British consumers are the most confident in two years

British consumer confidence

British consumers are the most confident in two years, according to the latest Growth From Knowledge (GfK) survey. The index rose to -19 in January from -22 in December. Economists had forecast a smaller improvement to -21. The survey shows that lower inflation helps consumers feel better about their finances. GfK said all five of its confidence gauges rose. The outlook for personal finances in the next 12 months rose out of negative territory for the first time in two years, with a zero reading.

GfK consumer confidence

There is a different picture in Germany, where GfK consumer confidence fell to -29.7, below market forecasts of -24.5 and pointing to the lowest figure since March 2023.

US macroeconomic indicators

Over in the US, a few macroeconomic indicators are due on Friday afternoon. Among them is the core Personal Consumption Expenditures (PCE) price index. Economists forecast a 0.2% rise in the month-overmonth (MoM) for the month of December. Also scheduled are personal income and spending and pending home sales.

WH Smith

WH Smith reported an 8% rise in total revenues for the 20-week period to January 20. The group benefits from resilient travel demand. Travel UK, the company's largest division, posted a revenue increase of 15% for the period. Superdry Group's revenue was down 23.5% on the prior year and was impacted by the challenging consumer retail market.

LVMH Moët Hennessy Louis Vuitton

LVMH Moet Hennessy Louis Vuitton , the world's biggest luxury goods business, has reported that 2023 was a record year for revenues. It confirmed that its key fashion and leather goods division saw sales up 9% in Q4, and while this was just below the Bloomberg consensus of a 9.14% increase, it was the best-performing division as overall group sales rose 5.55%. Net profit, however, was up 8% to €15.17 billion, just missing the consensus forecast of €15.72 billion, as negative currency effects impacted group margins in the second half.

Intel

Intel shares plunged in extended trading on Thursday evening as the chip maker's guidance for the current quarter came well below analysts' expectations. Intel expects adjusted first-quarter revenue in the range of $12.2 billion to $13.2 billion, compared with analysts average estimate of $14.50 billion.It also forecasts a first-quarter profit of 13 cents a share. Analysts anticipated 33 cents a share.

The market made little of Intel's Q4, beating expectations on both the bottom and top lines. Earnings at 54 cents and revenue at $15.4 billion. For analysts, 2024 will be a "make-or-break" period for Intel. The group has to start delivering solid profits from data centres and Al. Spending has shifted to Al Data servers, dominated by Nvidia and Advanced Micro Devices. For now, its central processing units are often used in conjunction with Nvidia's Al chips, but Intel is not yet competitive in the market for Al-specific chips.

Visa

Visa released earnings and revenue marginally better than forecast. Earnings came in at $2.41 per share, topping expectations by seven cents. Revenue came in at $8.6 billion. The stock lost ground in extended trading as investors were not impressed by Visa's forecast for the current quarter. The company sees an increase of "upper mid- to high single-digit" in second-quarter net revenue. This compares with 11% growth in the same period last year. Its competitor, American Express, is due to report this Friday before the market opens. The street expects earnings of $2.64 per share on revenue of $16 billion.