Bovis Homes lifts first-half profit

London open

City sources predict the FTSE 100 will open 36 points higher than Friday’s close of 6,550.74.

European equities are set to start with gains this morning, tracking a modest finish higher in the US on Friday, London Capital Group night dealer Jonathan Sudaria said.

“European markets have decided to shrug off the soft Asian session overnight and instead take their cue from the US,” Sudaria said.

Stocks to watch

Bovis Homes posted a 9% rise in first-half pre-tax profit as it reported a record number of legal completions and said it is on track to deliver its expected volume of new homes for 2015. Pre-tax profit for the six months ended 30 June came in at £53.8m from £49.4m in the first half of last year, on revenue of £350.7m, up 9% from £322.1m.

Murray International Trust said its net asset value declined by 2.6% in the first half of the year compared with the company’s benchmark of 2%. The investment firm said the current financial environment for investors was “uncomfortable” and sterling’s strength had constrained returns.

In the press

HM Revenue & Customs will be forced to pay tax refunds running into tens of billions of pounds if it fails to fend off defeat in some of its biggest court battles, accountants show. Over the past two years, the UK tax authority has been forced to more than double its “worst case” estimate, leaving it potentially facing a £42.8bn bill to companies that believe they paid too much tax decades ago. – Financial Times

The European Central Bank now thinks it will take four years, instead of two, for an ‘intrusive’ review that could force the Eurozone’s biggest banks to hold even more capital. Some experts said the review could take even longer, since the project is so comprehensive and demands a huge amount of manpower. – Financial Times

China’s central bank has warned of further volatility in the yuan but reiterated that Beijing had no intention of sparking a “currency war” following a series of shock devaluations last week. The chief economist at the People’s Bank of China, Ma Jun, said the Chinese government had “no intention or need to participate in a currency war”. – The Guardian

US close

US equities closed a little higher on Friday as investors sifted through a slew of data releases and mixed corporate news. The Dow Jones Industrial Average and the S&P 500 ended up 0.4%, while the Nasdaq closed 0.3% higher.

In company news, fashion retailer Nordstrom rose 4.3% on the back of better-than-expected second-quarter profits. Shares in department store chain JC Penney Co gained 5.5% after it posted a smaller-than-expected second-quarter loss. Food services company Sysco surged 7.4% after sources told CNBC that Nelson Peltz's Trian has taken a stake of more than 7% in the company.