Qinetiq trades as expected, NEX sees rise in trading activity
London open
The FTSE 100 is expected to open 20 points higher on Wednesday, after closing up 0.38% at 7,296.44 on Tuesday.
Stocks to watch
Qinetiq, the defence technology specialist, said underlying trading was as expected during the third quarter and that its aspirations for the full year to end-March were unchanged. The FTSE 250 group said revenue under contract at its smaller division, Global Products, was slightly ahead of this time last year thanks to a greater flow of orders at the North America business.
FTSE 250 financial broker NEX Group – formerly ICAP – posted a rise in revenue for the third quarter as Donald Trump’s US presidential win lifted trading activity, although the company warned it was still too early to assume that a period of subdued market conditions had come to an end.
Passenger transport operator Stagecoach Group confirmed on Tuesday that it has sold its interest in the Twin America joint venture for an undisclosed sum. The FTSE 250 firm said Twin America was a joint venture between Stagecoach North America and City Sights, which began operating on 31 March 2009.
Newspaper round-up
Co-operative Bank’s core ethical mandate is expected to pose a major obstacle to a sale of the troubled lender to a rival firm, according to City sources. The bank, which put itself up sale on Monday in a bid to solve its financial woes, has a strict policy that forbids it from funding a host activities, including those that contribute to climate change or animal testing of cosmetics. The mandate sets the lender apart from other high-street banks. – Telegraph
A sharp rise in business rates for offices in the City of London is threatening to undermine the Square Mile’s drive to remain a key financial centre in Europe after Brexit. The business rates bill for offices in the City will rise by £1.4bn, or 33%, over the next five years. - Guardian
Unions are urging the government to take back control of its nuclear strategy after Toshiba’s deepening financial crisis cast fresh doubt about its involvement in the planned Moorside power station in Cumbria. Justin Bowden, GMB’s national secretary for energy, described the situation as a “fiasco” after Japan’s Toshiba, the lead party behind Moorside, revealed a $6.3bn writedown in its US Westinghouse business and confirmed it was scaling back investment in new overseas nuclear projects. – Guardian
More than four thousand jobs in the British motor industry are under threat as it emerged that the American owner of Vauxhall is in talks to sell its European operations to the French. In a statement last night, the French company said: “PSA Group and General Motors confirm they are exploring numerous strategic initiatives aiming at improving profitability and operational efficiency, including a potential acquisition of Opel Vauxhall by PSA.” – The Times
Sales of three key Jaguar Land Rover vehicles have slowed markedly as the Indian-owned British manufacturer reported a sharp reverse in profits. Sales of the Jaguar XE, launched in 2015 as its the long-awaited “baby Jag” and its stab at going into a higher volume market, fell for the second quarter in a row. Sales dipped 3 per cent over summer and slid another 5 per cent between October and December. – The Times
US close
US stocks finished in the green on Tuesday as Federal Reserve chair Janet Yellen told Congress that interest rate hikes could rise gradually in 2017.
The Dow Jones Industrial Average closed up 0.45% at 20,504.41, the S&P 500 added 0.4% to 2,337.58 and the Nasdaq 100 was 0.27% stronger at 5,271.07.
Meanwhile, oil prices were firmer, with West Texas Intermediate up 0.21% to $53.04 a barrel and Brent crude up 04% to $55.81.
Yellen, who was testifying before the Senate Banking Committee and will also appear before the House Financial Services panel on Wednesday, put a potential March hike back on the table and raised expectations of a possible three hikes over the course of the year.