Sainsbury's reports 0.8% drop in like-for-like retail sales in first quarter

London’s FTSE 100 is expected to open 17 points lower at 6,267.

Stocks to watch

Supermarket heavyweight Sainsbury's said first quarter total retail sales rose 0.3%, excluding fuel, and were down 0.1% including petrol sales. Like-for-like Retail sales fell 0.8% excluding fuel and down 1% including petrol. Mike Coupe, chief executive, said: "Market conditions remain challenging. Food price deflation continues to impact our sales and pressures on pricing mean the market will remain competitive for the foreseeable future. However, we are confident that our strategy to be a trusted multi-channel, multi-product and services retailer is delivering and will enable us to continue to outperform our major peers."

Online electrical retailer AO World reported a 25.7% increase in full year revenue to £599.2m, driven by growth in the UK and German businesses. However, as previously guided, the group posted an operating loss of £10.6m, compared to £2.2m the previous year, reflecting investment and trading losses incurred in Germany and start-up costs in other European territories of £2.3m.

Quick-service food operator Domino’s Pizza Group announced a new strategic investment on Wednesday, committing £24m to acquire “significant minority interests” in Domino’s Iceland, Norway and Sweden while retaining existing strong local management. The FTSE 250 firm said it also agreed a route to future majority ownership and control, in its negotiations with current owners Birgir Bieltvedt - the chairman and founder of Domino’s Iceland - and other investments. Following the transaction, Domino’s Pizza Group will hold 49% of the Iceland operations and 45% of each of the Norwegian and Swedish businesses.

In the press

The chairman of one of Britain’s fastest-growing high street chains is one of the 79 per cent of retailers who favour staying in the European Union, according to a poll. Vagn Sorenson, chairman of Tiger, the cut-price general merchandise chain, said that Brexit would lead to uncertainty, reduce inward investment and make it more difficult to hire foreign workers. – The Times

Mistakes by energy suppliers led to nearly four million customers being overcharged by a total £270m last year. The blunders cost energy consumers £72 each, according to new research from independent price comparison and switching service uSwitch.com. – City AM

The private equity tycoon Guy Hands reopened old wounds from the financial crisis at the High Court today, beginning a new claim against Citigroup for more than £1.5bn over his calamitous buyout of the record label EMI. In opening arguments of a trial expected to last six weeks, Terra Firma, Mr Hands’ firm, alleged that senior Citi investment bankers told a string of lies that duped it into pressing ahead and overpaying for EMI as the global financial system tipped toward catastrophe in mid-2007. – The Telegraph

A French tribunal has ordered Société Générale to pay €450,000 in damages for unfairly firing the rogue trader Jérôme Kerviel, whose unauthorised trades spiralled into massive losses in 2007 and 2008 and almost bankrupted one of Europe’s biggest banks. Kerviel, 39, whose deals lost the bank €4.9bn (£3.82bn), sued for wrongful dismissal and the tribunal agreed. It ruled he was fired “without real or serious cause” and that the bank had full knowledge of his shady dealings long before he was fired in 2008. – The Guardian

Crude oil closed at fresh highs for 2016 on Tuesday as traders zeroed in on prospects of a fall in bloated inventories and strong fuel demand. Brent crude settled at $51.44 a barrel, up 1.8 per cent on the day and the highest close since last October. The US oil benchmark, West Texas Intermediate, climbed 1.4 per cent to settle at $50.36 a barrel, its first close above $50 since July 2015. – The Financial Times

US close

US stocks closed mostly higher on Tuesday following a surge in oil prices and a dovish speech by Federal Reserve chair Janet Yellen.

The Dow Jones Industrial Average climbed 0.10%, the S&P 500 gained 0.13% while the Nasdaq fell 0.13%.

US oil prices reached above $50 a barrel for the first time since July as disruptions to output in Nigeria and Canada helped reduce the global oversupply of crude. West Texas Intermediate crude jumped 1.5% to $50.46 per barrel and Brent increased 1.8% to $51.52 per barrel at 2129 BST.