JD Sports FY profits miss expectations; Govt cuts NatWest stake

London open

The FTSE 100 was called to open around 10 points higher.

Stocks to watch

JD Sports Fashion reported lower-than-expected annual profits as it continued to invest in its store estate.

Profits before tax and adjusting items of £917.2m were down 7.5%, against forecasts of £920m. Organic sales were up 9%.

First quarter performance was in line with expectations and the company held full-year profit before tax and adjusting items guidance of £955m-£1.035bn.

The government has sold a £1.24bn stake in NatWest, as HM Treasury continues to reduce its shareholding in the state-backed lender. The bank announced that the share sale was effected by way of an off-market purchase by NatWest of more than 392m shares at 316.2p, Thursday's closing price.

The deal cut UK Government Investments Limited's stake in the bank from 25.98% to 22.5%.

Newspaper round-up

The union that represents workers at Royal Mail has called for a new business model for the company that would see workers given a stake in the company and pay tied to growing services and meeting certain social benefits. Dave Ward, the general secretary of the Communications Workers Union (CWU), said that the potential takeover by the Czech billionaire Daniel Křetínský should provide a moment to overhaul how the company is structured, which could mirror that of US-style public benefit corporations. – Guardian

The world has enough fossil fuel projects planned to meet global energy demand forecasts to 2050 and governments should stop issuing new oil, gas and coal licences, according to a large study aimed at political leaders. If governments deliver the changes promised in order to keep the world from breaching its climate targets no new fossil fuel projects will be needed, researchers at University College London and the International Institute for Sustainable Development (IISD) said on Thursday. – Guardian

The maker of “dirty” luxury sneakers worn by Taylor Swift is planning to float on the Italian stock market in a transaction that could value it at more than €3bn (£2.6bn). Venice-headquartered Golden Goose has announced plans to raise €100m (£85m) listing at least 25pc of the company on the Euronext market in Milan. – Telegraph

Rolls-Royce has secured a multimillion-pound contract to supply engines for a new class of Japanese warship. The British engineering giant confirmed on Thursday it will provide a propulsion machine for Tokyo’s planned Aegis system equipped vessels (ASEVs). Each of the Japanese ships will have a propulsion system powered by two of Rolls’s MT30 engines. – Telegraph

After a failed bid by BHP, Anglo American is facing a backlash from local politicians over plans to cut spending on the Woodsmith mine, as the focus shifts back to the FTSE 100 miner’s radical restructuring plan. A cut in capital expenditure on the polyhalite fertiliser mine in North Yorkshire was a key part of the London-listed group’s defence in fending off a £39 billion takeover by its larger rival, but it leaves about 2,000 jobs hanging in the balance. – The Times

US close

US stocks finished firmly in the red on Thursday as indices continue to retreat from their recent record highs on the back of mixed economic data.

The Dow finished 0.9% lower at 38,111.48, having now fallen 2.5% in the past three days. The index is now 4.7% lower than its latest record closing high of 40,003.59 reached on 17 May.

Meanwhile, the S&P 500 declined 0.6% to 5,235.48 while the Nasdaq dropped 1.1% to 16,737.08, with both also continuing to pull back from all-time highs.