Next Share News (NXT)

LONDON (Alliance News) - Stock prices in London are set to open lower on Thursday after a volatile session on Wednesday, which saw the FTSE 100 rally from substantial early losses to close in the green.However, sentiment was dented overnight by a downbeat outlook from iPhone maker Apple after the US market close. Apple blamed a weak Chinese market for its lower-than-expected sales, compounding fears over a slowdown in China after the world's second largest economy reported some weak manufacturing data earlier in the week.In early company news, Next said Christmas sales were in line with forecasts but nudged down its annual profit guidance. Drugmaker Vectura said it expects to beat earnings consensus forecasts. Ryanair and Wizz Air both reported a rise in December passenger numbers. IG says futures indicate the FTSE 100 index of large-caps to open down 35.63 points at 6,698.60 on Thursday. The index closed up 6.10 points, or 0.1%, at 6,734.23 on Wednesday after hitting a low of 6,599.48 in early dealings."European stock markets saw a major swing yesterday, and they endured a severe sell-off at the start of the session, but there was rally in the afternoon, and the FTSE 100 and DAX managed to end the day slightly in positive territory. The major US indices also saw a volatile session, whereby it also endured heavy losses initially, but managed to eke out a small gain in in the end," commented David Madden, market analyst at CMC Markets.He continued: "In after-hours trading on Wall Street, Apple lowered its first-quarter guidance due to weaker sales in China. The update sent the stock lower, and it put pressure on US index futures."Apple shares shed nearly to 8% in post-market trade after the iPhone maker said it now expects first-quarter revenue of around USD84 billion, down from its prior estimate of between USD89 billion to USD93 billion.Apple said it did not expect the magnitude of the economic deceleration in emerging markets, particularly in China. The company said most of its revenue shortfall compared to guidance, and over 100% of year-over-year worldwide revenue decline, occurred in China across its iPhone, Mac and iPad products.Worrying manufacturing data from China earlier on Wednesday and also on Monday had heightened fears over an economic slowdown, as the country's two manufacturing PMI scores both fell below the neutral mark of 50 into contraction.In the US on Wednesday, prior to the Apple update, Wall Street had ended in positive territory, with the Dow Jones Industrial Average closing slightly higher, up 0.1%, the S&P 500 also up 0.1% and Nasdaq Composite rising 0.5%.US futures are pointed to a sharply lower open on Thursday, however, with the Dow Jones pointed down 1.6%, the S&P 500 also down 1.6% and the Nasdaq Composite - of which Apple is a constituent - down 2.6%.In Asia on Thursday, markets in Japan remain closed. In China, the Shanghai Composite closed flat, while the Hang Seng index in Hong Kong is down 0.2%.In UK company news, Next nudged its annual profit guidance slightly lower as Christmas trading came in line with forecasts but with higher sales of seasonal products, squeezing margins. Full-price sales in the Christmas trading period were up 1.5% on last year, in line with guidance. Strong sales in the three weeks prior to Christmas helped to make up for a disappointing performance in November, the company said. For the full year, ending later in January, the company expects full price sales growth of 3.2%, in line with previous guidance. However, central guidance for full-year profit is now GBP723 million, 0.6% lower than previous guidance of GBP727 million. This difference is a result of two factors, the company said, the first being higher sales on seasonal lines, such as personalised gifts and beauty ranges. While these categories make a "healthy" net margin, it is lower than that achieved in clothing ranges and thus reduced profit by GBP1.5 million. The remaining GBP2.5 million gap between previous profit guidance and the new forecast was due to the increased operational costs associated with higher-than-expected Online sales, Next said. For the 2020 financial year, Next's full-price sales growth guidance is 1.7%, in line with the second half performance of its current financial year. Within this forecast, Retail sales are expected to fall 8.5% while Online sales are to rise 11%. "Any sales forecast made in January comes with a high degree of uncertainty. This year uncertainty around the performance of the UK economy after Brexit makes forecasting particularly difficult. We have not factored into our sales estimates the potential benefits of a smooth transition or the downsides of a disorderly Brexit," the company noted. Budget carrier Wizz Air reported a rise in passengers and an improvement in load factor for December.Passengers in December were up 18% on last year, while load factor improved 1.3 percentage points to 88.8% from 87.5%. Capacity for the month rose 17% to 3.0 million seats. Meanwhile, larger peer Ryanair reported 12% growth in passengers in December at 10.3 million. Load factor was unchanged at 95%.Vectura said it expects annual revenue in line with market consensus but earnings to be "materially above".Adjusted earnings before interest, taxes, depreciation and amortisation is expected to be "materially" ahead of market consensus, which the company put down to revenue mix, productivity initiatives and margin improvements. Research & development investment for the full year is expected to be at, or around, the bottom of its GBP55 million to GBP65 million guidance range. DNO said it has decided to extend its hostile takeover offer for Faroe Petroleum for another fortnight after receiving acceptances from just over 13% of the UK and Norway-focused oil and gas company's shares. DNO already owns just below a 30% stake in the company, taking the level of acceptances to 43%, below its acceptance condition of securing one share more than 57.5% of Faroe's share capital.If the offer lapses, DNO warned it will not be able to make a new offer for another 12 months."Whether DNO achieves its acceptance condition or not, its goal will continue to be to safeguard DNO's significant investment in Faroe. DNO will redouble efforts to replace entrenched directors and achieve appropriate board representation for the owners of Faroe to achieve greater transparency and scrutiny," DNO added. Faroe - which has consistently deemed the offer "opportunistic" - on Wednesday published an independent valuation of its assets, of which the findings implied a valuation for Faroe itself in the range of 186 pence to 225p per share, representing a 22% to 48% premium to DNO's offer price of 152 pence.In the economic calendar on Thursday is the UK's construction PMI, due at 0930 GMT. The reading is expected to come in at 52.9 for December, down from the 53.4 reported in November. In the US, private payroll processor ADP releases employment change figures for November at 1315 GMT, a precursor to Friday's monthly nonfarm payrolls report. UK Prime Minister Theresa May has been urged to delay the "meaningful vote" on her Brexit deal for a second time.Former Brexit secretary David Davis has speculated the vote could be put off if May looks likely to lose it. The vote, which was delayed at the last minute in December, is currently scheduled for the week beginning January 14.His comments come as the prime minister prepares to meet EU leaders and seek further "clarifications" in a bid to persuade sceptical MPs to back her deal.She is expected to speak this week to EU leaders including German chancellor Angela Merkel, Dutch prime minister Mark Rutte and European Council president Donald Tusk in an attempt to break the Brexit logjam, the Financial Times has reported.A Downing Street source told the Press Association that talks between May's negotiators and their counterparts in Brussels have continued over the Christmas period.May's ongoing talks with her EU counterparts comes as the UK government launches a publicity drive to prepare the public for a possible no-deal Brexit.Whitehall departments and the health regulator are to begin publishing guidance on how the public can get ready for potential issues that may arise from a disorderly break from Europe, the Brexit Secretary has said.