20th Aug 2025 07:52
(Alliance News) - The FTSE 100 was called lower on Wednesday, following news that UK consumer inflation accelerated in July, while the retail price index also increased.
"Stronger-than-expected CPI numbers further reduce the chances of seeing the Bank of England (BoE) cut rates in November," commented Swissquote's Ipek Ozkardeskaya. "The BoE sees inflation further peak to 4% in the coming months. Sterling is higher after the CPI figures and has room to factor in more hawkishness amid inflation risks and past few days’ positive surprise on growth and production data."
Here is what you need to know before the London market open:
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MARKETS
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FTSE 100: called down 0.2% at 9,170.92
GBP: virtually flat at USD1.3504 (USD1.3503 at previous London equities close)
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ECONOMICS
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UK consumer price and retail price inflation were both higher than anticipated on an annual basis, the Office for National Statistics reported. The consumer price index for July rose 3.8% on-year, from a 3.6% rise in June. It exceeded FXStreet-cited consensus expectations of a 3.7% increase. On a monthly basis, CPI rose 0.1%, defying the consensus forecast of a 0.1% decrease but slowing from a 0.3% rise in June. Core CPI increased 3.8% annually, from 3.7% in June and against consensus expectations of another 3.7% rise. Also on Wednesday, the ONS reported that the retail price index posted a 4.8% annual rise in July, against a 4.4% increase in June. Market consensus had expected 4.5% inflation. Finally, retail prices increased 0.4% on-month, unchanged from their increase in June and against the forecast of deceleration to a 0.1% increase.
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BROKER RATINGS
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Barclays raises United Utilities to 'overweight' - price target 1,535 (1,280) pence
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RBC cuts Aberdeen to 'sector perform' - price target 195 (140) pence
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JPMorgan raises BHP price target to 2,160 (2,130) pence - 'neutral'
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COMPANIES - FTSE 100
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ConvaTec announced a new share buyback programme worth up to USD300 million, starting effective immediately and due to finish on December 31. This "follows confirmation of full year guidance with ConvaTec's interim results, together with a refresh of cash flow needs for the second half of the year," the company said. ConvaTec said UBS' London branch will conduct the buyback on its behalf.
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COMPANIES - FTSE 250
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Lion Finance reported its half-year results. It declared a total interim dividend of GEL5.10 per share. "The board has taken the decision to move to a quarterly, more consistent schedule of distributions, with our target payout range of 30-50% of annual profits unchanged," Chief Executive Archil Gachechiladze commented. Group pretax profit totalled GEL1.22 billion or around GBP335.3 million, down from GEL1.63 billion but up from an adjusted profit of GEL956.7 million for the first half of 2024. The GBP956.7 million adjusted figure for the first half of 2024 excludes a one-off item of GEL669.5 million "to better showcase underlying performance," the company said. This is due to a one-off gain on bargain purchase of GEL668.8 million Lion Finance had reported for the first quarter of 2024, resulting from the acquisition of Ameriabank in March 2024. Meanwhile, interest income increased on-year in the first half of 2025 to GEL2.54 billion from GEL1.84 billion. The loan book increased 23% on-year at constant exchange rates to GEL36.53 billion as of June 30. Also, the company announced a GEL98.0 million extension to its share buyback programme, to start "shortly" and end no later than its next annual general meeting, which it currently expects to hold in May.
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Computacenter named Keith Mortimer as its new chief financial officer, effective from September 1. He has worked at the company since 1999, and is currently the director of group commercial finance. "I look forward to working even more closely with Keith, as he takes up the position of [CFO]," commented CEO Mike Norris. "His detailed knowledge of the business from end to end will be invaluable in helping us achieve our growth ambitions for the business, particularly as we continue to make significant investment in our systems, tools and processes to enhance both our operating efficiency and the customer experience."
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OTHER COMPANIES
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Henry Boot's land promotion and planning business, Hallam Land, has secured outline planning permission for 1,270 homes in Tamworth, Staffordshire. Also, it was granted an additional 1,200 plots on appeal in Fareham, Hampshire. It said Hallam has been marketing the Tamworth site and that advanced contract negotations are underway to sell to a "major housebuilder". For the Fareham site, Hallam plans to start marketing this month and "expects strong interest". "Securing planning consent for nearly 2,500 homes is a clear testament to our team's expertise in unlocking complex sites for development," said Henry Boot CEO Tim Roberts. "The approvals also signal renewed momentum in the planning system following the government's reaffirmed commitment to removing planning barriers and tackling the nationwide housing shortage. It is a strong indicator that well-considered schemes in the right locations will be approved, and we expect strong buyer interest as we bring them to market, enabling us to unlock the value we have secured on behalf of our shareholders."
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By Emma Curzon, Alliance News reporter
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United UtilitiesBHP GroupAbrdnConvaTecBank Of Georgia GroupComputacenterHenry Boot