Maitland/AMO Morning Monitor – Wednesday 8 January 2020

8th January 2020

Market Information

The FTSE and CAC are expected to open down this morning while the DAX is expected to open up.

In Asia, the Shanghai Composite, Hang Seng and Nikkei have all closed down.


In the news

  • Iran fires missiles at American forces in Iraq in retaliation for the killing of Qassem Soleimani
  • Boeing 737 plane crashes in Tehran killing 176 passengers and crew onboard
  • An investigation into a cyber attack on Travelex continues after hackers demand a ransom to protect customer data

The political day

  • Prime Minister Boris Johnson is to hold talks with Ursula von der Leyen in Downing Street to stress trade deal deadline
  • The first Prime Minister's Question Time of the new Parliament will be held, before the Commons debates the Withdrawal Agreement Bill
  • European Commission President Ursula von der Leyen delivers a lecture at LSE titled: 'Old Friends, New Beginnings: building another future for the EU-UK partnership.'

Top Financial Announcements

* Maitland Client

Sainsbury(J) PLC Q3 Trading Statement
  • Grocery sales grew 0.4%, with Groceries Online up 7.3%.
  • Clothing sales grew by 4.4%.
  • General Merchandise sales declined by 3.9%.
  • Total online sales grew by 5%.
  • Total retail sales declined by 0.7% (excl. fuel), with like-for-like sales down 0.7% (excl. fuel).
  • Mike Coupe, CEO, said: “We gave our customers a great combination of quality food at good prices this Christmas and we delivered a standout performance operationally. We have a real sense of momentum in Sainsbury’s and investment in our stores and improvements to service and availability have led to our highest customer satisfaction scores of the year. Our digital investments are also paying off and over 20% of our business was online in the quarter. Groceries Online had record order numbers throughout the Christmas period and customers are increasingly choosing to shop with SmartShop in our supermarkets. Argos had its biggest digital Black Friday to date and record sales through mobile and via Argos Click and Collect. 32m customers shopped with us across Sainsbury’s and Argos in the key Christmas week.”

     

Greggs PLC Trading Update
  • Total sales up 13.5% (2018: 7.2%).
  • Company-managed shop like-for-like sales up 9.2% (2018: 2.9%).
  • 138 new shops opened in the year, 41 closures.
  • 2,050 shops trading as at 28 December 2019.
  • £7m special payment to employees.
  • Roger Whiteside, CEO, said: “We delivered a strong finish to what has been an exceptional year for Greggs.  The major investments we have made in recent years to make Greggs an attractive choice in the food-on-the-go market are delivering.  Consumers are responding very positively and we have seen increasing visits from both new and existing customers. Our record financial performance in 2019 has enabled us to enhance returns to shareholders.  I am delighted to announce that we will also be making a special additional payment to all of our colleagues across the business who have worked so hard to deliver this success in what has been a phenomenal year.”
Anglo American PLC Anglo American response re. Sirius Minerals PLC
  • Anglo American confirms that it is in advanced discussions with Sirius in relation to a possible offer at a value of 5.5 pence per Sirius share, in cash.
  • The Proposal would value the entire issued share capital of Sirius at approximately £386m.
  • Anglo American believes that the possible offer could provide certainty to Sirius’ shareholders, whilst Anglo American brings the financial, technical and marketing resources and capabilities to progress the North Yorkshire polyhalite project over time.