M&S beats forecasts with GM LFL sales growth
London open
City sources predict the FTSE 100 will open 12 points higher than Monday’s close of 6,535.68.
Stocks to watch
Womenswear sales were hit by bad weather in the first quarter at Marks and Spencer but were better than City analysts had feared, with a good food performance contributing to 1.8% growth in the period. Clothing sales rose 0.2% in the 13 weeks to 27 June, but fell 0.4% on a like-for-like basis, though some analysts had pencilled in a 1% decline.
Construction and outsourcing firm Interserve said its results were on track, in a trading update on Monday. The UK based company said overall group trading continued in line with the board’s expectations, but did not provide any forecasted figures in its announcement.
Technology group Smiths Group has appointed the head of GKN’s automotive division as its new chief executive. Andrew Reynolds Smith, who currently leads the driveline systems and powder metal components unit of GKN, will join Smiths on 25 September.
Weir Group said on Tuesday that it has agreed to acquire US-based Delta Industrial Valves for an enterprise value of up to $47m. An initial consideration of $37m will be payable on completion of the deal, $21m in cash funded from existing banking facilities and $16m in new equity, enabling the owners of Delta to share in the future benefits of the combination.
In the press
Greece has appointed Oxford-educated economist Euclid Tsakalotos as its new Finance Minister, reports The Wall Street Journal. Tsakalotos has been in charge of the country’s team negotiating with lenders since April.
UK high street banks are launching digital payment services through the Zapp application in an effort to fend off growing competition from technology group Apple, the Financial Times writes.
Eagle Eye, the virtual voucher business backed by former Tesco boss Sir Terry Leahy, is expected to unveil a “game-changing” contract with Sainsbury’s, according to The Guardian. The contract will reportedly change the way the grocer runs promotions and handles online vouchers.
US close
US stocks finished lower on Monday after Greek voters rejected creditors’ bailout proposals, pushing the country further down the road towards a potential exit from the Eurozone.
A near-8% plunge in the price of oil also weighed heavily on energy shares on Wall Street.
However, losses were only modest with a negative outcome from the referendum largely priced into US markets ahead of the three-day weekend.
By the close, the Dow Jones Industrial Average was down 46 points at 17,684 (-0.26%), the Nasdaq fell 17 to 4,992 (-0.34%) and the S&P 500 declined eight to 2,069 (-0.37%).