Three things you need to know in the financial markets this morning from investment writer, Tony Cross
Morrisons
Interim results from Morrisons are out this morning, with a 9% improvement in underlying profits before tax being one point worthy of note. However the world cup continues to impact earnings – this time in a good way – with Q2 sales improving 6.3%, making for the best quarterly uptick in almost a decade.
The company’s successful distribution deal with McColl’s also helped bolster numbers here.
The company remains very much in turn-around mode, but there’s certainly a lot to like in these numbers, especially given the cut-throat nature of the market.
Legal and General / IAG
Legal and General has this morning announced the completion of the UK’s largest ever bulk annuity buy, taking over some £4.4 billion worth of pension liabilities from British Airways.
By all accounts however, this is as important for BA’s owner IAG as it is for L&G. It provides IAG investors with certainty that the airline’s financial obligations to former members of staff are now someone else’s liability, allowing IAG to focus on its core business of flying planes.
Biffa
It’s a quiet day so we’re rounding off with a half year update from waste management company, Biffa. There are no surprises being reported here and the numbers are in line with expectations.
Underperformance in the recycled paper market has been something of a concern for the company, but there are evidently signs of price recovery here. If everything else remains stable, this could be one element worth watching and could deliver a boost in due course.
