8th Feb 2016 11:12
LONDON (Alliance News) - The following is a summary of top news stories Monday.
----------
COMPANIES
----------
Randgold Resources said 2015 was "one of the best years in the company's history" despite experiencing a large drop in profit as it continued to battle the downturn in the market. The gold miner reported a USD260.8 million pretax profit in 2015, falling from USD353.0 million a year earlier, as revenue experienced slipped slightly USD1.00 billion from USD1.08 billion - but the miner is expecting a ramp up in production and lower cash costs during 2016. Despite the fall in profit, Randgold upped its dividend for 2015 by 10% to 66.0 cents per share from 60.0 cents per share last year.
----------
HSBC Holdings will pay USD470.0 million under a deal with US authorities to settle allegations of past "abusive" mortgage practices, covering loan origination, servicing and foreclosure. The settlement, which was revealed on Friday and agreed with the US Justice Department, the Department of Housing & Urban Development and the Consumer Financial Protection Bureau, along with 49 state attorneys general and the District of Columbia, releases HSBC from civil claims over its past mortgage loan origination, servicing and foreclosure practices.
----------
HSBC Holdings is close to a decision to keep its headquarters in the UK, The Sunday Times reported, citing senior sources. A decision by directors to remain could be made this week, the newspaper said, or at a board meeting the weekend after next, before the release of annual results, due on Monday, February 22. Such a vote would follow a series of concessions to the City by UK Chancellor of the Exchequer George Osborne, including on Britain’s levy on bank assets. Hong Kong has been seen as the most likely destination for HSBC, but the market turmoil in China has weighed against that idea, The Sunday Times said.
----------
Old Mutual agreed to sell its London-based fixed income asset management business Rogge Global Partners to Allianz Global Investors. Rogge had GBP24.1 billion of funds under management as at the end of 2015, Old Mutual said. It expects to sale to be completed in the second quarter of 2016. No further financial details of the sale were disclosed.
----------
BT Group confirmed it has begun a process to find a successor to Finance Director Tony Chanmugam, following press speculation that he may step down later this year. However, BT said that no formal decision has been taken on a replacement, or on the timing of any such change. The company said it will make a further announcement "if and when required".
----------
Elementis confirmed Peter Waterman has joined the company's board as its new chief executive. The speciality chemicals company awarded Waterman the role back in November, and he will now work with outgoing David Dutro, who is retiring, until the end of the month to ensure a smooth handover. Waterman has joined Elementis from BP Lubricants, where he was chief executive.
----------
Imagination Technologies Group detailed restructuring plans, including the sale of its consumer electronics business Pure, as it said Chief Executive Hossein Yassaie has stepped down with immediate effect. Additionally, the chip designer said that it now expects to report a loss before interest and tax for its full year to end-April, as conditions in the semiconductor sector have "not improved" since its last update in December. Non-Executive Director Andrew Heath has been appointed interim chief executive, and the company said it will start a search for a new chief executive immediately.
----------
MARKETS
----------
Shares were weaker in London after starting the week firm. Miners were up, supported by a rally in the gold price and by a good set of results from Randgold Resources. But other stocks were being hit by further concerns about China, after a weekend report that its foreign exchange reserves declined to the lowest since 2012. Chinese markets are on holiday most of this week for the Chinese New Year holiday. US stock indices were pointed down by 1.2% to 1.6%.
----------
FTSE 100: down 2.0% at 5,732.46
FTSE 250: down 1.7% at 15,724.62
AIM ALL-SHARE: down 0.7% at 685.35
GBP: soft at USD1.4454 (USD1.4475)
EUR: up at USD1.1162 (USD1.1137)
GOLD: up at USD1,176.20 per ounce (USD1,155.50)
OIL (Brent): down at USD33.24 a barrel (USD34.40)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
More than 100 people are missing two days after a 6.4-magnitude earthquake killed at least 37 in southern Taiwan, while three people were rescued alive, authorities said. A male survivor, Li Zong-dian, who was found by search teams on Sunday, was rescued Monday morning after being trapped for 55 hours, the state-run Central News Agency reported. A woman, Tsao Wei-ling, and an 8-year-old girl were also rescued Monday morning and sent to hospital, CNA reported. More than 520 people were injured in southern Tainan City during the quake and 114 people were still missing, according to figures from the Central Emergency Operation Centre.
----------
The UN Security Council vowed to "expeditiously" pursue measures to punish North Korea Sunday after its launch of a long-range rocket, which Pyongyang said was carrying a satellite, but the council condemned as a missile test. The launch strengthened the council's determination to take the "further significant measures," it had promised if North Korea continued to violate international sanctions, the council said in a statement. The missile launch comes one month after North Korea conducted a nuclear test.
----------
China's foreign exchange reserves declined to the lowest since 2012, data published by the People's Bank of China showed. Foreign exchange reserves fell USD99.5 billion to USD3.23 trillion in January. The decline was followed by a USD107.9 billion decrease in December. In 2015 as a whole, reserves dropped by a more than USD510 billion. After an unexpected currency devaluation by PBoC last August, the central bank had to use its reserves to curb the further weakness in yuan.
----------
Japan had a current account surplus of JPY960.7 billion in December, the Ministry of Finance said. The headline figure was shy of expectations for JPY1,051.7 billion and down from JPY1,143.5 billion in November. The trade balance showed a surplus of JPY188.7 billion - beneath the forecast for JPY305.3 billion but up from the JPY271.5 billion deficit in the previous month. Exports were down 12% on year to JPY6.247 trillion after dipping 6.3% in November. Imports skidded an annual 19% to JPY6.059 trillion after tumbling an annual 11% in the previous month.
----------
Eurozone investor sentiment weakened for the second straight month to the lowest since early 2015, results of a survey by Sentix revealed. The investor sentiment index dropped more-than-expected to 6 in February from 9.6 in January. It was forecast to ease to 8.8. This was the lowest score since April 2015.
----------
The French economy is set to expand 0.4% in the first quarter, the Bank of France said. The economy had expanded only 0.2% in the fourth quarter of 2015. According to a monthly survey, the business confidence index rose marginally to 101 in January from 100 in December. Industrial production and deliveries accelerated in January. Business leaders forecast activity to grow at a slightly lower pace in February.
----------
The Denver Broncos stifled the high-scoring Carolina offense and capitalized on critical turnovers by Panthers quarterback Cam Newton to win 24-10 in Super Bowl 50 on Sunday night. Newton, named the most valuable player in the National Football League for the regular season, fumbled twice deep in Carolina territory, leading to Denver's two touchdowns at Levi's Stadium in Santa Clara, California. Legendary quarterback Peyton Manning won his first Super Bowl with Denver, on top of his 2007 championship with the Indianapolis Colts.
----------
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Randgold Resources