Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Next
Nothing says back to work after the Christmas holidays like the early-January trading statement from fashion retailer Next. Sales have been posted as in-line with guidance after an uptick in demand in the three weeks before the festive break plus a good performance during the October half term holiday helped offset a poor November. Full year profit is now expected to come in at £723m, down £4m as a result of some seasonal product attracting a lower margin.
Wizz Air
December traffic figures have been released from Wizz Air this morning, showing continued expansion for Eastern Europe’s largest low-cost airline. This sector is likely to remain in focus during the year ahead as a slowing global economy stands to overshadow progress, but with seat capacity up 16.5% from a year ago and the number of passengers carried up 18.3%, the airline isn’t struggling to attract customers. The critical point however is just how much they are each paying.
Apple
A quick diversion across the Atlantic to Apple, who last night issued a rare downgrade over its guidance. Slowing sales in China are causing concerns for the business and shares fell sharply in post-market trade last night. The stock slumped around 8% and is also being seen as triggering some significant increases in volatility for currency markets. Global trade woes are leaving investors to adopt a risk-off approach to currencies with the Yen winning big. Combine this with Brexit woes and Sterling lost out, although as we’ve seen in the past, a weaker Pound tends to buoy the FTSE-100 as a whole.
