Overnight Alphabet (Google’s parent) third quarter numbers arrived where the full impact of Brussels’ recent fine was clear: though Alphabet sales were up profits were 30% lower thanks to the Brussels antitrust £2.1bn smack. Shares in Alphabet fell 3.5%.
There was a benign market response to the new Bank of Japan July minutes overnight though they did show continued unease about prices and the bank’s 2% inflation target (Japan’s deflation worry remains profound).
Both the euro-dollar and pound-dollar pairs continued stable runs, up 0.13% and 0.01% respectively to $1.1654 and $1.3026.
Later on today we have new CBI industrial order numbers while Bank of England chief economist Andy Haldane is also due to speak. A batch of German IFO business climate numbers arrive shortly. Oil was up 0.63% overnight at $46.23 as the Saudis pledged action to boost prices.
- UK FTSE 100 7,377.73 -1.01%
- Dow 21,513.17 -0.31%
- S&P 500 2,469.91 -0.11%
- Nasdaq 6,410.81 +0.36%
- Nikkei 225 19,971.35 -0.02%
- DAX 12,208.95 -0.25%
- CAC 40 5,127.70 +0.20%
- Gold 1,262.20 +0.12%
- Oil WTI 46.62 +0.60%
Croda sales surge 16%
First off we have a six-month specialty chemicals operator and own-brand manufacturer Croda update. Croda claims sales are up 16%; with its margin retained that means a 24.9% return on sales. Meanwhile adjusted profit pre-tax surges 14.3% to £169.7m.
“Our strategy,” said boss Steve Foots, “delivered a good first half performance with all core business sectors growing sales and profit organically, highlighting Croda's increased breadth across three growth sectors. This was underpinned by growth in premium market niches.”
Croda shares at 3,825p are up 19.6% year-to-date and 13% up on the year. Croda affirmed its full-year outlook.
Original Source maker fights Nigerian devaluation
We shift next to PZ Cussons and full-year numbers. Despite significant devaluation in PZ’s biggest market, Nigeria, profits for the Imperial Leather maker are up on last year, £90.8m compared to £89.2m. The total dividend per share rises from 8.11p to 8.28p (Cussons claims 44th consecutive year of dividend rises).
“In Nigeria, our experience and flexibility to ensure our products are sold in the right sizes and at the right price points has enabled us to deliver a creditable result against the backdrop of a weaker currency and poor liquidity.
PZ Cussons shares are 13.1% higher in the last 12 months at 362p and 8% higher year-to-date.
Domino's Pizza sales heat up
Finally, Domino's Pizza claims more group with group sales up 10.5% to £546.5m for the 26 weeks to 25 June. Underlying profit was up 9.1% to £44.6m. Online sales were up 11.5% and are now 75% of total sales. Domino's claim a record six months in the UK with 40 new stores.
"Whilst we acknowledge that UK consumers," said chief exec David Wild, "are currently more cautious about the economic outlook, we're focussing on growth investment with our franchisees; boosting marketing; improving customer engagement and enhancing our leading position in food delivery."
Breaking news: Michael Kors is snapping up luxury shoes operator Jimmy Choo for $1.17bn. The Bank of England warns on the rise of credit and loans across cars and all-purpose personal loans. Financial stability director Alex Brazier warns of a new crisis: "The sorry fact is that as lenders think the risks they face are falling, the risks they - and the wider economy face - are actually growing."