Segro to sell six Italy warehouses, Burberry sales rise in first quarter

London open

The FTSE 100 is expected to open 24 points higher on Friday, having closed down 1.12% at 7,012.02 on Thursday.

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Segro has agreed the sale of a portfolio of six Italian urban warehouses for €127.5m (£108.91m) to AXA IM Alts, on behalf of clients. The FTSE 100 company said the warehouses were developed by Segro-Vailog for a “global online retail company” to support the growth of its distribution network in Italy. It said the portfolio had a total floor space of 56,000 square metres, with five of the sales already completed, and the sixth to complete later in the year following additional works.

Luxury goods maker Burberry reported a sharp rise in first quarter sales and forecast and maintained full-year guidance as younger customers were attracted to the brand. The company on Friday said revenue increased 98% year on year to £479m on a constant currency basis. Comparable store sales rebounded strongly, rising 90% year on year and 1% against 2019 before the Covid-19 pandemic. Full-price sales growth accelerated 26% compared with 2019 driven by new, younger clientele; exited markdowns in digital and mainline stores globally.

Newspaper round-up

Independent high street businesses could face a “tsunami of closures” after their debt climbed to almost five times the level it was before the Covid-19 pandemic, as shops, hairdressers, bars and restaurants battle to survive. About 150,000 small businesses have racked up £2.3bn in debt, up from £500m before the pandemic, based on government-backed loans and not including rent debt, according to a report from Bill Grimsey, the former boss of Wickes and Iceland, who has backed a series of investigations into the state of the high street. - Guardian

Alfresco dining and drinking could become a permanent fixture in England after the government said it would extend “pavement licences” to aid the recovery of pubs, bars and restaurants hit by the pandemic. The plan is part of a hospitality strategy, announced on Friday, aimed at a sector that has lost 10,000 premises, forgone £87bn in sales and shed more than 350,000 jobs across the UK since the onset of the coronavirus crisis. - Guardian

Britain's electricity grid is now balancing supply and demand with the help of a giant battery in Wiltshire funded by Chinese investment. The 100 megawatt system has been developed by UK company Penso Power with funding from China's state-owned Huaneng Group utility and CNIC Corporation. Shell, the FTSE 100 oil and gas giant, has a deal to trade all of the power from the battery, which is now fully operational. - Telegraph

GlaxoSmithKline is seeking a development partner to help transform land at its existing 92-acre research and development site in Stevenage into one of Europe’s largest clusters for life science companies. The British pharmaceuticals group believes that the project could unlock up to £400 million of investment from a private-sector developer and potentially create up to 5,000 “highly skilled” jobs over the next five to ten years. - The Times

The £927 million takeover of Vectura, the listed British respiratory drugs company, by Philip Morris International risks allowing the tobacco company to subvert health legislation designed to cut cigarette consumption, anti-smoking charities warned in a joint letter to ministers. In a growing backlash to the deal, which has been recommended to shareholders by Vectura’s board, the chief executives of Cancer Research UK, Asthma UK and British Lung Foundation, and Action on Smoking and Health have written to Kwasi Kwarteng, the business secretary, and Sajid Javid, the health secretary, calling on the government to block the deal. - The Times

US close

Wall Street stocks were in a mixed state at the close on Thursday, as market participants thumbed over more bank earnings and the key jobless claims report from the Labor Department.

At the close, the Dow Jones Industrial Average was up 0.15%, while the S&P 500 lost 0.33% to 4,360.03 and the Nasdaq Composite was off 0.7% at 14,543.13.

The Dow closed 53.79 points higher on Thursday, adding to the gains recorded in the previous session as investors digested earnings from several of the nation's biggest banks.

On the macro front, first-time unemployment claims dropped to a new Covid-19 pandemic-era low of 360,000 in the week ended 19 June, a marked decrease when compared to the previous week's upwardly revised total of 386,000.

According to the Labor Department, initial unemployment claims came in at their best number since 14 March, 2020 last week, while continuing claims also fell sharply, declining by 126,000 to 3.24m - another new low for the US jobs market.