Phoenix looking to sell SunLife, Anglo American reports another De Beers sales dip

London open

The FTSE 100 is expected to open 27 points higher on Wednesday, having closed down 0.41% on Tuesday at 8,247.79.

Stocks to watch

Insurance and pensions group Phoenix on Wednesday said it was looking to offload its SunLife business after deciding it was no longer core to operations. Phoenix said it had received "a number of initial expressions of interest from third parties", but warned "there could be no certainty at this stage that a disposal will occur". SunLife is a leading provider of financial protection products direct to the over 50s market in the UK and reported profit after tax of £16m in 2023.

Anglo American has reported another dip in rough diamond sales from De Beers as it warned of a “protracted” recovery in demand. In what is generally a quieter period for rough diamond sales, De Beers’ fifth sales cycle generated $315m, down from $383m in the fourth cycle and $446m in the third. However, this was also down from $456m in the fifth cycle of 2023.

PZ Cussons said in an update on Wednesday that trading for the final quarter of the financial year met management expectations, with anticipated full-year revenue of £528m . Despite significant currency depreciation in Nigeria, the company said it expected to report an adjusted operating profit of £55m to £60m, and gross debt within £160m to £180m. It also noted ongoing efforts to enhance shareholder value through a strategic portfolio transformation, with full year results to be disclosed on 18 September.

Newspaper round-up

The UK needs a system for recording misuse and malfunctions in artificial intelligence or ministers risk being unaware of alarming incidents involving the technology, according to a report. The next government should create a system for logging incidents involving AI in public services and should consider building a central hub for collating AI-related episodes across the UK, said the Centre for Long-Term Resilience (CLTR), a think tank. – Guardian

A former IT engineer has admitted he changed crucial expert court testimony at the request of the Post Office during wrongful prosecutions of branch operators. Gareth Jenkins, a former senior engineer at the contractor Fujitsu, on Tuesday told the public inquiry into one of the biggest miscarriages of justice in British history that lawyers had asked him to change witness statements. – Guardian

Aston Martin has unveiled the design of a new limited-edition supercar for petrolheads as the British brand resists a push to scrap combustion engines. Marek Reichman, Aston Martin’s executive vice president and chief creative, said the Valiant would “honour the internal combustion [engine]”. Just 38 of the new vehicles which cost around £2m apiece will be manufactured and they have all already been allocated. – Telegraph

Europe’s richest man Bernard Arnault has bought personal shares in a rival to his luxury empire LVMH, in a move expected to fuel speculation over a possible takeover. Mr Arnault, the chairman and chief executive of LVMH, is understood to have taken a small stake in Richemont, which owns Cartier. The position, which was not available on public registers on Tuesday afternoon, was described by sources as a personal investment by the LVMH boss. – Telegraph

The boss of Stellantis UK has said the automotive powerhouse could stop production at its Luton and Ellesmere Port van factories unless a future government provides cash and tax incentives to stimulate demand for electric vehicles. Maria Grazia Davino, head of Stellantis UK, also said the UK must reduce zero emission volume targets for manufacturers. – The Times

US close

The Dow finished lower on Tuesday while the S&P 500 and Nasdaq rebounded after a three-day losing streak as Nvidia's recent falls came to an end.

With just eight stocks in positive territory, the Dow finished down 0.8% at 39,113, suffering its worst daily performance in nearly a month, with Boeing among the worst performers after hitting headlines for a trio of negative reasons.

However, the S&P 500 rose 0.4% to 5,469, while the Nasdaq surged 1.3% to 17,718, as both indices recovered after recent losses, spurred by a 13% drop in the price of Nvidia since last Tuesday. The stock finished nearly 7% higher.

In economic news, the S&P/Case-Shiller 20-city home price index showed annual growth slowing to 7.2% in April from 7.5% in March, though still well above the 6.9% consensus forecast as prices hit yet more record highs.

Meanwhile, the national consumer confidence index by the Conference Board fell to 100.4 from 101.3, but came in marginally ahead of the 100 reading expected.