RSA Insurance first half profits surge

City sources predict the FTSE 100 will open 39 points lower than Wednesday’s close of 6,752.41.

Stocks to watch

First half profits rocketed at RSA Insurance Group and with most key measures of performance surging, it may force giant suitor Zurich to make an improved takeover offer. Operating profit rose 84% to £259m and pre-tax profit more than fourfold to £288m as the FTSE 100 insurer's loss ratio, costs, combined ratio and capital all improved.

Inmarsat posted a fall in first-half pre-tax profit amid declining revenues, as it announced that the launch of its third Global Xpress satellite, which had been delayed due to a failure of its launch rocket partner, has been rescheduled for the end of this month.

In the press

The American parent company of Virgin Media is preparing a big restructuring plan after the UK cable network reported disappointing results for the second quarter. Liberty Global, which owns Virgin Media as well as cable networks in the Netherlands, Ireland and Germany, said that it had initiated an efficiency programme that has identified $1 billion of savings that can be reinvested to boost growth. A spokesman for the US company, which has been linked with a takeover or asset swap with Vodafone, declined to say whether the plan would hit jobs in the UK. It would be the second round of cuts since Tom Mockridge was appointed chief executive of Virgin Media and 600 senior posts were cut in 2013. - The Times

Saudi Arabia is returning to the bond market with a plan to raise $27bn by the end of the year, in the starkest sign yet of the strain lower oil prices are putting on the finances of the largest oil exporter. Bankers say the kingdom’s central bank has been sounding out demand for an issuance of about 20bn Saudi riyals a month in bonds — in tranches of five, seven and 10 years — for the rest of the year. - The Financial Times

The American owner of London City Airport is putting it up for sale. Global Infrastructure Partners, the US private equity fund which has owned the airport since 2006, hopes to complete the sale by year’s end, according to Michael McGhee, the head of transport at GIP. - The Times

US close

US stocks were little changed following a mixed bag of economic data on services activity, jobs and trade.

The US private sector added 185,000 jobs in July compared with a downwardly revised 229,000 in June, ADP said. The figures fell short of the 210,000 gain analysts had expected. The figures come ahead of Friday's closely watched non-farm payroll report.

"The slower pace of private payroll growth reported for July by ADP is broadly in line with our outlook for 200,000 in non-farm and private payroll growth in Friday’s official employment," analysts at Barclays said in a note.

Walt Disney tumbled after announcing late on Tuesday that its quarterly revenue missed forecast. While hardwood flooring retailer Lumber Liquidators Holdings plunged after swinging to a second quarter loss on the back of a sharp decline in sales.