UK Economy Expected to Contract in 3Q as Inflation Weighs

1114 GMT - The U.K. economy likely shrank by 0.6% in the third quarter compared with the previous three-month period, posting its first quarterly contraction since 1Q 2021, Deutsche Bank senior economist Sanjay Raja says in a note. The drop in economic activity reflects weakness in household and business confidence, higher inflation, and higher interest rates, and 3Q could mark the start of a deep and long recession, he says. "While we expect the U.K. economy to escape a technical recession this year by the smallest of margins, a 4Q recession can no longer be ruled out," Raja says. U.K. 3Q GDP data is due on Friday. (xavier.fontdegloria@wsj.com)


 
Companies News: 

Persimmon Sales Fell; Backs 2022 View But Sees 2023 Sales Slipping

Persimmon PLC said Tuesday that sales over the first four months of the second half of the year fell against a strong comparative and macroeconomic headwinds, and while it sees 2022 meeting views, it expects 2023 sales to fall.

---

ALD Acquisition of LeasePlan Gets UK Competition Regulator Clearance

The U.K. competition regulator said Tuesday that it has cleared the acquisition of LeasePlan Corp. by Societe Generale SA's vehicle-leasing business ALD SA.

---

Aveva 1H Pretax Loss Widened on Amortization Relating to Schneider Deal

Aveva Group PLC said Tuesday that its pretax loss for the first half widened due to amortization of intangible assets relating to the combinations with the Schneider Electric industrial software business and OSIsoft.

---

WPP CFO John Rogers to Step Down; Britvic's Joanne Wilson Named Successor

WPP PLC said Tuesday that Chief Financial Officer John Rogers has decided to step down from the company, and named soft-drink company Britvic PLC's CFO Joanne Wilson as successor.

---

AB Foods FY 2022 Pretax Profit Rose on Robust Pricing; Launches GBP500 Mln Share Buyback

Associated British Foods PLC said Tuesday that pretax profit for fiscal 2022 rose on robust pricing amid a normalization of customer behavior, and raised its dividend payout and launched a buyback program.

---

IMI 3Q Organic Revenue Rose; Upgrades 2022 EPS Guidance

IMI PLC said Tuesday that third-quarter organic revenue growth was 4% and that it is upgrading its full-year earnings per share guidance.

---

Irish Government Sells 134 Mln AIB Group Shares at EUR2.96

J.P. Morgan Securities PLC said Tuesday that it has now sold 134 million ordinary shares in AIB Group PLC on behalf of the Irish Government at 2.96 Euros a share ($2.97), as first announced late Monday.

---

Hilton Food's 2022 SeaFood Business Profit to Miss Expectations

Hilton Food Group PLC said that volume and revenue performance have been in line with the board's expectations, although it expects a drop in its U.K. seafood business operating profit for the full year amid macroeconomic pressures.

---

Hammerson 3Q Rental Income, Sales Rose; Sees 2022 Adjusted Earnings Rising

Hammerson PLC said Tuesday that its third-quarter rental income and sale increased on further postpandemic recovery, and it expects full-year adjusted earnings to rise.

---

Seraphine Sees 1H Loss Amid Tough UK Conditions

Seraphine Group PLC said Tuesday that it expects to post a loss for the first half after experiencing a challenging retail environment and softer trading during the summer months.

---

IMI PLC to Buy U.K. Smart Thermostatic Control Manufacturer for Up to GBP118 Mln

IMI PLC said Tuesday that it is buying U.K. smart thermostatic control manufacturer Heatmiser UK Ltd. for up to 118 million pounds ($135.9 million), as part of its plan to accelerate growth in smart buildings.

---

Marks Electrical 1H Pretax Profit Flat; Backs FY Guidance

Marks Electrical Group PLC said Tuesday that pretax profit for its fiscal first half was flat on year in a tough trading environment and that it was well positioned to achieve full-year targets.

---

Direct Line Insurance 3Q New Business Sales Fell

Direct Line Insurance Group PLC said Tuesday that new business sales in the third quarter fell as it raised prices in order to restore margins in the motor division.

---

CVS Group Plans to Double Ebitda, Boost Revenue Over Five Years

CVS Group PLC said Tuesday that it plans to double its Ebitda over the next five years and significantly increase revenue growth.

---

ZOO Digital Posts Maiden 1H Pretax Profit on Localization Growth, Media-Services Expansion

ZOO Digital Group PLC said Tuesday that it booked its first-ever pretax profit for the first half of fiscal 2023, and that it is backing its full-year guidance.

---

Chesterfield Resources to Drop Some Cyprus Licenses to Focus on Most Prospective Ones

Chesterfield Resources PLC said Tuesday that it will drop a number of licenses in Cyprus as they expire over the next six months, and that this will allow it to focus on the most prospective licenses.


 
Market Talk: 

AB Foods Gains After Boosting Profit, Investor Returns

1117 GMT - Associated British Foods is the top FTSE 100 riser, up 4% after the Primark owner and food producer said it was launching a buyback program and raised its dividend payout after reporting higher annual pretax profit. "AB Foods' FY 2022 print was modestly ahead of our expectations, with a strong profit rebound driven by more normalized trading conditions at Primark," analysts at brokerage Davy say in a note. "Of more pertinence, the outlook for FY 2023 remains unchanged, with management guiding to significant growth in sales, though with profits lower year-on-year."(philip.waller@wsj.com)


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

(END) Dow Jones Newswires

11-08-22 0656ET