Capita and Co-op Bank resolve differences, Trenitalia take the reins of National Express' c2c
London open
The FTSE 100 is expected to open 10 points higher on Monday, having closed up 0.4% at 7,258.75 on Friday.
Stocks to watch
Capita and the Co-operative Bank have resolved their differences over claims that the outsourcing firm withheld payments from the bank due to delays as it helped administer mortgages for Capita’s clients. FTSE 100 company Capita said on Monday that its Western Mortgage Services business will continue to provide mortgage administration services and process new mortgage applications for the Co-operative Bank, while work on the transforming the IT system will cease.
Fidessa declared a final and a special dividend as the financial software group said the increased headwinds in its markets during the second half of the year have already begun to reduce. For the calendar year, there FTSE 250 group generated £331.9m revenue, up 12% on a reported basis, or 3% when the benefit of sterling weakness is excluded, with profit before tax up 25% to £48.8m.
Passenger transport operator National Express announced on Monday that the transaction with Trenitalia over the c2c rail franchise had completed on 11 February, with the Italian state rail operator assuming all responsibility for the franchise’s operations immediately. The FTSE 250 firm had initially announced the deal on 11 February, selling the Essex Thameside franchisee for £70m, marking its exit from UK rail operations and Trenitalia’s British debut. Completion of the acquisition was triggered after the Department for Transport granted final consent to proceed.
FTSE 250 residential landlord Grainger has appointed John Kenny as its chief operating officer. Grainger said Kenny's appointment builds on the strength of the executive management team and supports the company's private rented sector growth strategy.
Newspaper round-up
Britain’s high streets face losing some of their most popular pubs and restaurants because of big rises in business rates, Philip Hammond has been warned. Companies including the owners of Pizza Express, Greene King pubs, Wagamama, All Bar One and Slug & Lettuce have written to the chancellor to ask him to rethink a plan under which some outlets will be hit with a 42 per cent increase in their rates this year. - The Times
Senior Conservatives have warned the Lords that it will face public outrage and abolition if it goes ahead with a plan to defeat Theresa May over Brexit. A coalition of Labour, Liberal Democrat and crossbench peers will amend the prime minister’s Brexit bill to make clear that EU citizens who were in Britain before the referendum will be allowed to stay in Britain. - The Times
Britons may have to work longer if immigration is cut in the wake of Brexit, according to a warning from the Government’s pension adviser. John Cridland, a former CBI director reviewing the state pension age for the Government, said the “Brexit Factor” had made the future of the state pension uncertain. - Telegraph
Britons slashed their spending on new clothes and shied away from the high street in January as they juggled Christmas debts and rising living costs. Spending increased by a meagre 0.4% in January, according to Visa’s consumer spending index, a five-month low that followed December’s robust 2.5% increase. - Guardian
The standard of living is rising at its slowest pace since 2014 as inflation starts to catch up with wage growth, economists believe. Prices rose by 2pc in the 12 months to January, official numbers are expected to show this week, while pay growth is forecast to have stalled. - Telegraph
US close
Shares in the US traded higher on Friday after President Donald Trump promised to make a “phenomenal” announcement about his tax plans soon and that he would stand by the 'one China' policy concerning Taiwan.
The Dow Jones Industrial Average ended higher by 0.48% to 20,269.37 and the Nasdaq Composite was 0.33% ahead at 5,734.13.
For its part, the S&P 500 tacked on 0.8% over the five-day stretch, and was up by 0.36% to 2,316.10 on Friday.
Michael Hewson, chief market analyst at CMC Markets, said: "US markets picked up where they left off yesterday, opening at new record highs with bullish sentiment getting reinforced by reports that US President Trump had spoken to Chinese President Xi and that he would stand by the 'one China' policy that had been the baseline for US foreign policy for many years.
"This apparent change of tack would appear to suggest that the new administration could well be starting to adopt a more pragmatic softly, softly approach to foreign policy.
“Maybe President Trump is slowly realising that he can’t win every battle and that to try and do so is unrealistic."