Unilever turnover falls, SABMiller gains US merger clearance

Stocks to watch

Unilever maintained its underlying rate of sales growth at 4.7% in the second quarter but first-half turnover fell and the company said it was preparing for tougher market conditions as it sees no sign of an improving global economy. Group sales decreased by 2.6% at current exchange rates but increased by 5.4% at constant exchange rates, with core earnings per share up 1.3% at current exchange rates and 7.5% at constant rates.

SSE said the external operating environment continues to have an impact on the company, calling recent reforms imposed by the regulator as “considerable” that had to be implemented into a “fast changing energy supply market”. It added that the outcome of the UK's referendum to leave the European Union “could lead to aspects of the financial, regulatory and political environment becoming more uncertain in the years ahead”.

Megabrewer SABMiller announced on Thursday that the US Department of Justice has given its clearance on the company’s proposed combination with AB InBev. The FTSE 100 firm said that as part of the consent decree, AB InBev has agreed among other conditions to divest SABMiller’s US interest in MillerCoors to Molson Coors.

Newspaper round-up

European manufacturers of domestic appliances are trying to raise prices for British retailers by up to 10 per cent to compensate for the collapse in the pound in the first clear sign that Brexit will drive up prices on the high street. Leading white-goods wholesalers such as Siemens in Germany and Indesit in Italy are demanding payment in euros, or at the pre-Brexit exchange rate, in what retail sources described as “early skirmishes” after the vote to leave the European Union. – The Times

Surveyors across the country believe that the commercial property market is in the early stages of a downturn in the aftermath of the vote to leave the European Union. A survey by the Royal Institution of Chartered Surveyors (RICS), conducted after the EU referendum result, showed a significant drop in confidence and investor demand for commercial real estate. – The Times

Whether the government does enough to support Britain’s defence companies in selling weapons abroad is coming under scrutiny from MPs. The Committee on Arms Exports Controls has launched an inquiry into the state’s role in backing Britain's £24bn a year arms industry, which exports about £8bn of weapons a year on average. – Telegraph

The EU executive has vowed to toughen up Europe’s trade defences in a bid to prevent industry from being overwhelmed by artificially cheap Chinese imports. The European commission promised “faster and firmer” action against foreign producers flooding world markets with subsidised goods, dashing China’s hopes of gaining “market economy status” under existing trade rules. – Guardian

US close

US stocks ended higher on Wednesday, with sentiment underpinned by a series of better-than-expected corporate releases.

The Dow Jones Industrial Average closed up 0.2% - marking its seventh record close in a row - the S&P 500 rose 0.4% and the tech-heavy Nasdaq racked up gains of 1.1%, boosted by Microsoft.

Meanwhile, oil prices settled higher after the Energy Information Administration said crude inventories were down 2.3m barrels in the week to 15 July, more or less in line with expectations for a 2.1m barrel drop. West Texas Intermediate was up 0.7% at $44.95 a barrel while Brent crude was 0.9% firmer at $47.10.