Evraz earnings drop 22%; Bellway sees annual profit in line with market views
London open
The FTSE 100 was called to open 20 points higher at 7,218.
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Russian steel maker Evraz reported a 22% fall in core earnings due to lower prices for vanadium, coking coal and steel products as the company warned of “volatile” markets in the second half.Earnings before interest, tax, depreciation and amortisation for the six months to June 30 came in at $1.48bn.
Evraz said it expected its financial performance to be supported by the “high level of vertical integration, the strength of the Russian steel market and our continuing efforts in efficiency improvements”.
Housebuilder Bellway said full-year pre-tax profit is expected to be in line with current market expectations, as it hailed "another successful year".
In an update ahead of its preliminary results in October, the company said completions rose 5.7% to 10,892, while housing revenue is expected to increase by more than 8% to almost £3.2bn.
Newspaper round-up
Rebel MPs are working on a plan to thwart Boris Johnson pursuing a no-deal Brexit on 31 October that involves forcing parliament to sit through the autumn recess, amid growing outrage about the power and influence of his controversial aide, Dominic Cummings. The cross-party group of MPs is looking at legislative options with mounting urgency because of the hardline tactics of Cummings, who one Conservative insider described as running a “reign of terror” in No 10 aimed at achieving Brexit on 31 October at any cost. – Guardian
Diageo has bought the “game-changing” non-alcoholic spirit Seedlip, adding it to a drinks cupboard that includes Guinness and Johnnie Walker whisky. The drinks company bought 20% of Seedlip in 2016 through its Distill Ventures division, which invests in small businesses it believes have the potential to make a splash in the industry. – Guardian
The economic stakes are rising very fast for the EU as Brexit D-Day nears. European leaders must judge the risks of a showdown with Britain against a deepening global trade slump and an industrial recession that threatens to spread and overrun the monetary defences of the European Central Bank. To impose what amounts to a disciplinary trade blockade against the UK - and therefore to put at risk the EU’s biggest market surplus (£95bn) - is to pile Mount Pelion upon Mount Ossa. – Telegraph
Ryanair pilots have piled fresh misery onto British holidaymakers by announcing industrial action as the public returns from their summer break. Pilots union BALPA authorised strikes on 22 and 23 August, and 2 September to 4 September, in a move that could see operations grind to a halt at the Irish airline’s biggest single base and cause a fresh round of chaos for beleaguered Britons. – Telegraph
US close
US stocks turned in a mixed performance on Wednesday, with a late rally helping erase a massive drop earlier in the session.
The Dow Jones Industrial Average closed down 0.09% at 26,007.07, while the S&P 500 rose 0.08% to 2,883.98 and the Nasdaq Composite closed 0.38% stronger at 7,862.83.