Must read: FTSE 100, Novo Nordisk, Metro Bank

GLOBAL MARKETS 

The FTSE 100 is trading slightly higher, although earnings reports are stemming an even greater gain for the index. Glencore (LSE:GLEN) is down around 3.5% after the miner reported a drop in first-half profits and Legal & General Group (LSE:LGEN) is down a similar percentage, disappointing investors despite an earnings beat. Elsewhere in the UK, shares in Metro Bank Holdings (LSE:MTRO) surged at the open but have since given back initial gains after earnings.

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Novo Nordisk AS ADR (NYSE:NVO) reported second-quarter sales, which topped expectations and announced plans to cut costs. The Danish pharma giant behind wonder drugs Ozempic and Wegovy has had a torrid time lately with shares sliding amid stiff competition from the likes of Eli Lilly and Co (NYSE:LLY). The company warned on profits last week and announced a new CEO. 

US futures are pointing higher following a decline for markets on Tuesday after July’s ISM data revealed a slowdown in the US services sector. Meanwhile, President Donald Trump said new tariffs on chips and pharma could come in the next week. Markets will be watching out today for results from The Walt Disney Co (NYSE:DIS), Uber Technologies Inc (NYSE:UBER) and Airbnb Inc Ordinary Shares - Class A (NASDAQ:ABNB).

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In commodities, oil prices are trading higher, rebounding from five-month lows after Trump threatened tariffs on India over its buying of Russian oil.

METRO BANK 

Metro Bank reported underlying profit before tax in the first half of £45 million, more than trebling versus the previous half year on revenues which grew by 22% year-on-year to £286 million. Operating costs are also moving in the right direction, falling by 8% year-on-year. 

Metro has been carrying out some major strategic changes including the sale of a portfolio of residential mortgages to NatWest last year. Metro Bank has been trying to focus less on the high street retail business, and more on the corporate, commercial and SME lending where it enjoyed a record £1 billion of new business. This is Metro’s second consecutive strong half-year performance after it returned to profitability in February. 

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Aside from the fundamentals, the lender has also been subject to takeover speculation lately – according to the FT it was approached by private equity firm Pollen Street Capital, which provided a boost to Metro’s share price. 

Metro Bank’s almost decade-long stint as a public company hasn’t been easy with a struggling share price until the lows last year. It was saved in a rescue deal by a Colombian billionaire, was forced to cut costs, faced challenges raising capital, and dealt with a major accounting error. However, the past year and a half has seen some more positive price action come into play.

Shares initially surged at the open but have since pared gains.