FTSE 100 Live 14 July: Burberry results, ITV drops plan to buy All3Media

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1689317450JP Morgan results to give insight into the US economy

JP Morgan is a leader in the US economy, which means comments from President and CEO Jamie Dimon will be as important as the banking giant’s second-quarter results later today.

The numbers should show a big jump in revenue and earnings as the impact of sharply higher interest rates outweighs the poor deal climate.

The last time Dimon reported results in April, he said the US economy remains on “generally healthy footing,” with consumer spending still strong and their balance sheets.

On the regional banking turmoil during the month of March, he said that the situation is different from the 2008 financial crisis as it involved fewer financial players and fewer problems that needed to be solved.

However, he predicted that financial conditions are likely to tighten as lenders become more conservative, “and we don’t know if this will slow consumer spending.”

1689317333 A rush of tourists to boost Johnson’s services group earnings exceeded expectations

Johnson Service Group, which provides hotel linens, expects to beat market expectations for profit this year thanks to higher tourist volumes over the coming months.

In the first six months of the year, JSG reported revenue of £215m, up 22.2%, with £144m from its hotel linens arm and the remainder from workwear.

She said volumes of hotel linens have “continued to rise” in recent weeks, with encouraging signs of more sales on the way.

At the same time, it agreed to fixed prices for most gas and electricity costs, reducing the uncertainty created by inflation.

“This more predictable cost base, combined with current expected volume during the busy summer months, gives us confidence that assuming the trading environment remains unchanged, we will report full-year adjusted operating profit slightly above current market expectations,” the group said. .

1689316075 Burberry sales jump after a massive rebound in the Chinese market

Retail sales at fashion store Burberry rose 17% in the three months to the end of June after a significant rebound in the Chinese market.

The luxury fashion label, known for its signature coats, said sales in mainland China rose 46% as it confirmed guidance for the full year.

But the company warned that it expects to take a hit of £150m to revenue from currency fluctuations, as the pound rose to a 15-month high.

“All regions outside the Americas saw growth as mainland China recovered from COVID-19-related lockdowns in the previous year,” Burberry said.

Burberry1689315975 Dollar Weakness Continues, FTSE 100 Group for Subdued Session

Views from JP Morgan, Citigroup and Wells Fargo on the health of the US economy will be in focus when Wall Street’s earnings season kicks off later today.

In the run-up to second-quarter results this afternoon, US markets have been on a four-day winning streak as hopes grow of an imminent halt in interest rate hikes.

At the end of yesterday’s session, the S&P 500 rose 0.85% and the Nasdaq Composite gained 1.6% as technology stocks extended their rally.

The US dollar also continued to weaken amid signs this week of easing US inflation pressures. The dollar index against six major currencies remained at a 15-month low, while the pound sterling crossed $1.31 for the first time since April 2022.

Asian stocks posted a mixed performance this morning while CMC Markets expects the FTSE 100 to open 12 points lower at 7428 after closing 24 points higher yesterday.

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