10th Sep 2018 07:38
LONDON (Alliance News) - Stock prices in London are seen opening higher ahead of UK industrial and manufacturing production data at 0930 BST, while Associated British Foods maintained its full year guidance due to a strong performance from its Primark fashion chain.IG futures indicate the FTSE 100 index is to open 15.20 points higher at 7,292.90. The blue chip index closed down 0.6% at 7,277.70 on Friday. In early UK corporate news, Associated British Foods said its full year outlook is unchanged with progress expected in adjusted operating profit and adjusted earnings per share, despite lower sugar prices in the EU. The Primark clothing chain owner said it expects to incur a GBP20 million loss to due foreign exchange movements, with two thirds of the group's operating profit earned outside the UK.The company expects sales at Primark to be 5.5% ahead of last year at constant currency driven by increased selling space offset by a 2% decline in like-for-like sales. At actual exchange rates sales are expected to be 6% ahead. In the core UK, sales at Primark are expected to be 6% ahead of last year, with clothing market share increased significantly. UK like-for-like sales growth for the full year is expected to be 1.5% driven by a strong first half and a second half performance in line with an exceptionally strong second half last year, the company added.However, AB Foods also said its Sugar unit's revenue and adjusted operating profit is expected to be down from last year due to significantly lower EU prices adversely affecting its UK and Spanish businesses. "We have announced our proposal to shut down operations at the Vivergo bioethanol plant in Hull. The current market conditions, particularly high wheat costs and low bioethanol prices, have made the operation even more uneconomic and we do not see these conditions improving for the foreseeable future. An exceptional charge will be taken this financial year," the company added. RELX Group said it has completed the simplification of its corporate structure from its previous dual parent company structure and has now been simplified to a single parent company - RELX PLC. Trading in new RELX PLC shares will start Monday on the London Stock Exchange in London, Euronext in Amsterdam and New York Stock Exchange in New York. RELX now has 2.0 billion shares in issue following the restructure. The pound was slightly lower against the dollar quoted at USD1.2912 compared to USD1.2949 at the London equities close Friday. Bank of England policymakers are set to sit tight on interest rates on Thursday after last month's milestone hike and amid a mixed performance across the economy.The Monetary Policy Committee is expected to vote for no-change, having increased rates to the highest level in nearly a decade last month - to 0.75% from 0.5%.Governor Mark Carney said in August that rates would need to rise further to bring inflation back to the 2% target over the next few years, though he stressed hikes would be "limited" and "gradual".Elsewhere, a no-deal Brexit would be catastrophic for businesses and company bosses were left frustrated by Tory infighting, the head of Confederation of British Industry said.Carolyn Fairbairn said the lack of a clear Brexit plan meant firms were having to prepare for a no-deal outcome but tens of thousands of companies had "no systems in place" to cope with a World Trade Organisation approach.Fairbairn said the view of CBI members was "frustration bordering on despair" at the "soap opera" in Westminster.In the US on Friday, Wall Street ended broadly lower, with the Dow Jones Industrial Average down 0.3%, S&P 500 down 0.2% and Nasdaq Composite flat.The US will still have to evaluate public comments before imposing a fresh wave of tariffs on some USD200 billion worth of Chinese goods, a top economic aide to President Donald Trump said Friday.Larry Kudlow also said there could "maybe" be a trade deal reached with Canada, but disagreements over dairy supply management and subsidies remained a hindrance.Trump himself warned he could impose tariffs on some USD200 billion worth of Chinese goods "very soon" but added that Beijing could still take steps to avert the process.The Japanese Nikkei 225 index closed up 0.3%. In China, the Shanghai Composite is down 0.9%, while the Hang Seng index in Hong Kong is down 1.2%.Consumer prices in China were up 2.3% on year in August, the National Bureau of Statistics said.This exceeded expectations for 2.1%, which would have been unchanged from the July reading. The bureau also said that producer prices jumped an annual 4.1%. That also topped forecasts for 4.0% and was down from 4.6% in the previous month.Japan's gross domestic product climbed 3.0% on year in the second quarter of 2018, the Cabinet Office said.That beat forecasts for 2.6% and was up from the previous reading of 1.9%. On an annualized seasonally adjusted basis, GDP added 0.7% - unchanged and in line with expectations.The GDP deflator was up 0.1% on year - also unchanged and matching forecasts.Related Shares:
RelxAB Foods