22nd Apr 2016 10:15
LONDON (Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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Drugmaker AstraZeneca said it has created a genomics initiative with a group of research institutions in a bid to boost drug discovery and drug development across its MedImmune research and development business. The initiative will include work with the Human Longevity group in the US, the Wellcome Trust Sanger Institute in the UK and the Institute for Molecular Medicine in Finland. AstraZeneca also will create an in-house Centre for Genomics Research which will develop a bespoke database of genome samples donated by patients in clinical trials, along with clinical and drug response data.
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Hammerson said it has signed a GBP420.0 million revolving credit facility with a syndicate of eight banks, which means it will now have more undrawn facilities available to it, refinancing its GBP150.0 million facility that was set to mature in April 2017. Hammerson said the new facility was syndicated at an initial margin of 90 basis points over benchmark rates and will have a maturity of five years that can be extended to seven years. The older facility, which is being cancelled, carried an initial margin of 150 basis points.
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Outsourcer Capita said it has secured a GBP72.0 million customer services contract extension with FTSE 250 department store operator Debenhams. The extension will mean the contract will run to September 2022. Under the terms of the deal, Capita will continue to provide customer services on behalf of Debenhams, including managing its online and retail store ordering and delivery.
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Numis Securities said Acromas Bid Co has sold its entire 32% stake in over-50s insurer Saga through a placing to institutional investors. Numis said the 352.7 million shares were placed at a price of 195.00 pence per share, giving the stake a value of GBP687.7 million. The shares were placed at a discount to their closing price on Thursday, which was 201.40p. Acromas is owned by Charterhouse Capital Partners, CVC Capital Partners and Permira, the private equity firms which were behind floating Saga in the London in May 2014. Numis said Non-Executive Chairman Andrew Goodsell agreed to purchase 2.6 million of the shares placed by Acromas.
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UBM said it has acquired US fashion trade shows producer Business Journals for USD69.0 million in cash. Business Journals serves the men's apparel and women's apparel and accessories markets, running the AccessoriesTheShow, EDIT, FAME, Moda, MRket and Stitch trade show brands. UBM said Business Journals is "highly complementary" to its existing fashion trade show portfolio and will deliver synergies in areas such as event operations, property and cross-marketing opportunities.
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Insurer Hiscox said it has appointed Hamayou Akbar Hussain as its chief financial officer. He will join the FTSE 250-listed group after seven years at blue-chip life insurer Prudential, most recently as its chief financial officer for Prudential UK & Europe.
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Defence contractor Ultra Electronics Holdings said its Sonar Systems unit has won a GBP9.5 million contract extension with the UK's Royal Navy. Ultra said the contract will cover the supply of sonobuoys for the Royal Navy's Merlin Maritime Patrol Helicopter. The contract will be executed through 2017. Ultra said the deal will ensure the Royal Navy maintains a persistent anti-submarine warfare surveillance capability against hostile submarines.
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MARKETS
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UK indices were lower with mining and oil stocks leading the decliners. Wall Street was pointed to mixed open.
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FTSE 100: down 0.8% at 6,328.38
FTSE 250: down 0.1% at 16,954.84
AIM ALL-SHARE: flat at 733.48
GBP: flat at USD1.4347 (USD1.4330)
EUR: flat at USD1.1285 (USD1.1296)
GOLD: down at USD1,246.90 per ounce (USD1,251.76)
OIL (Brent): down at USD44.33 a barrel (USD45.13)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Eurozone private sector expansion eased unexpectedly in April as manufacturing growth failed to gain momentum and services activity increased less-than-expected, preliminary results of the latest Purchasing Managers' survey by Markit Economics revealed. The flash Composite Purchasing Managers' Index, or PMI, which combines manufacturing and services, fell to a two-month low of 53 from 53.1 in March. Economists had forecast a score of 53.3. A PMI reading above 50 suggests expansion in activity.
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US President Barack Obama urged Britain to stay in the EU, saying the world needed the UK's influence within Europe. The president, who has arrived in Britain for talks with Prime Minister David Cameron and lunch with the Queen, said membership of the European Union magnified the UK's status on the global stage. Writing in the Daily Telegraph, the president said:"The European Union doesn't moderate British influence - it magnifies it. A strong Europe is not a threat to Britain's global leadership; it enhances Britain's global leadership."
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Obama highlighted the level of cooperation between the US and its Gulf Arab allies during his visit to Saudi Arabia but acknowledged tactical differences with respect to Iran. Speaking to the press after a session of the US-Gulf Cooperation Council Summit on Thursday, Obama said the countries agree on the need to deter Iranian provocations but noted there have been concerns about the US negotiating with the Iranian government.
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EU member states made limited progress in providing places for Syrian refugees currently living in Turkey - a measure the EU has agreed to in return for Ankara's help in stemming migration flows to Europe. The 28-member bloc has been working to halt a migration surge that saw more than 1 million people arrive last year. Most of them crossed the Aegean Sea from Turkey to the Greek islands, in the hope of reaching wealthy northern European states such as Germany and Sweden. At the core of the EU's approach is a controversial deal with Turkey under which new arrivals to Greece will be sent back. For each Syrian returned in this way, the bloc has agreed to take in one Syrian refugee living in Turkey, up to a total of 72,000.
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British households perceived that the value of their home increased in April, survey figures from Markit Economics and Knight Frank showed. The Knight Frank/Markit House Price Sentiment Index, or HPSI, dropped marginally to 60.1 in April from 60.5 in the previous month. However, a reading above 50 signals a rise in house prices. The future HPSI, a measure of expectations on house prices dipped to 68.8 in April from 71.6 in March. "The latest survey highlights another brake on the number of UK households intending to purchase a property over the next two years, with this index down appreciably from its peak in February 2015," Tim Moore, senior economist at Markit, said.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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