SIG reiterates guidance after Q3 improvement, JD Sports profits rise

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The FTSE 100 is expected to open 20 points higher on Wednesday, having closed up 0.48% on Tuesday at 8,276.65.

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Europe-focused building products and specialist insulation supplier SIG has reiterated full-year profit guidance after a sequential improvement in like-for-like revenue performance in the third quarter. LFL sales were down 4% in the three months to 30 September, compared with the 7% decline reported in the first half. However, the company said it still saw weak demand across the majority of its markets due to “ongoing software in the European building and construction sector”.

JD Sports Fashion held annual guidance after delivering a 2% rise in half-year profit despite what it called a “volatile market”. The company reported profit before tax and adjusting items of £405.6m for the six months to August 3, compared with £398m a year earlier. Revenue jumped 5.2% to £5bn.

Wizz Air said in an update on Wednesday that it carried 5.76 million passengers in September, a 3.9% increase year-on-year, despite challenges from Pratt & Whitney GTF engine groundings. The FTSE 250 low-cost airline said its load factor dropped slightly to 91.7%, while carbon emissions per passenger kilometre rose 2.5% due to the use of less efficient aircraft. It also announced new long-range routes in the month, set to begin next summer, with services from London Gatwick to Jeddah and Milan Malpensa to Abu Dhabi.

Newspaper round-up

Ministers are being asked to draw up billions of pounds in cuts to infrastructure projects over the next 18 months despite Rachel Reeves pledging to invest more to grow the economy, the Guardian has learned. Members of the cabinet have been asked to model cuts to their investment plans of up to 10% of their annual capital spending as part of this month’s spending review, government sources said. – Guardian

The Irish finance minister has hailed the €14bn tax windfall from Apple as “transformational” just weeks after the government lost a case in the European court of justice arguing the tech company should keep its money. Unveiling the country’s budget on Tuesday, Jack Chambers said the money would be used on infrastructure and not splurged on giveaways before the general election, which is expected in November. – Guardian

BT rival CityFibre has warned it must raise more money to survive as the rising cost of its broadband rollout pushed debts above £3bn. The company, which is the largest of the so-called “alt-net” broadband firms taking on BT’s Openreach, said there was “material uncertainty” about its ability to continue because it was reliant on further external funding. CityFibre, which is backed by Goldman Sachs and Abu Dhabi sovereign wealth fund Mubadala, secured £4.9bn in debt financing from banks two years ago to help fund its network build. – Telegraph

Most businesses that received government grants during lockdown would have survived without the handouts, an official report has concluded. A report published by the Department for Business and Trade suggested “only a quarter” of the 1.4m businesses that benefited from £23bn of Covid-era grants would have gone bust without state support. The 100-page document concluded that “a relatively high share of the businesses supported would have been likely to survive without cashflow support – implying that the outcomes associated with the programme could potentially have been achieved with lower levels of public spending”. – Telegraph

A pressure group pushing for higher standards in finance has accused the Financial Conduct Authority of “peddling a false narrative” at its online annual meeting last week and called for a return to face-to-face meetings. The Transparency Task Force (TTF) has written to Ashley Alder, the FCA chairman, and Nikhil Rathi, the regulator’s chief executive, accusing FCA officials of misleading the audience over the investor protection regime. Remarks made at the meeting were “factually inaccurate”, it said. – The Times

US close

US stocks fell on Tuesday, with the Dow and S&P 500 retreating from record highs and the Nasdaq hitting a two-week low, amid an escalation of conflict in the Middle East.

The Dow fell 0.4% and the S&P 500 dropped 0.9%, while the Nasdaq slumped 1.5% to 17,910.36 – its lowest close since 18 September.

Around 200 missiles were launched from Iran at Israel on Tuesday evening, according to a Pentagon report, which Iran said was a retaliation to the assassination of Hezbollah leader Hassan Nasrallah on Friday.

Tensions were already high after Israeli troops crossed the border in southern Lebanon and continued shelling areas nearby along with airstrikes on the capital, Beirut.

Videos of Tuesday's aerial strike quickly circulated across social media, as Israel warned of "consequences" in response.