8th Oct 2015 10:00
LONDON (Alliance News) - The following is a summary of top news stories Thursday.
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COMPANIES
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Anheuser-Busch InBev NV said it was "surprised" the SABMiller board thinks the takeover bid AB InBev proposed on Wednesday undervalues SABMiller. AB InBev proposed an offer of GBP42.15 per share in cash for SABMiller plus a partial share alternative for up to 41% of SABMiller's shares, valuing the drinks giant at around GBP68.2 billion. SAB rejected the offer, however, saying that it "substantially undervalues" the company. AB InBev responded to the rejection saying it "lacks credibility" due to the fact that the cash proposal represents a premium of approximately 44% to SABMiller's closing share price of GBP29.34 on September 14, and because it has the backing of SAB's largest shareholder Altria Group.
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Satellite communications company Inmarsat reiterated its guidance for the full year as it said no material change in its trading environment is expected for the rest of 2015. The company said it expects group revenue for the full year to be USD1.25 billion to USD1.30 billion, including USD70.0 million in revenue from its cooperation agreement with LightSquared Inc.
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Mondi said its underlying operating profit was 27% higher in the third quarter year-on-year as it benefited from good trading in all of its divisions. The Anglo-South African paper and packaging company said underlying operating profit in the third quarter rose to EUR221.0 million, up from EUR174.0 million a year earlier following strong trading in its Packaging Paper and Uncoated Fine Paper units and in its business in South Africa. Selling prices for key paper grades in the third quarter were generally stable or higher year-on-year in the quarter, Mondi said.
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Vodafone Group is set to add its voice to the mounting calls for a break-up of BT Group, separating its Openreach network infrastructure arm, part of wider market reforms ahead of a regulatory review of the communications industry in the UK, the Financial Times reported. Ofcom, the media and communications regulator, is due Thursday to close a consultation into a review of the sector, which will set the regulatory framework for the next decade.
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Having had to contend in its previous financial year with the drag from converting weak euros and Australian dollars into pounds, recruiter Hays said those trends have continued in the first quarter, though net fee income still rose amid robust trading. The group's net fee income rose 3.0% year-on-year in the three months to September 30, but increased 8.0% on a like-for-like basis at constant currencies. Temporary and Permanent recruitment fees saw the same increases of 3.0% in total and 9.0% like-for-like. The UK and Ireland, Hays's second-biggest net fee income contributor, continued to perform well with net fee income growing 6.0% in the quarter in total and like-for-like, despite the group coming up against tougher comparables.
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Tate & Lyle said trading in the first half of its financial year was in line with its expectations, and guidance for the full year remains unchanged. The sugar and sweeteners company said its Specialty Food Ingredients business performed encouragingly in the six months to September 30 and ahead of the comparative period, returning to volume growth in the second quarter. Tate & Lyle added that it has received regulatory approval for the realignment of its Eaststarch joint venture in Europe and expects to complete the transaction during the third quarter.
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Tullow Oil said it will not be able to back-date its production from the Onal Complex fields as hoped after striking a deal with the government of Gabon to regain its 7.5% stake in the operation. The FTSE 250-listed oil producer has been in talks with the government of Gabon since the first half of 2014. Since then, Tullow has not been able to book any production or revenue from the Onal Complex fields as it had to negotiate its participation in a new licence. Following talks with the government, Tullow has regained its 7.5% stake in the Onal Complex fields, and the government also extended the licence area to include two oil discoveries made in the Ezanga block back in 2014, formerly known as the Omoueyi exploration block.
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Dunelm Group reported growth in sales in the first quarter of its financial year which it said was due to improved product ranges, seasonal merchandise, and a better shopping experience for customers. The homewares retailer said that total sales in the 13 weeks to October 3 grew 12% to GBP202.3 million from GBP180.6 million the year before, as like-for-like sales rose 5.5% to GBP183.3 million from GBP163.1 million. Dunlem said trading was strong both in-store and online, with all categories showing a robust performance.
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Home Retail Group said its Argos catalogue retail business has started offering same-day store collection and same-day home delivery services in the UK. The Fast Track service will allow customers to collect their goods from 800 Argos stores in the UK, with the collection service to be free and the delivery service to charge a fee. The roll-out of the service comes ahead of the all-important Christmas shopping season and appears to be a direct challenge to Amazon.
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MARKETS
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UK indices were trading flat to lower with London market participants anticipating the Bank of England interest rate decision and meeting minutes scheduled for 1200 BST, while US Federal Reserve minutes are due after the close at 1900 BST.
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FTSE 100: flat at 6,335.40
FTSE 250: down 0.5% at 16,954.61
AIM ALL-SHARE: down 0.2% at 731.69
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GBP: up at USD1.5346
EUR: up at USD1.1304
GOLD: down at USD1143.70 per ounce
OIL (Brent): down at USD51.60 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Permanent job placements in the UK increased at the slowest pace in two-and-a-half years in September, the Report on Jobs compiled by the Recruitment and Employment Confederation and KPMG showed. The number of people placed in permanent jobs continued to increase in September, but the rate of expansion eased to a two-and-a-half year low. Similarly, temporary and contract staff billings increased at the weakest pace in the current 29-month period of growth.
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British house price growth slowed unexpectedly in September, latest survey from the Royal Institution of Chartered Surveyors showed. The survey showed that monthly house price balance fell to +44 in September from +53 in August, which was the highest in more than a year. Economists had expected the balance to rise again to +55. "Activity is now picking up which is encouraging, but unless the stock being sold is replenished there is a limit to how sustainable this modest improvement in market turnover will prove to be," Simon Rubinsohn, RICS chief economist, said.
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Germany's exports declined at the fastest pace in more than six years in August, provisional data from Destatis revealed. Exports plunged by seasonally adjusted 5.2% month-on-month in August, reversing a 2.2% rise in July. This was the biggest decline since January 2009, when it slid 6.9%. At the same time, imports dropped 3.1%, in contrast to a 2.3% rise seen a month ago. Consequently, the trade surplus decreased to around EUR 19.6 billion from EUR 22.4 billion in July.
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The Chinese government committed itself to delivering economic data that meets International Monetary Fund standards, the crisis lender said. The People's Republic of China will meet the IMF's Special Data Dissemination Standard, which the Washington-based crisis lender called "a major step forward for official statistics" in the world's most populous country.
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Democratic presidential candidate Hillary Rodham Clinton came out against the Trans-Pacific Partnership trade deal agreed this week between the US and 11 other nations. "Based on what I know so far, I can't support this agreement," Clinton said in a statement. She said trade deals must meet "clear tests" of creating US jobs, raising wages and advancing national security interests. The announcement puts Clinton at odds with US President Barack Obama, who has pushed the deal as a major part of his international agenda.
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Greek Prime Minister Alexis Tsipras survived a confidence vote late Wednesday in parliament after a three-day debate on the new left-right government's programme. As he presented the government's policies and 2016 budget, Tsipras on Monday promised speedy implementation of reforms demanded by Greece's international creditors. There was little doubt of the outcome in the 300-seat parliament. The confidence vote won the support of all 155 members of Tsipras' own left-wing SYRIZA party and junior coalition partner Independent Greeks, while 144 opposition lawmakers voted no.
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French President Francois Hollande warned that the Middle East is at risk of "all-out war" if its religious confrontations are left unchecked. "If we let the religious confrontations ... get bigger still, let's not think that we will be protected. It will be all-out war, a war that could also affect our own territories," he said, pointing to the increasing clashes between Muslim Shiites and Sunnis. In a joint address to the European Parliament with German Chancellor Angela Merkel, Hollande added that France had taken its military responsibilities in the Syrian conflict.
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Syrian government forces, backed by Russian warplanes, launched a multi-pronged assault Wednesday on rebel positions north and north-west of the central city of Hama, a monitoring group said. The Syrian troops pushed north toward rebel-held towns and villages, including Khan Sheikhoun and Latamina - both of which have been hit in Russian airstrikes, the Syrian Observatory for Human Rights said. The fighting was the fiercest seen in the area for months and was accompanied by intense Russian air raids, the Britain-based Observatory said.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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