Drax guides towards top end of forecasts, Aviva exits Italy

London open:

The FTSE 100 is expected to start the day 64 points higher at 7,123.

Stocks to watch:

Biomass energy provider Drax said it expected annual core earnings to be at the top end of current forecasts driven by increased power generation. The company said it had played an “important role providing stability to the UK power system” as higher gas prices, European interconnector issues, and periods of low wind placed the system under increased pressure. It now expected adjusted earnings before interest, tax, depreciation and amortisation to be at the upper end of analyst consensus of £374m-£391m subject to a good December performance.

Aviva has announced the completion of its withdrawal from the Italian market following the sale of its Life Insurance unit in the Mediterranean country to CNP Assurances for roughly £462m in cash. Transaction close came within 24 hours of the sale of its Polish life insurance business, Aviva boss Amanda Blanc highlighted.

In the press:

An 11th hour bid has been launched to try to halt plans by Royal Dutch Shell to explore for oil in vital whale breeding grounds along the Wild Coast of eastern South Africa. Campaigners filed an urgent legal challenge against the seismic survey, which was scheduled to begin on Wednesday, in a last-ditch bid to prevent it harming whales, dolphins and seals in the relatively untouched marine environment. - Guardian

Directors at the money transfer company Wise have told its billionaire chief executive to hire professional advisers after he was fined for defaulting on his taxes Wise said its board had launched a review after Kristo Kaarmann, its co-founder, was penalised for late payment of his personal tax bill in 2017/18. - Telegraph

The healthcare technology company led by Lord Drayson, the former business and science minister, has been fined and censured by the London stock exchange for “serious failures” relating to the secret payment of £1 million of executive bonuses, including to the peer. An investigation by the exchange has found that Sensyne Health misled Peel Hunt, the company’s nominated adviser, over cash bonuses of £850,000 to Drayson, the founder, chief executive and largest shareholder, and £200,000 to Lorimer Headley, its chief financial officer at the time. - The Times

US close

Wall Street stocks closed lower on Tuesday as concerns regarding the Covid-19 omicron variant resurfaced.

Stocks headed south after Moderna chief executive Stephane Bancel warned that existing vaccines were likely to be less effective against the new strain, stating there could be a "material drop" in current vaccines' effectiveness against omicron and stated it may take months to develop a vaccine specific to the new strain.

Elsewhere, Regeneron warned that its antibody treatment may also have a reduced level of effectiveness against the variant.