Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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February 15, 2023

CPI slowing more quickly over here

Macro & Overnight

As expected, US CPI slowed in January but too slowly. Fears have increased of stubborn inflation, and a rampant jobs market will lead to inflationary expectations becoming baked into consumer and employer behaviours. Noises from the Fed on the correct policy response remained mixed but broadly dovish, with constant reference to the “disinflationary process” underway.

Meanwhile, the UK has revealed that its January inflation rate fell faster than expected, albeit with CPI remaining in double digits. The UK’s underlying core inflation rate also fell more quickly.

 

UK Company News

Barclay‘s revealed disappointing results and a £500m share buyback.

Homeware retailer Dunelm reported strong sales growth, 43% higher than pre-pandemic. Guidance was unchanged.

Hargreaves Lansdown, the investment platform, revealed AUA up 3.6% q/q in 2Q23, driven by positive market performance. Its results were ahead of expectations.

IQGeo, the geospatial software developer, has signed a significant new contract with NESIC in Japan to deliver a utility disaster assessment solution for Japanese public authorities. Over five years, the £1.9m deal includes IQGeo’s software platform and mobile capabilities consisting of a £1.0m licence and associated support and maintenance.

Prognosticator

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