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 Aug 2021 to Sep 2021 Click Here for more FTSE 100 Charts.
FTSE 100
Index Chart
From Sep 2020 to Sep 2021 Click Here for more FTSE 100 Charts.