3i Group makes busy start to year, ITV ups interim dividend

London open

The FTSE 100 is expected to open five points lower on Wednesday, after closing up 0.77% at 7,434.82 on Tuesday.

Stocks to watch

It was a busy start to the year for 3i Group, it reported on Wednesday, with a net asset value per share of 628p and total return of 4.1% as at 30 June. The FTSE 100 company reported a “good level” of new investment in its private equity division during the first quarter, with £276m invested in Hans Anders and Lampenwelt and a further £241m committed to Formel D and Cirtec. It also successfully closed two new infrastructure funds in the period - the 3i Managed Infrastructure Acquisitions Fund and the 3i European Operational Projects Fund.

ITV upped its interim dividend as a show of confidence in the underlying business as first-half profits fell 8%, with a decline in advertising sales joined by fall in production profits due to higher investment and timing of shows. On total external revenue down 3% to £1.46bn in the six months to 30 June, adjusted operating profits fell 8% to £403m and adjusted earnings per share dropped 9% at 7.7p.

Retail property developer Hammerson reported a rise in first half pre-tax profits of £289.7m from £167.2m boosted by record leasing activity and positive capital value growth helped by high-growth markets in Ireland and premium outlets. It also warned that UK retailers were experiencing cost pressures from sterling weakness, adjustments to business rates and higher minimum wages.

Newspaper round-up

As part of a government strategy to improve air quality, Britain is to ban all new petrol and diesel cars and vans from 2040 amid fears that rising levels of nitrogen oxide pose a major risk to public health. The commitment, which follows a similar pledge in France, is part of the government’s much-anticipated clean air plan, which has been at the heart of a protracted high court legal battle. - Guardian

Almost 40% of corporate investments channelled away from authorities and into tax havens travel through the UK or the Netherlands, according to a study of the ownership structures of 98m firms. The two EU states are way ahead of the rest of the world in terms of being a preferred option for corporations who want to exploit tax havens to protect their investments. - Guardian

Metro Bank tabled plans to raise up to £278m through a share issue after experiencing "strong and accelerating organic lending growth", which had propelled it to its fourth straight quarterly profit. The challenger bank said lending rose 67pc year on year to £7.8bn in the three months ended June 30. – Telegraph

The Guardian has developed plans to erect a paywall around its website and apps if its existing membership scheme and appeals for donations do not meet financial targets amid upheaval in the news market. It is understood that the publisher has called in consultants to work on the details of compulsory subscription charges for some material, despite the growth of voluntary contributions. The proposals are "finished and ready to go", a source said. – Telegraph

Unilever’s sale of its £6 billion spreads division looks set to begin in earnest after two of America’s biggest private equity firms teamed up to make an offer. Clayton Dubilier & Rice and Bain Capital are understood to have formed a consortium to construct a possible bid for the business, which includes Flora, Stork and I Can’t Believe It’s Not Butter among its brands. – The Times

US close

US stocks finished mixed on Tuesday as investors waded through an avalanche of earnings and digested a better-than-expected reading on US consumer confidence.

The Dow Jones Industrial Average finished up 0.47% at 21,613.43 and the S&P 500 was ahead 0.29% at 2,477.13, while the Nasdaq 100 fell 0.18% to 5,930.65 as the Federal Reserve kicked off its two-day policy meeting.

The mood was underpinned by some encouraging data, as the latest figures from the Conference Board showed US consumer confidence unexpectedly rose to a four-month high in July.

Its confidence index increased to 121.1 from 117.3, beating expectations for a drop to 116.5.

“The small rise in the Conference Board measure of consumer confidence takes it to its second highest reading in 16 years and suggests that consumption growth will accelerate in the second half of the year,” noted Capital Economics.