UKX FTSE 100 Index

The FTSE 100 closed up 0.6% Friday driven by defense and aerospace companies such as Rolls-Royce and BAE Systems after heightened tensions in the Middle East. "Rising oil prices following the bombing of Houthi military targets by the U.S. and U.K. in Yemen and a better-than-forecast expansion of month-on-month U.K. GDP growth helped the FTSE 100 to a positive close," IG analyst Axel Rudolph said in a note. Endeavour Mining was the session's highest performer, up 3.8%, followed by JD Sports Fashion and Fresnillo, up 3.8% and 3.05%, respectively. Burberry Group led the session's fallers, down 5.5%, followed by IAG, which fell 2.9% and Centrica, down 1.5%.

COMPANIES NEWS:

Burberry Cuts Guidance as Luxury Demand Deteriorates

Burberry cut its fiscal 2024 guidance after luxury demand slowed further during December's key trading period.

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Warpaint London Sees Full-Year Results Ahead of Raised Views

Warpaint London said that it sees its 2023 results beating its recently raised expectations after strong business over its fourth quarter.

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John Wood Group Sees Revenue, Earnings in Line With Market Views

John Wood Group expects results for 2023 to be line with expectations after strong growth across divisions and significant order wins in the fourth quarter.

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Burberry Cuts Guidance on Slowing Luxury Demand -- Update

Burberry cut its guidance after global luxury demand continued to slow during December's key trading period.

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Vistry Narrowly Beats Profit Guidance; Names CEO as New Chair

Vistry said it narrowly beat profit guidance, and that nonexecutive Chair Ralph Findlay will step down after its annual general meeting in May, to be replaced by Chief Executive Officer Greg Fitzgerald.

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Metro Bank CFO James Hopkinson Steps Down

Metro Bank Holdings said that James Hopkinson is stepping down as chief financial officer and executive director with immediate effect.

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BAE Backs Air Astana Plans to Float in London, Kazakhstan

Air Astana said that it plans to raise $120 million and float on the London and Kazakhstan stock exchanges, which is expected to include the sale of stock held by BAE Systems.

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Burberry Shares Dip After Guidance Cut

Burberry shares tumbled to the bottom of the FTSE 100 in early trading Friday after the group downgraded its guidance, citing a continued fall in global luxury demand during December's key trading period.

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Intact Financial Expects to Book C$200M in Catastrophe Losses in 4Q

Intact Financial said it expects to incur about 200 million Canadian dollars ($149.3 million) in catastrophe losses in the fourth quarter which will weigh on income in the period.

MARKET TALK:

Burberry's Guidance Cut Shows Difficulties for Turnaround Brands

1218 GMT - Burberry's guidance downgrade could signal difficulties for brands undergoing a turnaround process, Citi analysts Thomas Chauvet and Lorenzo Bracco say in a note to clients. The British luxury company cut its targets for fiscal 2024 due to a slowdown in luxury demand that is hurting its performance. The forecast cut highlights the challenges faced by other companies like Kering, Salvatore Ferragamo and Tod's, which are in the midst of a transition, the analysts say. Furthermore, Burberry's news doesn't bode well for its peers in the luxury industry that are due to report their results in the coming weeks, they say. Shares are down 4.5% at 1,246.5 pence. (andrea.figueras@wsj.com)

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Ashmore Group Seen Posting Outflows Before Inflection Point Later in 2024

1136 GMT - Ashmore Group investors will focus on net flows in the company's second-quarter update, UBS analysts say in a note. The broker sees $0.7 billion in outflows for the emerging-markets assets manager--against Visible Alpha's consensus of $1.2 billion--and notes that the group has reported outflows for the past eight quarters. "Ashmore trades at 18x forward consensus EPS, well above the historical average of 15x, implying Ashmore will start generating inflows the second half of calendar-year 2024," analyst Michael Werner writes. Shares rise 2.5% to 221 pence, but have lost 16.8% over the last 12 months. (elena.vardon@wsj.com)

Contact: London NewsPlus, Dow Jones Newswires;

(END) Dow Jones Newswires

January 12, 2024 12:49 ET (17:49 GMT)

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