18th Mar 2019 11:54
LONDON (Alliance News) - The FTSE 100 climbed on Monday, taking heart from an upbeat session overnight in Asia and also boosted by a lower pound amid uncertainty over the next Brexit move by UK Prime Minister Theresa May.Miners were among the best blue-chip performers, while a big day in merger & acquisition news saw shares in Worldpay and Footasylum rise on the respective takeovers. Meanwhile, German lenders Commerzbank and Deutsche Bank both got share price boosts in Frankfurt as the two confirmed tie-up talks.The FTSE 100 index was 43.00 points higher, or 0.6%, at 7,271.28 Monday midday. The FTSE 250 was down 49.61 points, or 0.3%, at 19,441.42, while the AIM All-Share index was up 0.2% at 919.74.The Cboe UK 100 index was up 0.6% at 12,344.17. The Cboe UK 250 was down 0.3% at 17,431.98, and the Cboe UK Small Companies up 0.2% at 11,185.46."The FTSE has started the week on a positive note, taking its cue from Asia's close and the higher close on Wall Street Friday as optimism over the Sino-US trade talks infused the market with new vigour," commented Fiona Cincotta at City Index.Also supporting the overseas earnings-heavy FTSE 100 on Monday was a lower pound, quoted at USD1.3243 versus USD1.3297 late Friday. UK Prime Minister Theresa May's hopes of delivering Brexit could hinge on intensive efforts to persuade the Democratic Unionist Party to back the Withdrawal Agreement.The 10 DUP MPs are viewed by Downing Street as crucial, not just for the votes they provide but the influence their stance has on Conservative Eurosceptics concerned about the Irish backstop.The prime minister will not risk bringing her deal back to the Commons unless she is confident of avoiding a third humiliating defeat on the package.Negotiations with the DUP are expected to continue on Monday, although Downing Street said a formal meeting is not scheduled.In mainland Europe on Monday, the CAC 40 in Paris and the DAX 30 in Frankfurt were up 0.1% and down 0.1% respectively at midday.In Germany, lenders Commerzbank and Deutsche Bank were up 6.7% and 4.0% respectively on confirmation of merger talks. "Commerzbank and Deutsche Bank have agreed today to start discussions with an open outcome on a potential merger," Commerzbank said.The German government, which appears to favour a deal, still owns a 15.5% stake in Commerzbank, acquired after the bank was bailed out following the financial crisis.Deutsche Bank said: "In light of arising opportunities, the management board of Deutsche Bank has decided to review strategic options. In doing so, the management board of Deutsche Bank is focused on improving the growth profile and profitability of the bank. There is no certainty that any transaction will occur."In this context we confirm that we are engaging in discussions with Commerzbank."In the US, stocks are pointed to a subdued start, with the S&P 500 and Nasdaq both seen flat but the Dow Jones Industrial Average called 0.3% lower. This comes as shares in Dow constituent Boeing traded 3.5% lower in the pre-market, Ethiopian Transport Minister Dagmawit Moges said that flight data from the Ethiopian Airlines disaster a week ago suggest "clear similarities" with a crash off Indonesia last October.Last Sunday the Ethiopian Airlines jet crashed after take-off from Addis Ababa, killing all 157 people on board.Both planes were Boeing 737 Max 8 aircraft. In both cases flight tracking data showed the aircraft's altitude had fluctuated sharply, as the planes seemed to experience erratic climbs and descents."Clear similarities were noted between Ethiopian Airlines Flight 302 and Indonesian Lion Air Flight 610, which would be the subject of further study during the investigation," Dagmawit said.In London, miners were among the gainers after Brazilian iron miner Vale announced an output cut. BHP Group and Rio Tinto were both 2.0% higher at midday. On Friday, Vale said it was made aware that a Brazilian court ordered it to halt production at another of its iron ore mines.Vale's Timbopeba mine in Minas Gerais state produces 12.8 million tons of iron ore per year, Vale said, adding that it will comply with the court decision.The move further reduced the Brazilian company's output capacity after a deadly dam burst at one of its mines in late January increased government scrutiny over its operations.Engine maker Rolls-Royce was up 1.1% after Morgan Stanley raised the stock to Overweight from Equal Weight. Providing a slight drag at the bottom of the index was Rightmove, down 1.4% after UBS cut the property portal to Neutral from Buy. Meanwhile, a UBS upgrade pushed oilfield services firm Hunting to the top of the FTSE 250, 6.5% higher after the Swiss bank raised its recommendation on the stock to Buy from Neutral. Domino's Pizza was up 4.0% after it "strongly refuted" an article in the Times on Saturday that said it has been misleading shareholders over its dispute with franchise owners.JD Sports shares were down 0.4% as it agreed to acquire trainer seller Footasylum for GBP90 million, or 82.5 pence per share. Shares Footasylum were up 74% to 81.00p. FTSE 250-listed sportswear retailer JD Sports said it expects the enlarged company to be able to take advantage of business opportunities which are not readily available to either JD Sports or Footasylum on a standalone basis.In other merger & acquisition news, Worldpay shares were up 9.0% to 8,075,00p as it agreed to be taken over by US financial services technology firm FIS.Under the terms of the merger, Worldpay shareholders will receive 0.9287 of a FIS share and USD11.0 in cash. FIS shareholders will own 53% of the combined group and Worldpay's the rest. The combination stock and cash value for Worldpay has an enterprise value of about USD43 billion. The deal includes Worldpay's debt, which FIS said it expects to refinance.The combined company is expected to generate about USD12.3 billion pro forma revenue in 2018. Payment processing firm Worldpay reported, in February, net revenue of USD3.93 billion for 2018.