DS Smith trading in line, ConvaTec lifts forecasts after strong year

London open

The FTSE 100 is expected to open 10 points higher on Wednesday, having closed up 0.08% on Tuesday at 7,646.16.

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Paper and packaging maker DS Smith said third-quarter trading was in line with expectations despite “challenging” market conditions. In a brief trading update issued on Wednesday, the company said like-for-like corrugated box volume performance continued to improve compared with the first half of the financial year, with flat volumes in the period since 1 November. North America and Eastern Europe saw good growth in the quarter, offset by a weaker performance in Northern Europe, it added.

Medtech group ConvaTec has raised its forecasts for medium-term organic growth forecasts after a strong 2023 performance that saw a rise in margins and double-digit profit growth. The company, which provides wound, ostomy, continence and infusion care, said organic revenues are expected to increase by 5-7% over the medium term, ahead of previous guidance of 4-6% growth, "based on the strength of the new product pipeline and improvements in commercial execution".

Rathbones Group reported a significant increase in funds under management and Administration (FUMA) to £105.3bn in its preliminary results for 2023 on Wednesday, from £60.2bn year-on-year, largely driven by the acquisition of Investec Wealth & Investment UK. Underlying profit before tax climbed 30.9% to £127.1m, but overall profit before tax declined 10.1% to £57.6m due to acquisition and integration expenses. Integration efforts with both Investec Wealth & Investment UK and Saunderson House were ongoing, with further progress expected throughout 2024.

Newspaper round-up

Retaining the fuel duty cut in the budget is a regressive policy that benefits the wealthiest in society, who will save £60 a year, while those who earn the least will save just £22, according to analysis. Jeremy Hunt is expected to announce an extension of the 5p cut in fuel duty brought in during 2022, a proposal that has won him plaudits across the rightwing press. – Guardian

The Post Office’s finance chief has been on sick leave for almost a year after clashing with its chief executive, The Telegraph can disclose. Alisdair Cameron, the chief financial officer, has been signed off work since last April and has not attended a single board meeting since then. He is still listed as sitting on the Post Office board and the company, which is taxpayer owned, refuses to reveal his interim replacement. It is alleged that chief executive Nick Read asked the Government to authorise a pay-off for Mr Cameron but that request was declined. – Telegraph

Christine Lagarde is facing growing backlash from staff at the European Central Bank (ECB) over its “one-sided” views on climate change policies. In a letter seen by The Telegraph, the ECB’s staff committee complained that remarks by a board member on the need to “reprogramme” employees failing to embrace the bank’s climate policies had an “undeniable authoritarian note”. – Telegraph

High interest rates and falling corporate real estate prices pose a serious risk to the US banking system, the International Monetary Fund has said, as it warned of the prospect of looming bank failures. On the anniversary of the collapse of Silicon Valley Bank, the IMF has rung the alarm bell over the risks of another round of bank failures triggered by the worst fall in commercial property values in half a century in the world’s largest economy. – The Times

The shipyard that built the Titanic has been named as the preferred bidder for a £120m contract to build a new port for the Falkland Islands. The Islands' government selected Belfast-based Harland & Wolff for the project. Subject to agreeing the final contract pricing and concluding commercial negotiations, work on the two-year project is expected to begin later this year. The manufacturing group will construct, transport and install four floating pontoons, measuring 90 metres each to the South Atlantic. – The Times

US close

US stocks closed sharply lower on Tuesday as shares in tech giant Apple weighed on the Street.

At the close, the Dow Jones Industrial Average was down 1.04% at 38,585.19, while the S&P 500 lost 1.02% to 5,078.65 and the Nasdaq Composite saw out the session 1.65% weaker at 15,939.59.

The Dow closed 404.64 points lower on Tuesday, extending losses recorded in the previous session.

In focus on Tuesday, shares in Apple headed south after the tech giant was slapped with a €1.84bn fine by European Union antitrust regulators over its App Store rules, with the watchdog telling the company that it cannot stop music streaming services from advertising cheaper subscription deals outside of its store.

In response, Apple said the Commission had failed to "uncover any credible evidence" of either consumer harm or anti-competitive behaviour, stating that competitors such as Spotify wanted to "rewrite the rules of the App Store" to gain competitive advantage, while paying nothing to Apple. Apple vowed to appeal the Commission's decision.