City morning headlines: Zurich mulls bid for RSA as Next surprises by raising forecast
Isn't this supposed to be the quiet season? That's certainly not the case this morning, as Zurich confirms it is considering a tilt at RSA.
Meanwhile there are updates from BP, ITV, Virgin Money and more and we will get the latest reading of UK economic growth at 09:30am.
Here's a look at those stories and what else is making headlines this morning:
These stories are breaking and may develop throughout the day. Keep checking the Standard's business pages for the latest:
RSA to fall into Swiss hands?
Switzerland's Zurich Insurance is weighing up a possible bid for Britain's RSA Insurance.
"Zurich Insurance notes the recent market speculation in relation to RSA Insurance Group and confirms that it is evaluating a possible offer for RSA," it said in a statement.
The potential deal would be the latest example of industry consolidation at a time when insurers are facing tougher regulations.
Growth 'speeds up'
At 09:30am figures showing economic growth in the UK will be released.
Economists are forecasting a near doubling of the pace of growth to 0.7% between April and June.
Such a result will likely fuel speculation that an interest rate raise could be coming soon.
Chinese stocks down again
Shanghai shares were down 1% at lunchtime as yesterday’s rout calms down.
The central bank has a plan to inject £5.2 billion into financial markets, as the regulator warns short-sellers again to address the issue.
Companies news highlights:
Virgin Money's first half profits are up 37% to £81.8 million driven by much higher mortgage lending.
There's shock as Next ups its full year profit guidance by some £15 million to the £825 million - now the mid point of its guided range - on higher sales thanks to good weather.
ITV profits are up 25% to a better-than-expected £391 million but it does not change its outlook for the year.
BP makes net income of $1.3 billion in the second quarter, lower than forecasts, after taking a $9.8 billion hit for the Deepwater Horizon disaster.
GKN buys Fokker for £499 million.
Tullett Prebon is back in growth after its new boss's cost cutting efforts, with profits up 20% at £60.6 million.
Shawbrook Bank almost doubles its profits to £34.8 million.
Dominos Pizza sales rise 14% and profits jump 30%, with more than half of its sales coming from its apps.
