UK's Tight Labor Market Adds to Case for Another 50bp Interest Rate Hike
0750 GMT - A further fall in the unemployment rate and the acceleration in wage growth will increase the pressure on the Bank of England to opt for another interest rate increase of 50 basis points at its Sept. 22 meeting, Capital Economics senior U.K. economist Ruth Gregory says in a note. There are indeed some signs of cooling labor demand that will result in easing wage growth, but pay growth in July continued to pick up pace, she says. "With the labor market still exceptionally tight, we remain comfortable with our forecast that the Bank of England will raise interest rates to a peak of 3.00%, or higher by the end of this year, instead of the analyst consensus of 2.50%," Gregory says. (xavier.fontdegloria@wsj.com)
Companies News:
Ocado Group Warns of Lower FY 2022 Sales as Inflation Hits Consumers
Ocado Group PLC said Tuesday that revenue increased in the third quarter of fiscal 2022, but that it expects to see a decline in full-year sales as inflation hits consumers' spending ability.
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Aveva Close to GBP30/Share Takeover by Schneider Electric, Sky Reports
Aveva Group PLC is close to agreeing to a 30 pound ($35.05) a share takeover by French energy management and automation group Schneider Electric SE, Sky News reports, citing unnamed sources.
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Fresnillo Completes Construction for Juanicipio Grid Tie In; Sees Operations Starting End of October
Fresnillo PLC said Tuesday that all construction activities related to final tie-in to the electrical grid for Juanicipio in Mexico have been completed and that it expects the start of operations by the end of October.
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Abrdn Sells GBP262 Mln Shareholding in HDFC Life
Abrdn PLC said Tuesday that it has sold 43 million shares in HDFC Life Insurance Co. for 262 million pounds ($306.1 million), with the proceeds to be used for further strengthen its capital resources, support investment and to continue to return capital in excess.
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Team17 1H Pretax Profit Fell on Higher Costs; Revenue Rose
Team17 Group PLC said Tuesday that its first-half pretax profit fell 20% on higher administration costs and sales, though revenue and adjusted earnings rose.
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Trustpilot 1H Pretax Loss Narrowed, Revenue Rose on Good Foreign-Exchange Rates
Trustpilot AS said Tuesday that its first-half pretax loss narrowed and revenue rose on favorable foreign-exchange rates.
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JTC 1H Pretax Profit Fell as Costs Increased
JTC PLC said Tuesday that pretax profit for the first half of 2022 fell as costs increased as it worked to complete the integration of seven acquisitions made last year.
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Property Franchise 1H Pretax Profit, Revenue Rose; Backs 2022 Outlook
Property Franchise Group PLC said Tuesday that its first-half pretax profit and revenue rose on contributions from acquisitions, and that it is confident for the full-year.
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Kape Technologies to Raise Up to $200 Mln to Fund Acquisitions
Kape Technologies PLC said Tuesday that it is planning to raise up to $200 million via an equity issue and will use the money toward acquisitions.
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Mattioli Woods FY 2022 Pretax Profit Rose, Increases Dividend
Mattioli Woods PLC said Tuesday that pretax profit for fiscal 2022 rose, backed by recent acquisition contributions, and that it has increased its dividend payout as it continues to perform in line with views.
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Fevertree 1H Operating Profit Fell on Higher Costs
Fevertree Drinks PLC reported on Tuesday a significant decline in operating profit for the first half of 2022 after booking higher energy and freight costs.
Market Talk:
Ocado's Downgraded FY 2022 Outlook Adds to Negative Sentiment
0751 GMT - Ocado Group downgraded its outlook for fiscal 2022, missing market expectations, RBC Capital Markets analysts Sherri Malek and Wassachon Udomsilpa say in a research note. The online grocer and retail-technology specialist's third-quarter revenue performance also came in below the Canadian bank's forecasts, the analysts say. While consensus continues to underestimate Ocado's investments in its Solutions segments, the company should see only a modest margin recovery in fiscal 2023, they add. Shares are down 13% at 692.20 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)
Contact: London NewsPlus; paul.larkins@wsj.com
(END) Dow Jones Newswires
09-13-22 0409ET
