UK GDP Stall in February Boosts Chances of Rate Hike
0701 GMT - The U.K.'s stagnation in GDP in February increases the chances that the Bank of England will need to raise interest rates further to generate more weakness in the economy to reduce inflation to its 2% target, Paul Dales, chief U.K. economist at Capital Economics says in a note. According to Dales, the country likely avoided a recession in 1Q, as GDP would need to fall by 0.5% or more in March for it to contract in the quarter, and is proving resilient to inflation and interest rates. More economic weakness will be required to cut inflation to 2%, though some will come from the delayed drag from rate rises and tightening financial conditions triggered by recent concerns over global banks, he says. (edward.frankl@wsj.com)
Companies News:
PZ Cussons 3Q Comparative Revenue Rose; Expects FY 2023 Adjusted Pretax Profit in Line With Views
PZ Cussons PLC said Thursday that like-for-like revenue in the third quarter of fiscal 2023 rose 6.2%, and that it expects adjusted pretax profit for the year to be at least in line with market expectations.
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Darktrace 3Q Revenue Rose; Sees FY23 Revenue Growth at Top End of Expectations
Darktrace PLC on Thursday reported robust growth in annual recurring revenue and improved third-quarter revenue, and centered full-year revenue growth at the top end of its guidance range for the full year,
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Tesco FY 2023 Pretax Profit Halved, Plans GBP750 Mln Buyback
Tesco PLC on Thursday said its pretax profit halved in fiscal 2023 and that it would buy back 750 million pounds ($936.4 million) of shares over the next 12 months
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Imperial Brands Sees 1H Profit Around Flat on Year; On Track to Meet Full-Year Guidance
Imperial Brands PLC said Thursday that it is on track to meet full-year guidance and that first-half adjusted group operating profit should be similar on year on a constant-currency basis.
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VP PLC Sees Full Year in Line After Progress in Core Markets
VP PLC said Thursday that it expects its full-year results to be in line with the board's expectations after good progress in its core markets of infrastructure, construction, house building and energy.
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Norcros Expects to Report Rise in FY 2023 Revenue, Operating Profit
Norcros PLC said Thursday that it expects to report that fiscal 2023 revenue rose and that operating profit met market expectations.
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Science in Sport to Focus on Growing Business; No Longer in Offer Period
Science in Sport PLC said Thursday that it is no longer in a formal offer period following its review of the business that has highlighted a focus on accelerating its growth.
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Distil FY 2023 Pretax Loss Widened; Revenue Below Market Views
Distil PLC said Thursday that its unaudited pretax loss for fiscal 2023 widened and that unaudited revenue was slightly below market expectations.
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Workspace 4Q Occupancy Was Stable; Rent Roll Increased on Demand
Workspace Group PLC said Thursday that like-for-like occupancy was stable in the fourth quarter of fiscal 2023, and its total rent roll increased on strong customer demand.
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Brooks Macdonald Group 3Q Funds Under Management Rose
Brooks Macdonald Group PLC said Thursday that its funds under management rose 3.5% in the third quarter of fiscal 2023 and that its underlying performance is in line with guidance.
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Churchill China 2022 Pretax Profit, Revenue Rose on Higher Volumes, Pricing
Churchill China PLC said Thursday that its pretax profit rose 61% in 2022, and that 2023 has started well with first-quarter targets met.
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Home REIT Gets Extension to Bluestar Bid Deadline
Home REIT PLC said Thursday that the U.K. Takeover Panel has extended the deadline until May 11 for Bluestar Group Ltd. to either make an offer for the company or walk away.
Market Talk:
UK Output in Strike-Hit Sectors Expected to Rebound in March Data
0712 GMT - Strikes that hit U.K. GDP in February weren't as widespread in March, though data that showed improvements in February in other sectors such as construction were also likely temporary effects too, Paul Dales, chief U.K. economist at Capital Economics, says in a note. Some weakness in GDP in February was due to strikes by civil servants, teachers and train workers, which meant public-administration output fell 1.1% on month, led to education contracting 1.7%, while transport activity declined 0.5%. As strikes eased in March, activity in these areas probably rebounded then, he says. However, the rise in February activity in other areas, such as a 2.4% rise in construction, were due to unseasonably mild and dry weather in the month, Dales says. (edward.frankl@wsj.com)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
04-13-23 0336ET
