Burberry (BRBY.L)

Burberry has said the slowdown in demand for its luxury goods worsened in December as wealthy shoppers tightened their belts.

The London-based fashion house slashed its profit guidance for the year as a result.

It said trading has been affected by a continued “slowdown in luxury demand” after rises in the cost of living and increases to interest rates globally.

Jonathan Akeroyd, chief executive officer of the company, said it saw a “further deceleration in our key December trading period” which will weigh on its profitability.

Burberry had already seen its shares slump following its previous update in November, when it warned sales growth was lagging behind targets due to pressure in the luxury market.

Read more: UK economy returns to growth but spectre of recession still looms

On Friday, Burberry revealed retail revenues for the three months to December 30 slid by 7% to ￡706m. It said like-for-like store sales dropped by 4% over the key trading period.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown said the latest profit warning shows “cracks appearing in luxury demand."

“So-called aspirational shoppers are one of the demographics pulling back, and Burberry is more exposed to this type of customer than super-high-end luxury,” she added.

Brent oil (BZ=F)

Oil prices jumped as Britain and the US launched airstrikes against Houthi rebels in Yemen in response to the attacks on ships in the Red Sea that have disrupted global trade.

Brent crude has risen in early trading to more than $79 a barrel, while US-produced West Texas Intermediate (MCL=F) has risen towards $74.

The BBC reported that the UK government is concerned that ongoing attacks on shipping in the Red Sea could cause the economy to shrink.

“The BBC understands the Treasury has modelled scenarios including crude oil prices rising by more than $10 a barrel and a 25% increase in natural gas.

“The government fears if the disruption to cargo traffic spreads to tanker traffic then another energy shock is possible.”

Vistry (VTY.L)

Housebuilder Vistry said it expects profits to come in ￡8m higher than its previous forecast months after it said it would switch its entire focus onto affordable homes.