FTSE 100 Falls as UK Inflation Soars

0853 GMT - The FTSE 100 falls 0.1% to 7558 points as investors react to data showing U.K. inflation accelerated to its highest level in nearly 30 years in December. U.K. consumer prices rose 5.4% year-on-year in December following a 5.1% increase in November. "The Bank of England expects inflation to peak around 6% in April, but unless there's significant intervention in the energy market, there's every chance it could go as high as 7%," Hargreaves Lansdown analyst Sarah Coles says. Antofagasta shares drop 2.4% after the miner forecast annual copper production below 2021 levels. Pearson gains 5.9% after the education publisher raised its profit outlook. Burberry rises 5.0% after the luxury fashion brand said it expects a 35% jump in annual profit. (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.

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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.

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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.

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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.

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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.

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Wise 3Q Revenue Rose 34%

Wise PLC said Wednesday that its revenue grew 34% in the third quarter of the fiscal year.

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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.

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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.

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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.

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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.

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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.

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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: 

Pearson's Growth Trends Into 2022 Better Than Expected, Says Citi

0855 GMT - Pearson's trading update implies an upside to consensus expectations for 2021 operating profit and overall growth trends going into 2022 are more robust than expected, Citi says. The FTSE 100 education company's update was encouraging and indicated better revenue growth and profit than Citi expected. There is strength in depth across the portfolio, and U.S. higher-education courseware, a key segment, was more robust than forecasts as print trends were more favorable, the U.S. bank says. Citi has a buy rating on Pearson. Shares trade up 5.8% at 669.4 pence. (kyle.morris@dowjones.com)

UK Inflation Overshoot Strengthens Case for Another BoE Rate Increase

0853 GMT - The pressure is building for another rate rise from the Bank of England in February due to higher-than-expected inflation, Royal London Asset Management's senior economist Melanie Baker says. "Many of the sources of rising inflation could still be described as transitory, but with inflation surprising on the upside by so much, with core inflation higher and at such a high level, worries about inflation expectations are also likely to build," she says. U.K. inflation is expected to rise in the coming months, and prospects of higher interest rates, high rates of inflation and pay growth that isn't keeping pace will mean that the financial situation of many households will worsen, Baker says. (xavier.fontdegloria@wsj.com)

UK 10Y Gilt Yields Shoot Up After Record High Inflation Reading

0842 GMT - U.K. borrowing costs jump after official data showed consumer prices rose 5.4% year on year in December. "It was generally expected that U.K. inflation wouldn't see much of a jump in December, but that was not the case," says Neil Birrell, chief investment officer & fund manager of the Premier Miton Diversified Growth Fund. "The direction is still very much upwards...[and] the Bank of England may have to revise up its expectations again and act accordingly." The 10-year gilt yield rises as high as 1.292% in reaction to inflation data, the highest level since March 2019, according to Tradeweb. (lorena.ruibal@wsj.com)

 

Contact: London NewsPlus, Dow Jones Newswires; Dow Jones Newswires; paul.larkins@wsj.com

(END) Dow Jones Newswires

January 19, 2022 04:12 ET (09:12 GMT)

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