Burberry profit warning, Unilever makes solid start

London open

The FTSE 100 is expected to open 15 points higher on Thursday, extending its gains from the previous two days.

Stocks to watch

Burberry warned profits for 2017 are likely to be around the bottom of the range of analysts' forecasts due to increased investment in the business, though the current year is expected to hit its mark.

Unilever reported growth in sales and volume in its first quarter, though the top line at the consumer goods company declined due to currency effects. Underlying sales growth was up 4.7%, with emerging markets up 8.3%, while underlying volume grew 2.6% and pricing advanced 2%. The group’s board declared a quarterly dividend of €0.3201 per share, an increase of 6%.

Newspaper round-up

George Osborne will have to consider selling the public stake in Royal Bank of Scotland at a loss because keeping it in the public sector is bad for the bank and the economy, the outgoing head of the Treasury has claimed. Sir Nick Macpherson said it was “going to be tricky” for the state to sell all of its £19.2bn stake in RBS before the next election — a sale intended by Mr Osborne to deliver “the largest privatisation proceeds of all time”. – Financial Times

British broadcaster ITV is aiming to go the whole hog as it considers making a takeover approach for Entertainment One, majority owner of Peppa Pig, people familiar with the matter say. The London-based TV company has had preliminary talks with the Canadian group, which owns a majority stake in the cartoon franchise, about a potential deal, but no decision has been taken yet, said people informed about the situation. – Financial Times

The Institute of Directors has made a rare intervention on executive pay, urging BP shareholders to think twice before backing a decision to award $20m (£14m) to chief executive Bob Dudley in a year when the company ran up its worst-ever losses. Simon Walker, the director general of the IoD, said the enormous remuneration deal for 2015 sent “the wrong message” to investors and other boards, given the $6.5bn annual loss and the decision to axe 7,000 jobs. – Guardian

US close

The Dow Jones jumped to its highest close since early November, fuelled by oil remaining above $40 and improved wages news from the Federal Reserve's Beige Book.

Along with the Dow's 1.06% gain to 17,908.28, the S&P 500 stepped up 1% to a 2016 record close of 2,082.42, and the Nasdaq roared up 1.55% to 4,947.42, its highest finish since the first days of January.

The Fed's Beige Book, the nickname of its Federal district-by-district summary of commentary on current economic conditions, said 11 of 12 areas showed signs of wage growth.