Standard Chartered profits almost a third higher, Relx set to maintain 2022 momentum
London open
The FTSE 100 is expected to open 17 points higher on Thursday, having closed up 0.55% on Wednesday at 7,997.83.
Stocks to watch
Standard Chartered on Thursday announced a new $1bn share buyback as annual profits rose by almost a third on higher global interest rates but still missed estimates. The Asia, Africa and Middle East-focused bank reported pre-tax profit of $4.3bn for 2022, up 28% from a year earlier and below the $4.73bn average of company-compiled analyst forecasts. It also took a higher-than-expected $838m bad debt impairment, up $575m, as surging inflation and a global economic slowdown markets hit borrowers. The provision included $582m for expected bad loans in China’s troubled real estate market.
Analytics and information specialist Relx reported revenue of £8.55bn for 2022 on Thursday, representing underlying growth of 9%, along with adjusted operating profit of £2.68bn and adjusted profit before tax of £2.49bn. The FTSE 100 company completed nine acquisitions for total consideration of £443m in the year, as well as a £500m share buyback. It said it expected to maintain momentum in 2023, with underlying growth rates in revenue and adjusted operating profit remaining above historic trends, driving growth in adjusted earnings on a constant currency basis.
Newspaper round-up
Wilko plans to cut more than 400 jobs, including assistant store managers, retail supervisors, head office managers and call centre workers, in the troubled retailer’s latest effort to control costs. The value household and garden products retailer has told staff it plans to reduce hours for team supervisors in 150 of its 401 stores, leading to the equivalent of about 150 full-time equivalent job losses, after a fall in sales. – Guardian
Revolut is facing a crackdown on cryptocurrency investing as ministers prepare to take action over an unregulated trading strategy offered by the banking app. Treasury documents suggest that “staking”, in which investors deposit their holdings of crypto in the hope of earning double-digit returns, could face new controls from the City watchdog. – Telegraph
A chatbot named Harvey is helping hundreds of lawyers at Allen & Overy to draft contracts and write memos to clients, the firm has announced as the legal sector explores new ways to boost productivity using artificial intelligence. The City legal practice said that Harvey is available to about 3,500 employees. The chatbot has answered about 40,000 legal queries since November. – The Times
Russia’s economy is expected to return to growth next year, according to new forecasts, despite international sanctions over the invasion of Ukraine. The latest projections from the European Bank for Reconstruction and Development (EBRD) predict that Russia’s economy will grow by 1 per cent in 2024 after a 3 per cent decline in GDP this year. – The Times
US close
Wall Street stocks closed higher on Wednesday as market participants digested stronger-than-expected retail sales numbers.
At the close, the Dow Jones Industrial Average was up 0.11% at 34,128.05, while the S&P 500 advanced 0.28% to 4,147.60 and the Nasdaq Composite saw out the session 0.92% firmer at 12,070.59.
The Dow closed 38.78 points higher on Wednesday, taking a small bite out of losses recorded in the previous session following the hotter-than-expected print in January's consumer price index, the Federal Reserve's preferred inflation gauge.
Wednesday's primary focus was on last month's retail sales data, which revealed US retail sales had unexpectedly increased in January, bouncing back from the prior month's 1.1% drop.
According to the Census Bureau, retail sales rose 3% month-on-month in January - the strongest improvement since March 2021 and well and truly ahead of expectations for 1.8% increase. Excluding autos, sales rose 2.3% month-on-month.