25th Jan 2016 11:12
LONDON (Alliance News) - The following is a summary of top news stories Monday.
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COMPANIES
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Kingfisher announced a five-year plan to deliver a GBP500 million annual profit uplift by the end of the fifth year and a capital return of GBP600 million over the next three years. The DIY retailer said it will deliver the GBP500 million per annum in extra profit on top of the profit it will generate from normal business. It expects its performance pre-transformation to be broadly in line with the macroeconomic backdrop in its respective markets, Kingfisher said. Kingfisher reported a pretax profit of GBP644 million in the financial year to January 31, 2015.
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A group of more than 100 Members of Parliament, spearheaded by former Conservative Party co-chairman Grant Shapps, backed calls for BT Group's Openreach division to be separated. The group, calling themselves 'The British Infrastructure Group', called on UK telecoms regulatory Ofcom to take "radical action" over the "natural monopoly" of BT Openreach. Ofcom has tabled the potential separation of Openreach - which is responsible for the installation and upkeep of most of the UK's broadband connections - as part of its ongoing wider review of digital communications. The British Infrastructure Group's report adds to the voices of many of BT's rivals, including Sky, who have clamoured for the division to be separated.
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Sky said it has invested USD10 million in Boston-based marketing analytics and data management software firm DataXu. Sky said its advertising sales division Sky Media will work closely with DataXu to explore a "number of new opportunities", in particular extending the reach of its advertising product Sky AdVance.
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Tesco is to close down its two food-to-go stores as it beats a retreat just over a year after it made an attempt to challenge the likes of Pret-a-Manger, The Daily Telegraph reported. Tesco confirmed to the paper it will shut down its two food-to-go outlets, located in the City of London and near London Charing Cross Station, after they failed to gain traction with consumers.
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Electra Private Equity said it will kick off a review of its investment policy and structure which it expects to complete by the autumn. The private equity investor said the review will consider all options for maximising shareholder value. Its current structure and investment policy was approved back in October 2006 and some amendments to its fees, distributions and structure were made in February last year. The move comes after the public row between Electra and activist shareholder Edward Bramson, the head of the Sherborne Investors hedge fund.
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Oil and gas explorer Ophir Energy said it has signed heads of terms with US oil services group Schlumberger to be its upstream partner on the Fortuna floating liquefied natural gas project in Equatorial Guinea. Ophir said Schlumberger, subject to the agreement being definitively agreed and to government approval in Equatorial Guinea, will get a 40% economic interest in the project.
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LondonMetric Property said it has exchanged contracts for the sale of a Odeon multiplex cinema in Preston for GBP10.2 million. LondonMetric said it has sold the property to the BlackRock UK Long Lease Property Fund, with the sale price reflecting a net initial yield of 5.75%.
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MARKETS
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UK indices were trading flat to higher with Kingfisher among blue-chip fallers after announcing broad restructuring plans. Brent oil prices were holding firm at around USD31 a barrel. Wall Street was pointed to a lower open.
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FTSE 100: flat at 5,902.29
FTSE 250: up 0.1% at 16,149.01
AIM ALL-SHARE: up 0.4% at 690.23
GBP: down at USD1.4250 (USD1.4320)
EUR: flat at USD1.0820 (USD1.0808)
GOLD: up at USD1,103.80 ounce (USD1,098.90)
OIL (Brent): flat at USD31.55 a barrel (USD31.37)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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The total value of construction orders received by the German construction sector grew notably in November, figures from Destatis showed. Orders in the construction industry rose sharply by a seasonally, working-day and price-adjusted 15.0% month-on-month in November. This was the highest growth rate in November since the beginning of the time series in 1991, the agency said.
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However, another report showed Germany's business confidence weakened by more than expected at the start of the year to reach its lowest level in eleven months, reports said, citing survey data from the Munich-based IFO Institute. The IFO business confidence indicator dropped to 10.7.3 from 108.6 in December, which was revised from 108.7. Economists had forecast a 108.4 score. The latest reading was the lowest since February last year.
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The People's Bank of China plans to broaden the pilot program that helps companies to tap cross border resources. Accordingly, the central bank will permit 27 financial institutions registered in the free-trade zones of Shanghai, Tianjin, Guangzhou and Fujian to conduct cross-border financing in both yuan and foreign currencies up to a limit linked to their assets or net assets. These institutions will not require prior approval for borrowing from abroad, the bank said.
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Japan posted a merchandise trade surplus of JPY140.3 billion in December, the Ministry of Finance said. That beat forecasts for a surplus of JPY117.0 billion following a JPY381.3 billion deficit in November. Exports were down 8.0% on year to JPY6.337 trillion, missing forecasts for a decline of 7.0% following the 3.3% contraction in the previous month. Imports tumbled an annual 18.0% to JPY6.197 trillion versus expectations for a fall of 16.4% following the 10.2% drop a month earlier.
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Skies cleared Sunday over the US Mid-Atlantic and north-east regions after a winter storm system dumped record-setting amounts of snow, bringing transportation to a near standstill and forcing millions of Americans to hunker down in their homes. New York City, Philadelphia, Baltimore and Washington were among the worst hit by the weekend onslaught of snow and blizzard conditions. West Virginia, Virginia, Maryland, Pennsylvania, New Jersey and New York also received heavy snow over a 36-hour period, the National Weather Service said. After a full moon on Saturday night, Sunday brought sun, and the clear skies and calm conditions were ideal for digging out.
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France's interior minister said several attacks similar to the November 13 terrorist attack in Paris had been foiled in recently years. In 2015 alone, 11 attacks like the one on November 13 were prevented, Interior Minister Bernard Cazeneuve said. "One of them threatened to attack a concert in an event hall. Others threatened attacks against French people with massive fatalities on streets and cities, Cazeneuve said on French television.
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Syrian government forces backed by Russian airstrikes pushed further into key rebel territory, ahead of peace talks planned to take place this week. Government forces took the north-western town of Rabia, a key rebel stronghold in the mountains overlooking the regime's coastal heartland, the opposition Syrian Observatory for Human Rights said. State news agency SANA said that troops and pro-government militiamen had captured more than 20 other "villages and points of control" in the Jabal al-Turkoman mountain range.
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The officials of Iran and China have signed 17 documents and Memorandums of Understanding at the presence of President Hassan Rouhani and President Xi Jinping, who was visiting Tehran. The MoUs include agreement between Atomic Energy Organisation of Iran and China Nuclear Energy Association for peaceful use of energy. The countries also signed MoUs on investment cooperation, establishment of Silk Road scientific fund, media cooperation, Tehran-Mashhad express railway, and joint cooperation between Qeshm Free Zone of Iran and Pilot Free Zone of China.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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