18th Oct 2018 07:43
LONDON (Alliance News) - Stock prices in London are seen opening marginally higher due to weakness in the pound, while Unilever reported that revenue fell in the third quarter as it backed in outlook. IG futures indicate the FTSE 100 index will open up 3.10 points at 7,057.70. The blue chip index closed closed down 0.1%, or 4.80 points, at 7,054.60 on Wednesday.In UK corporate news, Unilever said it saw improved growth across all its divisions during the third quarter Earlier this month, the company scrapped its plan to simplify its dual-headed structure, which included moving its headquarters to the Netherlands from the UK. This was opposed by many UK shareholders.For the period to the end of September, Unilever reported turnover of EUR12.52 billion, down from EUR13.16 billion in the third quarter last year. Unilever said revenue was hurt by an "adverse translational currency impact".The consumer goods firm reported underlying sales growth of 3.8% compared to 2.6% in the third quarter the year before. It also expects adjusted sales growth between 3% to 5% and is on track to meet its 2020 objectives. The company said it is to pay a quarterly dividend of 33 pence per share."Growth accelerated in the third quarter across all divisions. We were able to increase prices whilst still maintaining good volume growth which reflects the strength of our brands and quality of our innovation programme. Our focus s building our business for the long-term continues to deliver high quality growth," said Chief Executive Paul Polman.Rentokil Initial reported that ongoing revenue for the quarter, which ended September 30, rose 10.2% at actual exchange rates to GBP637.4 million. Organic revenue rose 4.1%, accelerating from 3.7% in the same period the year before.The pest control firm also said it acquired 16 businesses across all of its regions in the third quarter with annualised revenue of GBP39.0 million. In a separate announcement, the UK Competition & Markets Authority said Rentokil Initial's purchase of Cannon Hygiene could lead to higher prices or lower quality for some customers."I am pleased with the performance of the group in the third quarter. We continue to successfully deploy our market-leading innovations and digital applications to our customers and to execute our value-creating M&A programme, and we remain on track to meet expectations for the full year," said Rentokil Initial CEO Andy Ransom. The pound was down against the dollar, quoted at USD1.3091 against USD1.3131 at the London equities close Wednesday.UK Prime Minister May was facing a backlash from Brexiteers after indicating she is ready to consider extending the UK's transition out of the EU for a further year, to the end of 2021.May told a crunch European Council summit in Brussels that she was "ready to consider" the extension floated by EU chief negotiator Michel Barnier to give time to resolve the intractable problem of the Irish border.If agreed, the change would mean the UK remaining within the single market and customs union and subject to EU rules and regulations for almost three years after the official date of Brexit in March 2019 - more than five years after the referendum vote to Leave.Furious Brexiteers said the move would delay yet further the moment when the UK could sign new trade deals around the world, and would cost taxpayers billions of pounds in additional contributions to the EU.Meanwhile, EU leaders meeting in Brussels decided that too little progress had been made in Brexit negotiations to justify a November summit aimed at inking a divorce deal, an EU source said after three hours of talks.In September, European Council President Donald Tusk had described mid-October as the "moment of truth" when the bloc expected maximum progress and results in the Brexit talks. Only then would leaders prepare for a mid-November summit to finalize a deal.After Wednesday's talks, the leaders noted that, "despite intensive negotiations, not enough progress has been achieved" and called on EU Brexit negotiator Michel Barnier to continue his efforts, the source said.Still to come in the economic events calendar are UK retail sales figures at 0930 BST.In the US on Wednesday, Wall Street ended broadly lower, with the Dow Jones Industrial Average down 0.4%, while the S&P 500 and Nasdaq Composite ended flat.The Federal Reserve released the minutes of its September monetary policy meeting on Wednesday, which showed the central bank continues to favour a "gradual approach" to raising US interest rates.The Fed argued the "gradual approach" would balance the risk of raising rates too quickly, causing a slowdown in the economy, and raising rates too slowly, leading to inflation above the central bank's 2% objective.During the meeting, the Fed decided to raise rates by a quarter point for a third time this year to 2.00% to 2.25% and forecast another rate hike before the end of the year. The central bank's forecasts also pointed to three rate hikes in 2019.The Fed's assessment that the "gradual approach" to raising rates remains appropriate comes even as President Donald Trump has repeatedly attacked the central bank for hiking rates too quickly.The Japanese Nikkei 225 index closed down 0.8%. In China, the Shanghai Composite is down 2.5%, while the Hang Seng index in Hong Kong is down 0.3% - having resumed trading after being closed for the Chung Yeung Festival on Wednesday.Related Shares:
UnileverRentokil Initial