Diploma revenues see solid rise, Pearson profits remain in line with forecasts
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The FTSE 100 is expected to open two points higher on Wednesday, having closed up 0.58% at 6,895.02 on Tuesday.
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Technical services group Diploma said first quarter revenues increased by 9% over the comparable period last year. At constant exchange rates, group revenues increased by 8%, with acquisitions completed last year, net of a small disposal, contributing 4% and underlying growth of 4%. The weakening of sterling during the past quarter provided a small benefit of 1% to reported group revenues. In a separate announcement the company confirmed that Johnny Thomson had been appointed as chief executive.
Pearson expects full-year profits to come in just above the middle of its target range and guided to growth of 8-18% for 2019. The education and learning specialist reported said adjusted operating profit for 2018 would come in at around £540-545m, narrowing its range from the prior £520-560m.
Reckitt Benckiser Group announced on Wednesday that Rakesh Kapoor had indicated his intention to retire as chief executive officer by the end of 2019. The FTSE 100 company said he would have served more than eight years as CEO, and 32 years at the firm, by the time he steps down. Its board confirmed it had initiated a formal process to appoint his successor, considering both internal and external candidates.
Newspaper round-up
Britain’s departure from the EU could be delayed until December under a cross-party plan by MPs to seize control of the Brexit process. A group of rebels led by three former Conservative ministers published a draft bill yesterday that they hope to force on the government after parliament’s rejection of Theresa May’s deal. - The Times
Wealthy investors have been advised by Wall Street to avoid trading the pound during what promises to be a highly volatile 24 hours for the currency following the crunch Brexit vote. Citigroup’s private banking arm has told clients that sterling volatility is likely to surge after Theresa May’s Brexit deal is voted on in Parliament. - Telegraph
The City watchdog is considering fresh guidelines around the sale of private polling data to hedge funds looking to profit from major political events such as Brexit. The practice came under fire after a report detailed how hedge funds – eager to cash in on currency market volatility and profit from the EU referendum – commissioned private exit polls to bet on the price of sterling in the run-up to the June 2016 vote. - Guardian
US close
Trading on Wall Street finished on a positive note on Tuesday, following the release of data that some analysts said showed scant pipeline price pressures building in the economy.
Investors were also cheered by Beijing's latest efforts to bolster China's flagging economic growth, although slightly lower-than-expected quarterly earnings and revenues from banking heavyweight JPMorgan Chase were acting as an offset.
Gains in the Internet space were making up for that drag.
The Dow Jones Industrial Average finished up 0.65% at 24,065.59, the S&P 500 rose 1.07% to 2,610.30, and the Nasdaq 100 was ahead 1.97% at 6,669.64.
China announced plans to cut taxes on a larger scale to help support its slowing economy, boost spending and provide financing for private and small businesses earlier in the day.