Source: Sharecast
STOCKS TO WATCH
UK housebuilder Vistry said on Wednesday that it expects first half profits to be "significantly" lower than last year as it focused on cash generation and cutting debt, forecasting full-year adjusted pre-tax earnings to be in the middle of estimates. In a trading update, Vistry added that it expects the second half to be in line with 2025, driven by a step up in demand for affordable housing, but noted that the level of macroeconomic uncertainty has increased since the start of the Iran war, "and with it the range of potential outcomes for the current year".
Steam management systems manufacturer Spirax Group delivered mid‑single‑digit organic revenue growth and an improvement in adjusted operating margins in the first four months of the year, prompting it to reiterate full‑year guidance despite a persistently weak industrial production backdrop. The FTSE 100-listed company said trading continued to run ahead of global IP, which remained subdued at 1.4% in the first quarter and particularly soft across key European markets. Excluding China, IP was 1.5%, with the full‑year forecast of 1.9% unchanged and weighted to the second half. Spirax added that macroeconomic uncertainty remained elevated, with the ongoing Middle East conflict, tariff developments and higher energy costs continuing to weigh on industrial activity.
Babcock International posted a jump in annual revenues on Wednesday, but confirmed profits had been hit by a one-off charge on a contract to build five ships for the Royal Navy. Updating on trading post-close, the engineer said revenues in the year ended 31 March had risen to £5.27bn from £4.83bn, boosted by strong performances in its nuclear and aviation divisions. However, underlying operating profits fell to £293m from £363m, following a £140m non-recurring charge on the Type 31 contract.
NEWSPAPER ROUND-UP
Donald Trump is due to arrive in Beijing on Wednesday evening, the first visit to China by a US president in nearly a decade, as he seeks to mend power and prestige weakened by the war in Iran. Trump will bring tech leaders, including Elon Musk of Tesla and Tim Cook of Apple, and plans for headline-grabbing deals. He has said he expects China's leader, Xi Jinping, would "give me a big, fat hug when I get there". – Guardian
Nine in 10 UK millionaires are proud to live in Britain and three-quarters would be willing to pay more tax to ensure public assets get the funding they need, according to research. Despite widely reported concerns that the wealthy are choosing to leave the country owing to higher taxes, the survey found millionaires were much more concerned about medical workers moving away than wealthy people emigrating. – Guardian
Elon Musk's desire to control OpenAI was "hair raising", the boss of the ChatGPT-maker has claimed. Sam Altman said the Tesla boss wanted complete control of the artificial intelligence giant and planned to hand it on to his children when he died. It marks the latest twist in a high-profile courtroom showdown between two of Silicon Valley's best-known billionaires, who have been embroiled in a decade-long feud. – Telegraph
The chief executive of America's largest bank has threatened to pull the plug on a £3bn UK investment if Labour lurches further to the Left. Jamie Dimon said JP Morgan would review its plans to build a new skyscraper headquarters in London if the Government became "hostile to banks again". The warning comes as Sir Keir Starmer faces mounting pressure to resign. Andy Burnham and Angela Rayner, both contenders to replace the Prime Minister, have called for more tax and spending, while a group of 100 Labour MPs, led by Louise Haigh, have called for more Left-wing economic policies. – Telegraph
The last two finance directors of Carillion have been fined again, this time by the accounting industry watchdog, bringing to an end eight years of regulatory investigations into one of Britain's most high-profile corporate collapses. Carillion was one of the UK government's largest contractors, building motorways, hospitals and bridges, but it went into liquidation in early 2018 despite having appeared to be doing well only a few months earlier. – The Times
US CLOSE
Major indices delivered a mixed performance on Tuesday as investors digested April's consumer price index report.
At the close, the Dow Jones Industrial Average was up 0.11% at 49,790.56.17, while the S&P 500 shed 0.16% to 7,400.96 and the Nasdaq Composite saw out the session 0.71% weaker at 26,088.20.
Reporting by Iain Gilbert at Sharecast.com