Admiral raises interim dividend, SSE responds to CMA findings
London open
The FTSE 100 is expected to open eight points higher on Wednesday, having closed up 0.4% on Tuesday at 7,161.04.
Stocks to watch
Admiral Group shareholders are set to cash in as the motor insurer on Wednesday paid an increased interim dividend and special payout after the sale of its Penguin Portals business. The Board has declared an interim dividend of 115p a share, made up of a normal dividend of 87.9p and special dividend of 27.1p, up 63% year on year. It also declared a further special dividend of 46p as part of the phased return of proceeds from the Penguin Portals comparison businesses.
SSE responded to the provisional determinations of the Competition and Markets Authority (CMA) on Wednesday, of its appeal against some elements of Ofgem’s RIIO-T2 price control settlement. The company noted that the CMA had upheld appeals against the assumed 'Outperformance Wedge', and for changes to the Licence Modification Process, but did not uphold appeals on the “flawed” Cost of Equity, or changes to how Transmission Network Use of System Charges were recovered.
Newspaper round-up
The new low-cost long-haul Norwegian airline Norse Atlantic Airways has announced plans to fly between Europe and the US from early 2022, as it aims to fill the gap in budget transatlantic air travel left by Norwegian’s departure from long-haul routes. Norse, which was formed in March by Norwegian airline industry veterans, will initially fly from Oslo, London and Paris to New York, Los Angeles and Fort Lauderdale. - Guardian
The government is coming under pressure to intervene amid concerns that its Covid testing regime for travellers is close to collapse, with thousands failing to be properly tested on their return. As photos posted online showed drop-off boxes run by Randox, the UK’s largest PCR testing provider, overflowing with unprocessed swabs, growing numbers of returning holidaymakers are reporting that their test kits are failing to arrive, or are taking up to six days to process. - Guardian
A takeover auction for Vectura has been scrapped at the 11th hour after one of the drugmaker's suitors declared that it would not increase its bid. American private equity firm Carlyle declared that its 155p-a-share offer for Vectura is final on the eve of a five-day auction against rival bidder Philip Morris International (PMI), the tobacco titan behind Marlboro cigarettes. - Telegraph
Tesco has been criticised for a “shock” decision to leave a code that promotes fair treatment of small suppliers just before a stricter regime began. It has quit the government-backed Prompt Payment Code after deciding that it could not adhere to a tightening of the code’s terms designed to speed up payment to small businesses. - The Times
NortonLifeLock confirmed last night that the American cybersecurity company would buy Avast in a deal that values its London-listed British rival at up to $8.6 billion. In a statement the two companies said that shareholders in the Prague-based FTSE 100 group would receive a combination of cash and newly issued shares in Norton, with alternative options available. - The Times
US close
Wall Street closed mixed again on Tuesday, after a rise in new cases of Covid-19 cases knocked both the Dow Jones Industrial Average and the S&P 500 off their all-time highs in the previous session.
At the close, the Dow Jones Industrial Average was up 0.46% at 35,264.67 and the S&P 500 added 0.1% to 4,436.75, while the Nasdaq Composite was 0.49% lower at 14,788.09.
The Dow closed 162.82 94 points higher on Tuesday, reversing some of the losses recorded in the previous session amid concerns about a resurgence in new coronavirus cases.
Tuesday's primary focus was on Washington, with news that the Senate could pass a $1.0trn bipartisan infrastructure bill by the end of the day.
The plan, which includes $550.0bn in new spending on transportation and broadband, would give the US economy a boost as peak growth slows as the nation reopens from the Covid-19 pandemic.