LSE agrees Deutsche Boerse terms, Smiths sales stiffen
London open
The FTSE 100 is tipped to begin on the up on Wednesday, rising 15 points to recoup some of the prior day's losses.
Stocks to watch
The London Stock Exchange and Deutsche Boerse have agreed the terms of a "merger of equals", with the UK exchange's shareholders owning 45.6% and their German counterparts the remaining 54.4%. The two companies said total recurring cost synergies of €450m a year would be equivalent to approximately 20% of the combined group's 2015 adjusted operating costs of approximately €2.2bn
Sales declined 3% to £1.37bn in the first half at Smiths Group as its medical and detection arms mostly offset the weakness engineering arm John Crane endured in oil and gas markets. Saying expectations for the full year remained unchanged, the company lifted the half-time dividend 2% to 13.25p as pre-tax profits declined to £189m, with basic earnings per share down by the same degree to 35.2p.
Drug group Hikma Pharmaceuticals reported revenue of $1.44bn (£1.02bn) in its final results for 2015 on Wednesday, down 3% on what was an exceptionally strong 2014. Core operating profits of $409m were down 4% on 2014, or a 4% rise in constant currency. The FTSE 100 group's board proposed a final dividend of 21 cents per share, making for a flat total dividend of 32 cents per share.
Newspaper round-up
George Osborne will today admit he has broken two out of the three fiscal rules he set down after last year’s election, as he sets out a Budget constrained by slowing growth and weakening public finances. Mr Osborne will use whatever cash he can find to promote the life chances of the “next generation”, with a promise to improve schools, build more homes and raise the income tax threshold for low and middle earners. – Financial Times
The Federal Reserve is expected to keep interest rates unchanged in a range of 0.25% to 0.5% when it concludes its two-day March meeting on Wednesday, putting off a planned rise after fears of a slowdown in China and collapsing oil prices have rattled investors worldwide. Most economists expect Federal Reserve chair Janet Yellen to hint at two interest rate hikes to come later this year – down from four hikes that were expected back in December, when the Fed raised interest rates for the first time since 2006. – Guardian
It is the end of an affair that began in the dotcom boom and has had its fair share of ups and downs. Simon Nixon, the co-founder of Moneysupermarket, is to sell his final stake in the website that was founded during the internet bubble and floated on the stock exchange just as the credit crunch was pricking. – The Times
US close
US stocks ended mostly lower on Tuesday as oil prices slid and investors digested mixed economic data a day before the Federal Reserve’s rate announcement.
The Dow Jones Industrial Average ended up 0.1%, but the S&P 500 closed down 0.2% and the Nasdaq slipped 0.5%.
Oil prices declined as the OPEC said global demand in 2016 for its crude would be lower than previously thought while supply would likely be higher than expected this year, sending West Texas Intermediate down 2% to $36.41 per barrel and Brent crude 1.9% to $38.77.