London pre-open: Stocks seen up as investors mull retail sales

(Sharecast News) - London stocks were set to rise at the open on Friday following heavy losses in the previous session, as investors mull the latest UK retail sales data. The FTSE 100 was called to open 22 points higher at 7,448.

Figures out earlier from the Office for National Statistics showed that retail sales fell 0.4% in November following a 0.9% increase in October, missing expectations for a 0.3% jump.

ONS director of economic statistics Darren Morgan said that Black Friday sales had failed "to provide their usual lift in this sector".

"However, department stores and households good shops did report increased sales, with these retailers telling us a longer period of Black Friday discounting helped boost sales," he said.

"Food and alcohol sales were also up, with consumers stocking up early to try to spread the cost of Christmas festivities."

Separately, a survey showed that consumer confidence remains at historic lows as the poor economic climate continues to weigh heavily

The latest GfK consumer confidence index was -42, up two points on November but still only seven points off September's record low of -49.

Joe Staton, client strategy director at GfK, said: "December marks the eighth month in a row in which the index has bumped along at -40 or worse, the first time this has happened since our records began nearly 50 years ago."

Within the overall score, the index for expectations for personal finances was unchanged on November, at -29, while the gauge for the outlook for the economy over the next 12 months pushed five points higher to -53.

The major purchases index also strengthened slightly, by four points to -34.

However, Staton argued: "Despite the latest GDP figures showing slight growth in October, the warning is of a tough road ahead and that the UK is not out of the recessionary woods.

"Real wages are falling as inflation continues to bite hard, further straining the discretionary budget of many households as we enter the last few shopping days before Christmas. The outlook for our personal financial situation over the next 12 months - perhaps the key metric as we enter the new year - is stuck at -29."

In corporate news, BT Group said it was combining its global and enterprise units into a single unit to be called BT Business, in a move designed to save £100m a year to the end of 2025.

The CEO of BT Enterprise, Rob Shuter, will step down in a few months to "spend more time with family and on his personal interests", BT said, with BT Business led by Bas Burger, the current CEO of the global unit.

Elsewhere, housebuilder Taylor Wimpey said chair Irene Dorner will be stepping down for personal family reasons at the conclusion of the 2023 annual general meeting in April.

Dorner - who will be succeeded by current senior independent director Robert Noel - will stay on the board as a non-executive director following the conclusion of the AGM.