation could rise to 10% in October driven both by additional increases in households' energy bills and by higher prices for inputs and wages, he says. "Inflation will probably fall back after that, but the tight labor market and high wage growth suggests to us it won't drop back to the 2% target on its own accord," Dales says. In this context, Capital Economics expects the Bank of England to raise interest rates to 3% next year from the current 1%. ([e-mail])

 
Companies News: 

Burberry Reports FY 2022 Profit Rise Despite China Lockdowns Hit in 4Q

Burberry Group PLC on Wednesday reported an improved profit for the year ended April 2, although coronavirus restrictions in China severely affected the business in the fourth quarter.

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Experian FY 2022 Pretax Profit Rose; Raises Dividend

Experian PLC on Wednesday reported a rise in pretax profit in fiscal 2022 driven by strength in organic revenue across North and South America, the U.K. and Ireland, and raised its dividend payout.

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British Land Swung to FY 2022 Pretax Profit on Covid-19 Recovery

British Land Co. said Wednesday that it swung to a pretax profit in fiscal 2022 as coronavirus pandemic-related hits to its property value were reversed.

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Anglo American's De Beers Diamond Sales Rose in Fourth Cycle

Anglo American PLC on Wednesday reported an increase in diamond sales from its De Beers subsidiary for the fourth sales cycle of 2022.

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Aviva 1Q General Insurance Sales Rose; Backs Dividend Guidance

Aviva PLC said Wednesday that sales in general insurance rose in the first quarter and reiterated its dividend views for 2022 and 2023.

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Premier Foods FY 2022 Pretax Profit, Revenue Fell

Premier Foods PLC said Wednesday that pretax profit fell in fiscal 2022 as revenue decreased, and that it expects further input cost inflation.

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Marston's Swung to 1H Pretax Profit, Revenue Rose on Covid-19 Recovery

Marston's PLC said Wednesday that it swung to a pretax profit for the first half of fiscal 2022 and posted a significant revenue increase as it recovered from the coronavirus pandemic.

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Vistry Raises 2022 Profit Expectations on Strong Demand Across Business

Vistry Group PLC said Wednesday that early 2022 has seen strong demand across all areas of its business, and that it expects to deliver full-year profit at the top end of market forecasts.

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Burberry FY 2022 Profit Rose Despite 4Q Hit From China Lockdowns -- Update

Burberry Group PLC on Wednesday reported an improved profit for the year ended April 2, although coronavirus restrictions in China severely affected the business in the fourth quarter.

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Watches of Switzerland FY 2022 Revenue Rose on Strong Demand for Luxury Watches and Jewelry

Watches of Switzerland Group PLC said on Wednesday that revenue for fiscal 2022 jumped, driven by strong demand for luxury watches and jewelry in the U.S. and U.K.

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Keller Group Has Had Mixed Start to Year; Backs 2022 Guidance

Keller Group PLC said Wednesday that it has had a mixed start to the year and backed its full-year guidance.

 
Market Talk: 

Burberry Takes Hit From China's Covid-19 Policies

0702 GMT - Burberry's strategy only pays off if countries with high spending power play ball, and China has long been the luxury brand's crown jewel, Gemma Boothroyd from Freetrade says. Its latest results show demand is there, but the problem is that China's coronavirus policies are out of the company's control, the analyst says. "With some Shanghai residents now in their sixth week of lockdown, spending in the luxury hub is inevitably muted. That means Burberry's cut off, and it's feeling the heat, with March sales taking a tumble," Boothroyd says. And results for the full year ended April 2 weren't terrific either, as 21% revenue growth isn't much of a bounceback, she says. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

05-18-22 0323ET