Burberry warns over slowdown in demand, Halma posts record first-half revenue

London open

The FTSE 100 is expected to open just one point higher on Thursday, having closed up 0.62% on Wednesday at 7,486.91.

Stocks to watch

Burberry has warned that the slowdown in luxury demand is having an impact on current trading and could affect full-year sales. The company said, while it is confident in its medium and long-term targets, it hasn't been immune to the wider challenging market conditions that have already hit a number of major players, including Kering, Hermès and LVMH. "If the weaker demand continues, we are unlikely to achieve our previously stated revenue guidance for FY24," the company said in its interim results. Current guidance points to low double-digit growth in full-year revenues for the year ending March 2024. "In this context, adjusted operating profit would be towards the lower end of the current consensus range (£552m-£668m)."

Halma reported record first half revenue and profit growth on Thursday, with a 9% increase in revenue and a 3% rise in adjusted profit before taxation. Recent acquisitions contributed significantly to revenue and profit growth, and the company maintained a resilient adjusted EBIT margin of 20.0%. Additionally, Halma continued to invest in research and development and completed five acquisitions, while maintaining strong cash performance and a healthy balance sheet.

Newspaper round-up

The Cyprus police force is investigating how an oligarch attempted to transfer a £1bn stake in a public company on the day he was placed under EU sanctions, government insiders have told the Guardian. News of the involvement of the financial crime squad came as the Cypriot government and the European Union responded to revelations that local service providers appear to have played a key role in enabling Russian oligarchs to shield assets from EU sanctions within days of Moscow’s full-scale invasion of Ukraine. – Guardian

The government will offer significantly higher subsidies for new offshore wind farms after crisis talks with developers that are battling cost inflation across global energy supply chains. Ministers have agreed to raise the starting price of the government’s next auction for offshore wind subsidies by around two-thirds to £73 per megawatt hour to help more offshore wind farm projects to move ahead despite higher costs. – Guardian

The Energy Secretary is poised to approve a landmark hydrogen heating trial in a north Yorkshire town despite growing local protests. It is understood Claire Coutinho is “minded to approve” the scheme in Redcar, with an announcement expected in weeks. Government support for the project will pave the way for Northern Gas Networks (NGN) to start supplying up to 2,000 homes with hydrogen instead of gas for heating and cooking, in the first trial of its size. – Telegraph

The owner of Boots is understood to be close to striking a deal for Legal & General to take over more responsibility for its £5 billion legacy staff pension scheme in a transaction that could help revive plans to sell the health and beauty chain. The US group Walgreens Boots Alliance has been negotiating a so-called pension risk transfer deal with L&G for some time, taking advantage of rising bond yields that have propelled the traditional defined benefit scheme into surplus. – The Times

Amazon is refusing to promote employees who do not follow its policy of returning to the office for at least three days a week. “Promotions are one of the many ways we support employees’ growth and development, and there are a variety of factors we consider when determining an employee’s readiness for the next level, an Amazon spokesman said. – The Times

US close

US stock markets closed with slight gains on Wednesday, driven by growing investor optimism that the era of rate hikes may be drawing to a close.

The sentiment was fuelled by recent data indicating a slowdown in October’s consumer and producer price inflation.

At the close, the Dow Jones Industrial Average was up 0.47% at 34,991.21 points.

Similarly, the S&P 500 edged up by 0.16%, closing at 4,502.88, while the Nasdaq Composite posted a modest gain of 0.07%, ending the day at 14,103.84.

In currency markets, the dollar was last up 0.01% on sterling at 80.55p, while it slipped 0.01% against the euro to 92.18 euro cents and declined 0.04% on the yen to change hands at JPY 151.30.