28th Jan 2019 07:43
LONDON (Alliance News) - Stock prices in London are seen opening lower on Monday, tracking Asian markets, with US-China trade relations in focus in a week that also will see the UK Parliament's Brexit vote and a US interest rate decision by the Federal Reserve.The US and China will hold a pivotal round of talks this week in an attempt to strike a deal before a deadline in early March.In early UK corporate news, John Wood Group reported progress in its non-core asset disposal programme, SThree raised its annual dividend, and Shore Capital confirmed it is in talks to buy Stockdale Securities. IG futures indicate the FTSE 100 index is to open down 27.92 points at 6,781.30. The blue chip index closed down 9.73 points, or 0.1%, at 6,809.22 on Friday.The Japanese Nikkei 225 index closed down 0.6%. In China, the Shanghai Composite closed down 0.2%, while the Hang Seng index in Hong Kong is down 0.1%.Oil field services firm John Wood Group said Monday it sold shares in three joint venture for USD28 million in cash as part of its non-core asset disposal programme.John Wood sold its 25% stake in UK Roadways Concession RMS A13 Holdings and a 52% holding in China-based manufacturer Power Machinery. In addition, the company sold 42% stake in two combined cycle gas power plants in Italy, Centro Energia Teverola and Ferrara. John Wood said it also completed the previously announced sale of its 50% interest in Italian wind farm Voreas for USD26 million. "Together, these transactions generate cash proceeds of around USD54 million and make a good contribution to our non-core asset disposal programme which is a key element of our deleveraging plan. Our asset disposal programme is ongoing and remains on track to generate over USD200 million of proceeds," said John Wood Group Chief Financial Officer David Kemp. Lender Paragon Banking Group said it started its financial year well, delivering strong lending growth across its main business areas. For the first quarter ended December 31, new business flows rose 41% to GBP660 million from GBP469.8 million in the same quarter a year before. The company's buy-to-let pipeline stood at GBP729.1 million, 18% higher than last year. Paragon said total commercial lending more than doubled to GBP211.9 million from GBP103.3 million in the first quarter last year. The company left its financial 2019 guidance unchanged. "Our retail deposit base continues to grow, creating further efficiencies in our funding structure. e remain confident in the outlook, but will maintain our capital, liquidity and broader risk disciplines in case the external operating environment should deteriorate," said Chief Executive Nigel Terrington. TI Fluid Systems said Chief Financial Officer Timothy Knutson is to step down by the end of 2019 to "pursue other interests". The fluid storage technology company said Knutson will remain as CFO until a successor is in place. Recruiter SThree said it delivered a strong full-year financial performance, ahead of expectations.For the financial year ended November 30, revenue increased 13% to GBP1.26 billion from GBP1.11 billion last year. Adjusted pretax profit rose 20% to GBP53.4 million from GBP44.5 million.The company declared a final dividend of 9.8p per share, giving a total payout of 14.5p, up from 14.0p the year before. "The group continued to make good progress throughout 2018. This resulted in a strong financial performance which, demonstrating our resilience, was delivered despite the ongoing macro-economic and political uncertainties. Looking forward to the year ahead, our post-year end trading is in line with expectations and we remain well positioned to benefit from the growth opportunities in our chosen Science, Technology, Engineering and Mathematics markets," said CEO Gary Elden. Shore Capital confirmed a Sky News article that it is in talks to buy Stockdale Securities, though it said there is no certainty a deal will be done.The pound was firm against the dollar, quoted at USD1.3184 early Monday from USD1.3173 late Friday.In political news, Dublin has delivered a thinly veiled warning to Downing Street not to go back on the Brexit deal hammered out with the EU.And in what is likely to be seen as a swipe at hardline Tory Brexiteers, Irish Deputy Prime Minister Simon Coveney told the Press Association that those "misrepresenting" the backstop had failed to produce an alternative to it.Coveney said the UK Cabinet had endorsed the Withdrawal Agreement including the backstop aimed at preventing a hard border, as he made clear it would not be changed.With Tory Brexiteers putting pressure on UK Prime Minister Theresa May to secure a time limit for the backstop, Coveney made it clear that would not be acceptable.He said: "Skilled UK and EU teams have worked to bring about a Withdrawal Agreement that has been endorsed by 27 governments and the British Cabinet.The UK parliament is due to vote on May's Brexit Plan B on Tuesday.In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.8%, S&P 500 up 1.3% and Nasdaq Composite up 0.9%.On Tuesday this week, the US Federal Reserve's monetary policy meeting will begin followed by the central bank's interest rate decision on Wednesday. It is widely expected that the Fed will leave interest rates unchanged.
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