Source: Sharecast
STOCKS TO WATCH
Alcoholic beverage giant Diageo posted a mixed set of FY results on Tuesday, as the group navigated FX headwinds and restructuring costs while maintaining organic growth. Organic net sales rose 1.7% in the year ended 30 June, supported by balanced volume and pricing gains, while operating profits slumped 27.8% to $4.33bn on hits from impairment charges and FX effects.
The takeover battle for Spectris took another twist on Tuesday after the specialist instrument maker accepted an increased offer from KKR, valuing it at £4.2bn, trumping rival private equity firm Advent. KKR has now offered £41.75 per Spectris Share, made up of £41.47 in cash and an interim dividend of 28p each.
NEWSPAPER ROUND-UP
China is urging its electric vehicle industry to stop cutting prices and rein in production amid fears that persistent deflation is imperilling economic growth. In recent months Chinese officials have talked repeatedly of the need to combat "involution" in sectors suffering from overcapacity, such as EVs, referring to the phenomenon of investing more effort and money for diminishing returns. – Guardian
The Italian authorities have fined Shein €1m for making "misleading or omissive" environmental claims about its products, the second time in as many months the Chinese fashion retailer has been targeted by European regulators. Environmental sustainability and social responsibility messages on Shein's website were in some cases "vague, generic, and/or overly emphatic" and in others were "misleading or omissive", said Italy's competition authority, AGCM. – Guardian
A tech giant dubbed "China's Google" is planning to test self-driving taxis in the UK, as the US prepares to ban Chinese driverless car technology. Baidu, the Chinese internet search giant, confirmed on Monday that it would be seeking to road test its Apollo Go autonomous cars in the UK and Germany starting in 2026 under a deal with Lyft, a rival to Uber. – Telegraph
Britain has lost more than 1,100 pubs and restaurants since Rachel Reeves's Budget, underlining the devastating impact of the Chancellor's tax raid on the hospitality sector. Bars, restaurants, clubs and pubs are closing at a rate of two every day, according to new figures from data providers CGA and AlixPartners, with 1,122 venues shutting since last October alone. – Telegraph
River Island's proposed restructuring has been left hanging in the balance after it failed to win backing from all creditor groups in a crucial vote. The 76-year-old fashion retailer won backing from about 80% of its creditors by value under a court-supervised vote on Friday. However, The Times understands that not all creditor classes approved the plan, which means the final approval rests on a judge's ruling at a sanction hearing on Thursday. – The Times
US CLOSE
US stocks rebounded strongly on Monday after a sell-off the previous session, as gloomy economic data raised the likelihood that the Federal Reserve will cut interest rates to shore up the economy.
At the close, the Dow Jones Industrial Average was up 1.34% at 44,173.64, while the S&P 500 advanced 1.47% to 6,329.94 and the Nasdaq Composite saw out the session 1.95% firmer at 21,053.58.
Reporting by Iain Gilbert at Sharecast.com