- FTSE 100 up 53 factors at 7,726
- Games Workshop soars on sturdy buying and selling
- Chinese financial knowledge higher than hoped
10:03am: Burberry in fashion forward of Daniel Lee launch
Burberry Group PLC (LSE:BRBY) shares are up 2.6% at 2,167p supported by the higher financial information from China – which is a giant purchaser of luxurious items – and forward of Daniel Lee Spring-Summer present on September 18.
Broker Stifel notes the “long-awaited” new collections and merchandise from new designer Daniel Lee arrived in shops earlier this month, backed by rising advertising and marketing depth with the brand new present approaching Monday.
The dealer thinks Burberry’s advertising and marketing is extra on level “in communicating its new brand aesthetics.”
This contains new model signifiers throughout merchandise, the launch of its Burberry Streets initiative in London this week (quickly to be adopted by Seoul and Shanghai), a revamped web site and a just lately reopened Bond Street flagship retailer.
It reckons Burberry appears well-placed to slim the gross sales momentum hole with sector leaders.
“Price architecture now appears to be in line with its targeted peers,” ir mentioned, including “and the brand fundamentals look more solid than they did five years ago.”
It has a purchase ranking and 2,500p value goal
Daniel Lee’s Spring-Summer 2024 present is due subsequent Monday 18 September. • While the exterior surroundings in China, Europe and the US seems to be unfavourable close to time period, we see a number of optimistic adjustments at Burberry. The important investor debate stays whether or not these adjustments will probably be sufficient for Burberry to slim the top-line efficiency hole versus the sector’s finest performers from 3Q24.
9:45am: Goldman holds Chinese GDP forecast after strong knowledge
Goldman Sachs (NYSE:GS) has left its financial development forecast for China unchanged after right now’s financial knowledge.
“Taking into consideration the stronger-than-expected August activity data….we maintain our Q3 GDP growth forecast at 4.9% yoy, despite elevated uncertainties around the property sector,” the US funding financial institution mentioned.
The financial institution identified August exercise knowledge principally improved from July and beat market expectations. I
ndustrial manufacturing development rose in August amid improved export development, pushed primarily by quicker output development in computer systems, chemical compounds and cars.
Year-on-year development in retail gross sales and the Services Industry Output Index each rose in August, thanks primarily to stronger auto and gasoline gross sales, though Covid-sensitive restaurant gross sales development slowed.
Fixed asset funding development elevated in August, led by manufacturing and infrastructure funding, however the magnitude of enchancment was barely smaller than anticipated, due partly to the extended drag from depressed property funding.
Property-related exercise remained sluggish in August regardless of the continuing piecemeal housing easing, it identified.
9:14am: Whitbread lifted by upbeat analyst feedback
Whitbread is the topic of some optimistic dealer commentary right now and the shares have joined in the market rally, rising 0.9% to 3,673p, taking the rise year-to-date to 37%.
Citi has elevated its value goal to 4,500p from 4,000p after internet hosting Whitbread’s head of investor relations at its development convention.
Citi famous regardless that September’s RevPAR has began sequentially weaker for many areas, UK financial developments stay the strongest.
As a end result, it has taken a extra optimistic view for the remainder of the monetary yr 2024 and raised finan cial yr 24/25/26 adjusted Ebit estimates by 10%/8%/4%, which drives the brand new 4,500p value goal.
Whitbread sees demand outlook in the UK remaining strong, regardless of the weak macro financial surroundings, whereas revPAR power is seen a consequence of structural provide dynamics as independents have exited the market, Citi mentioned.
The proprietor of Premier Inn pointed to provide constraints persevering with given rising rates of interest.
Barclays was additionally upbeat on Whitbread which is its most popular choose in leisure.
“We believe UK RevPAR strength is more sustainable than the market expects when we reflect on: 1) optimistic spend intentions from our latest consumer survey, 2) constrained supply, 3) UK pricing still 13% below 2007 peak in real terms and 4) PI’s own pricing opportunity,” it mentioned.
The financial institution charges Whitbread ‘overweight.’
8:45am: FTSE continues to make headway
The FTSE 100 continues to make headway now up 53 factors at 7.726 taking its five-day features to 3.3%.
Burberry is sitting prime of the pile boosted by the higher information out of China nad has dealer Stifel points an upbeat evaluation of the posh retailer, setting a 2,500p value goal.
Shares are up 3% at 2..172.50p.
London Stock Exchange PLC shares are 1.5% larger as JP Morgan positioned the inventory on optimistic catalyst watch forward of the agency’s capital markets day in November.
It charges LSE chubby with a 9.920p value goal.
Over in the FTSE 250 and Spire Healthcare was lifted by optimistic phrases from barclays which reiterated an chubby ranking and edged its value goal as much as 305p from 300p.
8:15am: FTSE 100 boosted by miners and housebuilders
The FTSE 100 flew larger on Friday because the bullish week continues boosted by rising commodity costs after encouraging financial knowledge from China.
At 8:15am London’s blue-chip index was up 61.77 factors, 0.8% at 7,734.85 whereas the FTSE 250 rose 62.10 factors, 0.3%, to 18,961.80.
Sophie Lund-Yates, lead fairness analyst at Hargreaves Lansdown famous: “China’s industrial output growth has beaten estimates, with production rising 4.5% in August – up from 3.7% in July.”
“The flurry of activity has been triggered by higher manufacturing and mining activity, after support and stimulus from Beijing appear to be having the desired effect.”
“A short, sharp economic recovery in China would help underpin confidence globally,” she added.
The information gave an additional elevate to mining shares which rose strongly on Thursday.
Rio Tinto rose 1.2%, Anglo American rose 0.6% and Glencore rose 0.7%.
Housebuilders are additionally giving the premier index a lift as hopes rise that rates of interest are near peaking after the weak GDP figures earlier this week.
Persimmon rose 2.7%, Barratt Developments rose 2.4% and Taylor Wimpey was 1.8% to the great.
Whitbread was one other early riser, up 1.4%, after optimistic feedback from Citi, Barclays and Shore Capital.
Barclays mentioned the proprietor of Premier Inn was its “preferred pick in leisure.”
Games Workshop stormed 8.3% larger after rewarding buyers with a 50p dividend after better-than-expected buying and selling.
Peel Hunt known as it a “steallar” first quarter and is rising its forecasts by 6%, which leaves room for upside if developments proceed.
7:44am: Oil value continues march in direction of $100/barrel
One issue possible to present the FTSE 100 a lift right now is one other rise in the oil value which continues to move in direction of $100/barrel.
US oil costs have risen above $90 for the primary time this yr, up an additional 0.9% at $90/97/barrel whereas Brent crude is now above $94/barrel, up 0.73% at $94.38/barrel.
Sophie Lund-Yates, lead fairness analyst at Hargreaves Lansdown explains the triggers behind the rise stem from “fears that global consumption will outweigh production, with the International Energy Agency predicting a significant supply shortfall in the coming months.”
“OPEC+ leaders Saudi Arabia and Russia are squeezing supply at a time when top consumers the US and China are seeing robust consumer demand,” she identified.
“The higher oil price is helping to prop up the FTSE 100, with the index relying heavily on commodities and the black stuff,” she added.
It’s not all excellent news although, as we’ve seen this rising gas costs make the job tougher for central bankers when tackling inflation whereas corporations face rising payments as effectively.
Numerous US airways have already highlighted the influence of the rising value.
7:30am: Games Workshop buying and selling better-than-expected
It’s a quiet begin to the day for firm information however one inventory to keep watch over is Games Workshop.
The agency has simply introduced it’s paying out a 50p dividend after reporting buying and selling over the summer time was better-than-expected.
Updating buyers forward of right now’s AGM, the Warhammer gaming miniatures group mentioned buying and selling for the three months to August 27 was forward of the board’s expectations.
Core income in the quarter totalled £121 million, up from £106 million final yr, and licensing income doubled to round £6 million from £3 million.
Pre-tax revenue is estimated at £57 million, up from £39 million, pushed by wholesome development throughout all channels.
As a end result, a 50p payout was declared taking dividends declared thus far in the present monetary yr to £1.95 per share, up from £1.20 – in line with the corporate’s coverage to distribute really surplus money.
7:00am: FTSE set to increase features pushed by encouraging Chinese knowledge
Good morning and blue-chips in London are anticipated to open larger after sturdy features in the US on Thursday and better-than-expected financial knowledge in China.
Spread betting corporations are calling the FTSE 100 up by round 46 factors after closing up 147.09 factors at 7,673.08 on Thursday.
So far this week, it has added 2.6%.
China’s retail gross sales and industrial manufacturing grew quicker than anticipated in August, knowledge confirmed on Friday, in a lift after policymakers stepped up stimulus measures to assist the world’s second-biggest financial system.
Industrial manufacturing rose 4.5% cent yr on yr in August, whereas retail gross sales, elevated 4.6%. – above analyst forecasts and charges in July of 3.7% and 2.5% respectively.
However, it was not all excellent news. New residence costs in 70 main cities fell 0.3% month on month and property funding is down 8.8% over the January-August interval.
ING mentioned: “While the overall economic background remains a very challenged one, there were some more positive signs in the latest data deluge, though all things related to the property market continue to struggle.”
In the US on Thursday, Wall Street ended in the inexperienced, with the Dow Jones Industrial Average up 1.0%, whereas the S&P 500 and the Nasdaq Composite each rose 0.8%.
Back in London, and the company diary is trying quiet.
