Next shares up on optimistic trading figures

Shares in high street retailer Next soared over 3.5 percent this morning after an optimistic trading statement.

Overall group sales were up 0.3 percent on a year earlier, despite a 3.3 percent decrease in store sales. Recent trading reports have been gloomy for the major retailer, after a disappointing Christmas led to a 6 month downward spiral for its share price.

The group confirmed that full-price sales would this year be in the range of 2.5 percent lower to 2.5 percent higher, narrowing the previous estimated range and highlighting the impact of uncertainty after the Brexit vote.

UK economy contracting at fastest rate since financial crisis

Britain’s economy is shrinking at its fastest rate since 2009 in the wake of the vote to leave the European Union, according to the latest data from Markit.

July’s PMI figure came in at 47.3, a sharp drop from 52.3 in June and the lowest figure since April 2009. Anything below 50 signifies economic contraction.

Chris Williamson, Markit’s chief economist, warned that the numbers pointed to Britain’s economy shrinking by 0.4 percent in the three months to September.

Rio Tinto shares drop in challenging market

Shares in mining giant Rio Tinto have fallen 0.57 percent after seeing profits drop to their lowest level in 12 years.

First-half profit dropped 47 percent, with underlying earnings for the six months to June falling to $1.56 billion, down from nearly $3 billion a year earlier.

However, the group paid a higher than expected dividend to investors, easing the blow from the weak figures. New CEO Jean-Sebastien Jacques said the group remained “confident”, but expected market conditions to remain “challenging and volatile”.

03/08/2016