BMW (ETR: BMW) has extended a recall of 312,000 cars in the UK, which have been found to stall while being driven. The group initially recalled 36,410 last year over safety issues but has extended it after the BBC’s Watchdog identified similar issues in cars that were not originally covered. “BMW is expanding the existing B+ battery connector UK recall. This relates to predecessor generations of the 1 Series, 3 Series, Z4 and X1 built between March 2007 and September 2011,” said a spokesperson. “BMW will be contacting all affected customers by post advising them of how they can book their car in to have the work carried out. We will commence contacting affected customers in the next three weeks.” An investigation by the BBC Watchdog found that the fault could affect a wider number of cars. The initial recall was launched following the death of Narayan Gurung, who died on Christmas day in 2016 after he crashed into a tree to avoid a broken-down BMW in Surrey. “We now recognise that there may have been some cases of similar power supply issues in vehicles not covered by the original recall,” said BMW, in response to the investigation. “In order to reassure customers with concerns about the safety of their vehicles, we are voluntarily extending the recall.” “We are therefore announcing today that we will take the proactive step of expanding the existing UK recall to cover all vehicles potentially affected by the power supply issue.” The car manufacturer has recalled up to 500,000 cars in the US just in 2013, as well as in Australia, South Africa and Canada.    

Healthcare technology group Renishaw (LON:RSW) saw shares rise nearly 7 percent at market open on Wednesday, after reporting a positive trading update for the first nine months of the year. Revenue from continuing operations for the first three quarters of the current financial year came in at £429.9 million, up 11.9 percent on the same period last year. Underlying growth at constant exchange rates stood at 16.4 percent, with the group seeing strong growth in all regions. Revenue in Renishaw’s healthcare business increased by 5.9 percent at constant exchange rates, hitting £23.3 million. The group’s overall balance sheet remains strong, with net cash balances of £91.2 million as at 31st March 2018. Adjusted profit before tax from continuing operations rose for the first three quarters to £97.6 million, with a restated adjusted profit before tax of £70.1 million for the corresponding period last year. Despite giving a nod to the current uncertain economic conditions, the Board said it remains confident in the future prospects of the group. Full year revenue is likely to be between £575 million and £605 million and adjusted profit before tax between £127 million and £147 million. Renishaw shares are currently trading up 6.669 percent at 5,070.00 (0836GMT).

Catering giant Compass (LON:CPG) saw shares sink over 2 percent at market open, after rising costs led to a 5 percent drop in profit in the first half of the year. 2018 first half pre-tax profit fell 4.7 percent to £792 million, with revenue down 0.8 percent to £11.4 billion. Its operating margin fell 10 basis points to 7.5, with operating profit also falling 2.7 percent to £853 million. However, the group continued to perform strongly in the US, with constant currency revenue in the region rising 9.3 percent. ‘North America continues to make excellent progress with broad-based growth across sectors. Performance in Europe was mixed, with good growth in the UK, offset by subdued trading in Continental Europe,’ the firm said. Sales in Europe increased by 0.5 percent, driven by good growth in the UK, with revenue in the rest of world growing by 3.4 percent. Compass declared an interim dividend a share of 12.3 pence, up by 9.8 percent from the prior year. The company also confirmed its first quarter guidance, in which it said that it would be above the midpoint of its organic-growth target range of between 4 and 6 percent in the full year. Shares in Compass group are currently trading down on the news, down 2.59 percent at 1,542.00 (0810GMT).

The owner of Yorkshire Bank and Clydesdale Bank has confirmed that it is in talks with Virgin Money (LON: VM) for a potential merger. The merger between the banks would create the largest “challenger bank” and provide services for six million personal and business customers. In a statement to the London Stock Exchange, Virgin Money confirmed a “preliminary and conditional proposal” from CYBG (LON: CYBG) that is worth approximately £1.6 billion. If the deal goes ahead, Virgin Money will own 36.5 percent of the group. CYGB has said that the proposal “provides the Virgin Money shareholders with an attractive up-front premium and the opportunity to participate in the continuing progress of the combined group”. “CYBG recognises the strength and appeal of the Virgin Money brand. Our proposal would ensure that the Virgin Money brand would play a significant role in the combined group, subject to reaching agreement with Virgin Group,” “The combination would create the UK’s leading challenger bank offering both personal and SME customers a genuine alternative to the large incumbent banks”. Virgin Money is reviewing the proposal and said there is no guarantee that a formal offer will be made. Following the news, Virgin Money shares increased by 7.7 percent to 336.6p. CYGB shares rose one percent to 321.4p. CYBG will have to make a formal offer or withdraw its offer by June 4. Thomas Moore, investment director for UK equities at Aberdeen Standard Investments, told the BBC’s Today programme: “The big mainstream banks have got huge cost advantages and it is important that there is strong competition for customers and this kind of deal will help ensure that.” “If you have too many small lenders… without the scale economies that the likes of Lloyds and RBS has, then you’ll find that the competitive environment is too tilted in favour of those big mainstream banks.”