AstraZeneca swings to a loss in Q4, Watches of Switzerland FY profits seen at top end of guidance
London pre-open
The FTSE 100 was expected to open 4.5 points higher ahead of the bell on Thursday after closing out the previous session 1.01% higher at 7,643.42.
Stocks to watch
Retailer Watches of Switzerland said on Thursday that both third-quarter and year-to-date revenues had grown, leading the firm to expect full-year revenues and profits to trend more towards the top end of guidance.
Watches of Switzerland said third-quarter group revenues were up 27.9% at £348.1m, while year-to-date revenues were 38% stronger at £934.3m as demand for luxury watches continued to be "very strong" in both the UK and the US, consistently exceeding supply.
Consumer products conglomerate Unilever said on Thursday that fourth-quarter underlying sales grew 4.9% and announced a €3.0bn share buyback, as it warned of the continuing impact of cost inflation and the Covid-19 pandemic.
In the first results since its failed bid for GlaxoSmithKline's consumer health business, the maker of Magnum ice-cream said it expected 2022 underlying sales growth to be 4.5-6.5% and stated pricing would continue to be strong, with some impact on volume as a result.
AstraZeneca swung to a fourth-quarter loss as higher costs more than offset a surge in revenue boosted by sales of the company's Covid-19 vaccine.
The drugmaker posted a $636.0m pre-tax loss for the three months ended 31 December, a marked difference when compared to the $1.49bn profit posted at the same time a year earlier, despite revenues rising 62% to $12.0bn.
Newspaper round-up
Wealth taxes will be needed to fund a £76.0bn a year increase in government spending by the end of the decade, caused by an ageing population and more expensive healthcare, a thinktank has said. The Resolution Foundation said the UK was on course to see the size of the state match that of Germany by 2030, and warned new methods of raising money to pay for higher spending would be needed. - Guardian
Online bookie Sportsbet will pay $3.7m in fines and penalties after breaking spam laws by sending more than 150,000 text messages and emails promoting gambling to customers who had tried to unsubscribe. The amount includes the biggest penalty to date for breaking Australian spam laws, of $2.5m, with the remainder made up by refunds Sportsbet has agreed to pay to customers who made bets after receiving the unwanted marketing messages. - Guardian
The National Lottery operator Camelot is on track to retain its lucrative licence after it won the endorsement of the gambling regulator, The Telegraph can reveal. In a move likely to trigger a final round of intensive campaigning by rivals, it is understood that the Gambling Commission has recommended that Camelot be awarded "preferred bidder" status. - Telegraph
A gym chain backed by Rishi Sunak's wife is on the verge of collapse after suffering "extraordinary" challenges during successive lockdowns. Digme Fitness, in which the Chancellor's wife Akshata Murthy holds a 4.2% stake, has filed a notice of its intention to appoint administrators after failing to relaunch itself as an online business in the pandemic. The company has also hired Shoosmiths, the law firm, to advise on a restructuring. The court filing will protect Digme Fitness from its creditors for 14 days. - Telegraph
Britain's largest financial firms have been warned to strengthen their cyber-defences amid worries that rising tensions between Russia and the West could lead to Moscow-backed hacks against banks. The Financial Conduct Authority has written to the bosses of the biggest businesses in the City to urge them to reinforce their cybersecurity systems. The warning comes as fears mount that Russia is planning to invade Ukraine. - The Times
Telecoms giant Vodafone has reportedly approached rival Three UK about a multibillion-pound takeover that could spark a wave of interest in Britain's smallest mobile operator. The FTSE 100 company explored a deal last month to buy Three from CK Hutchison, the Hong Kong group controlled by billionaire Li Ka-shing, Bloomberg reported. The approach did not lead to a deal and the talks are not currently active. - The Times
US close
Wall Street stocks closed in positive territory on Wednesday, building on solid gains recorded in the previous session.
At the close, the Dow Jones Industrial Average was up 0.86% and the S&P 500 added 1.45%, while the Nasdaq Composite was 2.08% firmer at 14,490.37.