AB Foods warns of sales fall at Primark, Vistry first-half profit rises

Stocks to watch

Like‐for‐like sales at Primark were expected to fall by around 0.5% in the second half of the financial year, with a projected decline of 0.9% in the fourth quarter due to wet weather in the UK and Ireland which hit footfall and seasonal sales in womenswear and footwear, said parent company Associated British Foods. Primark revenue growth is expected to be around 4% for the period, driven by a strong contribution from its continued store expansion programme. The company added it was extending its £0.5bn share buyback by £100m after strong cash generation this year.

Housebuilder Vistry announced a further £130m share buyback on Thursday as it posted a 7% increase in first-half pre-tax profit. In the half year to 30 June, adjusted pre-tax profit rose to £186.2m from £174m in the same period a year earlier, with total completions up 9.1% to 7,792. Vistry hailed "good demand" across its Partner Funded markets. Revenue was 11.1% higher at £1.97bn.

Newspaper round-up

More than a quarter of advertisers are planning to cut spending on Elon Musk’s X over concerns about the social media platform’s content and trust in the information disseminated, according to new global research. Advertising revenue flowing to X has been in freefall since Musk bought the site, then known as Twitter, for $44bn (£38bn) in October 2022, claiming it had not lived up to its potential as a platform for “free speech”. – Guardian

Marks & Spencer is using artificial intelligence to advise shoppers on their outfit choices based on their body shape and style preferences, as part of efforts to increase online sales. The 130-year-old retailer is using the technology to personalise consumers’ online experience, and suggest items to buy. – Guardian

The BBC has confirmed plans to cut dozens more jobs in its local operations even as bosses pledged to spend £80m on diversity programmes. The BBC will cut around 115 editorial and production roles as it battles to plug a black hole in its finances, equivalent to 3pc of the division’s workforce. Further cuts are planned in operations departments. – Telegraph

Volvo, the Swedish car marque renowned for its environmental commitment, has scrapped plans to sell only fully electric cars by 2030 in the latest sign of a global slowdown in growth for battery-powered vehicles. Another of Europe’s leading car makers, Germany’s Volkswagen, has indicated it could shed thousands of jobs because of expected lower demand in a market disrupted by political and regulatory diktats on zero-emission vehicles. – The Times

The proportion of former rental properties for sale is the highest on record, an increase that may be driven by landlords’ fears of an increase in capital gains tax in the budget, according to Rightmove. Eighteen percent of properties for sale were previously on the rental market, compared with 8 per cent in 2010. The property website said that landlords’ fears that the budget on October 30 would result in an increase in capital gains tax — a tax on the profit made when an asset is sold — could be behind the surge. – The Times

US close

Major indices turned in a mixed performance on Wednesday as the blue-chip Dow Jones managed to claw back some of yesterday's losses.

At the close, the Dow Jones Industrial Average was up 0.09% at 40,974.97, while the S&P 500 slipped 0.16% to 5,520.07 and the Nasdaq Composite saw out the session 0.30% weaker at 17,084.30.

The Dow closed 38.04 points higher on Wednesday, doing little to reverse losses recorded in the previous session as traders returned from the Labor Day long weekend to fresh manufacturing data that seemingly indicated that US economic growth had slowed.

On the macro front for Wednesday, the Bureau of Economic Analysis revealed that the US trade deficit had widened to $78.8bn in July, the largest gap in more than two years, up from June's $73.0bn shortfall.

Exports increased 0.5% to a record high of $266.6bnm while imports surged 2.1% to $345.4bn.