BOE Seen Lifting Rates in February After Latest Inflation Data
January 19 2022 - 4:06AM
Dow Jones News
BOE Seen Lifting Rates in February After UK Inflation Data
0822 GMT - Wednesday's higher-than-expected U.K. inflation data
will likely encourage the Bank of England to raise interest rates
for a second consecutive meeting in February but any further rate
increases will be gradual, ING says. "With inflation rates set to
plunge in 2023, and the prospects of a severe wage-price spiral
looking less likely, subsequent moves are likely to be more
gradual," ING economist James Smith says. ING expects two rate
rises this year. The data showed U.K. consumer prices rose 5.4%
year-on-year in December--the highest since March 1992--following a
5.1% increase in November and well above the BOE's 2% target.
Economists in a WSJ survey expected a 5.2% rise.
(renae.dyer@wsj.com)
Companies News:
GlaxoSmithKline Names Tony Wood CSO Designate
GlaxoSmithKline PLC said Wednesday that it has appointed Tony
Wood as chief scientific officer from August, replacing Hal Barron,
who will become nonexecutive director.
---
Smith & Nephew Buys Engage Surgical for Up to $135 Mln
Smith & Nephew PLC said Wednesday that it has acquired
Engage Surgical for up to $135 million, contingent on sales
performance.
---
Burberry's 3Q Comparable Retail Sales Rose Ahead of Market
Views
Burberry Group PLC said Wednesday that retail revenue and
comparable store sales rose in the third quarter of fiscal 2022,
with new customers driving double-digit full-price sales growth
across all of its product categories.
---
Antofagasta Expects Higher Costs in 2022; 2021 Output in Line
With Guidance
Antofagasta PLC on Wednesday warned that its operational costs
will jump this year, and reported that production for 2021 was in
line with its guidance.
---
Experian COO Kerry Williams to Retire; Craig Boundy Named
Experian PLC said Wednesday that Chief Operating Officer Kerry
Williams plans to retire from his role after 19 years with the
company, and will be replaced by Craig Boundy.
---
Wise 3Q Revenue Rose 34%
Wise PLC said Wednesday that its revenue grew 34% in the third
quarter of the fiscal year.
---
Pearson Expects Increased 2021 Sales, Adj Operating Profit
Pearson PLC said Wednesday that it expects to report increased
sales and adjusted operating profit for 2021.
---
J.D. Wetherspoon to Report 1H Loss Due to Coronavirus-Related
Restrictions
J.D. Wetherspoon PLC said Wednesday that sales for the second
quarter of fiscal 2022 were hurt by coronavirus-related
restrictions, and that it will be loss-making in the first half of
the year.
---
Christie Group Sees 2021 Operating Profit Significantly Ahead of
Market Expectations
Christie Group PLC said Wednesday that it expects to report
operating profit for 2021 significantly ahead of current market
expectations.
---
WH Smith Says Year-To-Date Revenue Is at 85% of Pre-Pandemic
Levels
WH Smith PLC said Wednesday that revenue for the 20 weeks to
Saturday was at 85% of 2019 revenue levels, with its high
street--or brick-and-mortar retail--business being in a stronger
position than its travel division due to the Covid-19 Omicron
variant.
---
Burberry's 3Q Comparable Retail Sales Rose Ahead of Market Views
-- Update
Burberry Group PLC said Wednesday that retail revenue and
comparable store sales rose in the third quarter of fiscal 2022,
with new customers driving double-digit full-price sales growth
across all of its product categories on a two-year basis.
---
Liontrust 3Q Assets Under Management Rose
Liontrust Asset Management PLC said Wednesday that assets under
management and advice for the third quarter of fiscal 2022 rose 20%
from a year earlier.
Market Talk:
UK Annual Inflation Could Reach 7% in April
0817 GMT - The U.K.'s inflation rate is set to rise even further
in the coming months, to 7% in April from the December's 5.4%,
Capital Economics' chief U.K. economist Paul Dales says. The
increases in producer prices have yet to fully filter through to
consumer prices, and the surge in energy prices could result in an
increase in utility bills in April, he says. A 7% inflation rate
would be higher than the peak of 6% that the Bank of England was
forecasting when it raised interest rates in December, so another
increase in rates is expected in February, Dales says. Capital
Economics expects inflation to remain above 4% the whole year, and
to drop to the BoE's 2% target in April 2023.
(xavier.fontdegloria@wsj.com)
Burberry's 3Q Sales Seen Underpinning Market Views
0804 GMT - Burberry's third-quarter full price retail growth
demonstrates a healthy momentum and implies a high single-digit
drag from markdown reduction, RBC Capital Markets says. The British
luxury-goods company's third-quarter retail comparable retail sales
were slightly better than expected, the Canadian bank notes.
"Overall, we would expect these results to underpin current
expectations in Burberry, with ongoing progress in the full price
channel. We are not expecting to see material consensus earnings
revisions," RBC adds. (sabela.ojea@wsj.com; @sabelaojeaguix)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
January 19, 2022 03:51 ET (08:51 GMT)
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