Royal Mail posts mixed first half trading statement

London open

City sources predict the FTSE 100 will open 10 points higher than Monday's close of 6,788.69.

Stocks to watch

Royal Mail delivered a mixed first half trading statement, with group revenues flat as UK parcel volumes were higher than expected across the year but letter volumes worse. Guidance for the full year was kept steady as the three months to 28 June, a period of relative lesser importance compared to the key Christmas season, saw a 2% decline in revenues at the parcel and letter arm UKPIL counterbalanced by 8% growth at European parcels arm GLS.

Croda International said the first half of the year has been encouraging, with the recovery in underlying sales trends that began in the second half of last year continuing, as it posted a 7.3% jump in pre-tax profit. For the six months ended 30 June, adjusted pre-tax profit came in at £135.7m up from £125.3m last year. Sales were up 5.2% at £564.6m from £537.4m, reflecting growth in all sectors and all regions, particularly the Life Sciences division.

In the press

The Bank of England will be made to show that it is providing taxpayers with value for money under reforms unveiled today by George Osborne, the Times reports. Mark Carney, the governor, has agreed to open the Bank’s books to the National Audit Office, bringing it into line with government departments, the BBC and the royal household.

Tighter bank regulation may end up destabilising financial markets and trigger a larger crisis than the 2008 crash, a report cited by The Daily Telegraph warns. Researchers at the Systemic Risk Centre at the London School of Economics said that regulation forcing banks to take the same approach to risk may end up making financial markets less safe.

Officials at the City watchdog have visited the offices of Barclays more than twice as often as any other bank, an indication of the concern among regulators about the lender and its scandal-hit investment bank. Barclays met supervisors at the Financial Conduct Authority 186 times last year, 101 more visits than were performed on HSBC, the second most frequently seen bank, according to figures released under a Freedom of Information request, the Times reported.

US close

US stocks edged higher on Monday, with optimism over Greece’s crisis and strong earnings reports pushing the S&P 500 and the Nasdaq Composite in record territory.

The Dow Jones Industrial Average closed up 14 points to 18,100.41 while the S&P 500 climbed two points and the Nasdaq Composite notched a record close of 5,218.86 after gaining 8.72 points.

Banking giant Morgan Stanley shed 0.48% even though its second quarter earnings and revenue beat expectations. Oil and gas services provider Halliburton rose 1.79% after its second quarter earnings and revenue declined less than expected.