Markets Overview:

The UK 100 called to open -8 points at 8,694. The UK 100 looks set for a muted open this morning This comes after data released this morning shows 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.

The S&P slipped on Thursday as uncertainty around the U.S. economy continued to weigh on equities, thwarting the market’s attempts at recovery from a monthlong rout.  The broad market index pulled back 0.22% to close at 5,662.89. The Nasdaq Composite slid 0.33% to end the day at 17,691.63, weighed down by losses in Apple and Alphabet.  The Dow Jones inched down 11.31 points, or 0.03%, and closed at 41,953.32.  Elsewhere, Accenture shares tumbled more than 7% after the consulting firm revealed in its second-quarter earnings call that its federal services business has lost contracts with the federal government amid tighter spending efforts under the Trump administration.

Company News & Broker Comments:

Company News:

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.

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%.

Reporting Today:

UK

Ceres Power Holdings (CWR)

J D Wetherspoon (JDW)

US

NIO (NIO) PMO

Reporting Tomorrow:

UK

S4 Capital plc (SFOR)

US

None

In Focus Today:

EU leaders summit

UK GfK Consumer Confidence

Fed’s Williams speech

EU Consumer Confidence

Next Week’s Ex-Dividends:

UK 100 companies going ex-dividend on 27th March 2025:

British American Tobacco

SEGRO

Standard Chartered

Smith & Nephew

Taylor Wimpey

Melrose Industries

Schroders

M&G

Prudential

Games Workshop Group

UK 250 companies going ex-dividend on 27th March 2025:

Crest Nicholson Holdings

Aberdeen Group

Primary Health Properties

OSB Group

Empiric Student Property

Volution Group

Fidelity European Trust

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