Tesco asks CMA to speed up Booker decision, Babcock given big Norway state contract
London open
The FTSE 100 is expected to open 35 points higher on Thursday, after closing down 0.63% at 7,387.80 on Wednesday.
Stocks to watch
Supermarket giant Tesco gave the CMA a hurry-along on Thursday, over its proposed merger with wholesale group Booker, first announced on 27 January. The FTSE 100 company said following “continued constructive dialogue”, and further to the commencement of the CMA's Phase 1 review on 30 May, it had now requested that the CMA used its "fast track" process to allow it to move more quickly to examining the merger through a detailed Phase 2 process.
Engineering services company Babcock announced it had been awarded a new contract by the Norwegian Government on Thursday, to provide communities across Norway with “vital” air ambulance support. The FTSE 100 firm said the contract - initially for six years with options to extend by a further five years - was worth around £500m for the full 11 years. It would see Babcock operate 11 specialist fixed-wing aircraft from summer 2019, providing thousands of patients with access to specialist healthcare centres across Norway.
Newspaper round-up
Investors in the Co-op Bank’s bonds are facing the second big reduction in the value of their holdings within four years after the struggling lender revealed the terms of a £700 million bailout. Retail bondholders will take at least a 55 per cent cut in their investments under the terms of a third recapitalisation of Co-op Bank since the discovery in 2013 of a £1.5 billion black hole in its finances. - The Times
The number of cars rolling off UK production lines in May plunged, as demand among British motorists for new vehicles fell. Official data from industry trade body the Society of Motor Manufacturers and Traders (SMMT) showed that May saw 136,119 new cars built in Britain, down 9.7pc on the same month last year. - Telegraph
BT was the most complained-about broadband provider in the first three months of the year as customers took the company to task over faults and service issues. Telecoms regulator Ofcom, which publishes complaints data every three months, also found BT to be the most criticised pay-TV company, with almost four times the industry average complaint level. - Guardian
US close
US stocks ended in the black on Wednesday, underpinned by a strong performance in the financial and technology sectors.
The Dow Jones Industrial Average ended up 0.7% at 21,454.61, the S&P 500 rose 0.9% to 2,440.69 and the tech-heavy Nasdaq added 1.4% to close at 6,234.41.
Equity markets on Wall Street had ended the previous session weaker amid concerns about President Donald Trump's economic agenda following a delay to a vote on healthcare legislation. On the Nasdaq, technology stocks weighed as the sector came under pressure again.
Financial shares were on the front foot ahead of the final ‘stress results’ for the nation’s banks, alongside sharp gains in commodities as the US dollar slipped again. Technology stocks also put in a solid showing a day after suffering their worst losses in two weeks.
Meanwhile, crude oil prices advanced after the Energy Information Administration reported a 100,000 barrel drop in domestic US oil output for the latest week.