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BOE's Rate Increases Highlight Recession Risks

Bank of England's Rate Increases Highlight Recession Risks

0732 GMT - The Bank of England is likely to raise interest rates again Thursday, increasing the risk of a policy mistake, Berenberg's senior economist Kallum Pickering says in a note. In the near-term, inflation is set to exceed the BoE forecasts, but this is entirely due to the rise in commodity prices while there is evidence of a pullback in households' demand, he says. "On a policy relevant horizon--of say two years from now--the Putin shock will probably depress demand growth, which may also affect inflation dynamics over time. If we are unlucky, the U.K. is already in the early stage of a recession," Pickering says. In this context, it would be better if officials keep policy unchanged until incoming data dictate the appropriate response, he says. (xavier.fontdegloria@wsj.com)

 
Companies News: 

BP to Take $25.5 Billion Hit From Russia Exit

BP PLC took a $25.5 billion pretax accounting charge related to its decision to exit its Russia holdings, including its stake in government-controlled oil producer Rosneft, by far the biggest financial hit tallied by companies pulling back from the country after its invasion of Ukraine.

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Card Factory Swung to FY 2022 Pretax Profit; FY 2023 Started Well

Card Factory PLC said Tuesday that it swung to a pretax profit in fiscal 2022 on increased revenue, and fiscal 2023 has begun well.

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Plus500 Ltd Early 2022 Performance Meets Key Metrics; Makes Strategic Progress

Plus500 Ltd. said Tuesday that it has performed well against its key metrics in 2022 to date, and has made substantial progress against its strategic priorities.

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CareTech 1H Broadly in Line Despite Covid-19, Inflation and Labor Issues

CareTech Holdings PLC said Tuesday that its first-half performance was broadly in line with expectations, despite Covid-19-related issues, inflationary pressures and labor shortages.

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Sovereign Metals to Raise A$15 Mln to Fund Kasiya Project

Sovereign Metals Ltd. said Tuesday that it has received support from investors to raise 15 million Australian dollars ($10.6 million), which will be used towards the Kasiya project in Malawi.

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Avation Says Virgin Australia's Trustees Can Make Good on $71.5M in Claims

Avation PLC said Tuesday that Virgin Australia's trustees should now pay out claims of 101.4 million Australian dollars (US$71.5 million) after litigation in Australia concluded with no adjustment to claims.

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GRC International FY 2022 Billings Rose, Swung to Ebitda Profit

GRC International Group PLC said Tuesday that fiscal 2022 billings rose and that it swung to positive Ebitda after a strong fourth quarter.

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CMA Considers Accepting Undertakings Over LSEG's Quantile Acquisition

The U.K. regulator said Tuesday that the expected acquisition of Quantile Group Ltd. by London Stock Exchange Group PLC could substantially lessen market competition, and that it is considering accepting undertakings.

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McColl's Retail to Seek Trading Halt June 1 Due to FY 2021 Earnings Delay

McColl's Retail Group PLC said Tuesday that it won't be able to publish its fiscal 2021 earnings by the end of May deadline and that it therefore expects to request a suspension of trading in its shares.

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Ocean Outdoor Evaluates Sale Proposal, 2021 Pretax Loss Narrowed

Ocean Outdoor Ltd. said Tuesday that the board was evaluating a potential sale to its largest shareholder, investment-company Atairos, and that its 2021 pretax loss narrowed as revenue rose and no impairment charges were incurred.

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Hargreaves Services Sees FY 2022 Results Higher on German JV Contribution

Hargreaves Services PLC said Tuesday that it expects further improvements to its fiscal 2022 results after a strong performance from its German joint venture, Hargreaves Raw Materials Services GmbH.

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OPG Power Ventures FY 2022 Total Power Generation Fell After Cost Rises; Appoints CFO

OPG Power Ventures PLC said Tuesday that its total power generation for fiscal 2022 fell amid a rise in coal prices and freight costs and that it has appointed a new chief financial officer.

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Devolver 2021 Audited Net Income Lower than Prior Reports

Devolver Digital Inc. said Tuesday that its final audited net income for 2021 is $1.8 million lower than its previously published preliminary results, due to accounting adjustments.

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Intelligent Ultrasound Flags Possible Doubt About Ability to Continue as Going Concern

Intelligent Ultrasound Group PLC said Tuesday that it may need to raise further funds within the next 12 months to support its growth plans, and that this represents a material uncertainty that may cast significant doubt upon its ability to continue as a going concern.

 
Market Talk: 

BP Reports Strong 1Q Results Driven by Exceptional Trading

0703 GMT - BP has reported strong results for the first quarter of the year, with underlying replacement cost profit of $6.2 billion above the $4.5 billion market consensus, RBC energy analyst Biraj Borkhataria says in a note. The driver of the beat was "exceptional" oil and gas trading, he says. "BP has previously reported exceptional gas trading in 1Q20, and exceptional oil trading in 2Q20, but not both at the same time," Borkhataria notes. In addition, the energy company upgraded its buyback program to $2.5 billion for the second quarter, which should also be taken positively by the market, the analyst says. (jaime.llinares@wsj.com)

 

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

(END) Dow Jones Newswires

May 03, 2022 03:50 ET (07:50 GMT)

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