Mondi prints off rise in profits, Intu reports 'strong' rental growth

London open

The FTSE 100 is expected to open five points higher on Thursday, after closing up 0.38% at 7,302.25 on Wednesday.

Stocks to watch

Paper manufacturer Mondi posted a 6% rise in pre tax profits to €843m, despite revenues falling by 2% to €6.6bn on Thursday. The dividend increased 10% to 57 cents, with chief executive David Hathorn saying the outlook for 2017 was positive. “We have implemented or announced price increases in containerboard, sack kraft and uncoated fine paper grades, supported by good demand.”

Shopping centre owner Intu Properties reported that its full year earnings increased with “strong” rental growth on Thursday, although profit fell due to property revaluations. Underlying earnings rose 7% for 2016 to £200m, compared to the previous year, primarily due to a 3.6% growth in like-for-like net rental income, which was was in line with guidance, while profit fell to £172m from £518m due to property revaluations, although 2015 result included a property revaluation surplus of £351m.

The government has sold off a further chunk of shares in Lloyds Banking Group, it revealed on Thursday. The state's stake was cut from 3.57bn shares to 2.78bn, or 3.89% of the FTSE 100-listed bank's total share capital.

Utility services company Centrica posted its preliminary results for the year to 31 December 2016 on Thursday, with adjusted operating profit and adjusted earnings both up 4% to £1.52bn and £895m respectively, with adjusted basic earnings per share of 16.8p, down 2%. Adjusted operating cash flow improved 19% to £2.7bn, which included a £357m working capital inflow in the UK business as Centrica refocused on the consumer end of the market.

Newspaper round-up

Rising fuel and food prices are eating into household budgets as the impact of the Brexit vote on the value of the pound pushes up inflation, according to a Guardian analysis that casts doubt over how much longer consumers can continue to shore up the UK economy. Cracks are starting to show in the picture of economic resilience seen since last summer’s vote to leave the EU. Wage growth is slowing just as people’s living costs start taking off. Businesses are also feeling the pressures of the weak pound more intensely as it ramps up the cost of imported raw materials and energy while failing to provide the anticipated boon for exporters. – Guardian

The government will offer extra help for small firms affected by an imminent change to business rates, the communities secretary has announced, saying that more should be done “to level the playing field”. Following increasing concern from some businesses and Conservative MPs about the impact of the first business rate revaluation in seven years, Sajid Javid said the chancellor, Philip Hammond, would announce new measures in the budget on 8 March. This would form part of a wider and longer-term re-examination of the business rates system, he added. – Guardian

Theresa May has spoken with the motor industry boss expected to acquire Vauxhall about the Government’s continued commitment to supporting the car industry in the UK. The Prime Minister spoke by telephone with Carlos Tavares, the chairman of France’s PSA Peugeot-Citroen, which is in negotiations with US giant General Motors to buy its loss-making European operation, which includes Vauxhall and Opel. – Telegraph

John Roberts, the man who founded online electricals retailer AO World after a bet in a pub, has announced he is stepping down as chief executive after 17 years with the company. The AO World founder will retain a a new role on the board- as founder, executive director - and will be succeeded as chief executive by Steve Caunce, currently chief operating officer. – Telegraph

Sir Jon Cunliffe, deputy governor of the Bank of England, warned Brussels yesterday that any attempt to seize euro clearing from the City would unravel global capital markets and drive up the cost of finance. Without naming the EU directly, he attacked politicians on the Continent who want to strip London of the valuable business after Brexit, claiming it would undermine decades of financial progress and damage economies. – The Times

Imposing a price cap on energy bills could be a “very understandable” decision for ministers to take, the energy regulator has said only months after the competition watchdog rejected the idea. Dermot Nolan, the chief executive of Ofgem, said a price cap was a matter for government but told MPs: “If government does choose to go down that road. we will support them in every possible way and implement such a cap if it comes in.” – The Times

US close

US stocks finished mixed on Wednesday after of the publication of the minutes from the latest Federal Reserve meeting showed the next rates rise could be just around the corner.

The Dow Jones Industrial Average closed 0.16% higher at 20,775.60, the S&P 500 fell 0.11% to 2,362.82, and the Nasdaq 100 added 0.03% to 5,352.13.

Meanwhile, oil prices retreated with West Texas Intermediate down 10.8% to $53.90 a barrel and Brent crude 0.96% lower at $56.12.

Investors were busy sifting through the minutes from January’s Federal Open Market Committee meeting late in the session, which showed officials spent their time looking into the change of administration in the White House.

The policymaking committee discussed the impact Donald Trump’s promise of looser regulation, lower tax and higher spending in the domestic economy would have.

“Many participants expressed the view that it might be appropriate to raise the federal funds rate again fairly soon, providing data on jobs and inflation werere "in line with or stronger than their current expectations,” the summary read.

The minutes said that a number of members believed hiking rates at an “upcoming” meeting would give the central bank more flexibility to respond to higher-than-expected economic growth.