8th Jan 2021 10:08
(Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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Barratt Developments described its interim performance as "excellent", noting its sales rate has moderated but was still notably higher annually. The housebuilder said that for the financial first half ended December 31, its sales rate climbed 12% to 0.77 net private reservation per active outlet per week from 0.69 per week the year prior. The firm's home completions rose 9.2% annually to 9,077, and total forward sales at December 31 were 14% higher year-on-year at 13,588 homes at a value of GBP3.21 billion, which up 19%. Barratt said it will resume dividend payments with its interim results in February.
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Rentokil Initial said it expects 2020 profit to be slightly above the top end of current market expectations. The Camberley, England-based pest and control and hygiene firm said full-year adjusted pretax profit will be between GBP292 million and GBP337 million, down from profit by the same measure of GBP340.9 million in 2019. In addition, Rentokil said it has acquired Environmental Pest Service, a commercial and residential pest control firm based in Tampa, Florida for an undisclosed amount. In 2020, Rentokil spent GBP180 million on acquisitions. The figure does not include the purchase of EPS, it said.
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Pets At Home said momentum accelerated across all channels in its third financial quarter, and it now expects annual underlying pretax profit to exceed previous guidance. Promisingly, the company now expects annual pretax profit to be GBP77 million, including the previously announced repayment of GBP28.9 million business rates relief. This was ahead of its previous guidance of GBP93.2 million including business rates relief. In December alone, like-for-like revenue grew in the "high-teens", Pets at Home said.
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Marks & Spencer said its Christmas trading was "robust", though a nationwide lockdown in England proved costly, causing revenue in its Clothing & Home unit to tumble more than 40% in November alone. For the whole of the retailer's third quarter ended December 26, group revenue fell 8.4% yearly to GBP2.77 billion. In the UK arm alone, revenue fell 8.2% to GBP2.53 billion and was down 7.6% on a like-for-like basis. By unit, it was a familiar story for the mid-cap retailer. The Food arm saw 2.2% annual third-quarter revenue growth to GBP1.74 billion. On a like-for-like basis, revenue in the unit rose 2.6%. At the Clothing & Home arm, third-quarter revenue was down 25% year-on-year at GBP787 million, falling 24% like-for-like. Before November's restrictions, revenue was down 17%, before tumbling 41% during England's lockdown that month.
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The UK's competition regulator said it will probe Diageo's intended buy of Chase Distillery. The Competition & Markets Authority said it is considering whether the deal will result in the "substantial lessening of competition within any market or markets in the UK for goods or services". The CMA is inviting comment on the proposed deal, which will close on January 21. Spirit giant Diageo first announced the deal to buy Herefordshire gin and vodka-maker Chase Distillery in mid-October. The takeover, for an undisclosed amount, will see the Johnnie Walker and Gordon's owner further expand its UK gin business, as customer demand for premium spirits continues to surge.
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MARKETS
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FTSE 100 gave up its earlier gains by mid-morning on Friday, paling in comparison to European peers, after notching minor gains earlier in the session.
"It seems the FTSE has lost its spark. An explosive start to the year has petered out in the last couple of sessions, once again leaving the UK index way off the pace of its European and US cousins," Spreadex analyst Connor Campbell said.
Barratt was among the best index performers, up 2.7%, after a promising trading update and following data which showed UK house prices notched another record in December.
Over in the US, eyes turn to the crucial nonfarm payrolls data, outat 1330 GMT. US stock market futures were higher ahead of the release, building on Thursday's record close.
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FTSE 100: 0.1% lower at 6,853.44
FTSE 250: up 0.7% at 21,154.97
AIM ALL-SHARE: up 0.3% at 1,178.38
GBP: up at USD1.3597 (USD1.3565)
EUR: down at USD1.2230 (USD1.2274)
Gold: down at USD1,890.13 per ounce (USD1,914.89)
Oil (Brent): up at USD54.78 a barrel (USD54.51)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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The UK housing sector rounded off a year of strong growth with yet another monthly climb in December, according to Halifax's tracker, the sixth monthly hike in a row. House prices rose 0.2% monthly in December to an average of GBP253,374, a record. House prices at the end of December were 6.0% higher than a year earlier. December's 0.2% monthly growth was the slowest seen over the past six months and sharply decelerated from November's 1.0% climb, however. For the final quarter of 2020, house prices rose 2.6% from the third quarter. With mortgage approvals sitting at a 13-year high, the housing market may still have some price gains to eke out before rising unemployment and economic strain caused by Covid-19 begins to weigh on the sector, Halifax Managing Director Russell Galley said.
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Pfizer and BioNTech's Covid-19 vaccine protects against two new mutant variants that are causing rapid spread across the UK, according to new research. The pharmaceutical giant and researchers from the University of Texas carried out lab tests on the strains, one of which was found in the UK while the other originated in South Africa. The variants contain mutations including N501Y, an alteration in spike protein of the virus, which is a target for vaccines. In the new study, which has not yet been peer-reviewed, blood samples were taken from 20 people who received the Pfizer vaccine. Laboratory studies found that the samples had neutralising levels of antibodies which worked against the new strains.
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China has sealed off two cities south of Beijing after Hebei province in northern China has saw 127 new Covid-19 cases, plus an additional 183 asymptomatic infections, in the past week. The vast majority were found in Shijiazhuang, a city of several million in Hebei province whose surrounding areas take the total population to 11 million. Nine confirmed cases were in the neighbouring city of Xingtai, whose area covers 7 million people. Residents of Shijiazhuang and Xingtai were banned from leaving the cities unless absolutely necessary, Hebei authorities announced Friday. Officials vowed to "strictly control the movement of people and vehicles", with all residential estates placed under "closed management" – a euphemism for lockdown. Hebei residents were also banned from entering Beijing or leaving the province unless absolutely necessary.
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Outgoing US President Donald Trump said he was "outraged by the violence, lawlessness and mayhem" after a group of his supporters stormed the Capitol and forced a halt to a Congressional joint sitting. The statement came as calls for his ouster grew on Thursday and members of his administration quit in the wake of a tumultuous 24 hours in Washington that also saw lawmakers finally confirm incoming president Joe Biden's election victory. Trump did not acknowledge his role in riling up his supporters with baseless allegations of election fraud and encouraging them to march to the Capitol. He promised a smooth transition to president-elect Joe Biden, who defeated him in November's presidential election. However, in a message to his "wonderful supporters," Trump added "I know you are disappointed but I also want you to know that our incredible journey is only just beginning."
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Industrial production in Germany grew in November, figures from the Federal Statistical Office showed. Destatis said production in industry excluding energy and construction was up by 1.2% in November, with the production of intermediate goods showing an increase by 2.4% and the production of capital goods by 1.3%. The production of consumer goods, meanwhile, decreased by 1.7%. Turning to energy and construction production, these were down by 3.9% in November and up by 1.4%, respectively. For October, the revised figure of the industrial production showed an increase of 3.4% on September. In a separate statement, Destatis said German exports were up 2.2% in November, and imports rose by 4.7%, both when compared to October. The foreign trade balance showed a surplus of EUR17.2 billion in November. A year ago, the surplus amounted to EUR18.5 billion.
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