Source: Sharecast
Stocks to watch
UK discount retailer B&M cut profit guidance again, citing an uncertain economic outlook and said chief executive Alex Russo would retire at the end of April. The company said annual adjusted EBITDA was now expected to be in the range of £605m to £625m down from a previous trimming of guidance to £620 - £650m outlined in January. The latest cut also includes the potential impact of exchange rate volatility on the valuation of stock and creditor balances.
National Grid announced the sale of its US onshore renewables business, National Grid Renewables, to Brookfield Asset Management and its institutional partners on Monday, including Brookfield Renewable Partners. The FTSE 100 energy infrastructure firm said the deal, valued at an enterprise value of $1.735bn with adjustments pending, was part of its strategy to focus on networks and streamline its business. It said the transaction was subject to consents and regulatory approvals, with an expected completion in the first half of the financial year ending 31 March 2026.
Newspaper round-up
More than two-thirds of hospitality businesses will reduce staffing as a result of tax changes taking effect in April, according to research by industry bodies calling on the government to delay the changes. The survey of pubs, bars, restaurants and hotels found that 70% expected to cut back on employment levels because of the higher costs and reduction in rates relief announced in last autumn’s budget. – Guardian
The net zero sector is growing three times faster than the overall UK economy, analysis has found, providing high-wage jobs across the country while cutting climate-heating emissions and increasing energy security. The net zero economy grew by 10% in 2024 and generated £83bn in gross value added (GVA), a measure of how much value companies add through the goods and services they produce. – Guardian
Britain’s jobs market suffered the worst start to a year since the depths of the Covid lockdowns in 2021, as hard-pressed employers cut hiring in the face of Rachel Reeves’s record tax increases. Fewer than 828,500 jobs were available in January, a drop of 1.9pc compared with December and down by 4.5pc from January of last year, according to vacancies website Adzuna. – Telegraph
Aston Martin Lagonda is to roll back on plans to become an electric car manufacturer within a couple of years when its new chief executive Adrian Hallmark resets the company’s strategy at its annual results this Wednesday. Hallmark, 62, who joined the listed carmaker in the autumn having previously led its rival, Bentley Motors, is expected to say that the eagerly awaited electric Aston Martin is still coming but only “before 2030”. – The Times
Warren Buffett has avowed Berkshire Hathaway’s commitment to equities as the veteran billionaire investor defended the company’s record cash pile in his annual letter to shareholders. Buffett, 94, dubbed the Sage of Omaha, has a long track record of striking big deals but the high valuations in US stocks has curbed activity and alongside stock disposals, including Apple, has led the conglomerate’s cash pile to hit $334.2 billion at the end of 2024. – The Times
US close
Wall Street stocks turned in big losses again on Friday amid fears that the US economy was slowing.
At the close, the Dow Jones Industrial Average was down 1.69% at 43,288.02, while the S&P 500 lost 1.71% to 6,013.13 and the Nasdaq Composite saw out the session 2.20% weaker at 19,524.01.
The Dow closed 748.63 points lower on Friday as the blue-chip index delivered its worst single-day loss so far this year.
The University of Michigan's consumer sentiment index was in focus on Friday as it was downwardly revised in February, dropping from 67.8 to 64.7 for the lowest reading since November 2023.
Elsewhere, existing home sales fell by 4.9% to 4.08m in January, according to the National Association of Realtors, the sharpest decline since seven months and falling short of expectations for a reading of 4.12m.