Paysafe Group goes shopping, Beazley beats on bottom-line
London open
The FTSE 100 is seen starting the day 2 ponts higher to 7,489.
Stocks to watch
Beazley edged past forecasts for its interim results, posting a combined ratio of 90% (Numis: 91%) which drove a 6% increase in profits before tax for the six months to 30 June of $158.7m (Numis: $155m). On a per share basis, earnings rose 17% to 20.2p. Net investment income was ahead from $62.7m in the comparable period of the year before to $79.4m. Gross written premiums increased by 2% to $1,149.3m. However, at $83.4m prior-year reserve releases were ahead of the 2016 number of $77.4m (Numis: $75.0m). At the interim stage the firm's dividend was bumped up from 3.5p to 3.7p.
In an unusual double, Paysafe Group has struck a $470m deal to acquire US-based Merchants' Choice Payment and also received an 590p-a-share takeover proposal from private equity companies Blackstone and CVC Capital Partners. After rejecting initial proposals from Blackstone and CVC in May, Paysafe has granted the consortium due diligence access on the basis of a possible 590p-a-share offer, which values the company at £2.8bn.
Vodafone has reported improved growth in the first few months of its new financial year thanks to strong growth in the Africa, Middle East and Asia Pacific (AMAP) region. Organic service revenue in the first quarter across the group accelerated to 2.2% from 1.5% in the fourth quarter, as Europe grew 0.8%* and AMAP 7.9%. Good momentum was seen in Europe, with robust growth in Italy and Spain, similar underlying trends in Germany, and the UK said to be "recovering".
In the press
Theresa May is ready to offer EU citizens free movement to Britain for up to two years after Brexit under plans devised by Philip Hammond.The chancellor is understood to believe that he has the support of every cabinet minister for a transitional deal after Britain leaves the European Union in 2019. A new immigration regime would be put in place after the two-year period. - The Times
One of the biggest shareholders in Unilever has said that he expects the giant consumer group to set out plans for a single unified company by the end of the year. In what could be the most significant move for the Anglo-Dutch maker of Dove soap in a decade, the investor said he understood that Unilever’s board wanted to end the dual-listed structure so that it could become a simpler and more agile company. - The Times
Fox faces another delay in its £11.7bn pursuit of full control of Sky, after the Culture Secretary said she would not make a crucial decision on referring the takeover to competition watchdogs before Parliament takes its summer break. Karen Bradley told MPs she was still minded to refer the bid to the Competition and Markets Authority (CMA) over the extra clout it would give the Murdoch family in the British media. - The Guardian
US close
Wall Street took a breather on Thursday, following mixed economic data and ahead of key corporate updates from tech heavyweights Microsoft and eBay.
The Dow Jones industrial Average closed down 0.13% at 21,611.78, while the S&P 500 was down 0.02% at 2,473.45 and the Nasdaq 100 was ahead 0.09% at 5,921.22.
On Wednesday, the Nasdaq and S&P 500 hit records highs, boosted by strength in the technology sector and a solid earnings release from Morgan Stanley.
CMC Markets market analyst David A madden noted that after an “impressive” run recently, the Dow Jones, S&P 500 and Nasdaq 100 all retreated from record highs earlier in the session as traders locked in their profits.