15th Apr 2019 07:46
LONDON (Alliance News) - Stock prices in London are seen opening marginally higher on Monday amid optimism over the trade talks between Beijing and Washington.In company news, IWG divested its Japanese business, Brewin Dophin responded to acquisition speculation and Kier announced a strategic review to be undertaken by new chief executive.IG futures indicate the FTSE 100 index is to open 7.14 points higher at 7,444.20. The blue chip index closed up 0.3%, or 19.11 points at 7,437.06 Friday.On the trade front, US Treasury Secretary Steven Mnuchin said on Saturday a US-China trade agreement would go "way beyond" previous efforts to open China's markets to US companies.Mnuchin told the media on the sidelines of the spring meetings of the International Monetary Fund and World Bank that he believed Washington and Beijing are getting close to the final round of concluding issues.Office provider IWG said it entered into a strategic partnership with TKP Corp in Japan. IWG will divest its Japanese operations to TKP and the companies have agreed an exclusive master franchise agreement for the country.TKP, which is listed on the Tokyo Stock Exchange, provides conference rooms and banquet halls for rental.IWG is to receive GBP320 million from TKP for its Regus Japan Holdings unit, which comprises of 130 flexible co-work centres.In addition, IWG and TKP have also entered into a long term master franchise agreement which provides TKP with exclusive rights to the use of the Regus, Spaces and OpenOffice brands in Japan. TKP will continue to operate the Japanese centres under IWG's brands and operating platform.IWG said proceeds from the sale will be used for "general corporate purposes". The company previously walked away from takeover talks with private equity firms Starwood Capital, TDR Capital and Terra Firma last year. "The transaction realises an attractive valuation for IWG's shareholders and re-affirms our strategy of capital efficient growth in IWG's global network with an increased emphasis on partnerships. We look forward to working with TKP for many years to continue our network development in Japan," IWG Chief Executive Mark Dixon said. Wealth manager Brewin Dolphin confirmed press speculation regarding its interest in acquiring Anglo-South African bank Investec's wealth management business in the Republic of Ireland. Brewin Dolphin said it is in exclusive ongoing discussions with Investec but added that "there can be no certainty that a transaction will be agreed". Over the weekend, the Sunday Times reported Brewin Dolphin was competing with Irish lender Allied Irish Banks to buy Investec's Irish private client stockbroking business for up to EUR60 million.Anglo-Australian miner Rio Tinto said it has committed USD302 million of additional funding to advance its Resolution Copper project in the US state of Arizona. The investment will fund additional drilling, ore-body studies, infrastructure improvements and permitting activities as the miner looks to progress the project to the final stage of the project's permitting phase.Rio Tinto Chief Executive Jean-Sebastien Jacques said: "Resolution is one of the most significant undeveloped copper deposits in the world and this additional funding demonstrates Rio Tinto's commitment to bring the mine into production. The comprehensive permitting process is well underway with the Environmental Impact Study on track to be completed next year according to the regulators schedule."Construction and property company Kier Group said Andrew Davies has taken up the role of CEO and that Philip Cox has resumed the role of non-executive chair. Davies was appointed in March and was CEO of construction, developments and property services company Wates Group from 2014 to 2018.Kier said Davies will lead a strategic review in a bid to simplify Kier's operations to create a more "focused group". The review will also consider ways to enhance allocation of capital resources across the group and additional steps to improve cash generation and reduce leverage. Online trading company IG Group said Chairman Andy Green is to step down at the company's annual general meeting in September. Senior Independent Director Malcolm Le May will lead the Nominations Committee in the search Green's successor, the company added. In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, S&P 500 up 0.7% and Nasdaq Composite up 0.5%.The Japanese Nikkei 225 index closed up 1.4%. In China, the Shanghai Composite is up 0.4%, while the Hang Seng index in Hong Kong is up 0.3%.Asian markets were higher as strong Chinese exports data released last week helped ease investor worries over slowing global growth."In an Easter shortened week Asia markets have got off to a decent start taking their cues from easing concerns about Chinese data, and a strong end to the week for US markets. This looks set to translate into a positive start for European stocks this morning," said CMC Markets analyst Michael Hewson.The pound was quoted at USD1.3089 Monday, against USD1.3108 at the London equities close Friday.UK Foreign Secretary Jeremy Hunt is using a visit to Japan to tell business leaders that the UK is focused on avoiding a no-deal Brexit.Following withdrawal from the EU being delayed until October 31, Hunt will stress on Monday that Britain is seeking "tariff-free frictionless trade" with the bloc.As well as meeting Japan's prime minister Shinzo Abe, Hunt is also visiting a Tokyo high school to help teach English.The Foreign Office said Hunt would meet with Toyota and NTT to "update them on EU exit developments, and reassure them that UK Government is focused on avoiding a no-deal Brexit and on agreeing a deal which that will ensure tariff-free frictionless trade between the EU and the UK".In the US earnings calendar on Monday, banks Citigroup and Goldman Sachs will report earnings before the market open in New York.
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