BG Group moves ahead with LNG project in Tanzania
London open
City sources predict the FTSE 100 will open around nine points lower than Tuesday's close of 6,822.76.
Stocks to watch
Gas explorer and producer BG Group has taken a step forward in developing a new liquefied natural gas (LNG) project in Tanzania. BG said results from tests on its Mzia find off the coast of the southern African country further bolstered the case for a new onshore LNG scheme in the area.
Specialist engineering services group James Fisher reported an 8% rise in first half revenue, which help to lift underlying pre-tax profit by 13% to £21.9m, despite the adverse affects of currency movements. That came as the group's subsidiary, Divex, won a contract to supply a saturation diving system for the BP Exploration Shah Deniz II project in the Caspian Sea.
Builders merchant Grafton almost doubled earnings in the first half of the year as the recovery in UK and Ireland became more broadly based, but it expects the second half to slow against strong numbers the year before. Chief executive Gavin Slark hailed the "milestone" of lifting operating margins to 5%, saying this was a key point in the company's "journey from recovery to growth".
In the Press
Face-to-face talks between the Russian and Ukrainian presidents failed to produce a breakthrough for ending the conflict over eastern Ukraine, as Kiev released videos of captured Russian soldiers and rebels pushed toward a government-held city. The one-on-one session, which Ukraine's President Petro Poroshenko described as "tough and complex," ended early Wednesday after a day of talks on the crisis in the Belarusian capital of Minsk. - The Wall Street Journal Europe
House prices in Britain will be more than 25% higher in five years, with London finally being overtaken by other parts of the country. Savills, the property company, has forecast that house prices will jump by 9.5% this year across the UK, up from its original estimate of 6.5%, with the property market having "exceeded all expectations". - The Times
A victory for the Yes campaign in next month's referendum on Scottish independence could spark a financial crunch at some of Britain's biggest corporate pension schemes. Analysts at JP Morgan Cazenove told clients yesterday that they had identified 22 companies that could be forced to top up their retirement funds or split them into two if Scots voted to break away from the Union in the poll on 18 September. - The Times
Newspaper tips
Far from slowing down, after opening its 200th office centre in the first half of the year the provider of temporary office accommodation Regus is set to accelerate its expansion. A full 450 new centres are due to open this year and as many next year. The company does have its doubters however, given its ambitious growth plans.
The fact that 85% of its sales hail from overseas means that it is exposed to currency fluctuations - hence the flat profits before tax seen in the first six months. Operating margins at its mature offices however rose to 14.4% during the last reporting period, from 10.6%, showing just how profitable its business model can be. At 26 times earnings the shares trade on a "hefty" multiple, but that is distorted by a heavy investment programme. "The business is growing fast, with strong potential in developing markets. It may take a while for the benefits of that investment to show," but the stock is a "long-term buy" says The Times's Tempus.
US close
US stocks rallied as better-than-forecast reports on durable goods and consumer confidence pointed to further recovery in the world's biggest economy.
US durable goods orders jumped 22.6% in July, following a 2.7% gain in June, beating analysts' projections for an 8% increase.
"July's spectacular durable goods orders provide a misleadingly strong signal on the strength of the economy, although the outlook for business investment is improving," Capital Economics said.