27th Sep 2019 11:06
(Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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Pennon Group said it intends to review its options following good performance from its Viridor and South West Water units. However, Pennon did say revenue is expected to return to a "more normal" level in the first half, ending September, of its current financial year. Pennon intends to "conduct a full review of its strategic focus, growth options and capital allocation policy". South West Water continues to deliver strong operational and financial performance, Pennon said, with a focus on efficiency and improving customer service. However, the company noted the "exceptionally" hot, dry summer last year resulted in higher revenue which has not been repeated this year, and, as a consequence, revenue for the six months to the end of September has reduced to a "more normal" level compared with the first half last year. Waste business Viridor's portfolio of ten operating energy recovery facilities are performing well, the company noted, with optimisation and operational ramp-up for the Glasgow, Beddington and Dunbar energy recovery facilities underway.
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Grainger said it has agreed terms to acquire a build to rent scheme in southwest England, as it reported a "strong performance" ahead of its year end. Grainger reported rental growth of 3.4% so far this financial year, which ends on Monday, and 3.1% like-for-like rental growth in its private rented sector homes. Occupancy in the private homes stands at 98% and resident retention rates "remain strong". The company said its sales performance was "resilient with robust pricing in line with valuation". During the year, residential sales were weighted to the second half, as forecast, Grainger added. Grainger has agreed non-binding terms with property developer Cubex Land to acquire a build to rent scheme in Bristol, consisting of 231 private rental sector homes.
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James Fisher has signed a "multi-million" pound contract to design and build submarine rescue equipment, including deep search & rescue vehicles, for China Shipbuilding & Offshore International. "This contract award underlines James Fisher's position as market leader in the submarine rescue market, safeguarding the lives of submariners and providing a comprehensive submarine rescue capability to organisations around the world," said Chief Executive Nick Henry.
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MARKETS
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London shares were higher with the FTSE 100 trading at two month highs helped in part by further weakness in the pound. Sterling was lower following comments from Bank of England policymaker Michael Saunders who indicated the central bank may have to cut interest rates amid Brexit uncertainty. Wall Street was pointed to a higher open.
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FTSE 100: up 0.9% at 7,420.82
FTSE 250: up 0.4% at 19,902.65
AIM ALL-SHARE: up 0.1% at 871.58
GBP: down at USD1.2283 (USD1.2358)
EUR: down at USD1.0920 (USD1.0944)
GOLD: down at USD1,497.50 per ounce (USD1,507.20)
OIL (Brent): up at USD62.63 a barrel (USD61.78)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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A member of the Bank of England's Monetary Policy Committee has suggested the base rate could be cut even if a no-deal Brexit is avoided. Michael Saunders said he expects to see continuing uncertainty in the UK regardless of what happens next with its relationship with Europe. Speaking to business leaders in Barnsley, South Yorkshire, he said: "If the UK avoids a no-deal Brexit, monetary policy also could go either way and I think it is quite plausible that the next move in the bank rate would be down rather than up." Saunders, an economist who has been on the rate-setting committee since 2016, added that rates could rise if Brexit uncertainty falls significantly and global growth recovers. Saunders added that Brexit is also causing businesses to spend too much time on contingency planning.
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Consumer confidence in the UK increased in September in the "wait and see run-up" to the October 31 Brexit deadline, according to a survey. The long-running GfK Consumer Confidence Index increased by two points to minus 12, with all five of the survey's measures including personal finances and the general economy showing an uptick in positivity. Expectations for the general economic situation over the next 12 months increased three points to minus 35, eight points lower than September last year.
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None of the UK's biggest cities saw annual property growth hitting 5% or more in August – marking the first time this has happened since 2012 as the market adjusts to more realistic pricing, according to an index. Zoopla's index, which covers house price movements in the UK's 20 biggest cities, found that the fastest rate of year-on-year house price growth in August was in Leicester, at 4.8%, according to Zoopla. It was the first time since December 2012 that the city with the fastest house price growth had an annual rate of price inflation below 5%.
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A US government whistleblower complaint sounded an alarm and accused President Donald Trump of seeking the assistance of Ukraine to smear a rival in the upcoming US election, and also alleged the White House engaged in a cover up. The complaint, which was submitted in August but declassified and released Thursday, warned that "the president of the US is using the power of his office to solicit interference from a foreign country in the 2020 US election". The complaint is based primarily on a phone call Trump held with the newly-elected Ukrainian President Volodymyr Zelensky on July 25. A reconstructed transcript of the call was released by the White House on Wednesday. In the call, Trump asked Zelensky to consider opening a probe into Joe Biden, who is running to be the Democratic nominee for president next year. The request appeared to be an effort by the Republican US president to have Kiev dig up dirt on one of his main rivals. The complaint also alleges the White House sought to "lock down" records of the call.
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