AB Foods interim profits slip, copper production jumps at Anglo American
London open
The FTSE 100 is expected to open 28 points lower on Tuesday, having closed down 0.02% on Monday at 7,912.20.
Stocks to watch
Primark owner Associated British Foods reported lower interim profits as the clothing retailer and foods group battled inflationary headwinds and lower consumer spending amid the cost of living crisis. The posted adjusted operating profit of £684m, down 3%, for the 24 weeks to March 4. Primark profits fell to £351m, compared with £414m a year earlier. On a pre-tax basis AB Foods earnings for the period rose 1% at £644m, supported by a 23% rise in profits at its foods and division. The firm expects full-year profits to flat, in line with guidance.
Anglo American reported a 28% increase in copper production in its first-quarter production report on Tuesday, due to the ramp-up of its new Quellaveco copper mine in Peru. Steelmaking coal production also increased by 59% while iron ore production increased by 15%, driven by improved operational performance at both Kumba and Minas-Rio. The FTSE 100 firm said rough diamond production remained flat due to the planned completion of Venetia's open pit, while metal in concentrate production from its platinum group metals operations decreased 6% due to unplanned plant maintenance and lower grades at Mogalakwena.
Newspaper round-up
The Confederation of British Industry has admitted it failed to “filter out culturally toxic people” from its ranks, leading to “terrible consequences” including allegations of sexual harassment. The CBI president, Brian McBride, said in a letter to its members that the organisation had “made mistakes” and “badly let down” its staff, after a series of revelations in the Guardian about alleged misconduct by employees, including two women who said they were raped. – Guardian
Major tech firms face the threat of multibillion-pound fines for breaching consumer protection rules under new legislation that will tackle issues including fake online reviews and subscriptions that are difficult to cancel. The digital markets, competition and consumers bill will empower the UK’s competition watchdog to tackle the “excessive dominance” that a small number of tech firms hold over consumers and businesses.m – Guardian
Millions of people failed to receive a government emergency alert on Sunday because of a suspected software glitch on Three’s mobile network. The company is thought to have scrambled engineers to a base near Reading to resolve the problem after many customers reported that the new national emergency alert had failed to sound on their phones. – Telegraph
Lidl could take on Waitrose and Marks & Spencer in their middle-class heartlands by opening stores in some of London’s most affluent neighbourhoods. The German discount supermarket chain has published a list of 247 desired sites for new shops across Britain, with Chelsea, Kensington, Mayfair, Westminster and Knightsbridge among potential locations. It trades from more than 100 stores in London and within the M25, including Shepherd’s Bush, Tottenham Court Road, Clapham Junction and Brixton. – The Times
Gymshark feared that its growth would stall this year for the first time since it was co-founded in 2012 by Ben Francis. The Solihull-based activewear brand, which was valued at more than £1 billion when General Atlantic, the American private equity firm, acquired a 21 per cent stake in 2020, said in its accounts that its sales for the year to July were “tracking at the same level” as in 2022, when they hit £484.5 million, up 21 per cent. – The Times
US close
Wall Street stocks delivered a mixed performance on Monday as traders braced for another earnings-heavy week.
At the close, the Dow Jones Industrial Average was up 0.20% at 33,875.40, while the S&P 500 advanced 0.09% to 4,137.04 and the Nasdaq Composite saw out the session 0.29% weaker at 12,037.20.
The Dow closed 66.44 points higher on Monday, building on modest gains recorded in the previous session.
Earnings were in focus yet again on Monday, famous fizzy drinks maker Coca-Cola beat first-quarter profit and revenue forecasts driven by high demand and price rises, while Credit Suisse posted a $68.0bn drop in assets for the last quarter.
Whitegoods giant Whirlpool reported a quarterly loss of $179.0m after the close as it beat revenue estimates.