12th Mar 2014 11:29
LONDON (Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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Prudential PLC reported a sharp fall in 2013 pretax profits due to short-term fluctuations on investment returns, but its closely-watched operating profit grew by 17%, driven by its US operations. In a separate statement, Prudential said it has signed a new 15-year agreement with Standard Chartered PLC that will see a wide range of Prudential's life insurance products exclusively distributed through the emerging markets-focused bank's branches in a number of markets, including Hong Kong and Singapore. The two FTSE 100 powerhouses also will look to collaborate in other parts of Asia and Africa
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AstraZeneca PLC said that it will book a USD275 million write down in the first quarter of 2013, as it announced the sale of its Alderley Park Site in Cheshire to Manchester Science Parks. The sale is part of AstraZeneca's plan to establish a new global research and development centre and corporate headquarters in Cambridge in 2016. AstraZeneca is continuing to pare down its operations through a restructuring programme. At the time of its full-year results in February, it said it expects to lay off around 5,600 staff between 2013 and 2016 and incur costs of around USD3.2 billion. The pharmaceutical giant expects to complete the sale of the site by the end of March 2014.
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Ferrexpo PLC said its pretax profit increased in its full year 2013 due to strong revenues and said that there are currently no disruptions to its operations in Ukraine despite the ongoing political upheaval in the country. The iron ore producer, which operates solely in Ukraine, said its pretax profit increased 15% to USD305.4 million from USD265.7 million.
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Hochschild Mining PLC said it swung to a pretax loss in 2013 as lower revenues, higher costs, and impairments hit the company, forcing Hochschild to "suspend" its dividend for the year. The precious metals producer posted a pretax loss of USD119.6 million. As a result, the company suspended its full-year dividend and doesn't plan to reinstate the dividend until the company's cash position improves.
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Online grocery retailer Ocado Group PLC said group gross sales rose 23% in the first trading quarter of its new financial year, boosted by double-digit growth in the number of average orders per week and the launch of its delivery services for Wm Morrison Supermarkets PLC's fledgling online business.
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Retailers Poundland PLC and Pets at Home Group PLC both priced their initial public offerings and started conditional dealings. Poundland priced its initial public offering at 300 pence per share, valuing the company at GBP750 million. Pets at Home set its IPO price at 245 pence, giving it a total market capitalisation of GBP1.23 billion. Poundland shares have gained 20% in morning dealings, but Pets at Home are off slightly.
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Troubled outsourcing company G4S PLC said it swung to a loss in 2013 as it booked GBP386 million in charges and restructuring costs related to its issues with UK government contracts, but new Chief Executive Ashley Almanza said the company was already looking to the future. G4S and rival Serco PLC were placed under investigation by the UK government last July and all their government contracts were placed under review. Serco has since agreed a settlement with the UK government, which has endorsed its restructuring programme and said it can bid once more for government contracts after a six month ban.
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MARKETS
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UK stock indices are lower due mainly to a lack of economic data, renewed concern over the health of the Chinese economy, and an ongoing stalemate between Ukraine and Russia
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FTSE 100: down 1.0% at 6616.88
FTSE 250: down 0.7% at 16363.45
AIM ALL-SHARE: down 0.9% at 888.48
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Gold is up to nearly a six-month high on the geopolitical concerns, and oil is down to the lower end of its recent range
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GBP-USD: down at USD1.3859
EUR-USD: flat at USD1.6582
GOLD: up at USD1.35680 per ounce
OIL (Brent): down at USD107.99 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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The UK's financial conduct regulator said it will launch a review into the way payday lenders and other high-cost short term lenders collect debts and manage borrowers in arrears. The Financial Conduct Authority said its review will be one of its very first moves when it become responsible for regulating consumer credit on April 1. The move comes amid intense scrutiny of the so-called payday lending sector, which makes small, short-term loans but can charge interest rates running at over 100% or more.
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Eurozone industrial production declined unexpectedly in January largely due to a contraction in energy output, official data showed. Industrial output fell 0.2% month-on-month in January, which was the second consecutive drop, Eurostat said. Economists were expecting production to expand 0.5% after falling revised 0.4% in December.
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European ministers gave consent to improve the mandate to tackle the menace of bank failure, yet much more remained to be agreed on the scheme to handle bad banks. Ministers need to decide on how much countries should help one another in managing a troubled bank. Members were open to reducing the mutualisation period of the EUR 55 billion Single Resolution Fund to 8 years from 10 years. But the details on the subject remain unclear. "The Council adjusted the mandate given to the presidency for negotiations with the European Parliament on the establishment of a single resolution board and a single fund for the resolution of banks," the EU said in a statement after the meeting on Tuesday.
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Italian Prime Minister Matteo Renzi was poised Wednesday to unveil his government's first batch of economic reforms, including a 10-billion-euro (14-billion-dollar) cut on labour taxes to boost jobs and growth. Italy is emerging from the worst recession since World War II, and unemployment is close to 13%. Renzi was sworn in at the end of February, promising a quick-fire succession of measures to revive the economy and make the country more governable.
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Employment in France's non-agricultural sector returned to growth in the December quarter, ending six quarters of contraction, data released by statistical office Insee revealed. The number of employees in the market sector, excluding the farm division, moved up by 15,100, or 0.1%, in the fourth quarter from the the preceding three-month period, when payroll numbers decreased by about 9,600.
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Crimea's secessionist authorities said they have partially closed the region's airspace to "keep out provocateurs" in the run-up to the March 16 referendum about joining Russia. "This is a selective measure which will be cancelled after March 17," first deputy prime minister Rustam Temirgaliev told the Russian Interfax news agency. He explained that incoming flights had been partially restricted "to avoid provocateurs entering" Crimea.
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The US House of Representatives on Tuesday passed a resolution condemning Russia's violation of Ukrainian sovereignty and calling for Russian sanctions. "This resolution is an important part of a larger effort to aid Ukraine and impose real costs on Russia," said Representative Ed Royce, a Republican from California and chairman of the House Foreign Affairs Committee, which unanimously passed the resolution last week. Royce called the resolution, which now goes to the Senate, "a very important declaration of support for the people of Ukraine during this crisis." It condemns "in clear and unmistakable terms" Russia's aggression.
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An indicator of activity in the Japanese economy declined for the second successive month in January, suggesting that the current expansion in economic activity is unlikely to accelerate in the coming months, survey data published by the Conference Board revealed. The leading economic index dropped 0.7% month-on-month to 100.4 in January, after falling 0.2% in December. In November, the index recorded a 0.5% increase.
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Malaysian Prime Minister Najib Razak appealed for patience in the search for a missing Malaysia Airlines jet amid confusion over the aircraft's last known location that prompted Vietnam to scale down its effort. The Malay-language Berita Harian newspaper had quoted air force chief General Rodzali Daud as saying that flight MH370, with 239 people on board, changed course before it disappeared.
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Former Libyan premier Ali Zeidan has defied a travel ban and left the country, a source close to Zeidan told dpa on Wednesday, with the move coming less than a day after parliament removed him from office through a no-confidence vote.
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A police expert testifying at the murder trial of South African athlete Oscar Pistorius cast doubt on his version of events on the night he killed his girlfriend Reeva Steenkamp. Johannes Gerhardus Vermeulen told the Pretoria court that the double-amputee Olympic sprinter is unlikely to have had his prostheses on when he broke down the bathroom door through which he says he shot Steenkamp. The testimony contradicts an earlier account given by Pistorius, who said he had put on his prostheses and tried to kick the door open before hitting it with a cricket bat. The 27-year-old is charged with the premeditated murder of Steenkamp, who was shot dead in the ahtlete's Pretoria home in February of last year.
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