National Grid underlying profit rises, Aviva reports strong quarter

London open

The FTSE 100 is expected to open five points higher on Thursday, having closed down 0.55% on Wednesday at 8,370.33.

Stocks to watch

National Grid reported a 4% increase in underlying operating profit to £4.8bn on Thursday, driven by growth in UK electricity transmission and higher rates in the US, despite an 8% decrease in statutory operating profit due to non-cash exceptional charges. The FTSE 100 company announced a £7 billion equity raise through a rights issue and declared a final dividend of 39.12p, bringing the full-year dividend to 58.52p, up 5.55%. Looking ahead, National Grid projected cumulative capital investment of around £60 billion and expected underlying earnings per share growth of 6% to 8% annually from 2025 to 2029.

Aviva reported strong growth in the first quarter on Thursday, with general insurance premiums up 16% to £2.7bn and significant increases in UK and Canadian markets. The company maintained a robust capital position with an estimated Solvency II shareholder cover ratio of 206% and progressed a £300m share buyback. Strategic acquisitions, including Optiom in Canada and AIG's UK protection business, and the sale of its Singapore joint venture, enhanced Aviva's market capabilities and simplified its geographic footprint, positioning it to meet its 2026 financial targets.

Newspaper round-up

San Francisco federal courthouse on Thursday as a key witness in his own criminal fraud trial, which began in March. US authorities have charged the former software tycoon with 16 counts of wire fraud, securities fraud and conspiracy relating to his company’s acquisition deal with Hewlett-Packard in 2011. If convicted, Lynch faces up to 25 years in prison. He has pleaded not guilty. – Guardian

The number of gas and electricity smart meters that are not working properly is likely to be higher than government figures suggest – possibly 20% to 30% of the total – according to research from Citizens Advice. The charity said millions of households were missing out on the promised benefits from smart meters due to “problems with technology” and poor supplier customer service. – Guardian

The Barclay family have been forced to put their online retailer Very Group up for sale in a bid to tackle its mounting debts, including hundreds of millions owed to Abu Dhabi’s ruling family. Brothers Aidan and Howard, who oversee the Barclays’ dwindling business empire, have had to agree to either sell the entire company or a stake in the business as part of a complex rescue refinancing deal hammered out with its biggest creditors earlier this month. – Telegraph

Plans for a highly anticipated “Tell Sid” sale of NatWest shares owned by the government to the public are expected to be put on hold after Rishi Sunak called a general election. Advisers working on the deal had been poised to begin the sale process as soon as next month, but the prime minister’s decision to hold a snap election on July 4 means that a retail offer in June is now highly unlikely to go ahead, according to sources. – The Times

The Crown Estate is to spend £1.5 billion over the next decade building more laboratories nationwide and will start by redeveloping the old Debenhams store in Oxford city centre. The King’s property company, which looks after the royal family’s £16 billion historic land portfolio, will invest £125 million to buy the former department store and will turn it into laboratory space. – The Times

US close

Wall Street stocks closed lower on Wednesday as investors digested minutes from the FOMC's latest policy meeting and earnings from chipmaker Nvidia.

At the close, the Dow Jones Industrial Average was down 0.51% at 39,671.04, while the S&P 500 had lost 0.27% to 5,307.01 and the Nasdaq Composite saw out the session 0.18% weaker at 16,801.54.

The Dow closed 201.95 points lower on Wednesday after recording some solid gains in the previous session.

Wednesday's primary focus was quarterly earnings from Nvidia after the close of trading, with the tech giant reporting a 262% jump in sales to $26.61bn and earnings per share of $5.95 each, pointing to a continuing AI boom.

It also announced a ten-to-one stock split.