Stefan Bernstein, CEO of GreenRoc, discusses the potential of the MoU with Norwegian battery maker. 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
21 Jan 2020 13:51

UPDATE: Dixons Carphone Misreports Sales Growth After "Clerical Error"

UPDATE: Dixons Carphone Misreports Sales Growth After "Clerical Error"

Read more
21 Jan 2020 11:59

LONDON MARKET MIDDAY: Stocks Slump On Asia Virus; UK Jobs Lifts Pound

LONDON MARKET MIDDAY: Stocks Slump On Asia Virus; UK Jobs Lifts Pound

Read more
21 Jan 2020 10:34

UK WINNERS & LOSERS SUMMARY: Dixons Carphone Rises On Festive Trading

UK WINNERS & LOSERS SUMMARY: Dixons Carphone Rises On Festive Trading

Read more
21 Jan 2020 08:45

LONDON MARKET OPEN: easyJet Climbs After Raising Revenue Guidance

LONDON MARKET OPEN: easyJet Climbs After Raising Revenue Guidance

Read more
21 Jan 2020 08:20

TOP NEWS: Dixons Enjoys Strong Peak Season Despite Weak UK Retailing

TOP NEWS: Dixons Enjoys Strong Peak Season Despite Weak UK Retailing

Read more
21 Jan 2020 08:00

Dixons Carphone reports mixed performance over festive period

(Sharecast News) - Dixons Carphone reported a rise in electricals revenue over the festive period but a drop in mobile sales on Tuesday as it said it was on course to deliver on its full-year expectations.

Read more
17 Jan 2020 16:03

UK Dividends Calendar - Next 7 Days

UK Dividends Calendar - Next 7 Days

Read more
14 Jan 2020 16:01

UK Earnings, Trading Statements Calendar - Next 7 Days

UK Earnings, Trading Statements Calendar - Next 7 Days

Read more
14 Jan 2020 11:59

LONDON MARKET MIDDAY: Caution As US Banks To Kick Off Earnings Season

LONDON MARKET MIDDAY: Caution As US Banks To Kick Off Earnings Season

Read more
14 Jan 2020 11:54

Tuesday broker round-up

(Sharecast News) - DFS: Jefferies downgrades to hold with a target price of 275p.

Read more
14 Jan 2020 10:52

UK WINNERS & LOSERS SUMMARY: Elementis And McBride Down After Warnings

UK WINNERS & LOSERS SUMMARY: Elementis And McBride Down After Warnings

Read more
14 Jan 2020 09:38

UK BROKER RATINGS SUMMARY: Berenberg Downgrades BP And Raises Shell

UK BROKER RATINGS SUMMARY: Berenberg Downgrades BP And Raises Shell

Read more
14 Jan 2020 08:51

LONDON MARKET OPEN: Stocks Mixed; Elementis Falls After Profit Warning

LONDON MARKET OPEN: Stocks Mixed; Elementis Falls After Profit Warning

Read more
9 Jan 2020 16:57

Dixons Carphone Fined GBP500,000 By UK Regulator For Data Breach

Dixons Carphone Fined GBP500,000 By UK Regulator For Data Breach

Read more
2 Jan 2020 16:55

LONDON MARKET CLOSE: London Stocks Start 2020 Strongly But Pound Lags

LONDON MARKET CLOSE: London Stocks Start 2020 Strongly But Pound Lags

Read more

Free Investment Tools

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.