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Standard Life nears £250 million India deal: Standard Life is on the cusp of a £250 million deal in India that would see it cash in on some of the first economic reforms by Narendra Modi, the recently elected Prime Minister.

Carillion prepares ‘bear hug’ siege on Balfour Beatty: Carillion is to step up its pursuit of weakened rival Balfour Beatty with a “bear hug” attack as it races to create a £14 billion construction and support services giant.

British engineering group WS Atkins is going head-to-head against its Canadian rival WSP for the $1bn business responsible for the break down of merger talks between Balfour Beatty and Carillion. The two trade rivals are understood to be competing with two private equity firms to take control of Parsons Brinckerhoff, Balfour Beatty’s US consultancy arm. The division, which Balfour bought in 2009, is at the centre of the public fall-out between the UK’s biggest construction company and its would-be merger partner Carillion. The bidding process, being marshalled by Goldman Sachs, is at a second-round stage, with sources suggesting one of the two trade buyers is more likely to win out rather than one of the financial suitors.

Hold British American Tobacco for 4.4% dividend: British American Tobacco’s first half profits were hit by the strength of the pound but shareholders should stay focused on the long-term performance instead of being sidetracked by fluctuations in global currency markets. Europe’s largest tobacco group is focusing on its core global brands of Rothmans, Dunhill, Lucky Strike and Pall Mall and has been able to increase prices despite the subdued market backdrop. The cigarette group is using its strongest brands to expand in emerging markets, where cigarette volume was up by 5.7% during the first half. The company said it was taking market share in Asia-Pacific, Brazil and South Africa where sales of Dunhill were up 4.9%, and this offset declines of the Kent brand in Russia and Romania. The interim dividend was increased 6% to 47.5p and the shares go ex-dividend on August 20 with a payout on September 30. The prospective yield is 4.1%, rising to 4.4% next year. The pricing power that tobacco companies have is exceptional because people are addicted to their product and emerging economies are taking up some of the slack from Western markets where volumes are falling the fastest. These companies continue to be cash-generating machines that are ideal for income seekers, as long as they put the ethics of their investment to one side. Trading on a 2014 earnings multiple of 16.8 falling to 15.5, the rating remains hold. British American Tobacco at £35.23 -44p Questor Says ‘Hold’.

Merlin Entertainments warns unrest will hit Thai earnings: Political unrest in Thailand damaged Merlin Entertainments’ two Bangkok attractions and will suppress revenues for the rest of the year, the theme park operator said.

Shell has mothballed a multibillion-dollar shale gas joint venture in eastern Ukraine amid the escalating conflict with Russia. The Anglo-Dutch oil group said that the project, to drill for shale gas in almost 8,000 sq km near the site of the downed Malaysian airliner, was on hold. Analysts had expected the company to invest up to $10 billion after signing an agreement with the Ukrainian government in September in what would have been one of the largest foreign investments in the country. - The Times

TSB Banking Group ostensibly appears to be thriving outside the Lloyds stable. The recently privatised lender has reported a 163.9pc jump in first half pre-tax profits to £128.5m. However, as ever in the peculiar world of bank accounting, TSB has said the statutory figure is of "limited value" and instead investors should focus on the underlying figure of £78.6m, a 17pc drop. The bank says the results were hit by £62m of costs relating to the loss of economies of scale with Lloyds.

Shares of oil major Royal Dutch Shell jumped after it smashed analysts' estimates with its second-quarter profits. Shell, which has a market cap of around £156bn at current prices, said that earnings on a current cost of supplies basis surged to $5.1bn in the three months to 30 June, up from $2.4bn the year before, helped by higher liquids production volumes and prices.

AstraZeneca Plc (AZN.L) Announced, in its interim results for the six months ended 30 June 2014, that its reported revenue stood at $6,454 million, compared to $6,232 million in the preceding period. Operating profit stood at $1,109 million, compared to $1,200 million. Profit after tax was $797 million compared to $831 million. The companys diluted earnings per $0.25 ordinary share was $0.63, compared to $0.66 per share.

Countrywide Plc (CWD.L) Announced, in its interim results for the six months ended 30 June 2014, that its reported total revenue for the period came in at £334.5 million, compared to £258.9 million in the same period in the preceding year. The operating profit came in at £41.2 million, compared to £12.9 million. Profit after tax was £33.3 million, from £0.1 million. Diluted earnings per share stood at 14.58p, compared to a loss 0.07p per share.

it of the vapers: Strong sterling is the immediate challenge for British American Tobacco, whose interim operating profits slipped 12% to £2.46 billion. The long-term battle remains reputational, as regulation of cancer sticks intensifies. Demonstrating admirable chutzpah, Bats is seeking a product endorsement from a Department of Health agency. This prompts thoughts of old adverts urging Edwardians to smoke Dr Crippen’s Patent Asthma Mix For Healthier Lungs. But the multinational, helmed with sardonic brio by Nicandro Durante, wants a fillip for electronic cigs rather than the combustible sort. Confirmation that vaping is safer than smoking could encourage doctors to prescribe the devices, giving a small but useful fillip to sales. Big tobacco is probably more than a little afraid of the devices. The business that can patent an ecigarette as satisfying as a regular fag will have a category killer that could also hollow out mature cigarette markets. The old game of combating sales declines with marketing would be over for tobacco giants. For the moment it continues with BAT resisting U.K. government plans for plain packaging. A KPMG study found sales of smuggled packs that were branded but untaxed rose from 11.8 to 13.9% of the market in Australia after a similar reform. We may surmise a similar increase in the U.K. would reduce the tax take by £210 million yearly. However, tobacco-funded research has a poor record.

Moneysupermarket plans £17 million channel expansion: Moneysupermarket.com is to invest £17 million in upgrading its computer and data systems as the price comparison website reported a strong increase in revenues and profits for the first half.

Natural gas group BG Group lifted its interim by a tenth after a strong second quarter led to a 9% increase in earnings per share (EPS) in the first half. So-called 'business performance' EPS, which excludes disposals, certain re-measurements, impairments and other exceptionals, totalled 35.5 cents in the second quarter, up 22% year-on-year. This was a strong turnaround from the 3% decline registered in the first quarter and helped first-half business performance EPS improve by 9% to 69.3 cents.

Construction group Balfour Beatty has called off its planned merger with rival Carillion after Carillion said it would only press ahead with the deal if Balfour ditched plans to sell its Parsons Brinckerhoff US engineering division.

In our view, further management change after the arrival of a new CFO is not imminent. However, continued uncertainty around management could unlock strategic value. We continue to believe that Standard Chartered has a unique international banking franchise in [the emerging markets], which has strategic attractions if trading at a discount to peers. JPMorgan, house broker to Standard Chartered, did not think the bank's under pressure boss Peter Sands would leave.

Currency headwinds blew earnings per share 12% lower at British American Tobacco in the first half of the year, although underlying profits improved if exchange rates were held steady. Group revenue was up 3% at constant rates of exchange to £7.78bn, but down by 10% to £6.80bn at the reported level due to the adverse exchange rate movements.

New clients boost St. James’s Place as it posts record funds under management for first half of year: U.K. wealth Manager St. James’s Place bucked a patchy investment environment to post record funds under management in the first half of the year, boosted by new client inflows.

Petra Diamonds beats production targets: Petra Diamonds said that gemstone production was ahead of expectations in a full year trading update. Questor retains a positive outlook on shares in the South African miner as it ramps up production and aims to pay a dividend within two years. Petra reported production up 17% to 3.1 million carats in the year ended June 30, ahead of market expectations of 3 million carats. Management reiterated their long-term target of 5 million carats for the year ended June 2019. “Petra has experienced a firmer diamond market during the second half of 2014 and the outlook remains positive due to constrained supply and a firm U.S. market, as well as continued growth in emerging markets,” said Johan Dippenaar, Chief Executive. Petra is embarking on huge expansion projects at the Finsch, Cullinan and Koffiefontein mines to extend production for the foreseeable future. Total capital expenditure during the year increased by 10% to $210 million (£123 million) and net debt increased to $125.6 million, up from about $121 million at the same stage last year. As spending on mine infrastructure goes up and the debts rise, this greatly increases risks for investors. However, the discovery of a 122.5 carat blue diamond at Cullinan in June this year could improve the cash position. Mr Dippenaar called the diamond a “once in a lifetime” find, and analysts from broker Sanlam have provided a rough estimate of $35 million. The diamond is due to be sold in within the next 12 months. Petra Diamonds at 216.6p+5.6p. Questor Says ‘Buy’.

Raymond Mould returns to build portfolio of U.K. rented homes: Veteran property entrepreneur Raymond Mould is to launch a company that will invest in privately rented homes, his first step back into the market since he sold his previous company, London & Stamford.

The cost of renting a home in London is now double that in the rest of the UK, a new survey has found, pushing the capital "beyond the boundary" of what is affordable as wages struggle to keep up with rent rises.