Below is a selection of the morning's key market news, earning reports & trending stories - see more here.

  • Despite saying earlier this year that profits might be reduced due to lower EU sugar prices Associated British Foods (ABF)  today announced it has seen strong performance this year.

    The company, which owns Primark, British Sugar and Patak’s, said that strong profit performance from Primary as well as its grocery, agriculture and ingredients sectors are expected to “more than offset” the adverse effect of lower EU sugar prices.

    ABF said: “The global supply of sugar has moved into surplus and the world market sugar price has reduced.

    "The EU sugar regime ended in October 2017, removing sales quotas and constraints on exports. 

    “As a result of substantially higher EU sugar production in 2017/18, through increased crop area and beet yields, EU prices have fallen faster and more significantly than expected and are now more closely related to these lower world market prices.”

    Read more here

  • In an RNS this morning, RPC Group (RPC)  confirmed that “preliminary discussion” are taking place regarding an offer for the company.

    RPC said it was in talks with both Apollo Global Management and Bain Capital, which “may or may not result in an offer”.

    The company said that Apollo and Bain were required to announce a firm intention to make an offer by 8th October.

    This confirmed weekend reports from Bloomberg that the packaging company was being looked at for a buyout.

    Read more here

  • The UK's July GDP figures are set for release at 9.30am this morning.

    The Office for National Statistics will release the figures, and analysts expect to see a 0.2% month-on-month increase, compared to 0.1% in the previous month.

    This would take the three month growth rate to 0.5%.

  • Sainsbury’s said the proposed merger with Asda could still be blocked by regulators.

    The supermarket’s chief executive Mike Coupe told the FT said there were scenarios where the deal could be difficult to complete.

    The Competition and Markets Authority could soon announce that it plans to proceed with an “in-depth probe of the transaction” the FT said.

    Read more here

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