UK Declining Core Inflation Signals Better Outlook Ahead for Price Growth

UK Declining Core Inflation Signals Better Outlook Ahead for Price Growth

0857 GMT - The slight decline in U.K. June's core inflation, an index that excludes the volatile categories of food and energy, is likely to ease concerns that the economy is overheating, Pantheon Macroeconomics' chief U.K. economist Samuel Tombs says in a note. June's underlying data for both goods and services price growth suggest that the U.K. doesn't have a problem with domestically-generated inflation, and core inflation should continue to ease in the coming months, he says. "Despite this medium-term outlook, the [Bank of England's] Monetary Policy Committee still might feel compelled to hike by 50 basis points at one of its upcoming meetings, if sterling depreciates further or the recent decline in medium-term inflation expectations goes into reverse," Tombs says. ([e-mail])

 
Companies News: 

PayPoint 1Q Sales Rose; FY 2023 Outlook Unchanged

PayPoint PLC said Wednesday that sales increased in the first quarter of fiscal 2023, noting that its expectations for the financial year and the medium term remain unchanged.

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Antofagasta Downgrades Guidance After Los Pelambres Pipeline Incident

Antofagasta PLC on Wednesday downgraded 2022 production and cost guidance after an issue at its Los Pelambres project caused copper output to fall 6.5% in the second quarter.

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Premier Foods 1Q Sales Rose; Year-To-Date Performance in Line With Views

Premier Foods PLC said Wednesday that sales rose 6.0% in the first quarter of fiscal 2023 to 197 million pounds ($236.3 million), and that its performance so far has been in line with the board's expectations.

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Costain Says 1H Performance Met Its Views; Expects Rev to Top Market Views

Costain Group PLC said Wednesday that its first-half performance met its expectations, with revenue anticipated to exceed market forecasts on inflation recovery mechanisms and increased volumes.

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Royal Mail 1Q Revenue Fell; Committed to Reaching Agreement With CWU

Royal Mail PLC said Wednesday that its fiscal first-quarter group revenue fell 11.5% on year and that it was committed to reaching an agreement with a union after a ballot on strike action on Tuesday.

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Centamin Backs 2022 Production Guidance, Sees Costs at Upper End of Range -- Commodity Comment

Centamin PLC on Wednesday reiterated 2022 production guidance after output improved in the second quarter, but warned that operational costs for the year will be at the upper end of expectations. This is what the owner of the Sukari gold mine in Egypt had to say:

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Petershill Partners' 2Q Aggregate Assets Under Management Unchanged

Petershill Partners PLC said Wednesday that aggregate assets under management in the second quarter were unchanged from the previous quarter.

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Centaur Media Swung to 1H Pretax Profit; 2H Performance in Line With Views

Centaur Media PLC said Wednesday that it swung to a pretax profit for the first half of 2022 as revenue rose, and that its performance in the second half is in line with the board's expectations.

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Bloomsbury Publishing Four-Month Revenue Rose 27% After Record 1H UK Book Sales

Bloomsbury Publishing PLC said Wednesday that revenue for the four months ended June 30 grew 27% after the first half of 2022 had record U.K. consumer book sales.

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Finsbury Food Says FY 2022 Sales Rose on Year; Cost Pressures Mitigated

Finsbury Food Group PLC said Wednesday that it delivered a strong performance in fiscal 2022 with higher total sales, and has largely mitigated costs pressures through a range of initiatives.

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Pendragon Sees 1H Profit Slipping Slightly on Higher Operating Costs

Pendragon PLC said Wednesday that it expects underlying pretax profit to slip slightly in the first half of the year on higher underlying operating costs, though gross profit per vehicle rose.

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Antofagasta Downgrades Guidance After Los Pelambres Pipeline Shutdown -- Update

Antofagasta PLC on Wednesday downgraded 2022 production and cost guidance after a pipeline problem at its Los Pelambres project caused copper output to fall 6.5% in the second quarter.

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Corcel to Raise GBP336,000 via Share Placing; Launches Cost Cuts

Corcel PLC said Wednesday that it is planning to raise 336,000 pounds ($403,066) via a discounted share placing and started some cost cuts to boost the company's finances.

 
Market Talk: 

Royal Mail Considers Break-Up As UK Business Falters

0902 GMT - Shares in Royal Mail drop 5% after the U.K. letter and parcel courier reported lower first-quarter year-on-year revenue. U.K. trading was weak with a GBP92 million loss for the quarter and revenues down 11.5%, while international business GLS was stronger as revenue rose 7.8% and it turned a profit similar to 1Q last year, Bernstein says. While efforts to shake up the U.K. business are stalling, the bigger news is that management is explicitly considering a break-up of the group if the U.K. problems can't be resolved, the brokerage says. "While a break-up is far from certain yet, investors may take comfort that one way or another, the U.K. won't remain a problem forever," Bernstein analysts say in a note. ([e-mail])

Informa Shareholders in Line for Above-Average Returns

0854 GMT - Informa looks to be ticking a lot of the right boxes following another disposal, a strategically-smart acquisition that should boost growth and a strong trading update, Berenberg analysts say in a research note. "We believe that the company is well positioned to deliver above-average returns for shareholders as its in-person events business recovers rapidly, its investment program bears fruit and the balance sheet permits the rewarding of shareholders' faith in the company's management," they say. Berenberg has a buy rating on the stock with a target price of 700 pence. Shares trade up 1.4% at 576.40 pence. ([e-mail])

Contact: London NewsPlus; [e-mail]

(END) Dow Jones Newswires

07-20-22 0524ET