15th Mar 2018 11:48
LONDON (Alliance News) - The following is a summary of top news stories Thursday.----------COMPANIES----------Anglo-Dutch consumer goods giant Unilever said it will simplify itself into a single legal entity incorporated in the Netherlands. The company, which currently has headquarters in Rotterdam and London and two separately listed entities, a UK PLC and a Dutch NV, attributed the decision to the fact its Dutch NV shares account for 55% of the company's combined ordinary share capital and trade with greater liquidity than London-listed shares. The company intends to maintain its stock listings in London, Amsterdam, and New York. "The proposed simplification will provide greater flexibility for strategic portfolio change and help drive long-term performance," Unilever said. The Dove soap maker also said that it will have three divisions - Beauty & Personal Care, Home Care, and Foods & Refreshment. The headquarters of the Beauty & Personal Care Division and the Home Care Division will be in London, while the Foods & Refreshment Division's headquarters will continue to be in Rotterdam.----------Old Mutual boosted its dividend as 2017 results were "ahead of expectations" with profit rising strongly amid progress in its ongoing business separation due to complete by the end of 2018. In 2017, pretax profit expanded to GBP617 million from GBP306 million the year prior. Adjusted operating pretax profit also rose, to GBP2.04 billion from GBP1.67 billion the year before. Adjusted net asset value rose to 242.3 pence per share from 228.6p per share in 2016. Old Mutual hiked it second interim dividend by 5% to 3.57 pence from 3.39p the year before. For the full year, the dividend grew to 7.10 pence from 6.06 pence the year prior. "We are delivering on both of the commitments we made in March 2016 when we announced the managed separation," Old Mutual Chief Executive Officer Bruce Hemphill said. "First, as these results demonstrate, we have improved the performance of the underlying businesses and set them up for continued future growth. Second, we have carried out the preparation needed to give effect to the managed separation."----------Automotive and aerospace components manufacturer GKN agreed with comments made to the Financial Times by its biggest customer Airbus about the hostile takeover bid for GKN by Melrose Industries. "The comments from Airbus that stress the need for long-term investment and strategic vision in our industry emphasise our firmly held belief that Melrose is not an appropriate owner of GKN," GKN Chairman Mike Turner said, adding that the Airbus comments reinforce GKN's belief that winning new work would be more difficult if customers were uncertain over the identity of their future long-term partners. Airbus's chief operating officer for its commercial aircraft division, Tom Williams, told the newspaper it would be "practically impossible" to give new work to GKN if the Melrose bid succeeds as the turnaround specialist would be too focused on the short term.----------Cinema operator Cineworld Group reported strong profit and revenue growth for 2017, with performance outside the UK & Ireland particularly positive. On a statutory basis, Cineworld's 2017 pretax profit rose 23% to GBP120.5 million. The adjusted figure, which strips out various items, increased by 15% to GBP127.5 million from a figure of GBP111.4 million in 2016. Revenue for 2017 was up by 12% at actual currency rates, or by 8% at constant currency, to GBP890.7 million from 2016's GBP797.8 million. Cineworld increased its final dividend to 15.40p, which added to an interim dividend of 6.00p, takes the year's total to 21.40p, up from 19.00p the year before. The results come two weeks after Cineworld completed its reverse takeover of US peer Regal Entertainment Group, valuing Regal at USD3.6 billion, compared to Cineworld's December market capitalisation of GBP1.41 billion, when the deal first was announced. ----------Shares in consumer products firm PZ Cussons plunged as difficult trading in both the UK and Nigeria prompted a profit warning. Pretax profit for the financial year ending in May is now expected to be between GBP80.0 million and GBP85.0 million, with the company having posted pretax profit of GBP88.0 million in its last financial year. PZ Cussons said its Washing & Bathing division has seen lower purchases due to consumer caution in the UK, while significant cost inflation in Nigeria continues to hurt demand in the West African nation. New product launches in the UK have been well-received, it said, but have not had a strong enough impact on sales to offset declining volumes and margins. ----------MARKETS----------London share prices were mixed, with the blue-chip stocks outperforming mid-caps, whose index was being dragged down by PZ Cussons, down 15%. Wall Street also was called for a mixed open, with the Dow Jones Industrial Average called up 0.2%, the S&P 500 index flat, and NASDAQ Composite index down 0.1%.----------FTSE 100: up 0.1% at 7,142.12FTSE 250: down 0.4% at 19,743.77AIM ALL-SHARE: up 0.2% at 1,055.16GBP: soft at USD1.3927 (USD1.3946)EUR: soft at USD1.2349 (USD1.2375)GOLD: flat at USD1,322.01 per ounce (USD1.323.57)OIL (Brent): up at USD65.06 a barrel (USD64.18)(changes since previous London equities close)----------ECONOMICS AND GENERAL----------The US has thrown its diplomatic weight behind the UK as Britain braces itself for Russian retaliation after Theresa May hit back at Moscow over the Salisbury nerve agent attack. As the Kremlin made it clear it is readying its response to the biggest expulsion of its embassy staff since the Cold War, the White House came down firmly on Britain's side. In a significant intervention following some concern over the stance of US president Donald Trump, the White House stated: "The US stands in solidarity with its closest ally, the United Kingdom. "The US shares the United Kingdom's assessment that Russia is responsible for the reckless nerve agent attack on a British citizen and his daughter, and we support the United Kingdom's decision to expel Russian diplomats as a just response. "This latest action by Russia fits into a pattern of behaviour in which Russia disregards the international rules-based order, undermines the sovereignty and security of countries worldwide, and attempts to subvert and discredit Western democratic institutions and processes."----------Europe's new car registrations grew at a slower pace in February, the European Automobile Manufacturers' Association reported. Passenger car market grew 4.3% year-on-year in February, slower than the 7.1% increase registered in January. All major EU markets posted growth except the UK and Italy. Car sales in Spain posted a double-digit growth of 13%, followed by Germany with 7.4% increase and France's growth at 4.3%. In the UK, car sales dropped for the 11th consecutive month in February. Registrations were down 2.8%. Italy's car market contracted 1.4%.----------The Swiss National Bank maintained its expansionary monetary policy stanc, as widely expected, and reiterated that it will remain active in the foreign exchange market as necessary. The interest rate on sight deposits at the SNB was retained at -0.75% and the target range for the three-month Libor was kept unchanged between -1.25% and -0.25%. The bank observed that the Swiss franc has appreciated slightly overall on the back of the weaker dollar and remains highly valued.----------
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