ABF FY results seen higher YOY, DCC acquires German medical devices business

London pre-open

The FTSE 100 was being called to open 19.5 points higher ahead of the bell on Thursday after closing 0.86% lower in the previous session at 7,237.83.

Stocks to watch

Primark owner Associated British Foods said on Thursday that both revenues and profits had improved over the 12 months ending 17 September, driven by price actions, volume increases and the ending of certain Covid-19 restrictions.

ABF stated full-year group revenues will be "well ahead" of last year and said it was also on track to deliver a "significant increase' in adjusted operating profits and adjusted earnings per share.

Sales and marketing firm DCC said on Thursday that its DCC Healthcare subsidiary will snap up German medical devices business Medi-Globe Technologies for an enterprise value of €245.0m.

DCC said the acquisition, which will be completed on a cash and debt-free basis, will be settled entirely in cash, with the Medi-Globe business expected to generate "a mid-teen return on capital employed" in three years.

Newspaper round-up

The UK advertising watchdog has launched an investigation into whether telecoms companies are misleading consumers about inflation-busting bill increases when promoting deals in their marketing campaigns. Telecoms companies make billions of pounds annually by instituting price rises to mobile and broadband bills midway through contract periods – increases that will add to the biggest squeeze on the cost of living facing households in generations. – Guardian

Big oil and gas companies are spending tens of millions publicising their environmental work, while only about a tenth of their investment goes into low-carbon development, a report claims. A comprehensive study of public communications from five oil and gas firms by InfluenceMap, a climate finance thinktank, found that 60% of the publicity made at least one claim highlighting the companies' positive climate actions. But on average, the five companies devoted only 12% of capital expenditure to low-carbon activities – and this included some gas projects. – Guardian

TikTok is a "tool of espionage" for the Chinese communist party that should be outlawed by the West, the chief executive of German publishing giant Axel Springer has claimed. Mathias Dopfner says his business has resisted working with TikTok because he fears sensitive personal data will be shared with the government in Beijing. – Telegraph

The price of lavatory paper has jumped 15% in a year despite rolls being shortened by up to 8%, making for some of the sharpest inflation in a weekly shop. The figure is an average of increases across supermarkets revealed by analysis for The Telegraph by Trolley.co.uk, a shopping comparison website. The figures are based on a survey of different brands and package sizes. – Telegraph

If you want to travel by train from London to Manchester in the next few weeks — good luck. A visit to the website of Avanti West Coast, the train company that runs intercity express services from Euston to Birmingham, Manchester and Glasgow, does not inspire confidence. It has cut the number of trains to the main destinations on the line from three an hour to one and warns that services are still subject to last-minute cancellation. Ticket sales from next Wednesday to Sunday have been suspended entirely because of looming industrial action. – The Times

US close

Wall Street stocks finished in the green on Wednesday amid a whirlwind of hawkish Fedspeak.

At the close, the Dow Jones Industrial Average was up 1.4% at 31,581.28, while the S&P 500 added 1.83% to 3,979.87 and the Nasdaq Composite saw out the session 2.14% stronger at 11,791.90.

Reporting by Iain Gilbert at Sharecast.com