An unexpectedly high inflation report this morning will make chilling reading for all those hoping that the worst of the price rises are behind us.The data will fuel arguments that the Bank of England will need to boost interest rates again on Thursday as higher prices squeeze customers and businesses around the country, including companies like Fevertree. The maker of premium drinks mixers has seen the cost of making its glass bottles soar, forcing it to pass on higher prices to customers.
(Bloomberg) — An unexpectedly high inflation report this morning will make chilling reading for all those hoping that the worst of the price rises are behind us.The data will fuel arguments that the Bank of England will need to boost interest rates again on Thursday as higher prices squeeze customers and businesses around the country, including companies like Fevertree. The maker of premium drinks mixers has seen the cost of making its glass bottles soar, forcing it to pass on higher prices to customers.
Here’s the key business news from London this morning:
In The City
Superdry Plc: The casual clothing brand sold its intellectual property assets for some countries within the Asia Pacific region to the Cowell Fashion Company Ltd for an upfront fee of $50 million in cash.
- Cowell will at first use the Superdry brand in its own market of South Korea, and eventually extend it to China
Fevertree Drinks Plc: High glass costs are continuing to squeeze the maker of premium mixers bottom line, leading it to expect Ebitda in line with its previous guidance.
- The company is taking measures to cut costs like increasing its local US production and increasing prices across regions
Bytes Technology Group Plc: The software specialists says in the year to February 2023 it delivered growth in its adjusted operating profit of about 20% compared to the year before.
- Bytes CEO Neil Murphy said the company is “delighted with the performance delivered last year,” which stemmed from “very strong” demand for software and IT Services from both corporate and public sector clients
UK CPI: The Consumer Prices Index rose 10.4% in February after a 10.1% gain the month before, the Office for National Statistics said Wednesday.
- Economists had expected the reading to fall back into single digits
In Westminster
Britain’s post-Brexit settlement with the European Union will share the spotlight with Boris Johnson today. In the House of Commons, MPs will vote on the Stormont Brake, a key feature of Rishi Sunak’s new post-Brexit deal over trade with Northern Ireland. Johnson, meanwhile, will seek to save his reputation by giving evidence to a committee investigating whether he deliberately lied to lawmakers over “Partygate.”
In Case You Missed It
News that British American Tobacco Plc is under pressure from at least one leading shareholder to join the drift of companies abandoning their UK listings for the US is “enough to give officials at the London Stock Exchange a coughing fit,” say Bloomberg Opinion’s Matthew Brooker and Andrea Felsted. “The logic of this defection is less than wholly convincing, though.”
Virgin Orbit Holdings Inc. said it’s targeting “an incremental resumption of operations” after temporarily halting activities last week in the wake of a failed satellite launch a few months ago that threw the ambitious space program off course.
Nick Leeson, the former derivatives trader who brought down Barings Bank, has joined a corporate intelligence firm. Leeson, who was played by Ewan McGregor in a film on his book about the scandal, will investigate financial misconduct to help investors seek compensation in court when regulators are unable to help.
Looking Ahead
Oil & gas company Energean Plc is among firms slated to update the market tomorrow morning. On the macro front, all eyes will be on the Bank of England’s rate decision, due at noon on Thursday.
For a more considered take on the UK’s economic and financial news, sign up to Money Distilled with John Stepek.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.