22nd Jun 2015 07:28
LONDON (Alliance News) - Shares in Europe and Asia are strongly higher Monday on optimism that a deal finally will be struck over Greece's debt. In London, all but one FTSE 100 stock, Randgold Resources, is trading higher.
In Paris, the CAC 40 opened up 2.3%, while the DAX 30 in Frankfurt jumped 2.5%.
EU Commission President Jean-Claude Juncker has received new proposals from Greece that provide a "good basis" for a special summit of eurozone leaders on Monday, according to EU cabinet chief Martin Selmayr.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: up 1.2% at 6,787.89
FTSE 250: up 0.8% at 17,851.28
AIM ALL-SHARE: up 0.1% at 768.55
----------
Hang Seng: up 0.8% at 26,960.75
Nikkei 225: closed up 1.3% at 20,428.19
DJIA: closed down 0.6% at 18,015.95
S&P 500: closed down 0.5% at 2,109.99
----------
GBP: up at USD1.5895
EUR: up at USD1.1383
GOLD: down at USD1,196.30 per ounce
OIL (Brent): up at USD63.65 a barrel
(changes since end of previous GMT day)
----------
ECONOMICS AND GENERAL
----------
Monday's Key Economic Events still to come
(all times in BST)
13:30 US Chicago Fed National Activity Index
15:00 US Existing Home Sales
15:00 EU Consumer Confidence Preliminary
----------
EU Commission President Jean-Claude Juncker has received new proposals from Greece that provide a "good basis" for a special summit of eurozone leaders on Monday, EU cabinet chief Martin Selmayr said. The heads of the European Central Bank and the International Monetary Fund also have received the proposals for resolving the Greek debt crisis, Selmayr said. Selmayr, head of Juncker's cabinet, made the announcement on Twitter after a flurry of contacts Sunday involving the Greek government and international creditors.
----------
Denmark's centre-right liberal party leader Lars Lokke Rasmussen said he was giving up attempts to form a majority coalition government of four parties, and would instead focus on attempts to rule with a minority government. Rasmussen had begun what were expected to be tough negotiations on forming a new government on Saturday, after the opposition won close elections. Those talks had included three other centre-right parties - the Danish People's Party, the Conservatives and the Liberal Alliance. The parties, however, have great differences in their policies. The left-leaning prime minister Helle Thorning-Schmidt resigned on Friday after defeat in the election on Thursday.
----------
The Bank of Japan maintained its upbeat view on the economy saying the moderate recovery is expected to continue. In its monthly report, the BoJ said exports are expected to increase moderately, albeit with some fluctuations, mainly against the background of the recovery in overseas economies. Further, it said private consumption is set to remain resilient with the employment and income situation continuing to improve steadily. Housing investment is projected to pick up.
----------
Iran's parliament voted overwhelmingly to ban inspection of the country's military bases by investigators from the UN's nuclear watchdog, Iranian media reported. More than 93% of parliamentary members also voted to ban inspectors from the International Atomic Energy Agency from carrying out interviews with Iranian nuclear scientists. Iran and six world powers - Britain, China, France, Russia, the US and Germany - agreed on the outlines of a deal on Iran's nuclear programme in April, and are working towards its completion by the end of this month. It is unclear how the latest parliamentary vote in Tehran would affect such plans, which hinge on Iran curbing its nuclear activities and accepting intrusive inspections in return for the lifting of international economic sanctions.
----------
A Saudi-led air coalition on Saturday pounded positions of Iran-backed Houthi rebels in the Yemeni capital, Sana'a, a day after UN-brokered peace talks failed. Coalition warplanes mounted a series of strikes targeting a rebel-controlled air base in northern Sana'a near the city's main airport, local residents said. Plumes of smoke were seen billowing from the facility and other outposts of the Houthis in different areas of the rebel-controlled capital, the residents said.
----------
BROKER RATING CHANGES
---------
INVESTEC RAISES HSBC TO 'BUY' ('HOLD')
----------
NOMURA CUTS STANDARD LIFE TO 'REDUCE' ('NEUTRAL') - TARGET 460 (410) PENCE
----------
NOMURA INITIATES HARGREAVES LANSDOWN WITH 'NEUTRAL' - TARGET 1300 PENCE
----------
BARCLAYS RESUMES IMPERIAL TOBACCO WITH 'EQUAL WEIGHT' - TARGET 3400 PENCE
----------
BARCLAYS REINITIATES BRITISH AMERICAN TOBACCO WITH 'OVERWEIGHT' - TP 3950 PENCE
----------
COMPANIES - FTSE 100
----------
The UK government is set to be forced to request more time from Europe for The Royal Bank of Scotland Group to spin-off its Williams & Glyn challenger bank as the sale is facing problems, The Times reported. RBS is struggling to meet the timetable set out by the European Commission to separate and float the Williams & Glyn business by the end of next year, senior banking sources told the paper. Should the Treasury have to go back to Brussels, it would be the second time the bank has had to request more time to complete the disposal, having been granted a three-year extension last April which gave the bank until December 2016.
----------
Canadian investment giant Borealis Infrastructure is considering a GBP5 billion approach for Severn Trent, two years after the FTSE 100 water company rejected an earlier takeover attempt, The Sunday Times reported. The newspaper, citing "sources close to the situation", said it is understood that the two sides opened talks last month, and discussions are at an early stage with no certainty a deal. The Sunday Times noted that two years ago Severn Trent rejected a GBP22 a share bid from a consortium comprising Borealis; the Universities Superannuation Scheme; and the Kuwait Investment Office. Severn Trent shares closed Friday at GBP20.55.
----------
COMPANIES - FTSE 250
----------
Private healthcare provider Spire Healthcare Group said the major shareholder in South Africa-based private hospital group Mediclinic has acquired a 29.9% stake in the company for GBP432 million. The shareholder, Remgro, has acquired the stake in Spire at 360 pence per share. Spire shares closed at 320 pence on Friday and is trading up 9.4% at 350p at the open Monday. Mediclinic and Remgro have confirmed they have no intention to acquiring the rest of Spire.
----------
Allied Minds said its joint venture with US drug company Bristol-Myers Squibb Co has entered into a licensing deal with Harvard University. The US-focused science and technology development and commercialisation company, which is a FTSE 250 constituent, said its Allied-Bristol Life Sciences joint venture has entered into the deal with Harvard based on research and intellectual property developed by Professor Malcolm Whitman at the college's School of Dental Medicine.
----------
Infrastructure project investor John Laing Group said it has a strong pipeline of investments in place for the remainder of 2015 and said it is on track to hit its realisation targets as the group starts trading in the FTSE 250 index. John Laing, which was promoted to the FTSE 250 from Monday, said it has made total investment commitments of GBP72 million in the first half of 2015 so far. It has made GBP42 million in realisations in the year to date and is on track to hit its full-year target of GBP100 million.
----------
US financial services company Fidelity reaffirmed its intentions regarding its takeover bid for telecommunications and IT services company Colt Group SA, insisting it will not raise the price that it offered on Friday. Fidelity, which has bid to acquire the remainder of Colt via its FMR and FIL businesses, said its offer price of 190 pence per share for Colt, valuing the company at around GBP1.72 billion, is final. It said the offer will not be increased "under any circumstances".
----------
Tullow Oil said it has reached a capital gains tax settlement with the government of Uganda with regards to the farm-down deals it completed with CNOOC and Total SA in 2012. Tullow said it has reached an agreement with the Ugandan government and the Uganda Revenue Authority to pay USD250 million in full and final settlement on its capital gains tax liability. The amount includes USD142 million Tullow paid in 2012 and USD108 million which will be paid in three instalments. The first of the instalments has already been paid, with the rest to be paid in 2016 and 2017.
----------
Bwin.Party Digital Entertainment said it has agreed to sell its entire interest in World Poker Tour to Ourgame International Holdings for USD35 million in cash. Ourgame is a Hong Kong-based social gaming company, Bwin.Party said.
----------
COMPANIES - LONDON MAIN MARKET AND AIM
----------
Savannah Resources said it has established a joint venture with FTSE 100-listed mining giant Rio Tinto, which will result in both companies combining their heavy mineral sands projects in Mozambique. Under the deal, Savannah's Mutamba, Dongane and Jangamo prospects, together called the Jangamo project, will be combined with Rio Tinto's Chilubane project. Those prospects border one another and Savannah will operate the joint venture and have the ability to earn up to a 51% stake in the newly combined project by conducting the scoping, pre-feasibility and feasibility studies.
----------
Caledonia Investments said it has agreed to acquire the majority of money manager Seven Investment Management for up to GBP77 million. In a statement, the self-managed investment trust said it will invest alongside Seven Investment Management's management team, which is paying GBP5.0 million for the remainder of the company. Seven Investment Management is currently owned by Allied Zurich Holdings and Aegon UK through 7IM Holdings.
----------
Avon Rubber said it has struck a USD5.1 million deal to acquire Hudstar Systems Inc in cash. Hudstar is a Florida-based designer and manufacturer of electronic control systems used in powered and supplied air respiratory systems, primarily for Avon's Deltair product.
----------
Afren late Friday launched its proposals to restructure the company's debt, including an open offer of shares and the recovery of USD148 million by restructuring its outstanding loan notes, urging shareholders to vote in favour to get through a "difficult period".
----------
London-listed private equity fund JZ Capital Partners said its net asset value rose in the three months to the end of May, its financial first quarter, as it invested USD68.4 million over the period. JZ said its net asset value at the end of May was USD695 million, up from USD655 million a year earlier, a 6.1% rise. Its total net asset value return for the year to the end of May, including dividend payments, was 9.2%, it said.
----------
Formula E, the electric motor sport series which will race in Battersea Park in London on June 27 and 28, is considering a stock market flotation once it reaches break even, its chief executive, Alejandro Agag, told The Independent newspaper. Current investors in the Hong Kong-based parent company of the championship include broadcaster Discovery Communications and John Malone’s Liberty Global cable network, according to The Independent. The second-largest stake after that pair is held by Spanish real estate developer Enrique Banuelos, who provided the initial capital for Agag to launch the series last year.
----------
COMPANIES - INTERNATIONAL
----------
French conglomerate Bouygues confirmed that it has received an unsolicited offer from the Altice group to start negotiations with a view to buying Bouygues Telecom. Bouygues said that its board will meet on Tuesday to review Altice's letter. No negotiations are in progress. On Sunday, the Wall Street Journal reported that European telecommunications company Altice SA offered to buy French mobile operator Bouygues Telecom for about 10 billion euros or USD11.4 billion.
----------
Health insurer Cigna on Sunday rejected bigger rival Anthem's USD54 billion takeover offer, stating that the proposal is inadequate and not in the best interests of its shareholders. Cigna said it was concerned over Anthem's lack of growth strategy, fundamental risks and other issues facing the company. On Saturday, Anthem offered a non-binding proposal to buy Cigna for USD184 per share in cash and stock, valuing the company at USD53.8 billion on an enterprise basis.
----------
Energy Transfer Equity confirmed that it has made a proposal to merge with The Williams Companies Inc in an all-equity transaction valued at USD53.1 billion, including the assumption of debt and other liabilities. ETE would acquire all outstanding common stock of Williams at an implied price of USD64 per Williams share, which represents a 32.4% premium to the Williams common share closing price as of June 19. The transaction would create the world's largest energy infrastructure group and the third largest energy franchise in North America.
----------
General Electric said it reached tentative agreements on new labour contracts with national leaders of its two largest unions, the IUE-CWA and the United Electrical, Radio and Machine Workers of America, after three weeks of negotiations. The agreements are now subject to review by union negotiating committees and ratification by union members.
----------
Monday's Scheduled AGMs/EGMs
Synairgen
Tarsus Group
Inspired Capital
Utima Networks
NetScientific
----------
By Tom Waite; [email protected]; @thomaslwaite
Copyright 2015 Alliance News Limited. All Rights Reserved.