Kingfisher held back by France; Hikma and Bunzl agree deals

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The FTSE 100 index is expected to rise 52 points on Tuesday, according to City sources.

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Home improvement retailer Kingfisher sales kept improving in the third quarter, though like-for-like sales growth slowed due to further softness in France. Driven by strong sales in Poland, the restructuring of the B&A chain and continued rapid growth from Screwfix, group sales grew 11.5% to £2.96bn in the three months to 31 October, up 1.8% on a like-for-like basis.

Intertek revenues rose to keep it on track to deliver full year growth and cash generation as expected. For the 10 months to 31 October, revenue of £2.09bn was up 10% at constant currency rates or 18% at actual rates compared to the same period last year.

Hikma Pharmaceuticals has signed a development and licensing agreement with Vectura for its generic salmeterol product (VR730) for the treatment of asthma and chronic obstructive pulmonary disease. Under the terms of the agreement – which is being signed by Hikma’s US affiliate, West-Ward Pharmaceuticals Corp – Hikma will be responsible for the clinical development, manufacture and commercialisation of the product.

International distribution and outsourcing group Bunzl has agreed to buy two businesses in France and Denmark for an undisclosed sum. The company said it had agreed to buy Prorisk and GM Equipement, which are based near Lyon and in Vannes respectively and mainly engaged in the sale of a variety of personal protection equipment and first aid related products to both end users and distributors throughout France.

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Alan Milburn, the former Labour health minister and government social mobility tsar, is at the helm of a new group funded in part by Sir Richard Branson to fight Britain’s exit from the European Union. The aim is to bring together disparate pro-European groups behind an explicit campaign to reverse the referendum decision to leave, probably only after the government has revealed the content of its exit terms and the UK economy has reacted.

Brussels is proposing to tighten its grip over overseas banks operating in the EU in a tit-for-tat step against the US that will raise costs for big foreign lenders and potentially hurt the City of London after Brexit. The European Commission will unveil provisions on Wednesday that mirror controversial US “intermediate holding company” rules that ringfence foreign bank capital. - Financial Times

Job security is at a record high with more Britons feeling confident that their employment is here to stay, according to a study from Lloyds Bank. With unemployment at its lowest rate in 11 years and wages growing faster than prices, 82pc of people felt confident in their job security in October, the highest number in the study’s five year history. - Telegraph

US close

US equity markets closed at record highs on Monday as surging oil prices boosted energy issues.

The Dow Jones Industrial Average ended up 0.5% at 18,956.69, the S&P 500 gained 0.8% to 2198.18 and the Nasdaq closed 0.9% higher at 5368.86 – all at record highs.

In currency markets, the dollar fell back after ten days of gains versus its major rivals. The ICE Dollar Index, which measures the greenback against a basket of six currencies, dropped 0.3% to 100.96, having earlier hit a low of 100.79.