March UK Inflation Data Seen Securing Another BoE Rate Rise in May

The acceleration in U.K.'s inflation to 7% virtually guarantees that the Bank of England will raise the bank rate by another 25 basis points to 1% at its next meeting in May, says Kallum Pickering, senior economist at Berenberg, in a research note. The reading exceeds the BoE's projection, and inflation is likely to advance further as surging producer and energy prices driven by global-supply shortages and Russia's invasion of Ukraine, as well as rising energy costs, haven't yet fully passed through into consumer prices, he says. "Following persistent upside surprises in inflation data over the course of 2021 and at the start of 2022, the peak and length of the current inflation surge remains uncertain," Pickering says. 


 
Companies News:

Tesco FY 2022's Pretax Profit, Revenue Rose; Launches GBP750 Mln Buyback

Tesco PLC said Wednesday that fiscal 2022 pretax profit rose as revenue including fuel increased ahead of market views, and said it is committed to buying back 750 million pounds ($975.1 million) of its shares.

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Darktrace 3Q Revenue Rose; Raises FY 2022 Revenue, Margin Guidance

Darktrace PLC on Wednesday reported a strong sales performance and improved revenue in its third quarter, and raised revenue growth and earnings margin expectations for the full year.

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GlaxoSmithKline to Acquire Sierra Oncology for $1.9 Bln

Pharmaceutical giant GlaxoSmithKline PLC said Wednesday that it is buying biopharmaceutical company Sierra Oncology Inc. for $1.9 billion, and backed its guidance.

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PZ Cussons 3Q Revenue Rose, Backs FY 2022 Guidance

PZ Cussons PLC said Wednesday that revenue rose in the third quarter of fiscal 2022, driven by strong progress in the Africa market in particular, and backed its full-year guidance.

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Anglo American's De Beers Diamond Sales Rose 26% in Third Cycle

Anglo American PLC said Wednesday that rough-diamond sales by its majority-owned De Beers Group rose 26% in 2022's third sales cycle compared with the year-earlier third cycle, though it cautioned about the impact on the industry from the war in Ukraine as well as Covid-19-related lockdowns in China.

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Ted Baker Confirms Sycamore Partner's Participation in Formal Sale Process

Ted Baker PLC on Wednesday confirmed that the U.S.-based private equity firm Sycamore Partners Management LP will participate in the formal sale process of the company.

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Steppe Cement 1Q Revenue Rose on Strong Sales, Higher Prices

Steppe Cement Ltd. said Wednesday that revenue for the first quarter rose as stronger cement-sales volumes were complemented by higher prices during the period.

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MaxCyte CFO Resigns, Ron Holtz Appointed in Interim; Sees 1Q Revenue Up

MaxCyte Inc. said on Wednesday that Chief Financial Officer Amanda Murphy has resigned effective Friday, and that Ron Holtz has been named interim CFO effective from Ms. Murphy's departure.

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Watkin Jones Expects 1H Profit Fell, Revenue Rose

Watkin Jones PLC said Wednesday that it expects both gross and operating profit for the first half of fiscal 2022 slipped in line with management expectations, though revenue rose. 


 
Market Talk:

Watkin Jones Looks Good Value Compared With Peers

1004 GMT - Watkin Jones appears to be on track to meet full-year expectations and the share price looks attractive given the company's balance sheet strength, Peel Hunt says. The U.K. property developer's shares bounced 42% in 2021 and have been largely flat in the year to date, slipping just 2% compared to peers falling nearly 25% on average, Peel Hunt analyst Clyde Lewis says in a research note. "Given the sizeable order book combined with strong balance sheet we continue to believe this seems good value, especially if the affordable housing business expands materially," Peel Hunt says. The U.K. brokerage reiterates its buy recommendation and 310 pence price target on Watkin Jones's stock. Shares are down 0.2% at 253.0 pence.

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Tesco Had Strong Year, But Outlook is More Cautious

0939 GMT - Tesco had a strong year, but the U.K. grocer's outlook is more cautious, Barclays says. The company's cash generation of GBP2.28 billion was particularly robust, reflected in a 50% increase in the group's share buyback run-rate to GBP750 million per year from GBP500m. "However, we always expected the market to be most focused today on Tesco's profit outlook, given the current extremely limited visibility--due not just to high food inflation, but also to sharply rising labour and energy costs," Barclays says. Still, Tesco is doing the right things for its customers and that will continue to fuel its market-share momentum, the bank says. "We reiterate our overweight stock rating and 325p price target," Barclays says. Shares fall 4% to 258p.

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Oxford Instruments' Update Reflects Horizon Strategy Success

0939 GMT - Oxford Instruments' expecting FY 2022 revenue and adjusted operating profit ahead of its views reflects the success of its Horizon strategy to turn it into a more customer-centric, market-driven business, Shore Capital says. The scientific instruments and services provider sees on-year improvement in operating margins as its end-markets drove a solid 2H with continued order growth, Shore says. Shore upgrades its adjusted Ebit forecast for Oxford's FY 2022 around 3% to GBP65.3 million, but given macroeconomic uncertainties and China's situation leaves its FY 2023 forecast unchanged at GBP64.8 million. Yet Shore says the group is well-placed to navigate these issues and can continue to grow revenue. Shore raises its rating on the stock to buy from hold.

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Oil Ban Likely to Be Part of Next Set of European Sanctions Against Russia

0855 GMT - While restrictions against Russian gas remain unlikely in the short term, fast-developing events have brought Europe closer to an oil embargo, Eurasia Group says. "Political momentum is building across the EU to ban imports of Russian crude and petroleum products as Moscow shows no signs of de-escalation and Ukraine uncovers more alleged war crimes," Eurasia Group says. Therefore the political risk consulting firm has raised the aggregate odds of an agreement on comprehensive EU oil sanctions, with a phased approach, to 60% from 45% by July 1.The package, which will likely be agreed in late May or June, would deliver a comprehensive phasing out of most crude imports from Russia by the end of 2022, according to Eurasia Group.

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March UK Inflation Data Highlight Cost-of-Living Squeeze

0829 GMT - Consumer prices in the U.K. rose more than expected in March, squeezing consumers' real incomes further and warranting another rate rise by the Bank of England in May, says Rupert Thompson, investment strategist at Kingswood. The inflation rate rose to 7% in the 12 months to March, the highest rate since 1992 and up from 6.2% in February, official data showed. Thompson stresses that price gains were widespread, with core inflation, which excludes volatile food and energy prices, rising to 5.7% from 5.2% in the same timeframe. "The data make another 0.25% rate hike on 5 May all the more certain and will exacerbate the cost of living squeeze," he says in a note.

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Tesco's FY 2023 Views Lead to Downgrades Amid Rising Inflation

0824 GMT - Tesco's guidance for fiscal 2023 has driven Shore Capital's earnings-per-share estimates for the financial year down by around 4% to 5% to around GBP2 billion. Retaining a more positive stance feels like pushing water up a hill, Shore says. The British grocer's performance for fiscal 2022 was very good as it gained share market in its core U.K. market and performed well in Ireland, Shore says. But the U.K. investment group sees a consumer recession in the U.K. amid rising prices and downgrades its recommendation on the stock to hold from buy. Shares are down 6% at 254.30 pence.


Contact: London NewsPlus, Dow Jones Newswires; Write to Sarka Halas at sarka.halas@wsj.com

(END) Dow Jones Newswires

04-13-22 0632ET