M&G H1 profits slump despite fund inflow growth, Antofagasta profits hit by volatile copper prices

Stocks to watch

Investment manager M&G said on Thursday that improved fund flows in the six months ended 30 June had helped it deliver a "resilient" operational and financial performance despite posting sharp declines in profits and assets under management.

M&G said interim operating capital generation was up 40% year-on-year at £433.0m, while its shareholder solvency II rating remained "very strong" at 214% despite total capital generation tumbling from £869.0m to £24.0m as a result of increasing yields and falling equity markets. Adjusted pre-tax operating profits fell from £327.0m to £182.0m, impacted by current market conditions.

Miner Antofagasta reported lower interim profits on Thursday due to a volatile copper price, a drought in Chile and concentrate pipeline problems at its Los Pelambres operation.

Antofagasta stated core earnings had fallen 47.5% to $1.24bn on lower revenue and operating costs that increased 6.9%, mainly due to higher input prices. Revenue was down by a third to $2.53bn as a result of lower copper and by-product sales volumes and weaker realised copper prices.

Newspaper round-up

Walt Disney edged past Netflix with a total of 221.0m streaming subscribers at the end of the most recent quarter and announced it will launch a Disney+ option with advertising this December. In the just-ended quarter, Disney+ added 14.4m Disney+ customers, beating the consensus of 10.0m expected by analysts polled by FactSet, as it released Star Wars series Obi-Wan Kenobi and Marvel's Ms Marvel. – Guardian

One of the UK's largest home insurers has warned over the impact of record temperatures on claims, saying the climate crisis was already resulting in a rise in fire and subsidence cases this year. LV=General Insurance, which was bought by the German insurer Allianz in 2019, said it was dealing with claims worth £1.2m after the extreme heat that hit the country between 17 and 20 July. – Guardian

Russian airlines are dismantling Western-made aeroplanes for spare parts as sanctions over the invasion of Ukraine cripple its aviation industry. At least one Russian-made Sukhoi Superjet 100 and an Airbus A350, both operated by Aeroflot, are currently grounded and being stripped for spares, one source familiar with the matter told Reuters. – Telegraph

A top banker who was suspended after telling a female analyst that he needed "love and affection" while on a work trip in Barcelona has quit. Sources said that Jan Skarbek, one of the most high-profile dealmakers at Citigroup, has resigned from the Wall Street lender after allegedly making the comments to a colleague while on a staff getaway. – Telegraph

Renters should be able to use their history of payments as proof that they can afford a mortgage, a think tank has argued. The recommendation is one of several made by Policy Exchange that it says should be adopted by the government if it is serious about helping people to get on the housing ladder. – The Times

US close

Wall Street stocks closed sharply higher on Wednesday as market participants digested last month's CPI data.

At the close, the Dow Jones Industrial Average was up 1.63% at 33,309.51, while the S&P 500 was 2.13% firmer at 4,210.24 and the Nasdaq Composite saw out the session 2.89% stronger at 12,854.80.

Reporting by Iain Gilbert at Sharecast.com