Revenue and profit growth hastens at Ashtead, GVC performing at top end of guidance

London open

The FTSE 100 is expected to open three points higher on Tuesday, having closed up 0.39% at 7,134.39 on Monday.

Stocks to watch

Revenue and operating profit growth sped up at Ashtead Group in the third quarter of the equipment rental group's financial year. Underlying rental revenue increased 19% in the third quarter to £1.05bn and operating profit 21% to £297.2m. As financing costs increased reflecting a higher average interest rate and higher average debt levels, offsetting a lower US federal tax rate, earnings per share were up 18% to 40.0p.

Sports betting and gaming group GVC Holdings reported underlying profits at the top end of its full-year guidance as it said it was on track to extract the benefits from its acquisition of Ladbrokes Coral. Underlying earnings before interest, tax, depreciation and amortisation of £755.3m was up 13% on the previous year, after net gaming revenue increased 9% to £3.57bn.

Middle East-focussed private healthcare operator NMC Health announced the formation a joint venture with Hassana Investment Company - the investment arm of the Saudi Arabia government-managed pension fund, the General Organization for Social Insurance (GOSI) - on Tuesday. The FTSE 100 firm said the joint venture was formed by its five assets in Saudi Arabia and an additional cash injection at closing, and GOSI's contribution of its 38.88% stake in Tadawul-listed National Medical Care Company at a price of SAR 54 per share. At the closing of the transaction, NMC would own a 52% stake and GOSI a 48% stake of the joint venture, with NMC having operational control.

Newspaper round-up

Carlos Ghosn has been granted bail by a court in Japan, more than three months after the former Nissan chairman was arrested over allegations of financial misconduct. The Tokyo district court set bail at 1bn yen ($9m) after a request last week by Ghosn’s newly appointed legal team, Kyodo news agency reported. – Guardian

Britain’s retailers suffered from weaker sales last month as mounting uncertainty over the UK’s departure from the EU led to consumers becoming more wary of making bigger purchases before Brexit. In the latest evidence that momentum in the economy is fading during the weeks before Britain is scheduled to formally leave the EU, the British Retail Consortium (BRC) and accountancy firm KPMG said that total sales growth dropped to 0.5% in the year to February, down from 1.6% a year earlier. – Guardian

Findel’s board unanimously rejected a £140m takeover bid on Monday that was triggered after Mike Ashley’s Sport Direct bought another chunk of shares in the online retailer. Directors said the mandatory offer "significantly undervalues" the company and told shareholders to take no action, with a formal response to follow once the offer document had been sent.- Telegraph

At least five Paperchase stores will close after the stationery chain began a Company Voluntary Arrangement (CVA) process on Monday. The high street retailer, owned by private equity group Primary Capital, blamed the combination of declining footfall and higher business costs. – Telegraph

The biggest shareholder in Interserve has returned with a sweetened offer to save the struggling contractor. Coltrane Asset Management, a New York-based hedge fund, said that it would underwrite a £110 million share offer and would convert £435 million of debt into equity. Creditors would end up owning 55 per cent of the business and shareholders would be left with 37.5 per cent, compared with only 5 per cent under a proposal set out by Interserve itself. – The Times

US close

Stocks closed at a two-week low on Monday as investors grew cautious after initially celebrating a potential landmark trade deal between the US and China.

At the close, the Dow Jones Industrial Average was down 0.79% at 25,819.65, while the S&P 500 had lost 0.39% to 2,792.81 and the Nasdaq Composite traded 0.23% weaker at 7,577.57.

The Dow, which was up as much as 110 points at the bell, reversed earlier gains to close the session 206 points lower.

During the session, market participants mulled reports that the US and China were nearing a deal that could lift most, if not all, US tariffs if Beijing sticks to a range of pledges such as better protection of intellectual rights and the acquisition of a significant amount of US products.

Bloomberg cited people familiar with the talks as saying that Chinese officials have made it clear that removing levies on $200bn-worth of Chinese goods quickly was necessary in order to finalise any deal. They said one of the remaining sticking points is whether the tariffs would be lifted immediately or over a period of time.