Tesco has announced that like-for-like sales are demonstrably up (more of shortly). Meanwhile demand for the US dollar has put the euro under pressure as Eurozone CPI data nears. Just before 7pm the euro was down 0.66% at $1.1143 while the pound was 0.12% higher at $1.2766. The yen is 1.42% higher against the dollar at 111.12.
Closer to home was a big sell-off in UK retail shares yesterday as the ONS revealed slower retail growth data: Next shares were down 6% while M&S shares slumped 4.7%.
Some big losses yesterday also for miners with Fresnillo, Anglo American and Randgold Resources seeing 7.26%, 6.03% and 4.89% falls from more commodity price pressures. Adding to the general gloom was oil prices with WTI at $44.50. Crude values are close to a six-week low.
- UK FTSE 100 7,419.36 -0.74%
- Dow 21,359.90 -0.07%
- S&P 500 2,432.46 -0.22%
- Nasdaq 6,165.50 -0.47%
- DAX 12,691.81 -0.89%
- CAC 40 5,216.88 -0.50%
- Gold 1,254.10 -0.01%
- Oil WTI 44.49 +0.07%
Tesco like-for-like sales boost
The big headline news this morning is Tesco. First quarter sales growth beat market expectations thanks in part to more demand from fresh food. The crucial numbers for Tesco are like-for-like sales which climbed 2.3% in the three months to the end of May. The analyst consensus was 2.2%.
These are the strongest growth numbers from Tesco for seven years. International like-for-like sales were down 3.0% in the quarter, due to a -2.7% hit “from discontinuing unprofitable bulk selling of products - particularly tobacco and alcohol - in Thailand,” says Tesco.
“This is a good start to the year,” says boss Dave Lewis, chief exec, “with our sixth consecutive quarter of positive like-for-like sales growth across the Group. We are confident in our plans to create long-term, sustainable value for our key stakeholders.”
Amec Foster Wheeler snags Oz contract
FTSE 250 energy player Amec Foster Wheeler says it has won an engineering procurement contract win worth AUD$298m from Gruyere Management. Gruyere is the manager for a joint venture with Gold Road Resources and the Gruyere Mining Company.
“Winning this contract,” said the company in a statement earlier this morning, “is testament to how we are delivering on our strategy to expand our EPC [engineering, procurement and construction] business, and our ability to work across all phases of a project.”
Amec Foster Wheeler shares are up almost 10% over the last 12 months but it reported a doubling in pre-tax losses earlier this year. Oil services player Wood Group has now won shareholder backing to take over Amec Foster Wheeler for £2.2bn.
Meanwhile EU officials yesterday agreed to a further debt deal for Greece with loans approved worth €8.5bn. The new loans enable Greece to head off any fears about defaulting on its broader debt load.
It also means that Greece can spend more money on its economy and public services, taking some of the pressure off servicing its enormous debt load.
Breaking news: Rolls-Royce says 2017 has started posititively and that revenues could be boosted substantially this year by currency headwinds – possibly by as much as £400m.