FTSE 100 Live 21 March: Borrowing figure tops forecasts, ASOS lifts earnings guidance

Yahoo

21-03-2025

08:23 , Graeme Evans
IAG shares have fallen 3% after the British Airways owner's flight schedules were disrupted by today's closure of Heathrow Airport.
The decline of 8.4p to 282.2p came in a weak session for the FTSE 100 index, which dropped 24.30 points to 8677.69.
Low-cost carrier easyJet also weakened 9.5p to 480.5p and hotel chain IHG lost 142p to 8432p.
The biggest faller in the top flight was JD Sports Fashion, which reversed 3p to 76.8p on the read-across to last night's weaker sales and earnings by Nike.
Sainsbury's rose 2p to 239p at the top of the FTSE 100 index after HSBC lifted the supermarket to a Buy recommendation with 285p target price.
In the FTSE 250, ASOS shares jumped 24% or 62.8p to 317.8p after it boosted earnings guidance. JD Wetherspoon fell 56.5p to 540.5p following the release of half-year results.
08:03 , Graeme Evans
GfK's long-running Consumer Confidence Index increased by one point to minus 19 in March.
Expectations for the general economic situation over the next 12 months improved by two points to minus 29 – six points lower than a year ago.
The view on personal finances over the next 12 months fell by one point to positive one, while the major purchase index, a measure of confidence in buying big ticket items, remained unchanged at minus 17.
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07:33 , Graeme Evans
Pub chain JD Wetherspoon today said increases in National Insurance and labour rates will cost it £60 million a year - approximately £1,500 per pub, per week.
Presenting half-year results, chair Tim Martin pointed out that labour costs are around 35% of the pub industry's sales, compared to around 11% for supermarkets.
He said the disproportionate impact on pubs exacerbated the already-wide price differential for customers between the on and off-trade.
Martin added: "The combination of much higher VAT rates for pubs than supermarkets, combined with increased labour costs will weigh heavily on the pub industry.'
Wetherspoon reported a 4.8% increase in like-for-like sales in the 26 weeks to 26 January, with total revenues up 3.9% to £1.03 billion. Pre-tax profits fell 8.6% to £32.9 million.
In the last seven weeks to Sunday, like-for-like sales rose by 5%.
Martin said: "The company currently anticipates a reasonable outcome for the financial year, subject to our future sales performance."
07:21 , Graeme Evans
Online fashion chain ASOS today reported a bigger-than-expected improvement in profitability for the first half of its financial year.
In a brief update ahead of interim results on 24 April, the FTSE 250-listed business forecast earnings better than the City consensus of £34 million. This compares with the previous year's loss of £16.3 million and 2023's £4.6 million surplus.
The performance follows strong margin progress driven by lower markdown activity and increased full-price mix, as well as continued cost discipline.
Sales are down in line with expectations by 13% although ASOS said full-price sales returned to growth in the half year.
07:07 , Graeme Evans
The Government borrowed £10.7 billion last month, the fourth highest February figure since records began in 1993 and above City forecasts of about £7 billion.
Borrowing in the financial year to February was £132.2 billion, an increase of £14.7 billion on the same point in the last financial year.
In October, the Office for Budget Responsibility (OBR) forecast that the public sector would borrow £127.5 billion for the whole of the financial year to March.
An updated OBR forecast will be published in the Chancellor's Spring Statement on Wednesday.
Capital Economics said: 'Although they will have no impact on the fiscal update next week, the significant overshoot in borrowing in February highlights the Chancellor's tight fiscal backdrop.
'The OBR will still most likely conclude that the Chancellor's headroom against her fiscal rules has been wiped out. So we expect her to announce further non-defence spending cuts, on top of the welfare cuts already unveiled earlier this week.'
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07:01 , Graeme Evans
Stock markets are struggling to make headway in the aftermath of central bank meetings in countries including the US and UK.
The S&P 500 index last night fell 0.2% and the Nasdaq Composite lost 0.3%, while the Dow Jones Industrial Average finished near to its opening mark.
The muted performance followed Wednesday's rally after the Federal Reserve stuck to guidance for two interest rate cuts this year.
The FTSE 100 index dipped 4.67 points to 8701.99 after the Bank of England's 8-1 vote to leave interest rates on hold.
London's top flight is expected to open flat after leading benchmarks in Shanghai and Hong Kong fell by more than 1% this morning.