Kingfisher sales sparkle in second quarter, John Wood selling 50pc stake in Voreas

London open

The FTSE 100 is expected to open 54 points higher on Thursday, having closed down 1.49% at 7,497.87 on Wednesday.

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Kingfisher sales were much spruced up in the sunshine of the second quarter after the DIY retailer wilted amid the snow at the start of the year. Group like-for-like sales bounced back up 1.6% in the three months to 31 July after a 4% decline in the first quarter, with UK and Ireland chains B&Q and Screwfix both increasing sales but France mixed.

Oil services firm John Wood said it was selling its 50% stake in the Voreas wind farm joint venture in Italy for $27m in cash. Wood's share in the joint venture generated EBITA of around $3m in the year to 31 December 2017. The disposal is expected to complete in the fourth quarter of 2018.

Auto Trader Group has entered into an agreement to create a joint venture with Cox Automotive UK, it announced on Thursday, to provide a digital marketplace for wholesale vehicles in the UK. The FTSE 250 company said the joint venture would provide the UK automotive market with a “comprehensive” online auction service. It said the business would be called ‘Dealer Auction’, and would provide fleet companies, manufacturers and retailers with a “more efficient and convenient” way to dispose of their stock of vehicles.

Newspaper round-up

Road haulage firms have accused Chris Grayling, the transport secretary, of failing to put in place any credible contingency plans for a 'no-deal' Brexit scenario, as well as "knowing nothing" about their industry. Speaking to the Telegraph, industry leaders said they were left astonished in recent meetings with Mr Grayling where he appeared to be unaware that British lorry drivers would not be able to carry goods on the continent if the UK crashes out of the bloc. - Telegraph

Railway companies have called on the government to stop micromanaging the industry and set up an arm’s-length body, similar to the disbanded Strategic Railway Authority that supervised train operators. After rows over rising fares, lack of trust in the industry and failing timetable changes, the head of the industry’s top trade organisation, the Rail Delivery Group, called for a fundamental overhaul of the way the railways are run and regulated. - The Times

Elizabeth Warren, the Massachusetts senator tipped as a Democratic presidential candidate in 2020, has unveiled new plans for legislation aimed at reining in big corporations, redistributing wealth, and giving workers and local communities a bigger say. Warren will introduce the bill dubbed the Accountable Capitalism Act on Wednesday. The proposal aims to alter a model she says has caused corporations to chase profits for shareholders to the detriment of workers. - Guardian

US close

Wall Street finished well into the red on Wednesday, after investors were kept busy wading through a slew of economic data, while also keeping a keen eye developments in the US-Turkey diplomatic standoff.

The Dow Jones Industrial Average ended the session down 0.54% at 25,162.41, the S&P 500 was off 0.76% at 2,818.37, and the Nasdaq 100 slid 1.24% to 7,354.66.

"The US index couldn't withstand the onslaught of negativity brewed during the European session,” said said SpreadEx analyst Connor Campbell earlier.

“The Dow is now in serious danger of dropping below 25,000, something that hasn’t happened in almost 4 weeks.”

The Turkish lira was gaining ground against the dollar after the country announced that it will implement retaliatory tariffs on a range of US products including automobiles, tobacco and alcohol.

CMC Markets analyst Michael Hewson said the move was "unlikely to be well received by the US administration as they attempt to secure the release of their citizen.”

“President Trump's reaction could well come by way of tweet later today,” Hewson noted.

The two countries are locked in a spat over US pastor Andrew Brunson who was arrested almost two years ago and accused of plotting against the Turkish government.