Workspace sees good first quarter demand, DCC adds acquisitions on both sides of pond
London open
The FTSE 100 is expected to open 40 points higher on Friday, having closed up 0.78% at 7,651.33 on Thursday.
Stocks to watch
Antofagasta confirmed on Friday that its subsidiary Mineral Centinela was selling Centinela Transmisión, the company that holds its electricity transmission lines, for $117m. “This sale is consistent with the group's strategy of disposing of its water and energy assets,” said Antofagasta chief executive officer Ivan Arriagada.
Experian reported an acceleration in sales growth in the first quarter of its new trading year but the credit checker said currency swings looked likely to have a bigger impact on full year profits than first expected. Group revenue grew 9% in the three months to 30 June, up from 8% the past financial year.
Flexible office space provider Workspace said on Friday that it saw good customer demand in the first quarter and that it is actively exploring acquisition opportunities. In a first-quarter business update, the company said enquiries average 1,021 per month versus 1,016, while lettings average 88 per month compared to 93 in the same period a year ago.
DCC said first quarter group operating profit was “well ahead” year-on-year, driven by completed acquisitions. It also announced it had bought a US distributor of professional audio-visual products and a UK distributor of mobile and accessory products for an undisclosed sum.
Newspaper round-up
President Trump has savaged Theresa May’s Brexit plan, saying that it would almost certainly kill a trade deal between Britain and the United States. He suggested that the prime minister’s proposal was a betrayal of those who voted to leave the European Union and said that Boris Johnson would make a great prime minister. - The Times
Britain will fight moves by Brussels to secure the power to carry out raids on City of London firms after Brexit, despite a government White Paper conceding defeat on securing a European Union deal for smoother access for financial services to the Single Market. Officials said that any EU efforts to impose market surveillance on British territory would be a red line in the Brexit negotiations, which resume next week. - Telegraph
Theresa May could suffer the defeat of a crucial Brexit bill as early as Monday after Eurosceptics reacted angrily to the white paper she published yesterday. Relations between Conservative MPs who support a hard Brexit and No 10 worsened after the publication of the 98-page document, which spelt out a series of detailed compromises. - The Times
The City of London has said that banks, insurers and fund managers would accelerate their relocation plans having been dealt “a real blow” by Theresa May’s Brexit strategy. Ministers dashed the City’s hopes of maintaining easy trading access with the EU, conceding that plans for looser ties on services would lead to more barriers for British companies. - The Times
Sky could change hands for as much as £30 billion amid an escalating takeover battle for the European pay-TV group, analysts have predicted. Jerry Dellis, an analyst at Jefferies, the investment bank, said: “Current offers fall well short of knockout levels. Comcast’s offer is merely the opening shot.” His £17.50-a-share price target values Sky at £30.1 billion. - The Times
US close
US stocks bounced back from the previous session's losses on Thursday, as investors eyed the latest reading on inflation.
The Dow Jones Industrial Average finished up 0.91% at 24,924.89, the S&P 500 added 0.87% to 2,798.29, and the Nasdaq 100 was 1.69% higher at 7,336.25.
Stocks had fallen on Wednesday, after Donald Trump followed through with his threat to slap tariffs on an additional $200bn worth of Chinese imports.
However, sentiment got a lift amid indications that the US and China could resume talks on trade, following a Bloomberg report suggesting that officials from both countries have shown willingness to do so.
“Many agree that tariffs will ultimately be bad for the global economy and therefore markets but there still seems to be some hope that common sense will prevail and a full-blown trade war will be averted,” said Oanda analyst Craig Erlam.