Brian Goodman, CEO of Golden Matrix Group Inc. explains how they stay one step ahead of their rivals. Watch the interview here.

Less Ads, More Data, More Tools Register for FREE
Sponsored Content
Sponsored Content

Pin to quick picksDC..L Share News (DC.)

  • There is currently no data for DC.

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

LONDON MARKET PRE-OPEN: Online Sales Drive Dixons To Interim Profit

Wed, 16th Dec 2020 07:42

(Alliance News) - Stocks in London on Wednesday are seen following Wall Street higher as markets look for progress in stimulus talks in Washington.

As well as government aid, focus lies on the US Federal Reserve's last policy decision of 2020 at 1900 GMT.

"We think the Federal Reserve will stick to its game plan without any major changes. We may see the Fed changing its QE forward-guidance to outcome-based forward guidance, but we think the Fed will continue buying at current pace for some time," said Danske Bank.

In early UK company news, Bunzl said it expects a "strong performance" for 2020 and Dixons Carphone swung to a half-year profit.

IG says futures indicate the FTSE 100 index of large-caps to open 24.28 points higher, or 0.5%, at 6,547.60 on Wednesday. The FTSE 100 closed down 18.51 points, or 0.3%, at 6,513.32 on Tuesday.

Wednesday's European open follows a surge in New York overnight.

In the US on Tuesday, Wall Street rallied, with the Dow Jones Industrial Average ending up 1.1%, the S&P 500 up 1.3% and the Nasdaq Composite up 1.3%.

"US policy support expectations are building again after signs of progress on a fiscal deal between House Speaker Nancy Pelosi and Senate Majority leader Mitch McConnell. Reports suggest the discussion focused on headline numbers. The expectation is growing now that a coronavirus deal will be attached to an omnibus bill to extending government funding beyond Friday's deadline," said Axi's Stephen Innes.

Lawmakers are up against two deadlines: the end of the week, when their session ends, and December 26, when the last benefit programs paid for by the CARES Act that support millions of unemployed people will expire.

In Asia on Wednesday, the Japanese Nikkei 225 index closed up 0.3%. In China, the Shanghai Composite ended flat, while the Hang Seng index in Hong Kong is up 0.9%.

Against the yen, the dollar was quoted at JPY103.43 versus JPY103.72. 

Japan's private sector downturn continued in the last month of 2020, IHS Markit data showed. The au Jibun Bank flash Japan composite purchasing managers' index print for December was 48.0 points, slightly less than the final November reading of 48.1 and still below the neutral 50.0 mark and into contraction territory.

The flash headline au Jibun Bank Japan manufacturing PMI, a measure of manufacturing sector health, increased to 49.7 points in December from 49.0 in November, getting closer to the neutral mark. The au Jibun Bank flash Japan services business activity index, meanwhile, dropped further to 47.2 in December from November's 47.8 final reading.

Meanwhile, the value of outbound shipments from Japan declined 4.2% year on year to JPY6.1 trillion, or USD59 billion, in November, the government said, as the Covid-19 pandemic decreased demand in many parts of the world. The reading represented the 24th straight month of fall, according to a preliminary report issued by the Finance Ministry.

In early UK economic data, inflation softened in November amid tighter virus restrictions.

Year-on-year, consumer prices rose 0.3% in November versus October's inflation rate of 0.7%. Consensus, according to FXStreet, had expected inflation to ease more modestly to 0.6%.

Month-on-month, prices fell 0.1% in November after stagnation in October.

"With significant restrictions in place across the UK, inflation slowed, predominantly due to clothing and food prices," said Jonathan Athow, deputy national statistician for Economic Statistics at the ONS.

Sterling was quoted at USD1.3468 early Wednesday, higher than USD1.3401 at the London equities close on Tuesday. The euro traded at USD1.2167 early Wednesday, firming on USD1.2151 late Tuesday.

In early UK company news, distribution firm Bunzl said it expects a "strong performance" for 2020, with continued growth in Covid-19 related orders during the fourth quarter of the year.

Revenue for the year is expected to increase 8%, or 9% at constant currency. Organic revenue growth continues to reflect diverging trends between the strength of Covid-19 related product sales and declines in other products, Bunzl said. The firm's operating margin is expected to be higher than the prior year.

Looking to the year ahead, Bunzl said it expects revenue in 2021 to be lower than the current year, with "minimal benefit" from larger Covid-19 related orders which have strongly supported the performance in 2020.

"The group's performance during the pandemic has demonstrated the resilience of the Bunzl portfolio, the strength of our supply chain and the agility of our decentralised operating model," said Chief Executive Frank van Zanten.

Bunzl added that it has recently completed the purchase of Snelling, a Canadian business focused on the sale of cleaning and hygiene products and industrial and foodservice packaging.

Electricals and mobile phone retailer Dixons Carphone reported a swing to interim profit as online sales surged.

Revenue for the half-year to October 31 rose to GBP4.86 billion from GBP4.71 billion a year ago, with Dixons turning to a pretax profit of GBP45 million from a GBP86 million loss.

"We've achieved this performance by doing what we said we'd do. We're winning online, and have triple-digit growth and rapid market share gains to show for it," said Chief Executive Alex Baldock.

For UK & Ireland Electricals, revenue was up 15%, or 16% like-for-like, and online sales more than doubled, offsetting a loss of sales from enforced store closures and in Dixons Travel.

Trading since the period end has continued strongly, the firm said. In UK & Ireland Electricals, like-for-like growth was 11% in the six weeks to December 12 despite stores in England, Wales, Scotland and Northern Ireland having been closed for substantial periods.

The immediate outlook is "less certain", Dixons said, as it noted the pandemic and possible Brexit disruption. The company added that it continues to discuss the possibility of listing a minority stake of its Nordics business in 2021.

Gold was quoted at USD1,856.20 an ounce early Wednesday, higher than USD1,847.70 on Tuesday. Brent oil was trading at USD50.56 a barrel, soft on USD50.63 late Tuesday.

The economic events calendar on Wednesday has US retail sales figures at 1330 GMT. There are also PMI readings from Germany, eurozone and the UK at 0855 GMT, 0900 GMT and 0930 GMT respectively.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

More News
19 Jun 2019 14:06

Thursday preview: Bank of England, Dixon's Carphone in the spotlight

(Sharecast News) - The market spotlight on Thursday will be firmly on central banks, as policymakers at the Bank of England meet to decide on interest rates, with several of them having recently cautioned that financial markets might be underestimating the scope for a hike in Bank Rate before year end.

Read more
18 Jun 2019 14:49

Wednesday preview: Federal Reserve meeting, Dixon's Carphone in focus

(Sharecast News) - The focus on Wednesday will be squarely on the US central bank with investors looking for validation of their expectations for up to three interest rate cuts over the remainder of 2019.

Read more
13 Jun 2019 16:08

UK Earnings, Trading Statements Calendar - Next 7 Days

Friday 14 June SthreeTrading Statement Monday 17 Investment TrustHalf Year

Read more
11 Apr 2019 15:55

Dixons Carphone 'potentially attractive turnaround story', says Barclays

(Sharecast News) - Dixons Carphone rallied on Thursday as Barclays initiated coverage of the stock at 'overweight' with a 175p price target, arguing that it's a "potentially attractive turnaround story".

Read more
11 Apr 2019 15:18

FTSE 250 movers: Grafton gains, Sirius slides

(Sharecast News) - London's FTSE 250 index was 0.47% higher at 19,577.36 in afternoon trade on Thursday, with Grafton heading the risers on the back of a new acquisition.

Read more
11 Apr 2019 11:58

Thursday broker round-up

(Sharecast News) - Ocado: HSBC downgrades to reduce with a target price of 900p.

Read more
11 Apr 2019 10:40

WINNERS & LOSERS SUMMARY: Fresnillo Down After Quarterly Output Slips

LONDON (Alliance News) - The following stocks are the leading risers and fallers within the main London indices on Thursday.----------FTSE 100 - Consolidated Airlines Group, up up

Read more
10 Apr 2019 09:17

Greggs Appoints TalkTalk Finance Chief Ferry As Non-Executive

LONDON (Alliance News) - Greggs PLC on Wednesday said it has hired Kate Ferry as a non-executive director, with effect from June.Ferry will replace Allison Kirkby, who leaves the board of a

Read more
2 Apr 2019 14:35

FTSE 250 movers: Wizz Air flies high, Dixons dives

(Sharecast News) - London's FTSE 250 index was 0.32% higher at 19,300.26 in afternoon trade on Tuesday, as Wizz Air gave the index a lift.

Read more
13 Mar 2019 08:32

LONDON MARKET OPEN: Stocks Lower; Pound Edges Up Ahead Of No-Deal Vote

LONDON (Alliance News) - London stocks opened on a downbeat note on Wednesday amid broadly lower trade in Asia and the US overnight, while the pound was edging higher ahead of yet another Brexit a

Read more
13 Mar 2019 08:14

Dixons Carphone fined £29m for insurance mis-selling

(Sharecast News) - The Financial Conduct Authority has fined Dixons Carphone more than £29m for insurance mis-selling.

Read more
13 Mar 2019 07:50

LONDON MARKET PRE-OPEN: Standard Life Board Shake-Up; Morrisons Payout

LONDON (Alliance News) - Stock prices in London are set to open lower on Wednesday, while the pound was steady after UK Prime Minister Theresa May's latest defeat in Parliament over her Brexit

Read more
26 Feb 2019 14:50

WH Smith Hires Three New Board Directors From Big Firms

LONDON (Alliance News) - WH Smith PLC on Tuesday said it appointed three more people to its board with two as non-executive directors.The newspaper, stationary and books retailer appointed

Read more
28 Jan 2019 17:05

LONDON MARKET CLOSE: FTSE Struggles As Wall Street Slides; Ocado Rises

LONDON (Alliance News) - It was a sluggish start to the new week for the FTSE 100 on Monday, with losses gathering pace in the afternoon as US stocks opened on a downbeat note following earnings a

Read more
28 Jan 2019 12:08

LONDON MARKET MIDDAY: Down Despite Deal Report Boost For M&S And Ocado

LONDON (Alliance News) - Stock trading in London started the week in a subdued fashion, with gains by Ocado and M&S unable to prevent the FTSE 100 from a by .

Read more

Make Better Investment Decisions

Register for FREE

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.