15th Apr 2019 11:22
LONDON (Alliance News) - The following is a summary of top news stories Monday.----------COMPANIES----------Rio Tinto will invest a further USD302 million in its Resolution copper project located in the US state of Arizona. The FTSE 100 miner explained the investment will fund additional drilling, ore-body studies, infrastructure improvements and permitting activities. Rio Tinto is currently looking to progress the project to the final stage of the permitting phase for the project. When fully operational, the project will have the potential to supply 25% of copper demand in the US. "Resolution is one of the most significant undeveloped copper deposits in the world and this additional funding demonstrates Rio Tinto's commitment to bring the mine into production", Rio Tinto Chief Executive Officer Jean-Sebastien Jacques said. "The comprehensive permitting process is well underway with the environmental impact study on track to be completed next year according to the regulators schedule. The rise of electric vehicles, battery storage, new transmission technology and other green energy innovations are highly copper intensive. We need to prepare now to meet this future demand. Resolution will be well positioned to provide North American manufacturers the copper that is essential to their products."----------Office space provider IWG agreed to sell its Japanese operations to TKP in a GBP320 million all-cash deal. The company - which trades under the Regus brand - also agreed an exclusive master franchise agreement with TKP for the country. The Japanese unit - Regus Japan Holdings - comprises of 130 flexible co-work centres. Completion of the sale is expected to occur in May 2019 subject to Japanese regulatory clearance. Tokyo-listed TKP provides conference rooms and banquet halls for rental. Under the franchise agreement, IWG has granted TKP exclusive rights to the use of the Regus, Spaces and OpenOffice brands in Japan. IWG also has committed to provide on-going services and support to TKP in return for an on-going fee. These services include access to the global network and international sales and marketing platform of IWG. In 2018, the divested Japanese business generated GBP94.4 million in revenue and GBP20.6 million in earnings before interest, taxes, depreciation and amortisation. After the transaction, IWG Chief Executive Mark Dixon will join the TKP board as a non-executive director. Meanwhile, IWG Japan Country Manager Shingo Nishioka will transfer to TKP. "The transaction realises an attractive valuation for IWG's shareholders and re-affirms our strategy of capital efficient growth in IWG's global network with an increased emphasis on partnerships," Dixon said. "We look forward to working with TKP for many years to continue our network development in Japan."----------International Consolidated Airlines Group announced long-standing Chief Financial Officer Enrique Dupuy de Lome will leave the firm at the end of the annual general meeting of the airline operator in June. Dupuy de Lome - CFO for eight years, having been finance chief at subsidiary Iberia before that - will be replaced by insider Steve Gunning. Gunning is currently CFO at British Airways, the main operating unit of IAG. "Enrique has done a fantastic job at IAG. He played a critical role in establishing the group and was a major force in delivering our strong financial performance", Chief Executive Officer Willie Walsh said. "I'd like to welcome Steve to his new role. His appointment serves as evidence of the strength and depth of the IAG leadership team."----------MARKETS----------The FTSE 100 edged higher after sterling held firm as parliament heads off on its Easter break offering a pause to the Brexit politics saga and UK retail sales appeared to improve. Compass Group was the worst blue chip performer, down 2.4%, after Barclays downgraded its recommendation to Equal Weight from Overweight despite hiking its price target to 1,850 pence from 1,770p. Mining giants Rio Tinto and BHP were also both under pressure. In the US, Wall Street is also forecast to open modestly higher. ----------FTSE 100: up 0.1% at 7,441.99FTSE 250: up 0.3% at 19,775.30AIM ALL-SHARE: up 0.4% at 946.01GBP: lower at USD1.3099 (USD1.3108)EUR: lower at USD1.1314 (USD1.1317)GOLD: lower at USD1,286.12 per ounce (USD1,292.15)OIL (Brent): lower at USD70.86 a barrel (USD71.50)(changes since previous London equities close)----------ECONOMICS AND GENERAL----------UK footfall increased in March recovering from its biggest fall in five years in February, as milder weather reversed a two-year falling trend, the latest BRC/Springboard Retail Footfall Monitor showed Monday. Figures covering the four weeks between February 24 and March 30, showed March total retail footfall up 1.4% on the previous year. Over the same period the year prior, footfall fell by 6.0%. The March increase broke a fifteen consecutive month decline following a 2.0% drop in February. Springboard Marketing & Insights Director Diane Wehrle said: "At first sight the year on year rise in footfall of 1.4% in March appears to signify a reverse in trend from the previous two years, when footfall dropped in all but two of the past 22 months. However, whilst news of an improvement in footfall would be most welcome, it is simply not the case and instead the rise of 1.4% should be regarded as an exceptional circumstance relating to a dramatic slump in footfall in March 2018 of 6%." She added: "The result clearly indicates that we continue to be in the midst of a no splurge culture, with consumer confidence continuing to languish, shoppers are clearly focussed on prudence." ----------UK Foreign Secretary Jeremy Hunt is using a visit to Japan to tell business leaders that the UK is focused on avoiding a no-deal Brexit. Following withdrawal from the EU being delayed until October 31, Hunt will stress on Monday that Britain is seeking "tariff-free frictionless trade" with the bloc. As well as meeting Japan's prime minister Shinzo Abe, Hunt is also visiting a Tokyo high school to help teach English. The Foreign Office said Hunt would meet with Toyota and NTT to "update them on EU exit developments, and reassure them that UK Government is focused on avoiding a no-deal Brexit and on agreeing a deal which that will ensure tariff-free frictionless trade between the EU and the UK". Hunt, who has previously worked in Japan, intends to promote English as the "language of opportunity" on the trip.----------
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