Equities have fallen marginally in early trading. For The Trader Nicole Elliott's view of the markets, read her latest column here.
IC TIP UPDATES:
IC Tip of the Year Anglo American (AAL) has announced that it has agreed terms for the sale of its 50 per cent interest in Lafarge Tarmac to Lafarge for £885m. Meanwhile, half year results reflected the effects of a strike at its platinum operations, which equated to a $385m profit hit and meant underlying profits dipped by 10 per cent. Across most of the rest of its portfolio volumes rose and average cash costs fell. We keep our buy rating.
Sustainable wood technology business Accsys Technologies (AXS) has failed in its bid to have the licence it signed with Diamond Wood in China rescinded. Our recommendation is under review.
KEY STORIES:
Construction and support services specialists Carillion (CLLN) and Balfour Beatty (BBY) have confirmed that they are actively considering a merger of the two businesses.
Lloyds Banking Group (LLOY) says it is in late stage discussions with a number of agencies over fines for settling LIBOR rates and other benchmarks.
Royal Bank of Scotland (RBS) enjoyed better than expected trading condition in the opening half of 2014 and now expects to report profit of £2.65bn, up from £1.37bn last year. Total income was down 6 per cent to a shade under £10bn, reflecting a smaller corporate and institutional banking operation as management continues to manage its balance sheet. Chief executive Ross McEwan sounded a note of caution that future periods will still have to contend with legacy issues.
British Sky Broadcasting (BSY) grew revenues by 5.5 per cent to £7.6bn in the 12 months to June but earnings dipped by 4.3 per cent to £1.6bn as the company invested in its offering. Meanwhile, BSkyB has announced plans to pay £7.45bn to acquire sister companies Sky Italia and Sky Deutschland.
Investors Chronicle owner Pearson (PSON) is likely to post profits of £73m for the half year, down from £124m last year, reflecting higher restructuring charges, the sale of Mergermarket and currency shifts. Revenues at constant exchange rates rose by 2 per cent to £2bn. Management has upped the interim dividend by 6 per cent.
Centrica’s (CNA) North American subsidiary Direct Energy is to sell its Ontario home services business for C$550m to EnerCare.
United Utilities (UU.) says revenues have risen in the first half but this will be partially offset by a £20m customer discount and higher depreciation and other costs.
Cable & Wireless Communications (CWC) expects to post flat first quarter revenues at constant currency, which is an improvement on recent declines.
