London Stocks Seen Opening Higher as UK Inflation Falls

0648 GMT - The FTSE 100 index is expected to open 66.2 points higher, according to IG, having closed on Tuesday at 7453.69, helped by data showing U.K. annual inflation dropped by more than expected in June to 7.9% from 8.7% in May. The news could mean the Bank of England might not need to raise rates as much as previously feared, although IG analysts write that "one inflation figure may not be enough to allow the Bank of England to pause its hiking campaign." They also point to solid results from Morgan Stanley and Bank of America, while retail sales data suggested "further strength in U.S. consumption." Individual stocks in focus include Antofagasta, Severn Trent, Aviva and Hargreaves Lansdown after earnings updates. (jessica.fleetham@wsj.com)

COMPANIES NEWS:

Hargreaves Lansdown Assets Under Administration Rose in 4Q

Hargreaves Lansdown on Wednesday said its assets under administration ticked up over the fourth quarter of fiscal 2023 as the end of the tax year boosted its net new business.

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Watkin Jones CEO Richard Simpson Steps Down, Alex Pease Named Interim

Watkin Jones on Wednesday said its Chief Executive Richard Simpson stepped down from the role and that Chief Investment Officer Alex Pease would take up the position in the interim, effective immediately.

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Severn Trent Says FY 2024 Began Strongly

Severn Trent said Wednesday that it has made a strong start to the year, operationally, and that with reservoir levels at 77% capacity, it is well-positioned for the summer months.

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Aviva Expects Higher 1H, FY 2023 Operating Profit; Restates Some 2022 Results

Aviva PLC said Wednesday that it expects both first-half and full-year operating profit to rise on year, as it restated its 2022 results to comply with accounting changes.

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Restaurant Group Considers Potential Disposals; Is Confident of Delivering on 2023 Expectations

Restaurant Group said Wednesday that it is evaluating potential disposals as part of its strategic options, and that it is confident in delivering management's expectations for 2023.

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National Grid to Sell Further 20% National Gas Stake for Around GBP700 Mln

National Grid said Wednesday that it has agreed to sell a further 20% interest in its U.K. gas transmission business National Gas to the existing majority owners, for total proceeds of around 700 million pounds ($912.5 million).

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Argo Blockchain Raises GBP5.13 Mln Via Discounted Share Placing

Argo Blockchain said Wednesday that it has raised 5.13 million pounds ($6.7 million) via the share placing announced late on Tuesday, more than planned.

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Personal Group 1H Revenue, Earnings Rose; Sees In-Line 2023 Results

Personal Group Holdings on Wednesday said it is confident its 2023 trading performance will be in line with market expectations as it posed a rise in revenue and adjusted earnings for the first half of the year.

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Antofagasta Cuts Full-Year Copper Production Guidance; 1H Production Rose

Antofagasta on Wednesday cut its full-year copper production outlook due to construction delays and water availability at Los Pelambres, although production rose in the first half of the year.

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Pebble Beach 1H Revenue Rose Despite Falling Order Intake; Sees Stronger 2H

Pebble Beach Systems Group said Wednesday that it sees revenue growth in the first half of the year despite decreasing orders, and that it expects a stronger second half.

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Mediazest Sees Improved Financial Results in 2H, Boosted by New Business

Mediazest said Wednesday that it expects to report improved financial results for the second half of fiscal 2023 driven in part by new business wins.

MARKET TALK:

Antofagasta's 2Q Copper Production Disappoints

0657 GMT - Antofagasta posted weak 2Q copper production, and the cut to full-year production will likely be a key overhang for consensus estimates, Citi analysts write in a research note. The miss to 2Q copper-production estimates was driven by production from Centinela dropping 11% on quarter due to lower grades, they say. "Although the company has maintained its full-year net cash-cost guidance at $1.65 a pound, slight uptick in gross cash cost does not bode well for cost normalization narrative with improving production volumes," the analysts say. Citi keeps a neutral rating on the stock with a 1,500 pence price target. (christian.moess@wsj.com)

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UK Inflation Still Not Low Enough to Deter More Rate Hikes

0657 GMT - U.K. consumer prices should continue to fall, though the Bank of England will probably still have to raise interest rates at its next meeting, Capital Economics' chief U.K. economist Paul Dales writes in a note. Inflation declined more than expected in June, with core prices dropping to 6.9% from 7.1% in May. Higher interest rates are helping ease core inflation in goods and services, but with wage growth still strong, the BOE is likely to raise interest rates from the current 5% level in August, Dales says. "Overall, the U.K. will probably still have higher rates of inflation than elsewhere for a while yet, but at least the U.K. is now following the global trend," he says. (joshua.kirby@wsj.com; @joshualeokirby)


Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

07-19-23 0314ET