The FTSE 100 slipped on mixed results from some of the big hitters in the index.
Retail sales data from the US for December is likely to be under scrutiny later as the market looks for insights into the health of the US consumer during the festive period.
Wall Street yesterday saw a recovery in the tech sector while the Nikkei continues to bask in the afterglow of the weekend’s decisive election result. In the UK, despite continuing speculation about the fate of embattled prime minister Keir Starmer the pound and gilts steadied.
Barclays
Barclays’ diversified interests typically work in its favour. If there’s ever a weak part of the business, the rest often picks up the slack and helps keep the group in shape. The latest results are a perfect example of this dynamic in play.
Corporate and investment banking interests were strong while the UK retail banking and wealth management operations were lacklustre.
Barclays has outlined near and medium-term targets which imply stronger returns and big share buybacks. The targets sound impressive, but the market seems nonplussed by the overall package.
There wasn’t enough to blow the lights out in terms of recent performance, and so much good news is already in the price.
The banking sector has been a major money maker for investors over the past two years and now needs powerful catalysts to sustain the upwards share price momentum. That means large upgrades to earnings forecasts, otherwise the shares could stall.
Barclays’ figures might warrant small upgrades, but there isn’t enough power in the results to keep the share price rally going.
Standard Chartered
It’s telling when a senior executive leaves a company and the share price slumps. Diego De Giorgi’s shock departure from Standard Chartered effectively values him at £2 billion. This is the amount wiped off the bank’s market value on the news he’s going to asset manager Apollo.
Normally, the departure of a numbers person from a company wouldn’t move the dial. What’s different with Standard Chartered is that De Giorgi was seen as next in line for the CEO job.
Incumbent Bill Winters has been in the top role for nearly 11 years, approximately twice as long as the average tenure for a FTSE 100 CEO. That suggests Standard Chartered will be thinking seriously about long-term succession planning, and the board might be disappointed they didn’t act fast enough to lock in De Giorgi.
AstraZeneca
There is a lot going right for AstraZeneca. Existing products are selling well, there is positive news on drug trials, it continues to make strategic acquisitions and partnerships, and the share price is humming along nicely.
All big pharma companies strive to have a vibrant pipeline of drugs in development as these are the key to tomorrow’s revenue growth. AstraZeneca has an important year ahead with more than 20 final-phase trial results scheduled.
It’s rare for a company to get a positive result with every single trial, so the goal is to have more successes than failures. If AstraZeneca knocks it out of the park with its current pipeline of final-stage trials, it could stand head and shoulders above the peer group.
BP
One tough decision has been taken out of the hands of incoming BP chief executive Meg O’Neill as BP has put share buybacks on hold and scaled back spending in the face of weaker energy prices.
The decision is at odds with Shell which is ploughing ahead with its own buyback. Balance sheet pressures at BP are more acute and, while the buyback suspension was not exactly unexpected, the fact barely a dent was made in the company’s debt pile over the last 12 months is a bigger concern.
Oil prices have advanced in recent weeks thanks to ongoing tensions in Iran but there are expectations they might fall again as we move through 2026 should more supply come onto the market.
BP has emphasised the need to invest in its oil production business as it continues to turn tail on its big push into green energy. Dialling back returns to shareholders may give the new boss scope to pursue this goal.
O’Neill faces tough decisions as soon as she takes office in April, given the pressure to return BP to meaningful growth while also reducing debt.
Ditching the buyback may be logical but is a double-edged sword as it has given shareholders one less reason to be patient with a BP turnaround.
Kering
When the markets have been used to rags, the sight of some silk is always likely to get some attention. Gucci-owner Kering’s quarterly numbers have certainly made investors sit up and take notice.
It’s a small thread for the market to hold on to but a significantly smaller-than-expected fall in sales for Kering, allied to signs the company is getting its act together and fixing its balance sheet, is enough to extend the recent share price rally.
Having joined as an outside appointment from the automotive industry in September, CEO Luca De Meo has wasted no time in leaving his mark. This includes selling the beauty division to L’Oreal and postponing an agreement to buy the portion of Valentino it does not already own.
The backdrop is not helpful, with the global market for luxury looking about as depressed as the weather has been in the early weeks of 2026. However, De Meo is off to a decent start, with hints that Gucci’s woes might have bottomed out.
Dan Coatsworth: Head of Markets
Dan Coatsworth is AJ Bell's Head of Markets. Dan has been with the company since December 2012 and has more than 18 years' experience in the industry, following the markets and all things investing. He...
