Next cuts its guidance, Synthomer warns on profits

By Josh White

Date: Thursday 29 Sep 2022

(Sharecast News) - London open

The FTSE 100 is expected to open 6.1 points lower on Thursday, having closed up 0.3% on Wednesday at 7,005.39.

Stocks to watch

M&G announced the appointment of Andrea Rossi as its next chief executive and an executive director on Thursday. The company said Rossi would take up his new position on 10 October, succeeding John Foley who, in April, announced his intention to retire after seven years in the role. Foley would remain at M&G in an advisory capacity until 31 December, the board confirmed, in order to ensure an orderly transition.

Next cut its sales and profits forecast on the back of the weakening economic outlook, including the recent turmoil in currency markets. It noted: "The devaluation of the pound looks set to prolong inflation, even once factory gates prices ease. It looks like we may be set to have two cost of living crisis this year: a supply side-led squeeze, next year a currency-led price hike as devaluation takes effect."

Synthomer warned on profits as it highlighted deteriorating macroeconomic conditions since August. The group, which pointed to reduced demand in construction and coatings end markets, now expects full-year earnings before interest, taxes, depreciation and amortisation to be 10% to 15% below its previous expectations.

Newspaper round-up

The bookmaker Betfred has been fined nearly £2.9m for failings in its social responsibility and money-laundering controls, after accepting tens of thousands of pounds from gamblers without performing adequate safety checks. One customer was allowed to lose £70,000 over a 10-hour period just a day after opening their account, the Gambling Commission said. - Guardian

No trains will run between London and Britain's biggest cities this Saturday as multiple unions combine strikes, the rail industry has confirmed. Timetables for 1 October have been published, with the overall service cut to just 11% of the normal schedule, when Aslef, RMT and some TSSA and Unite members are walking out for 24 hours in the long-running dispute over pay and conditions. - Guardian

EDF is exploring keeping two of its UK nuclear power stations open for longer than planned amid growing concern over energy shortages. The French state-owned company said it will review its current plans to close Hartlepool and Heysham 1 in March 2024 "with an ambition to generate longer if possible". - Telegraph

Britain will suffer a "rapid and significant detrimental impact on trade and travel" with Europe if Brussels refuses to soften new border checks due to come in next year, the boss of the Port of Dover has warned. Biometric controls are due to be introduced next May, replacing the "wet stamping" of passports, which was brought in after Britain left the EU. - Telegraph

Britain's biggest carmaker has revealed the scale of efforts to retrain its workforce to cope with the shift to zero-emission vehicles. Jaguar Land Rover said 10,000 workers in the UK alone, both in its facilities and those employed by dealers selling Jaguars, Range Rovers and Land Rovers, would have to go through retraining programmes. - The Times

US close

Wall Street stocks managed to close higher on Wednesday, as major indices searched for direction following fresh bear market lows.

At the close, the Dow Jones Industrial Average was up 1.88% at 29,683.74, as the S&P 500 added 1.97% to 3,719.04 and the Nasdaq Composite was ahead 2.05% at 11,051.64.

The Dow closed 548.75 points higher on Wednesday, going against the losses it recorded in Tuesday's session.

In focus before markets opened stateside was news that the Bank of England was buying long-dated UK government bonds as part of an effort to stabilise the pound after the currency dropped to a record low against the dollar of $1.03.

Sterling was changing hands at $1.0885 after the closing bell on Wednesday.

On the macro front, US mortgage applications fell 3.7% week-on-week in the seven days ended 23 September after rising 3.8% in the previous week as interest rates continued to increase


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