Source: Sharecast
STOCKS TO WATCH
Consumer goods giant Reckitt said it had delivered a "strong" second quarter with broad‑based acceleration, prompting the group to reiterate its full‑year outlook as momentum improved across regions, categories and its Mead Johnson Nutrition arm. Reckitt's core like‑for‑like net revenue growth picked up to 4.2% in Q2, taking first‑half growth to 2.7%, with volumes improving and price/mix remaining supportive. For the six months ended 30 June, adjusted operating margins for core Reckitt and MJN came in at 23.6%, ahead of expectations, supported by the firm's Fuel for Growth programme, which mitigated stranded costs following its Essential Home divestment. First-half adjusted operating profits were down 15% year-on-year to £1.45bn, even as LFL net revenues were up 2.6%.
Bakery chain Greggs reported a rise in first-half profit and sales as it pointed to growth in its grocery business and strong cost control. In the 26 weeks to 27 June, pre-tax profits jumped 19.7% from the same period a year earlier to £76m, while operating profits were up 22.9% at £86.5m. Total sales came in at £1.1bn, up from £1.0bn.
NEWSPAPER ROUND-UP
Andy Burnham has been warned by a leading thinktank of "very difficult trade-offs in the next autumn budget" if the Iran war keeps oil prices and inflation high. The National Institute of Economic and Social Research said the new prime minister faced a "challenging inheritance" and his plans to revamp public services would meet severe pressure from persistently higher prices. – Guardian
Apple has become only the second company to pass the $5trn valuation mark, as it benefited from investors fleeing AI and semiconductor stocks amid a wider tech sell-off. The iPhone maker's shares hit a session high of $342.89 on Tuesday, giving it a market capitalisation of $5.04trn (£3.78tn), then eased back down to $340.08 – around the $5trn mark. – Guardian
More Britons now turn to Netflix than the BBC when they switch on the TV as the embattled broadcaster struggles to hold its ground against streaming rivals. More than a quarter of viewers – 26% – say Netflix is their first choice when looking for something to watch, according to new figures from Ofcom. That is just ahead of the BBC, which is the first choice for 25% of viewers, while ITV lags behind on 15%. – Telegraph
Britain's grid operators sought to weaken the electricity system's shock-absorbers just months before they breached safety limits during June's heatwave, new documents show. In a report published last year, the National Energy System Operator said the risk of a severe power disruption had increased from a one-in-27-year event to a one-in-seven-year event. This followed a review that uncovered a sharp rise in the likelihood of more than one power station failing at once. – Telegraph
The outgoing boss of Cracker Barrel will be given personal security protection indefinitely after she leaves, in the wake of a backlash over the restaurant chain's "woke" logo redesign. The Nasdaq-listed company said in a filing that, for a "reasonable period of time" after Julie Masino's departure, it would provide protective services "to the extent reasonably necessary" as determined by the board. The company also said it would reimburse her for any tax liability arising from the benefit. – The Times
As the backlash against data centres intensifies and Elon Musk's servers in space remain in the realm of science fiction, one British company is floating a different approach. Mocean Energy believes it can help to alleviate concerns about the proliferation of vast, power-hungry AI warehouses by taking the equipment out to sea. The company, which is based in Edinburgh with operations in Aberdeen, Orkney and the United States, is developing Blue Core, a floating unit housing racks of servers powered by solar and wave energy and linked up by satellite. – The Times
US CLOSE
Major indices delivered a mixed performance on Tuesday amid a rotation out of semiconductor stocks into more cyclical and occasionally rate-sensitive sectors as market participants geared up for a heavy week of mega‑cap earnings and a closely watched Federal Reserve decision.
At the close, the Dow Jones Industrial Average was up 1.03% at 52,747.32, while the S&P 500 advanced 0.21% to 7,428.78, and the Nasdaq Composite saw out the session 0.22% lower at 24,876.91.
Reporting by Iain Gilbert at Sharecast.com