Barratt enjoying strong demand, Tui to sell Specialist arm

London open

The FTSE 100 index is forecast to make a 2.5% gain on Wednesday morning, according to City traders, after closing higher at 6,156.65 the day before.

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After cutting first-half losses as revenues rose more than expected, travel group Tui revealed plans to sell UK sailing and outdoor holidays unit Specialist Group. Revenues in six months to March 31 of €6.79bn rose 2.7% on last year and beat analyst forecasts of €6.61bn, helping to losses before interest, tax, debt and amortization shrink 16% to €236.9m.

Housebuilder Barratt Developments improved its sales rate in the 19 weeks since the start of the year and confirmed market conditions remained "strong" with "good levels" of demand for new homes. Around seven weeks from its year-end, the FTSE 100 company reported a sales rate of 0.75 net private reservations per active outlet per week, up from 0.74 last year and 0.66 in the first half of the year, with total forward sales at 8 May were up 9.7% on the prior year.

Information services group Experian grew total and organic revenue 5% at constant exchange rates in the year to 31 March to $4.55bn, with total revenue from continuing activities sitting at $4.48bn. Earnings before interest and tax from continuing activities rose 5% to $1.2bn at constant exchange rates but slipped 6% at actual exchange rates.

Newspaper round-up

The boss of Saudi Arabia’s state oil producer set out plans for expansion yesterday as he prepares for a potential $2 trillion flotation that will create the world’s largest quoted company. Saudi Aramco, which has a monopoly on the country’s vast oil reserves, is set to further boost output despite pleas for restraint from rival Opec members reeling from a supply glut that has lowered prices. - The Times

Liberty Global would consider a takeover of Telefónica’s O2 in the UK as a long-running deal to sell the business to Hong Kong’s CK Hutchison moves closer to being blocked by Brussels antitrust regulators. European commissioners met on Tuesday to discuss the £10.5bn takeover of O2 in the UK by CK Hutchison, which is then expected to be officially rejected in an announcement on Wednesday, leaving Telefónica looking for a new buyer for the business. - Financial Times

The number of offices being built in London is at its highest level for 20 years, with 51 developments currently under construction, according to a new report. Deloitte Real Estate’s London Office Crane Survey, which is released every six months, found that construction was up more than 28pc between October 2015 and March 2016 compared to the previous six months. - The Telegraph

US close

US stock indices made strong gains on Tuesday, all three gaining at least 1.25% for the first time in more than a month as an oil price rally, flatter dollar and various data provided boosts.

The Dow Jones fattened up by 222 points, or 1.26%, to close at 17,928.35; the S&P 500 swelled almost 26 points, or 1.25%, to 2,084.39; while the Nasdaq composite widened nearly 60 points, or 1.26%, to end at 4,809.88.

Oil's rally saw front-month West Texas Intermediate (TWI) crude futures up 2.2% to $44.41 per barrel, with the Brent crude price advance 3.9% to $45.32. Prices were helped by news of supply outages in Canada and Nigeria.