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London Market Opening
On Thursday, the FTSE 100 is anticipated to open 17 points lower, following a decline of 0.35% on Wednesday, closing at 8,269.60.
Stocks to Monitor
Primark, part of Associated British Foods (LSE:ABF), is forecasting a modest 0.5% decrease in like-for-like sales for the second half of the financial year. This anticipated decline includes a 0.9% drop for the fourth quarter, attributed to adverse weather conditions in the UK and Ireland which impacted foot traffic and seasonal sales in women’s fashion and footwear. Despite these challenges, Primark’s revenue growth is projected to reach around 4%, bolstered by ongoing store expansion. The company also announced an extension of its £0.5 billion share repurchase program by an additional £100 million, reflecting robust cash flow this year.
Housebuilder Vistry (LSE:VTY) is revealing a new £130 million share repurchase plan alongside a 7% increase in first-half pre-tax profit. For the period ending June 30, adjusted pre-tax profit rose to £186.2 million, up from £174 million in the previous year. Total home completions increased by 9.1% to 7,792 units, and revenue grew by 11.1% to £1.97 billion. Vistry reported strong demand across its Partner Funded markets.
Newspaper Highlights
According to new global research, more than 25% of advertisers are considering reducing their expenditure on Elon Musk’s X due to concerns over the platform’s content and credibility. Since Musk's acquisition of the platform, previously known as Twitter, advertising revenue has plummeted. – Guardian
Marks & Spencer is leveraging artificial intelligence to enhance online shopping experiences by offering personalized outfit recommendations based on body shape and style preferences. This move aims to boost online sales and customer engagement. – Guardian
The BBC is set to reduce its local operations workforce by approximately 115 editorial and production roles, despite committing £80 million to diversity initiatives. This reduction represents about 3% of the division’s staff and is part of efforts to address significant financial shortfalls. – Telegraph
Volvo has abandoned its plan to exclusively sell fully electric vehicles by 2030, reflecting a broader global slowdown in the electric car market. Volkswagen, another leading European car manufacturer, is also contemplating job cuts due to anticipated lower demand and regulatory challenges related to zero-emission vehicles. – The Times
Rightmove reports that the proportion of former rental properties listed for sale has reached an all-time high. This surge, now at 18%, compared to 8% in 2010, may be driven by concerns over potential increases in capital gains tax in the upcoming budget. – The Times
US Market Close
In the US, major indices displayed mixed results on Wednesday. The Dow Jones Industrial Average gained 0.09% to close at 40,974.97, while the S&P 500 fell 0.16% to 5,520.07. The Nasdaq Composite ended 0.30% lower at 17,084.30. The Dow's slight gain did not fully recover from the previous day's losses as traders returned from the Labor Day weekend to fresh data indicating a slowdown in US economic growth. The Bureau of Economic Analysis reported a widening trade deficit of $78.8 billion in July, the largest in over two years, with exports reaching a record high while imports surged.
