Direct Line swings to loss, Moonpig reports no exposure to SVB UK

London open

The FTSE 100 was expected to open flat on Monday, having closed down 1.67% on Friday at 7,748.35.

Stocks to watch

Online greeting card and gift retailer Moonpig said on Monday that it has no material exposure to the UK arm of failed US bank Silicon Valley Bank. Moonpig said it has no cash on deposit with SVB UK and does not hold a bank account with them.

Insurer Direct Line said on Monday that it swung to a full-year loss as it took a hit from inflation, and warned that 2023 earnings will be impacted by higher-than-expected claims inflation in the motor business. In the year to the end of December 2022, the company swung to a pre-tax loss of £45.1m from a profit of £446m the year before, while operating profits slumped 94.6% to £32.1m. Analysts had been expecting operating profit of £70m.

Newspaper round-up

Barclays could save itself more than £200m a year after deciding to take a break from paying into its staff pension scheme, despite the fund’s assets plummeting by £10bn in 12 months. Barclays last month declared profits of £7bn for 2022, but its “contribution holiday” means the cost of the payments it would normally make towards former employee’s retirement benefits will now have to be met by the pension scheme – prompting anger among some ex-staff. – Guardian

A stack of factory-made modular labs, with a roof terrace and grass growing on top, has sprung up at Canada Water in south-east London and is due to open in late May. With growing demand for lab space, the company behind them, British Land, is unveiling plans for a large new research building on Monday, part of a nascent life sciences cluster south of the Thames. – Guardian

The chief executive of Wagamama has said chain restaurants will never be as ubiquitous as they were pre-pandemic, but insisted they will not disappear from Britain’s high streets altogether. Andy Hornby, chief executive of The Restaurant Group, which owns the Japanese chain, told The Telegraph: “I don’t think the [casual dining] industry will ever be quite as big as it was.” – Telegraph

The world’s biggest oil producer has reported annual profits of $161.1 billion after prices surged over the past year, eclipsing the record earnings made by its peers. Saudi Aramco also cited higher volumes sold and improved margins for refined products as it became the latest energy multinational to outline record earnings. – The Times

The former technology chief of Bulb has launched a new venture that aims to sign up energy suppliers to use the failed company’s customer service platform. John Marshall is now chief executive of Zoa, which is controlled by the London-listed Sequoia Economic Infrastructure Income Fund, a secured creditor to Bulb that has taken control of its technology assets as part-repayment for a loan. – The Times

US close

Stocks on Wall Street closed in the red on Friday, with the Dow Jones Industrial Average down 1.07% at 31,909.64.

The S&P 500 lost 1.45% to 3,861.59, and the Nasdaq Composite was 1.76% weaker at 11,138.89.