Dixons Carphone trades higher in first quarter, Micro Focus announces HP merger
London open
The FTSE 100 is expected to open up 7 points on Thursday, after closing up 0.3% at 6,846.58 on Wednesday.
Stocks to watch
Electronics retailer Dixons Carphone posted a trading update for the first quarter on Thursday, with group revenue up 9% year-on-year and like-for-like revenue improving 4% in the 13 weeks to 30 July. The FTSE 100 firm, which operates the Carphone Warehouse, Currys PC World and Dixons Travel brands among others, said performance in the UK and Ireland was “strong”, with like-for-like revenue up 4%. Growth in like-for-like revenue was 2% in the Nordics, while Southern Europe delivered an exceptionally strong improvement of 13%, which the firm said was driven by performance in Greece.
Multinational electricity and gas utility National Grid and US public utilities regulator New York Public Service Commission have launched a three year rate plan settlement for the KeySpan Energy Delivery New York (KEDNY) and KeySpan Energy Delivery Long Island (KEDLI) gas distribution utilities. A final decision from the US regulator is expected in late 2016 and the new rates effective from January 2017.
Micro Focus International has agreed an $8.8bn deal to merge with Hewlett Packard's software business, which includes a $400m return of value to the FTSE 100 company's' shareholders. The deal, which Micro Focus expects to enhance adjusted earnings per share by the first full financial year ending after completion, will create one of the world's largest infrastructure software companies.
Newspaper round-up
US billionaire John Malone’s Liberty Media has agreed to take control of Formula One in a deal valuing the sport at $8bn. The two-part manoeuvre will initially see the US media group buy 18.7 per cent of F1 parent company Delta Topco for $746m in cash from a consortium of shareholders led by CVC Capital Partners. - Financial Times
Viewings of homes in London’s wealthiest areas have shot up almost 50 per cent since the EU referendum as buyers hunt for Brexit bargains in exclusive districts. Price falls in areas such as Chelsea and Knightsbridge have combined with the post-referendum drop in sterling to draw buyers back into the market, figures from estate agents Knight Frank show. – Financial Times
Sports Direct’s billionaire founder, Mike Ashley, is standing by his under-fire chairman, Keith Hellawell, despite independent shareholders in the sports retailer voting to oust the former police chief. An unprecedented 57% of independent shareholders failed to support Hellawell at the annual shareholder meeting on Wednesday, but Ashley insisted his chairman was staying put, for at least another year, and they would work together to improve the way the sports chain is managed. – Guardian
Mark Creasy, the British-born prospector who made his name cutting deals on gold mines in Australia, is to bring a South African venture to the London Stock Exchange. White Rivers Exploration, in which Mr Creasy holds a 64pc stake, is to list on the LSE in early 2017, as it pushes ahead with a joint venture in South Africa’s Witwatersrand gold province. – Telegraph
An ominous paper by the US Federal Reserve has become the hottest document in high finance. It was intended to reassure us that the world's hegemonic central bank still has ample firepower to overcome the next downturn. But the author was too honest. He has instead set off an agitated debate, and rattled a lot of nerves. – Telegraph
Coutts may have to pay hundreds of thousands of pounds in compensation to wealthy clients who claim they were badly advised by the Queen’s bank about investing in loss-making film production companies to avoid tax. Some 220 clients have filed a lawsuit against Coutts, along with UBS and other advisers, over a £100 million-plus bill they face in back taxes and interest from HM Revenue and Customs. – The Times
US close
Recouping mid-session losses, US stocks ended the day largely flat as recovering oil prices balanced a rising dollar, while the Federal Reserve's 'Beige Book' indicated the economy was growing at a moderate pace without much inflationary pressure.
The Dow Jones Industrial Average eventually smoothed out the earlier dip to end just 0.06% lower to 18,526.14 points, as the S&P 500 similarly sidestepped to slip only 0.02% to 2,186.15, although the Nasdaq nosed up 8.02 points to close at 5,283.93, with what seemed to be a solid unveiling by Apple of its new iPhone 7 smartphone contributing to some upward market momentum.
Equities markets again moved in some synchronicity with crude oil prices, as the cost of a barrel of West Texas Intermediate started flat but later had risen 2.8% to $46.1 per barrel and Brent by 2.6% to $48.5.
There were statements from three state Fed presidents to mull over on the day, starting with San Francisco Federal Reserve President John Williams overnight comments that it “makes sense” to raise interest rates at a gradual pace, “preferably sooner rather than later”.
At the House Financial Services Panel on ‘Governance, Monetary Policy and Economic Performance’ on Wednesday, Richmond Fed President Jeffrey Lacker said there is a "strong case" for a rate hike in September, while Kansas City Fed President Esther George added that she felt the economy was "at or near full employment".