Spectris maintains 2024 projections, Smurfit Kappa reports solid first quarter

London open

The FTSE 100 is expected to open 31 points higher on Thursday, having closed down 0.28% on Wednesday at 8,121.24.

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Precision measurement group Spectris has kept its projections for 2024 unchanged despite a "softer-than-anticipated" first quarter, with sales falling against a strong comparative period last year. The company, which provides high-tech instruments, test equipment and software for industrial applications, said sales were down 8% on a like-for-like basis in the three months to 31 March, with conditions in some of its end markets like China weaker than hoped. However, "we continue to expect to deliver progress this year as markets improve, with progress weighted towards the second half", said chief executive Andrew Heath.

Smurfit Kappa Group reported first quarter revenue of €2.7bn in an update on Thursday, and EBITDA of €487m, achieving an EBITDA margin of 18%. The company said it experienced ongoing growth in corrugated box volumes in the period, as expected, while it successfully completed a bond offering of $2.75bn. Additionally, integration planning for the Smurfit WestRock merger was said to be advancing positively.

Oil and gas giant Shell reported a 15% jump in earnings in the first three months of the year compared with the final quarter of the year on the back of higher margins from crude and oil products trading. It also unveiled a new $3.5bn share buyback. Adjusted core earnings came in at $18.7bn compared with $16.3bn in the fourth quarter, but lower than the $21.2bn reported in the first quarter of 2023.

Newspaper round-up

Online gamblers who lose £500 or more a month are to face extra checks from August, the regulator has confirmed, as part of a large package of measures aimed at protecting the most vulnerable customers. The extra checks come in from 30 August, and the threshold for qualifying will fall to £150 of online betting losses a month from 28 February next year, the Gambling Commission said. – Guardian

Labour is facing criticism over plans for a loophole that would allow employees to work under zero-hours contracts, despite the party having pledged to ban them entirely. Keir Starmer’s party is preparing to announce details of its promise to overhaul workers’ rights if it gets into power – a centrepiece of its early plans for government, but subject to fierce lobbying from businesses. – Guardian

PwC is facing a backlash from its own staff amid allegations that Middle Eastern partners prevented the appointment of a woman as the firm’s new boss. Senior partners in London are understood to believe that voters at the firm’s offices in Saudi Arabia, the United Arab Emirates and other parts of the Middle East played a decisive role in the victory of Marco Amitrano over his two female rivals. – Telegraph

Thousands of London taxi drivers have launched a £250m lawsuit against Uber, claiming the minicab app illegally obtained a licence to operate in London. More than 10,000 cabbies have signed up to the lawsuit, which lawyers claim could result in compensation of £25,000 per driver. The High Court claim comes just weeks after Uber sought to bury a long-running battle with black cab drivers by allowing them to accept rides through its app. – Telegraph

A row over a plan by the City regulator to “name and shame” companies under investigation has intensified after Lord Tyrie, a City grandee, defended the watchdog in the face of criticism from the chancellor. The Financial Conduct Authority has been under intense pressure over the proposal, which would mark a significant departure from its current approach of almost always keeping investigations secret. – The Times

US close

US stock markets finished mostly lower on Wednesday after the Federal Reserve highlighted a "lack of further progress" in bringing inflation down to its 2% target, while data showed private job gains were stronger than expected.

America's central bank stood pat on rates on Wednesday, as expected. However, the Fed refrained from hawkish comment – as some had feared – saying that interest rates are unlikely to rise further to bring down inflation despite stronger-than-expected readings over the past three months.

Stock markets initially jumped following the comments, but gains were quickly erased by the close, with the S&P 500 and Nasdaq dropping 0.3% and the Dow rising just 0.2%.

In its policy statement, the Federal Open Market Committee stated that there had been no additional progress in easing price pressures, and while inflation had slowed over the past year it still remains "elevated".