7th Feb 2014 11:24
LONDON (Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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Biopharmaceutical company Shire PLC saw its shares fall Friday after it said late Thursday it would abandon clinical development of Vyvanse for the potential treatment of major depressive disorder after it failed late-stage trials. In a statement, the company said that two pivotal Phase III investigational studies evaluating the efficacy and safety of Vyvanse Capsules as an adjunctive treatment for major depressive disorder in adults who inadequately responded to antidepressant monotherapy with a selective serotonin reuptake inhibitor or Serotonin–norepinephrine reuptake inhibitor, did not meet their primary efficacy endpoints.
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A group led by China Minmetals Corp is nearing an agreement to acquire commodities trader and natural resources firm Glencore Xstrata PLC's Las Bambas copper project in Peru for more than USD5 billion, Bloomberg reported citing people familiar with the matter. Citing the people, the report suggested that a deal between Minmetals and Glencore could be announced as early as this month subject to Chinese government approval. The asset could fetch closer to USD6 billion.
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British Land PLC said it has ended up with a 57.2% stake in specialist retail park property group Hercules Unit Trust after a scheduled pre-emption process, a deal that will boost its earnings. The company said Wednesday it wanted to raise its stake to 54.2%, from 49.2%, but could end up with more if it was allocated more than its pre-emptive allocation in the tender. In its statement Friday, it said it has agreed to buy GBP66.8 million worth of units at GBP613 each, 3.8% below the latest net asset value per share. It said the purchase represents an initial yield of 6.1%.
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Defence technology company QinetiQ Group PLC said its full-year outlook remains unchanged, with the downturn in its global products business meaning that the range of possible outcomes remains wider than usual. The company's global products unit, which makes products including unmanned bomb disposal devices and technology that protects soldiers and vehicles from explosions or attack, has been hurt as the US and UK have scaled back military operations in Iraq and Afghanistan in recent years. In a trading update, the company said the unit was continuing to be hit by the military drawdown in conflict zones and it is trying to broaden the unit's portfolio of products beyond defence to reduce its reliance on conflict spending.
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Vedanta Resources PLC late Thursday said Executive Chairman Anil Agarwal recently bought over 1.1 million shares in the company for a total of over GBP9.0 million. The company said that following the deal, Agarwal has a total holding of 182.4 million shares, or 68.37% of the company.
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MARKETS
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The UK's main stock indices are modestly higher, holding on to small morning gains but losing Thursday's momentum amid mixed UK economic data and ahead of the key US jobs report still to come this afternoon.
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FTSE 100: up 2.05 at 6,560.33
FTSE 250: up 46.48 at 15,836.49
AIM ALL-SHARE: up 4.82 at 862.63
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GBP-USD: up at USD1.6342
EUR-USD: down at USD1.3575
GOLD: up at USD1,260.80 per ounce
OIL (Brent): down at USD107.21 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Germany's Constitutional Court said it was referring a complaint against the European Central Bank's unlimited bond-buying programme to the European Court of Justice. The judges said they saw substantial reasons to assume that the programme, which forms a key part of the ECB's efforts to end the eurozone debt crisis but has not yet been used, exceeded the bank's mandate.
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UK industrial production expanded in December, but at a slower than expected pace, official data showed. Industrial production grew 0.4% from November, the Office for National Statistics said. Economists were expecting output to grow 0.6% after falling 0.1% in November. At the same time, manufacturing output rose 0.3% month-on-month, offsetting the 0.1% drop in November. It was also forecast to rise by 0.6%. On a yearly basis, growth in industrial production slowed to 1.8% from 2.1%. Likewise, manufacturing output growth eased to 1.5% from 2.2%.
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The UK's visible trade deficit narrowed more than expected in December, data released by the Office for National Statistics revealed. The shortfall fell to GBP 7.7 billion in December from GBP 9.8 billion in November. Economists had forecast a decline to GBP 9.3 billion.
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An indicator of China's service sector performance declined in January, indicating a moderation in the growth of overall business activity, a survey by Markit Economics and HSBC revealed. The HSBC services business activity index fell to 50.7 in January from 50.9 in December. An index reading above 50 indicates expansion of the sector.
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German exports posted a surprise fall in December, bringing to an end four consecutive monthly gains, the Federal Statistics Office said. Monthly exports from Europe's biggest economy fell by 0.9% in December after gaining 0.7% in November. Analysts had expected a rise of 0.8%. Imports also dropped unexpectedly in December, by 0.6%, after contracting by 2.3% in November, the data showed. Analysts had forecast a 1.2% increase.
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UK Prime Minister David Cameron is to urge Scotland to vote against independence in September's referendum, arguing that the whole UK would be "deeply diminished" if Scotland opted to leave, the BBC reports. In a speech in London, the prime minister will also warn supporters of the Union against "complacency", the BBC said.
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Leading bookmakers in Britain and Germany make Norway the favourites to top the medals standings at the end of the Winter Olympics which open in Sochi Friday. Norway, whose team includes many established Olympians such as ski stars Aksel Lund Svindal and Marit Bjoergen, are given odds of around 2-1 to win most golds. Other favourites are the US at odds of 3-1, Germany (6-1), hosts Russia (15-2) and 2010 table-toppers Canada (9-1). The medals standings are based on the most gold medals won rather than the most medals in total. For the most total medals (gold, silver and bronze), the bookmakers see the US team top. The US also won most medals in Vancouver four years ago, but had five fewer golds than Canada, and were also behind Germany in the standings.
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A US warning that terrorists targeting airliners en route to the Sochi Olympics could hide explosives in toothpaste tubes sparked a ban Thursday on all liquids in carry-on baggage aboard Russia-bound flights originating in the US. The US Transportation Security Administration issued the temporary ban, which includes gels and aerosols, ABC News and other US media reported.
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A Syrian government delegation will attend the second round of peace talks set to begin in Geneva next week, a senior foreign ministry official said. "The delegation confirms the continuation of efforts made at the first round of the conference," Deputy Foreign Minister Feisal al-Meqdad said, according to the official SANA news agency. The next round, which the Syrian opposition earlier said it will attend, is scheduled to resume February 10. A first round of talks ended last week without progress.
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Thousands of anti-government demonstrators marched through Bangkok's main business district Friday to raise money for rice farmers who have not been paid for their crops by the government.
The protests over the rice scheme comes as the caretaker cabinet of Prime Minister Yingluck Shinawatra is under pressure following months of street protests and a disrupted general election on Sunday.
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A Pakistan court set another deadline for former military ruler Pervez Musharraf to appear after he did not show up on Friday for a scheduled indictment on treason charges. It was the fourth court appointment Musharraf has missed since the trial began in December.
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British LandVedanta ResourcesQinetiqGlencoreShire