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FTSE Falls, Inflation Expectations Rise Further: BofA Survey

UK Inflation Expectations Rise Further: BofA Survey

Bank of America's survey measure of inflation expectations continues to rise, the U.S. investment bank says. One-year inflation expectations jumped 40 basis points to 4.5% and 35% of those polled expect above 5% inflation in a year's time, a new record for the survey, it says. "While higher 1y expectations are never welcome for the Bank of England, the central bank can perhaps take a sliver of comfort from 5y expectations changing little while 1y surged," it says. As energy prices surge, so does inflation and one-year inflation expectations should quite rightly rise, but 5-year inflation expectations moving little suggests consumers expect the inflation to be more of a 'one-off', it says.

 
Companies News: 

DS Smith Had Like-for-Like 3Q Volume Growth Despite Higher Costs

DS Smith PLC said Thursday that it continued to benefit from like-for-like volume growth in the third quarter of fiscal 2022 despite increasing input costs and that its expectations for the financial year remain unchanged.

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Boohoo Group Expects FY 2022 Adj Ebitda in Line With Market Views

Boohoo Group PLC said Thursday that it expects adjusted earnings before interest, taxes, depreciation and amortization for fiscal 2022 to be in line with market expectations.

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Capita PLC Swung to 2021 Pretax Profit, Sees Lower Profits in 2022

Capita PLC reported on Thursday a swing to pretax profit in 2021, backed by stable revenue and cost savings that offset contract losses and general cost increases, but said it expects 2022 profit margins to narrow.

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ITV Appoints Kingfisher's Andrew Cosslett as Its New Chairman

ITV PLC said Thursday that it has appointed Kingfisher PLC's Andrew Cosslett as its new chairman starting September, replacing Peter Bazalgette who is stepping down from the role after six years.

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Spirax-Sarco Engineering 2021 Pretax Profit, Revenue Rose

Spirax-Sarco Engineering PLC said Thursday that pretax profit increased 31% in 2021 on higher revenue, and it expects further sales growth in 2022.

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Northbridge Industrial Services to Resume Dividends

Northbridge Industrial Services PLC said Thursday that it will reinstate dividends and that the positive start to 2022 has continued.

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Savills 2021 Pretax Profit More Than Doubled on Pandemic Recovery

Savills PLC said Thursday that 2021 pretax profit more than doubled, driven by a significant recovery from the coronavirus pandemic.

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Brooks Macdonald's Funds Under Management Increased in 1H

Brooks Macdonald Group PLC reported on Thursday a decline in pretax profit for the first half of fiscal 2022 and a rise in funds under management, as it swung to positive net flows on improved client retention.

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Purplebricks CEO to Step Down; COO Named Successor

Purplebricks Group PLC said Thursday that Chief Executive Vic Darvey will step down at the end of March, and that Chief Operating Officer Helena Marston will assume the CEO role effective April 4.

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Just Group Swung to 2021 Pretax Loss on Portfolio Sale; Resumes Dividend

Just Group PLC on Friday reported a swing to pretax loss in 2021 due to economic losses related to the sale of its portfolio, but announced new guidance and resumed its dividend payout.

 
Market Talk: 

National Express Unlikely to Increase Offer for Stagecoach

1117 GMT - Stagecoach's all cash offer from a fund managed by DWS Infrastructure represents a premium of around 24% to National Express's proposed all-share merger offer, UBS says. The offer is expected to become unconditional in the first half, and while National Express could still increase the terms of its own offer, the Swiss bank says this is unlikely. Based on the new offer price and National Express's closing market capitalization, an increased offer would have to give Stagecoach shareholders nearly 50% of a combined company versus a previous 25%, it says. "We expect the sector as a whole to react positively," UBS says.

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Experian Looks In A Better Position to Grow

1102 GMT - Information services company Experian is in a better position to deliver higher organic growth over the coming years than it has done in the past as it increases credit penetration and positive data in Latin America, Liberum says. The brokerage forecasts an increase in pretax profit to GBP1.56 billion in 2023 and GBP1.76 billion in 2024. Liberum says that it sees strong cash flow for the medium term, which can be used to self-fund M&A or be returned to shareholders. Liberum initiates its stock coverage with a buy rating and a price target of 3,700 pence.

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Aluminum Prices Jump After UK Sanctions Russian Metals Tycoon Deripaska

1042 GMT - Aluminum prices jump after the U.K. sanctioned Oleg Deripaska, a major shareholder of a Russian metals company. Three-month aluminum prices on the London Metal Exchange rise 5.1% to $3,470 a metric ton after the U.K. said it was freezing the assets of Deripaska as well as banning his transactions with U.K. businesses and individuals. Deripaska is the largest shareholder of EN+ which owns Rusal, one of the world's largest aluminum companies, which Deripaska founded. The sanctions don't target Russian aluminum exports or producers. Metals markets have been jumpy since Moscow's invasion of Ukraine on fears that Russian exports of metals such as aluminum, nickel and palladium could be disrupted.

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Capita Disposals to Boost Growth Momentum

1034 GMT - Capita's 2021 results showed continued recovery from the pandemic in a tough economic environment, with disposals taking center stage, Shore Capital Markets says. The U.K. outsourcing business is targeting mid-single-digit revenue growth in the medium term, and Shore anticipates revenue and profit to begin increasing already with growth returning strongly by 2023 due to restructuring and the impact of disposals. Shore has a hold rating on the stock. Shares are up 4.5% at 22.85 pence.

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Savills' 2021 Impresses But Uncertainty Lies Ahead

1032 GMT - Savills posted an impressive set of results for 2021 with pretax profit more than doubling, though it did caution of risks ahead, AJ Bell says. The U.K. real-estate advisor, which has always been a decent barometer for the wider real-estate market, delivered strong results as the property market emerged from the deep freeze it endured during the coronavirus pandemic, AJ Bell says. "Less positively the company pointed to considerable uncertainty in the coming 12 months. Even without rampant inflation, conflict and an increase in discretionary costs, Savills expects volumes to normalize, suggesting that 2022 is likely to be a fair bit trickier than 2021," the brokerage says. Shares are up 6.3% at 1,212 pence.

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Boohoo Jumps as Trading Update Boosts Market Confidence

0952 GMT - Shares in Boohoo Group jump 13% after the online fashion retailer reported higher fourth-quarter sales and forecast full-year earnings in line with market expectations. "The market's very positive reaction to what is, on the face of it, simply an update stating how guidance will be hit shows the level of uncertainty surrounding Boohoo," Hargreaves Lansdown says. "Back in December, guidance was lowered by a pretty decent chunk, with the group pointing to everything from higher freight costs to Omicron concerns. Re-basing guidance is rarely a good thing, but the positives from this update are that they look to have stabilized, which will help instil more confidence from markets."

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Just Group's Growth Prospects Look Sustainable

0933 GMT - Just Group 2021 results shows that the company has reached a level of sustainable growth, RBC Capital Markets says. The provider of retirement-income products has delivered its results mainly in line with expectations, but also reinstated a dividend and announced underlying operating profit medium-term guidance for growth of 15% per year, it adds. "The statement of the ambitious target should act to improve investor confidence in Just Group's growth prospects over at least the next 3-5 years,", the Canadian bank says. RBC Capital Market has a outperform rating on the stock and a price target of 160 pence. Shares are up 0.8% at 84.45 pence.

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UK House Prices Rise In February, But Market May Ease

0928 GMT - U.K. housebuilders trade mixed after industry data showed higher house prices, though economists say the market could slow. Taylor Wimpey and Barratt Developments rise, but Berkeley Group Holdings and Persimmon drop. The latest RICS survey suggests the housing market remained strong in February, despite an intensifying squeeze on real incomes and rise in mortgage rates, Pantheon Macroeconomics says. "Indeed, the net balance of surveyors reporting higher prices increased to a nine-month high and the new buyer enquiries balance rose to 17, from 14 in January," Pantheon says. "Looking ahead, we continue to think house-price growth will cool this year, reflecting a dual hit from higher mortgage rates and falling real incomes."

 

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

(END) Dow Jones Newswires

March 10, 2022 07:45 ET (12:45 GMT)

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