Three things you need to know in the financial markets today from investment writer, Tony Cross.
#1. Taylor Wimpey expects challenges to linger
There’s a full year trading statement out from Taylor Wimpey LON:TW. this morning ahead of results due at the end of February. The full year performance is noted as being in line with management expectations, with completions down by close on 30%.
Whilst the falling mortgage rates are seen as being encouraging for the market, uncertainty remains and planning issues are also flagged. The note adds that good levels of enquiries are being seen as the year gets underway and the strength of the balance sheet will help leave the business well positioned for future growth.
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#2. Tesco Christmas boost sees FY forecasts upped
Tesco LON:TSCO issued its Christmas trading figures today, with a group-wide 6% uptick year-on-year for the festive period, slightly lower than the 6.6% seen for the quarter Aggressive price cuts may be winning the grocer market share, although has the move been too aggressive?
The notable uptick in sales of the Finest range – up 16.7% – may offer some insulation here however and the overall performance is seen as stronger than had been anticipated, with full year guidance is being upgraded. Operating profits are now eyeing a print of £2.75bn, up from previous guidance of £2.6bn-£2.7bn.
#3. Whitbread prices and occupancy remain robust
The good news story continues for Whitbread LON:WTB with their numbers for the quarter to November 30th showing there was some room at the (Premier) Inn – albeit at prices up 9% from a year ago and 39% higher than pre-pandemic levels. High occupancy levels and strong pricing are providing significant tailwinds here, with strong trading continuing into Q4 and full year forecasts remain unchanged.
