Inmarsat cuts payout, SIG profits decline
London open
The FTSE 100 was being called just 2.5 points lower by traders in the City on Friday morning, having closed at 7,203.24 the day before.
Stocks to watch
Satellite operator Inmarsat said it would be cutting its annual dividend to 20 cents a share as it cited “the lack of visibility” over future cash payments from the US 5G Ligado Networks beyond the end of 2018 and the need to take advantage of the growing in-flight wi-fi market. The company said it would pay a final dividend of 12 cents a share, making a total of 33.62 cents per share.
SIG, the building products supplier, reported a 10% decline in underlying profits, cash flow shrinking by a third as the UK market becomes "increasingly challenging". However, due to a more buoyant mood in Europe and Ireland, the FTSE 250 group "see considerable potential for a significant improvement in operational and underlying financial performance" for 2018.
Online sports betting and gaming company GVC Holdings, which received shareholder approval for its merger with Ladbrokes Coral this week, posted a rise in full-year adjusted profit and net gaming revenue on Friday, thanks in part to the acquisition of Bwin. In the year to the end of December 2017, adjusted pre-tax profit jumped 182% to €178.7m while net gaming revenue increased 17% to €925.6m.
Newspaper round-up
Donald Trump pushed forward with plans to impose tariffs on steel and aluminium imports on Thursday, arguing the levies were necessary for national security and to stop the “assault on our country”. Flanked by steel and aluminium workers and key staff, Trump said he had to act to stop the “decimation of entire communities” and insisted there would be a very fair process as the administration used the next 15 days to negotiate exemptions with allies. Canada and Mexico will be exempted. - Guardian
Royal Dutch Shell is planning to deepen its stake in the US shale renaissance with a $10bn (£7.2bn) joint takeover of BHP’s American shale division. The Anglo-Dutch energy giant is reportedly working alongside Blackstone, a US private equity firm, on a joint bid for the business which was put on the block last year. - Telegraph
Aviva was accused yesterday of considering “very aggressive action” against thousands of retail investors after it said it may buy back their lucrative bonds without paying a premium. If the insurer goes ahead with the plan it will be the second big UK financial institution to take such action against the will of many investors, though Lloyds only managed to after a long battle with investors who took their case to the Supreme Court. - The Times
US close
Trading on Wall Street finished firmer on Thursday, amid reports that the White House might yet tinker with its final proposals on tariffs.
The Dow Jones Industrial Average closed up 0.38% at 24,895.21, the S&P 500 added 0.45% to 2,738.97, and the Nasdaq 100 was ahead 0.53% at 6,966.43.
“Investors continue to play down concerns over Trump’s proposed tariffs and consequent fears of an escalation into an outright trade war," David Morrison, chief market strategist at GKFX.