Wolseley profits spurt, L&G eyes retirement boost

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The FTSE 100 index is predicted to rise 46 points on Tuesday.

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Currency tailwinds boosted Wolseley's full-year revenues as the plumbers merchant announced the result of UK strategic review. Total revenues for 2016 jumped 8.5% to reach £14.43bn or by 4.2% in constant currency terms and in like-for-like terms came in at 2.4%. That drove a 43% rise in profits before tax to £727m. The company's full-year payout was raised 10.2% to 100p.

Legal & General said its retirement arm was on track to double its new business sales in the full year, with customer demand unaffected by the introduction of Solvency II regulation, Brexit uncertainty or lower interest rates. The FTSE 100 group said revenues from the division would be around £5.4bn, up from £2.9bn last year.

United Utilities said it expects revenue for the first half of this year to be slightly lower than the same period last year, reflecting the accounting impact of its Water Plus business retail joint venture, partly offset by its allowed regulatory revenue changes. However, underlying operating profit for the first half is expected to be marginally higher.

Newspaper round-up

The Mexican peso has strengthened against the dollar by the most in seven months as foreign exchange markets reasoned Hillary Clinton edged out Donald Trump in the first of three debates between the two 2016 presidential nominees. The peso’s gains against the US dollar picked up during the debate and have continued since its conclusion, with the Mexican currency now 2 per cent stronger against the greenback in lunchtime trade in Asia. - Financial Times

Falling back on World Trade Organisation rules will not be a simple way of leaving the European Union, WTO officials warned yesterday, as traders sold both shares and the pound amid fresh jitters over “hard Brexit”. Fears are growing that politicians will push the button on a quick exit from the European Union that will take Britain out of the single market, as Eurosceptic government ministers appear to be in the ascendancy. - The Times

Mario Draghi has become the latest European official to push for the EU to take a tough line in negotiations with the UK over Brexit, saying Britain should be refused access to the single market unless it sticks to rules on free movement of labour. “Regardless of the type of relationship that emerges between the European Union and the United Kingdom, it is of utmost importance that the integrity of the single market is respected,” Mr Draghi said, speaking at the European Parliament on Monday. “Any outcome should ensure that all participants are subject to the same rules.” - Financial Times

US close

US stocks dropped on Monday as investors exercised caution ahead of the first US presidential debate and as OPEC met in Algeria.

The Dow Jones Industrial Average fell 0.91% to 18,094.83 points, the S&P 500 slid 0.86% to 2,146.10 points and the Nasdaq 100 declined 0.86% to 4,817.17 points.

Oil prices gained as OPEC members met informally on the sidelines of the International Energy Forum in Algeria which is held from Monday until Wednesday.