28th 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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Mondi PLC said underlying operating profit was up 22% for the year, convincingly beating 2012 results, as the firm delivered a "record financial performance." The international packaging and paper company said underlying operating profit came in at EUR699 million, up 22% from the EUR574 million reported in 2012, boosted somewhat by its low cost position and exposure to higher growth markets.
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Old Mutual PLC said its 2013 pretax profits rose by 11% and revealed the acquisition of Intrinsic Financial Services Ltd, a network of 3,000 advisers, as it beefs up its distribution powers in response to recent regulatory changes in the UK. The life-insurance and investment company also said it intends to spin-off its US Asset Management business this year.
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Rentokil Initial PLC said revenue and profits rose for the full-year, in line with expectations - buoyed by a Western acquisition made in the US - and organic revenues rose as the firms restructuring efforts continued to pay off. The firm, which offers services ranging from pest control to facilities management, said revenue rose 3.2% reaching GBP2.3 billion for the year to December 31, 2013, up on the GBP2.2 billion the previous year, which it says largely reflects the contribution from its acquisition of Western Exterminator. The firm notes that the quarterly improvement in organic growth in its core business was up 1.1% in the fourth quarter and 0.5% for the full-year.
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International Consolidated Airlines Group PLC said it swung back to an operating profit in 2013, driven by growth at British Airways and Spanish airline Vueling, and said it expects cost cutting to further boost its margins in 2014. The airline group spent the year growing British Airways, adding Vueling to its stable, and trying to restructure and turn around its ailing Iberia airline in the face of stiff resistance from labour unions.
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Betting company William Hill PLC reported lower 2013 profits due to higher finance and acquisition costs and investments it made in its online business, but revenues grew strongly, it raised its dividend, and said trading had turned around in February this year after a difficult January. The results showed William Hill's continued outperformance compared with big rival Ladbrokes, after the FTSE 250-listed company earlier in the week reported a huge drop in profits and only a slight increase in revenues as its efforts to build a bigger online business continued to stumble.
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Publisher Pearson PLC posted a lower 2013 pretax profit as it was hit by lower margins in North America and an accounting charge for the merger of its Penguin books unit with Random House, and it warned that earnings are set to fall this year due to policy changes in its biggest markets and the strength of sterling. The Financial Times owner whose main business is publishing educational materials, reported a pretax profit of GBP382 million, down from GBP391 million in 2012.
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Synthomer PLC saw its shares fall in early trading after the company said that subdued economic conditions in Europe and North America hit its balance sheet for the full-year. The chemicals company said sales declined 5.1% for the year, to GBP1.05 billion from GBP1.11 billion last year.
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Aviva PLC said it has appointed Tom Stoddard as its new Chief Financial Officer as it moves to replace Pat Regan, who is joining QBE Insurance Group Ltd in Australia.
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Struggling outsourcing company Serco Group PLC said it has poached the chief executive of Aggreko PLC to be its next boss, tasking him with the revival of the business after its recent government contract woes. In a statement, Serco said Rupert Soames, one of Winston Churchill's grandsons, will take the helm June 1, with acting CEO Ed Casey continuing in the role until then. The move is a coup for Serco. Soames has been head of Aggreko for 11 years, overseeing the temporary power unit company's steady but relentless growth over that period.
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MARKETS
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UK and European stocks are mixed, while the euro has received a boost as eurozone inflation remains stable, suggesting the European central bank is likely to keep policy unchanged at next week's rate setting meeting.
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FTSE 100: down 0.03% at 6808.29
FTSE 250: up 0.5% at 16596.96
AIM ALL-SHARE: up 0.3% at 888.49
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The euro also has gained against the pound, with European common currency trading at GBP0.8240. The dollar is the weakest of the major currencies Friday, with the pound also stronger after further strong readings of the UK housing market. Against the dollar, the pound has reached a 9-day high.
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GBP-USD: up at USD1.6721
EUR-USD: up at USD1.3795
GOLD: down at USD1,330.15 per ounce
OIL (Brent): down at USD108.75 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Confidence among British households held steady in February, in line with economists' expectations, after improving notably in the prior month, data from a closely watched survey revealed Friday. The GfK/NOP consumer confidence index stayed unchanged at -7 in February. The outcome matched economists' expectations. Data showed that two out of the five measures used to calculate the headline index decreased this month, two measures increased, and one stayed unchanged.
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House prices in the UK increased at a notably faster pace in February, and to a greater extent than forecast by economists, data from a survey showed. The house price index advanced 9.4% annually, after gaining 8.8% in January, the Nationwide Housing Society said. Economists were looking for a 9% rise for February. Prices have now increased for the twelfth month in a row. The pick up in prices reflected increasing demand for new homes, supported by record low interest rates, improved credit availability and rising consumer confidence, the agency said.
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Annual eurozone inflation held steady at 0.8% for the third consecutive month in February, European Statistics Office Eurostat said.
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The euro area unemployment rate has remained at 12% since October, data from Eurostat revealed. The rate matched economists' expectations. In January, 19.17 million people were unemployed in the euro area. The number of people out of work increased 17,000 from December, while it fell 67,000 from January 2013.
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Germany's retail sales rose more than expected in January from the previous month, data released by the Federal Statistical Office showed. Retail sales grew a calendar-and-seasonally adjusted 2.5% month-on-month, reversing a 2% decline in December. Economists had expected a 1% gain. Year-on-year, sales rose 0.9% in January, after a 1.5% slump in the previous month. Economists had forecast a 1.7% decline.
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Italy's unemployment rate increased unexpectedly in January from the previous month to set a new record high, latest data revealed. The unemployment rate moved up to 12.9% in January from 12.7% in December, statistical office Istat said.
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Italy's EU harmonized inflation weakened unexpectedly in February, preliminary estimates published by statistical office Istat showed. Inflation as per the harmonized index of consumer prices (HICP) eased to 0.5% in February from 0.6% in January. Economists had forecast inflation to stay at the January level.
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In Japan, retail sales climbed 4.4% on year in January, the Ministry of Economy, Trade and Industry said on Friday - coming in at 11.732 trillion yen. That beat forecasts for an increase of 3.8% following the 2.5% gain in December.
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Japan's overall nationwide consumer prices were up 1.4% on year in January, the Ministry of Internal Affairs and Communications said - topping forecasts for 1.3% but slowing from 1.6% in December. Core consumer prices were up 1.3% on year - matching expectations and unchanged from the previous month.
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Industrial production in Japan climbed a seasonally adjusted 4.0% on month in January, the Ministry of Economy, Trade and Industry said - rising for the third straight month. The headline figure beat forecasts for an increase of 2.8% following the 0.9% gain in December.
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An international airport in the southern Ukrainian region of Crimea was operating normally after armed men entered the building early Friday, news reports said. Around 50 armed men in military uniform arrived in three trucks without licence plates and surrounded the domestic flights terminal at the airport of Simferopol, the regional capital, before moving on to other parts of the site, Interfax-Ukraine news agency cited witnesses as saying. The men wore similar gear to a group of 100 gunmen who stormed the Crimean parliament Thursday and raised the Russian flag over the building, the report said. The armed men since left the building, according to broadcaster Russia Today.
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Russia must act carefully during "a very delicate time" in Ukraine, US Defence Secretary Chuck Hagel said Thursday, as the Kremlin began military drills near its western neighbour and flew extra fighter jets to patrol the region. "I expect Russia to be transparent about these activities, and I urge them not to take any steps which could be misinterpreted or lead to miscalculation during a very delicate time," Hagel said in Brussels. Hagel said Washington is in contact with the Russian government. "This is a time for very cool, wise leadership on the Russian side and on everybody's side," he said.
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Russian opposition leader Alexei Navalny was sentenced to house arrest for two months in connection with arrests at recent demonstrations. Navalny is on parole after a controversial conviction for embezzlement last summer. The court ruled Friday that he had violated the terms of his parole. Under the terms of his house arrest, the 37-year-old politician, who writes a blog, may only communicate with his relatives, lawyers and investigators. He is not allowed to use the internet.
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Cyprus President Nicos Anastasiades said he will reshuffle his cabinet, after a junior party in the ruling coalition quit over the handling of peace talks to unify the divided island. Government spokesman Christos Stylianides said the president had received the resignations of all 11 cabinet members, but asked them to remain in their posts until March 15.
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Thailand's embattled Prime Minister Yingluck Shinawatra said she was ready to "die on the democratic battlefield," local media reported. She was responding to an offer by the leader of anti-government protests that have rocked her government to hold televised one-on-one talks aimed at breaking the deadlock.
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Mt Gox, a troubled bitcoin exchange, filed for court protection in Japan, a news report said. The move came three days after one of the largest exchanges of the virtual currency ceased operations amid reports of a massive theft.
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Syrian jets launched air strikes on mountainous areas in Lebanon, activists and the Lebanese National Agency reported. The jets struck areas in the hills of Kherbet Younine near Lebanon's northeastern town of Arsal.
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