Second quarter revenue rises for Plus500, WPP in talks to sell Kantar to Bain Capital
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The FTSE 100 is expected to open 20 points higher on Tuesday, having closed up 0.97% at 7,497.50 on Monday.
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Second quarter revenue at online trading platform Plus500 rose to $94m after a first quarter that was hit by lower volatility and EU rules on leveraged betting. The company said it continues to perform in line with current expectations, adding there were signs of reduced levels of marketing across its peer group, which in part led to a rise in customers numbers at Plus500 and lower cost of acquisition.
Advertising giant WPP confirmed late on Monday that it was in exclusive discussions with private equity firm Bain Capital about the sale of its majority stake in market research business Kantar, in a deal that would value the business at $4bn. WPP, which had already announced that it was looking to sell the stake, said there is no certainty that the discussions will lead to a deal.
Funding Circle slashed full year revenue growth expectations from 40% to approximately 20% as it warned that an increasingly uncertain economic outlook has reduced demand for loans, while the lender has also tightened its loans policy when it comes to higher risk band businesses. While this will affect overall origination volumes, the company said it aims to protect net returns for investors on its platform.
Wizz Air saw its network continue to grow in June, with its total capacity for the month rising 17% year-on-year to 3.798 million seats, while the number of passengers carried was ahead 19.1% year-on-year at 3.609 million. The FTSE 250 low-cost carrier said that made for a 1.7 percentage point improvement in its load factor to 95%. Its fleet expanded to 114 aircraft after the delivery of a new Airbus A321ceo, while the airline also signed a memorandum of understanding with Airbus for the purchase of 20 Airbus A321neo XLR during the month.
Newspaper round-up
Investors will be locked into Neil Woodford’s flagship fund for at least another month after a block on withdrawals was extended. The Woodford Equity Income Fund – which was valued at £3.7bn at the end of May – will stay closed until the next review deadline of 29 July, preventing hundreds of thousands of customers from accessing their money. – Guardian
Boris Johnson and Jeremy Hunt have been accused of trying to turn the UK into a haven for tax evaders and money launderers after the Tory leadership rivals each backed the creation of “freeports” on the east coast. Under proposals being considered by Johnson, Teesside, Aberdeen and Peterhead could become economic zones, considered independent for customs purposes, that charge no taxes or tariffs on imports. – Guardian
Bidders seeking to buy British Steel in its entirety should be given preference as the Official Receiver weighs up offers for the embattled steel maker, according to unions. Steelworkers’ union Community says a single buyer for British Steel, which collapsed into insolvency in May threatening 25,000 jobs, would give the embattled business the best possible chance of survival. – Telegraph
WPP is eyeing a payout of at least $2 billion after opening talks with one of America’s largest buyout firms over the sale of a majority stake in its market research business. The advertising conglomerate said that it had entered exclusive discussions with Bain Capital, which has emerged as the preferred bidder in the auction of its Kantar division. WPP said that the sale, were it to proceed, would value the subsidiary at $4 billion. It is expected to use the proceeds to reduce borrowings and buy back shares. – The Times
The Brexit impasse has left small companies “hamstrung” by political uncertainty, the Federation of Small Businesses has warned, with employers struggling to hire and reporting weak investment intentions. The federation said that it had found a “sustained slump” in confidence among small organisations, with more than a third of business owners saying that their difficulties in accessing skilled staff represented a “major barrier” to growth. – The Times
US close
Wall Street finished in the green on the first day of July, after a session that saw participants digesting news coming from China, Japan and North Korea over the weekend.
The Dow Jones Industrial Average was up 0.44% at 26,717.43, the S&P 500 added 0.77% to 2,964.33, and the Nasdaq 100 was ahead 1.27% at 7,768.14.
While stocks closed only slightly higher on Friday, the Dow stormed out of the gate on Monday, adding 194 points, and the S&P 500 hit a new record after Xi Jinping and Donald Trump agreed to halt further tariffs on products from their respective nations as part of an effort to resume trade talks.
Trump said the meeting between the pair had gone as well as it could have, noting: "We are right back on track," while Chinese state-run news outlet Xinhua said the two leaders had agreed "to restart trade consultations between their countries on the basis of equality and mutual respect."
The US President also revealed Washington would ease restrictions on American companies selling products to telco giant Huawei - boosting chip makers such as Skyworks Solutions, Micron Technology, Qualcomm and Broadcom by 6%, 3.94%, 1.91% and 4.34% respectively.