Reckitt US warehouse hit by tornado, Smiths Group sells down stake in ICU

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The FTSE 100 is expected to open 17 points higher on Wednesday, having closed down 0.22% on Tuesday at 8,164.90.

Stocks to watch

Multinational consumer goods group Reckitt Benckiser said a key US warehouse for its Mead Johnson Nutrition business was hit by a tornado on July 9, causing "significant" damage and putting it out of action and affecting sales in the short term. The company on Wednesday said the warehouse in Mount Vernon, Indiana "is an important site for the Mead Johnson Nutrition business, containing a mix of raw materials and finished products". Reckitt said it was working with customers and suppliers to minimise disruption, by leveraging its global supply chain and managing inventory at its other North American Nutrition warehouses and those used by retail partners.

Smiths Group has sold 1.2 million shares in ICU Medical, it announced on Wednesday, equating to about 4.9% of ICU Medical's issued share capital, for net proceeds of $152m (£117m). The FTSE 100 company said the proceeds would be used for general corporate purposes. Following the sale, Smiths Group retained 0.47 million shares in ICU Medical, representing around 1.92% of ICU’s issued share capital.

Newspaper round-up

Local councils will have to adopt mandatory housing targets within months under planning reforms to be unveiled on Wednesday as part of Keir Starmer’s first king’s speech, which the prime minister says will be focused on economic growth. Starmer will introduce a package of more than 35 bills on Wednesday, the first Labour prime minister to do so in 15 years, as he looks to put the economy at the centre of his first year in office. – Guardian

Harland & Wolff, the owner of the Belfast shipyard that built the Titanic, has insisted that it is still awaiting a government decision on a £200m intervention despite signs that Labour is due to reject the financial lifeline. The company is presenting an early test of the Labour government’s industrial policy, with 1,500 workers fearful the company is running out of time to secure funding needed to make it ready to build three warships for the Royal Navy. – Guardian

Rachel Reeves is under pressure to launch a £2bn inheritance tax (IHT) raid on pension pots to help fund public spending pledges. Economists are calling on the Chancellor to introduce a death tax on unspent defined contribution (DC) pension funds, which are currently exempt from IHT. It came as Jeremy Hunt’s chief of staff revealed that Ms Reeves’ predecessor had considered the policy himself in order to fund cuts to the headline rate of IHT, while Sir Steve Webb, a former pensions minister, said the Treasury was “likely” to revisit the policy. – Telegraph

Octopus Energy is poised to build hundreds of onshore wind turbines across the countryside as Labour pushes ahead with its manifesto promise to double production. The company is preparing to submit planning applications this autumn for “multiple” onshore wind projects after Rachel Reeves, the Chancellor, scrapped a de facto ban on new sites. – Telegraph

An Australian computer scientist who was found by a High Court judge in London to have falsely claimed to have invented bitcoin could face a criminal investigation for alleged perjury. Craig Wright, 53, had publicly claimed to be the true figure behind Satoshi Nakamoto, the author of the 2008 academic paper that serves as the foundational text for the cryptocurrency. – The Times

US close

Both the Dow and S&P 500 hit new all-time highs on Tuesday, with the Dow in particular notching for its best daily performance in more than a year, as bellwether stocks put in an impressive performance.

With just four of the 30 Dow constituents finishing in the red, the index rose 1.85% to a new closing high of 40,954.48.

This 742.76-point gain was its biggest one-day surge since June 2023.

Blue chip names such as Caterpillar, Boeing, Home Depot, Amex and McDonalds were among the index's best performers.

The S&P 500 also finished at a fresh peak, rising 0.64% to 5,667.20 – its 38th record close of the year – while the Nasdaq gained 0.2% to 18,509.34.