Burberry a fashion victim, LSE shareholders to vote in July
London open
The FTSE 100 was called to open 23 points higher on Wednesday, extending its gains from the start of the week.
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Full year profits from Burberry fell 10%, at the bottom of analysts' range of estimates, as the fahion retailer announced £100m of cost savings to help it cope with the "challenging" environment. Chief creative and chief executive officer Christopher Bailey said: "We continue to see significant opportunities ahead of us and have put ambitious plans in place to increase future revenue, enhance productivity and create a more efficient organisation."
London Stock Exchange provided an update on its merger with Deutsche Börse, informing that shareholder documents will be published in June and shareholder meetings required in connection with the merger will take place in July. The LSE added that the end of the acceptance period for the securities exchange offer to Deutsche Börse shareholders will be in July.
Brewer SABMiller reported a 10% drop in revenue for the year in its preliminary results to $19.8bn, though the company did claim 7% organic revenue growth at constant currencies. The FTSE 100 firm, as it awaits global regualtory approval for its takeover by AB InBev, posted group net producer revenue of $24.1bn, an 8% drop, or a 5% organic rise at constant currencies.
Newspaper round-up
Almost £1bn in annual research funding would be thrown into doubt if the UK left the EU, according to a study warning that quitting the bloc could turn Britain into the “poor cousin” of European science. A quarter of all public funding for research in the UK comes from the EU, making the country the second-biggest recipient after Germany. – Financial Times
Administrators are hoping to finalise a rescue deal for BHS by the end of this week after securing four offers for the business on Tuesday. MPs are preparing to call Darren Topp, the current boss of BHS, to give evidence to a parliamentary inquiry next month into the retail chain’s collapse. – Guardian
Thames Water has hit back at claims that its pensions schemes are in crisis and that a deficit in its workers’ retirement funds is comparable to the problems besetting BHS. “Any comparision with BHS is frankly outrageous,” Stuart Siddall, Thames’ finance director, said: His comment came after reports prompted by an article in the Financial Times cited Thames’ pension situation alongside that of BHS and the money taken out of the department stores chain by Sir Philip Green, its former owner. – The Times
US close
US shares saw red at the close on Tuesday after remarks from Federal Reserve officials fuelled fears of an interest rate rise as early as June.
The Dow Jones Industrial Average fell 180 points, or 1%, to 17,529. The S&P 500 index finished the session 19 points lower to 2,047 and the Nasdaq Composite 59 points down at 4,715.
Investor jitters worsened after Atlanta Fed President Dennis Lockhart and San Francisco Fed President John Williams both said the June 14-15 Fed meeting could see rates rise for the first time since late last year.