FTSE 100 Falls; Sentiment Hit by Weak China Data, Higher UK
Inflation
0803 GMT - The FTSE 100 index falls 0.1% to 7025.12, with
sentiment knocked by weaker-than-expected retail sales and
industrial production in China and higher-than-expected U.K.
inflation figures as concerns linger about rising prices and
slowing growth. Travel, industrial and property stocks are mostly
lower, with Rolls Royce down 3.1% and British Airways-owner
International Consolidated Airlines down 2.6%. Gains for
heavyweight oil stocks due to firmer crude oil prices help temper
the FTSE's falls, with BP up 0.7% and Royal Dutch Shell rising
0.6%. U.K. annual CPI inflation rose to 3.2% in August, above the
2.9% expected in a WSJ poll. Questions over whether price increases
are temporary will dominate the day, while Friday's looming options
expiry should ensure volatility continues until then, IG says.
(jessica.fleetham@wsj.com)
Companies News:
Tullow Oil CFO Les Wood to Step Down
Tullow Oil PLC said Wednesday that Chief Financial Officer Les
Wood has agreed with the board to step down.
---
Tullow Oil Swung to 1H Net Profit; Narrows 2021 Production
Guidance Upward
Tullow Oil PLC on Wednesday reported a profit for the first half
of the year and narrowed 2021 production guidance toward the upper
end of the range.
---
Fevertree Drinks' 1H Pretax Profit Grew
Fevertree Drinks PLC on Wednesday reported a rise in pretax
profit for the first half of 2021, which was marked by growth
across all of its key markets.
---
Trustpilot 1H Pretax Loss Widened
Trustpilot AS said on Wednesday that its first-half pretax loss
widened after booking higher costs, and raised its guidance for the
year.
---
Darktrace Books Widened FY 2021 Loss, Raises FY 2022
Guidance
Darktrace PLC on Wednesday reported a widened loss for fiscal
2021, reflecting non-cash costs, and raised guidance for the
current period.
---
Restaurant Group 1H Pretax Loss Narrowed Significantly
Restaurant Group PLC reported on Wednesday a significantly
narrowed pretax loss for the first 27 weeks of 2021 amid cuts to
costs.
---
Redrow Pretax Profit Rose in FY 2021
Redrow PLC said Wednesday that pretax profit rose for fiscal
2021 as revenue increased, and that performance in the new fiscal
year has been encouraging.
---
Pendragon Swung to 1H Profit, Supported by Strong Car Market
Pendragon PLC said Wednesday that it swung to a profit for the
first half of the year, reflecting tailwinds in the car market.
---
Ricardo Swung to FY 2021 Pretax Profit
Ricardo PLC said on Wednesday that it swung to a pretax profit
for fiscal 2021 after booking lower costs, and that it entered
fiscal 2022 with a robust order book and pipeline.
---
Epwin Group Swung to 1H Pretax Profit
Epwin Group PLC said Wednesday that it swung to a pretax profit
for the first half as revenue increased, and that it expects strong
demand from customers serving the renovation, maintenance and
improvement market--which represents around 70% of historic group
revenue--to continue in the foreseeable future.
---
Bridgepoint 1H Profit Rose in Maiden Listed Results, Deployment
at Normal Levels
Bridgepoint Group PLC said Wednesday that its profit and revenue
rose strongly in the first half of 2021, with capital deployment
returning to normal levels despite the lingering effects of the
Covid-19 pandemic.
---
Central Asia Metals Raises Dividend as Commodity Prices Boost 1H
Profit
Central Asia Metals PLC on Wednesday reported an improved profit
for the first half and raised its interim dividend.
---
Character Group Sees FY 2021 Underlying Pretax Up to 10% Below
Market Views
Character Group PLC said Wednesday that its full-year
performance has been hit by shipping issues, noting that underlying
pretax profit is now expected to be no more than 10% below market
expectations.
---
Sabien Technology Shares Soar on Partnership with
Plastics-to-Fuel Company
Sabien Technology Group PLC shares surged on Wednesday after the
company said it has been appointed as exclusive sales agent in the
U.K. for South Korea's City Oil Field Inc. for one year, with
potential for a longer partnership.
---
Eleco 1H Pretax Profit Rose; Warns of Short-Term Hit to
Profitability
Eleco PLC said Wednesday that its first-half pretax profit and
revenue rose, and that it is confident of meeting market
expectations for the full year.
---
RBG 1H Profit Rose; Shares Climb
Shares in RBG Holdings PLC jumped Wednesday morning after the
professional services group reported improved profits for the first
half of the year and reaffirmed full-year expectations.
---
Hornby Says Sales, Margins Were Lower in the April 1-August 31
Period
Hornby PLC said on Wednesday that sales and margins in the
period from April 1 to Aug. 31 were lower than in the previous year
but that trading patterns have begun to return to those seen before
the pandemic.
Market Talk:
UK Gilts Drop on Faster Inflation Growth, But Yields Still
Low
0808 GMT - U.K. government bonds extend losses, driving yields
higher, as official data Wednesday showed inflation surged at the
fastest pace in nearly a decade. Annual CPI inflation accelerated
to 3.2% in August, overshooting a 2.9% consensus forecast from a
WSJ poll. Yet yields still look low. With inflation running hot and
wages on the rise, the Bank of England "looks quite likely to be
one of the first major central banks to hike rates next year," says
Hugh Gimber, global market strategist at JPMorgan Asset Management.
The historically low level of U.K. gilt yields appears
"inconsistent" with the inflationary pressures building in the
economy, he says. The yield on the 10-year gilt trades around two
basis points higher on the day at 0.763% after the release,
according to Tradeweb. (lorena.ruibal@wsj.com)
---
UK Annual Inflation Is Expected to Accelerate in the
Short-Term
0746 GMT - Consumer prices in the U.K. are expected to increase
further in the short-term, and the annual inflation rate could rise
to 4.5% in November from 3.2% in August, Capital Economics' chief
U.K. economist Paul Dales says. The increase in utility prices,
base effects or the pass-through food costs will drive the
increase, he says. However, inflation is expected to fall sharply
next year as these factors unwind, and by the end of 2022 the
annual inflation rate could be back below 2%, Dales says. In the
meantime, the next six months of soaring inflation will be an
uncomfortable period for the Bank of England's Monetary Policy
Committee, which isn't expected to raise interest rates until 2023.
(xavier.fontdegloria@wsj.com)
---
UK Inflation Is Set to Fall in September After August's Rise
0741 GMT - U.K. headline inflation rose to 3.2% on year in
August from 2.0% in July. The largest upward contribution to the
increase was the government's "Eat Out to Help Out" (EOHO) program
that subsidized meals out in August 2020, UniCredit says. The
effect of the EOHO discounts contributed 0.3 percentage point to
headline inflation, the U.K. Office for National Statistics says.
Another factor that drove the rise was the temporary reduction in
VAT for the hospitality sector from July 2020, UniCredit says. U.K.
inflation is set to fall in September as the EOHO base effect
unwinds but then rise again later this year to over 3%, largely due
to energy prices, before easing next year, UniCredit forecasts.
(maria.martinez@wsj.com)
Contact: London NewsPlus, Dow Jones Newswires; Dow Jones
Newswires; paul.larkins@wsj.com
(END) Dow Jones Newswires
September 15, 2021 04:28 ET (08:28 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Mar 2024 to Apr 2024
FTSE 100
Index Chart
From Apr 2023 to Apr 2024