Dixons Carphone reinstates dividend, Rio Tinto halts operations at Richards Bay

London open

The FTSE 100 is expected to open eight points lower on Wednesday, having closed up 0.21% at 7,087.55 on Tuesday.

Stocks to watch

Dixons Carphone reinstated its dividend as it swung back to profit on the back of a massive boost in online sales of electrical goods during Covid lockdowns. The company on Wednesday reported pre-tax profits of £33m compared to a £140m loss a year earlier. Group revenue rose 2% to £10.3bn, offset by Carphone Warehouse closures in March, but online electrical sales more than doubled to £4.7bn. A dividend of 3p a share was declared.

Rio Tinto has declared force majeure on customer contracts at Richards Bay Minerals (RBM) in South Africa, it said on Wednesday, due to an escalation in the security situation at the operations. The FTSE 100 miner said that had led to the decision to cease operations until the safety and security position improves. All mining and smelting operations at RBM were now halted until further notice, the board said, joining the Zulti South project, which had remained on full suspension since security and community issues in 2019.

Newspaper round-up

Boris Johnson’s government has been accused of rushing into post-Brexit trade deals with countries where workers’ rights are systematically violated or denied, including five out of the 10 worst offenders worldwide. Trade union leaders and Labour said the UK government was turning its back on workers around the world and neglecting its commitment to fundamental human and labour rights in the scramble to demonstrate the benefits of Brexit by striking free trade deals outside the EU. - Guardian

Almost two million UK bitcoin traders have been blocked from cashing in their cryptocurrency gains after trading hub Binance suspended the use of bank cards. The ban on card withdrawals leaves customers with no easy way of taking out their funds, and comes after Binance previously blocked transfers directly to a bank account. It follows a rare intervention by the Financial Conduct Authority (FCA), which has said the company cannot offer regulated finance services. - Telegraph

Google will crack down on scam advertisements following pressure from the FCA, and require all financial services to verify their identity with the City’s regulator before promoting on the platform. The online giant said the new measures would come into place from September 6, while advertisers must prove their authorisation by the FCA (Financial Conduct Authority) beforehand. - Telegraph

The 144 partners and senior executives at the private equity group behind itsu sushi and MotoGP racing are set to crystallise personal wealth of about £1.6 billion by floating their business. Bridgepoint, which was spun out of NatWest Bank 21 years ago, announced plans to seek a premium listing in London, where it is based, and raise £300 million in equity in a flotation expected to value the enlarged business at between £2 billion and £2.5 billion. - The Times

The cost of servicing Britain’s £2.2 trillion debt could rise to a postwar high if inflation is allowed to take off, the Bank for International Settlements has warned. Sounding the alert about the risk of a global surge in inflation, the Swiss-based institution known as the central bank for central banks said that the combination of households spending their lockdown savings and government stimulus plans could unlock a price spiral. - The Times

US close

Wall Street stocks were mostly flat at the end of trading on Tuesday after the Conference Board's consumer confidence index rose to its highest level since the beginning of the Covid-19 pandemic in June and several big-name US banks hiked their dividends.

At the close, the Dow Jones Industrial Average and S&P 500 were both up 0.03% at 34,929.29 and 4,291.80, while the Nasdaq Composite saw out the session 0.19% firmer at 14,528.33.

The Dow closed 9.02 points higher on Tuesday, doing little to reverse losses recorded in the previous session.

Bank stocks pushed the Dow into the green early on Tuesday after Morgan Stanley doubled its quarterly dividend and launched a $12.0bn buyback programme, while Wells Fargo will also double its dividend and Bank of America, Goldman Sachs and JPMorgan will increase theirs.

Boeing shares slipped despite United Airlines committing to purchasing 200 737 Max planes, while Facebook shares slipped after having picked up solid gains in the previous session on the back of a US judge's decision to dismiss an antitrust suit brought against the social media behemoth.