Hargreaves Lansdown reports good start to year, Imperial Brands flags drop in earnings

London open

The FTSE 100 is expected to open 12 points higher on Thursday, having closed down 0.06% on Wednesday at 5,946.25.

Stocks to watch

Hargreaves Lansdown said it made a good start to the financial year as the investment platform reported £0.8bn of net new business and revenue up 12% in the first quarter. Revenue rose to £143.7m from £128.1m in the three months to the end of September. Net new business was down from £1.7bn a year earlier but the FTSE 100 company said that period was boosted by £0.9bn of back book transfers. Assets under administration rose 3% to £106.9bn since the end of June as the market rose and the company added 31,000 net new clients.

Tobacco company Imperial Brands said it expected full-year earnings to be 6% lower as it made higher provisions for stock and bad debts, citing ongoing Covid-19 uncertainties. The company, which makes Peter Stuyvesant and John Player cigarettes, said revenue would be flat on a constant currency basis as better-than-expected tobacco sales offset a slump in new generation products and lower duty-free sales due to the coronavirus pandemic. It noted “some Covid-related changes in consumer behaviour with increased overall demand against our expectations, as consumers appear to have allocated more of their spend to tobacco”.

EasyJet reported a 50% fall in passenger numbers for the full year on Thursday, to 48 million, in line with a decrease in capacity of 48% to 55 million seats. The FTSE 250 low-cost airline said in a trading update that its load factor for the full year was down 4.3 percentage points at 87.2%. Capacity in the fourth quarter ended 30 September was at 38% of previously planned levels, as it flew nine million passengers with a load factor of 76.3%, while total group revenue for the quarter came in at £620m.

Newspaper round-up

Kamala Harris and Mike Pence both ducked tricky questions in a running-mate debate that was vastly more civil than the chaotic showdown between the principal candidates, but may be best remembered for a fly that landed on the vice president’s head. The nominees delivered their main attacks - Ms Harris on the administration’s “failure” to handle coronavirus and Mr Pence on her record as the “most liberal senator” - but seemed more concerned to avoid coming across as aggressive after the ugly clash in Cleveland between President Trump and Joe Biden. - The Times

Italy’s prime minister, Giuseppe Conte, has urged the British government to come good on a Brexit deal but admitted it was currently “difficult to feel optimistic” amid legal wrangling over the withdrawal agreement. “Obviously the legislative move in the UK creates tension,” said Conte, referring to Boris Johnson’s tabling of a bill that violates key elements of the agreement reached with Brussels last year. - Guardian

Fears for the future of pubs under a 10pm curfew and other restrictions on trading have intensified after Greene King announced up to 800 job losses. The brewer and pub operator said that it had made “the difficult decision” not to reopen 79 sites, including 11 Loch Fyne restaurants, but it left open the possibility that two thirds may reopen eventually. - The Times

Accountancy firm BDO is facing the prospect of a significant financial hit after its Spanish sister company was ordered by a court to pay part of a €126.8m (£115m) penalty for its alleged role in an accounting scandal. The Audiencia Nacional, Spain’s highest criminal court, named BDO among firms and individuals convicted of involvement in falsifying the accounts of Galician fishing firm Pescanova between 2010 and 2012. - Guardian

US close

Wall Street stocks finished in positive territory on Wednesday, amid conflicting messages from the President regarding his stance on further economic stimulus payments.

At the close, the Dow Jones Industrial Average was up 1.91% at 28,303.46, the S&P 500 added 1.74% to 3,419.45, and the Nasdaq Composite was 1.88% firmer at 11,364.60.

The Dow closed 530.7 points higher, reversing losses recorded on Tuesday after Donald Trump called for a halt to further stimulus talks until after the US general election in early November, despite urging lawmakers to strike a deal as soon as possible only days earlier.

Stocks were rising early in the session after the president called for aid to airlines and other stimulus measures overnight.

However, it remained to be clear as to whether or not Trump was dialling back his move to halt stimulus talks with Democratic Party lawmakers.