15th Aug 2014 10:03
LONDON (Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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BHP Billiton has decided to offload some assets after a review of options to simplify its portfolio. The mining giant has been working to simplify its portfolio for more than a decade in an attempt to make the company simpler and more productive. In April, BHP Billiton said it was turning its focus to the next phase of its overall portfolio simplification and that it had begun to examine structural options. "We believe that a portfolio focused on our major iron ore, copper, coal and petroleum assets would retain the benefits of diversification, generate stronger growth in cash flow and a superior return on investment," the FTSE 100-listed company said.
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Balfour Beatty reaffirmed it does not want to accept the merger proposal of fellow construction company Carillion. In a statement, Balfour Beatty said it has considered a number of factors, including the potential for synergies, cost and execution risks, and a reduced exposure to recovery in UK construction, ahead of reaching its decision. The company also cited the sale of its US project management business, Parsons Brinckerhoff, which has become a bone of contention for the two companies, saying that terminating the sale process would risk damaging a "significant part of the value" of the company.
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MARKETS
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FTSE 100: up 0.7% at 6728.79
FTSE 250: up 0.6% at 15766.29
AIM ALL-SHARE: up 1.3% at 756.02
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GBP-USD: up at USD1.6692
EUR-USD: up at USD1.3377
GOLD: up at USD1313.40 per ounce
OIL (Brent): up at USD102.35 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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The UK economy grew as initially estimated in the second quarter, second estimates from the Office for National Statistics showed. Quarter-on-quarter, gross domestic product grew 0.8%, the same rate as seen in the first quarter, and in line with preliminary estimate. Meanwhile, annual growth was revised up to 3.2% from 3.1%. Output increased by 1% sequentially as estimated in the dominant service sector. Production gained 0.3%, down from the preliminary estimate of 0.4%.
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Iraq's outgoing Prime Minister Nuri al-Maliki withdrew his bid Thursday for a third term in favour of Shiite National Alliance candidate Haider al-Abadi. The move could end months of political wrangling that had continued in Baghdad even as Islamic State jihadists strengthened their hold on swathes of northern and western Iraq. "I announce to you today that, to facilitate the political process and the formation of the new government, I am withdrawing my candidacy in favour of Dr Haider al-Abadi...in the supreme national interest," al-Maliki said in an address on state television.
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The United Nations on Thursday designated its highest level emergency for the humanitarian crisis in Iraq, citing the scale and complexity of the situation, which is impacting tens of thousands of people that have been forcefully displaced by the armed group, Islamic State. The "Level 3 Emergency" designation will "facilitate mobilization of additional resources in goods, funds and assets to ensure a more effective response to the humanitarian needs of populations affected by forced displacements," said the Special Representative of the UN Secretary-General for Iraq, Nickolay Mladenov. UN officials are particularly concerned about the situation on Sinjar Mountain, where thousands of Iraqis, mostly members of the Yazidi minority community, remain trapped and the health conditions quickly deteriorating.
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Ukraine said that it started a customs inspection of a huge Russian aid convoy headed to the embattled city of Luhansk. The almost 280 vehicles are being checked by 59 border guard and customs officers, the press centre for the military campaign in eastern Ukraine said in a statement. The Russian convoy, which arrived Thursday, is standing near the Russian town of Donetsk, around 200 kilometres east of its Ukrainian namesake. Ukraine, which sees Russia as an aggressor, has insisted that it can enter the country only under the auspices of international organizations, such as the Organization for Security and Co-operation in Europe or the International Committee of the Red Cross.
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The EU plans to buy up stocks of fruit and vegetables hit by a Russian ban on the bloc's agricultural products, EU Agriculture Commissioner Dacian Ciolos announced Thursday. EU member states were struggling in particular to sell tomatoes, cucumbers, mushrooms, peppers and cauliflower, a spokesman for Ciolos said after a meeting of EU agriculture experts in Brussels. Details of the planned measures are to be announced early next week.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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