Source: Sharecast
Stocks to watch
Vodafone said it expected annual profit and cash flow to be at the upper end of expectations after reporting a jump in adjusted earnings and also unveiled a new progressive dividend policy with a 2.5% increase for the full year. The telecoms operator said adjusted earnings before interest, taxes, depreciation, amortisation, and leases rose 5.9% to €5.7bn. Vodafone expects a full-year profit of €11.3-11.6bn and adjusted free cash flow of €2.4-2.6bn.
Irish energy sales, marketing and distribution group DCC confirmed full-year guidance for “good operating profit growth” after a swing to profitability in the second quarter. Adjusted operating profit over the half year to 30 September fell 5.4% to £206.7m due to strong prior-year comparatives, the impact of mild weather earlier in the year and the disposal of its Hong Kong and Macau business last year. However, trading improved in the second quarter leading to a “modest” increase in the bottom line.
Newspaper round-up
Switzerland is nearing a deal with the US to slash its 39pc tariff rate after some of the country’s largest businesses launched a charm offensive targeting Donald Trump. Negotiators are in talks about cutting the current levy on Swiss exports to 15pc, Bloomberg reported, after executives from the country’s largest businesses met the US president to press their case. – Telegraph
Rachel Reeves’s gambling tax grab will benefit criminals operating on the black market, an industry-backed report has warned. A tax rise by the Chancellor across the £7bn sector could trigger a surge in the number of people using unregulated websites, according to a study by PwC – leaving players more vulnerable and depriving the Treasury of vital tax receipts. – Telegraph
Warren Buffett has assured shareholders of Berkshire Hathaway that they need not worry about his departure as chief executive, giving a ringing endorsement to his successor Greg Abel and promising to remain a major investor in the conglomerate. In a letter to Berkshire investors, possibly his last public communication with them until he steps down at the end of the year, Buffett, 95, said Abel had “more than met” his high expectations when he first thought the 63-year-old was chief executive material. – The Times
Britain’s biggest investment institution, Legal & General, voted against Elon Musk’s $1 trillion pay packet partly because it did not require him explicitly to spend any time at the electric cars and robots company. L&G, which owns $8.6 billion worth of Tesla stock, revealed it had been one of the rebel shareholders unsuccessfully trying to stop Musk landing the biggest pay deal of all time. – The Times
US close
US stocks surged on Monday on the back of hopes that the longest government shutdown in American history could soon come to an end, lighting a fire under tech stocks which were hammered last week.
“After a hellish week that looked as if markets were poised for a sharp fall amid growing concerns about an AI bubble, a major event turned sentiment on its head and restarted the party. Stock markets had a spring in their step as investors could see a pathway out of the US government shutdown,” said Dan Coatsworth, head of markets at AJ Bell.
The Dow finished 0.8% higher at 47,368.83, erasing its entire loss last week, while the S&P 500 gained 1.5% to 6,832.43 after dropping 1.7% over the preceding five sessions.