Aviva profits up in first half, Inmarsat returns to growth in second quarter

London open

The FTSE 100 is predicted to open 22 points higher on Thursday morning, more than making up for the 11 points lost the previous day to finish at 6,634.4.

Stocks to watch

Insurance giant Aviva posted its interim results for the six months to 30 June on Thursday, with operating profit rising 13% to £1.325bn and operating earnings per share improving 1% to 22.4p. The FTSE 100 firm’s IFRS profit after tax was £201m, down from £545m in the first half of last year.

Inmarsat posted a respectable set of interim results on Thursday after the satellite services group returned to growth in the second quarter thanks to growth from the aviation sector, government contracts and its deal to supply mobile network Ligado Networks. Full-year guidance was maintained, as revenues in the six months to 30 June rose 2.1% on the previous period to $629.0m, with earnings before interest, tax, depreciation and amortisation (EBITDA) up 7.5% at $368.4m.

Traffic at low-cost carrier EasyJet was up 6.7% in July to 7.5m passengers, while the load factor – which gauges how full the flights were – nudged up to 95.8% from 94.3%. On a rolling 12-month basis, traffic was up 6.8% to 72.3m and the load factor ticked just a touch higher to 91.7% from 91.4%.

Newspaper round-up

Seven and a half years since interest rates were last cut and four years after the last slug of quantitative easing, the Bank of England is expected to step back into policymaking today as it prepares to tackle the fallout from Brexit. A quarter-point reduction to 0.25 per cent is expected and may be combined with an extension of the cheap funding scheme for lenders. More quantitative easing may be on the cards but most economists believe the Bank will want to hold something in reserve, just in case. – The Times

An unprecedented international effort to stop some of the world’s largest multinational corporations – including Google, Amazon and Starbucks – avoid tax has offered only a “sticking plaster” solution that will not hold, according to a report published by a cross-party parliamentary group. After taking evidence from a range of experts, the all-party tax responsibility group, made up of British MPs and peers, found that G20 nations and others were still falling short in the battle against aggressive tax planning by big businesses. – Guardian

UK supermarkets are being urged by a consumer group to play their part in fighting obesity as research reveals more than half their recent promotions were for junk food, sweets and fizzy drinks rather than healthy options. Which? analysed data from price comparison website mySupermarket on special offers from Asda, Morrisons, Ocado, Sainsbury’s, Tesco and Waitrose between April and June. Its researchers found that of the 77,165 promotions, 53% involved less healthy foods – those high in fat, saturates, sugar or salt – compared with healthier products (47%). – Guardian

The number of jobs advertised last month was higher than at the same time last year, suggesting that Britain’s booming jobs market was not affected by the EU referendum result, according to Reed.co.uk, the recruitment website. There were 8.2 per cent more vacancies on offer last month compared with a year before, it said, as employers continued to take on new staff. – The Times

US close

The Dow Jones snapped a seven-day losing streak on Wednesday as private sector jobs data raised expectations for the non-farm payroll report at the end of the week, abetted by a rebound in oil prices.

The Dow Jones Industrial Average ended up 0.14% at 18,339.11 after the previous day saw its lowest close since 11 July, while the S&P 500 recovered around half its losses since Friday as it finished 0.31% higher at 2,163.79, with the Nasdaq nudging back up 0.43% to 5,159.74 as it hovers near its all-time high.

After the stock market closed, West Texas Intermediate futures continued rising and were up 4.3% to $41.19 per barrel, while Brent Crude was up 3.9% at $43.43 after a report on revealed a large drop in stockpiles.