23rd Oct 2015 10:16
LONDON (Alliance News) - The following is a summary of top news stories Friday.
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COMPANIES
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Three UK-listed banks were among those hit by a USD924.0 million fine for foreign-exchange rigging on Thursday, Sky News reported, following a settlement agreed in the US. Barclays, HSBC Holdings and The Royal Bank of Scotland Group are understood to have agreed to pay the fines following a US federal court hearing. Barclays will pay USD384.0 million, HSBC will pay USD285.0 million, and RBS will pay USD255.0 million, according to people familiar with the settlements.
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TalkTalk Telecom Group confirmed it was hit by its second data breach this year, leaving it having to inform all of its customers that their data may have been compromised. Late on Thursday, the company said it had been subject to a "significant and sustained" cyber attack on its website on Wednesday. TalkTalk said that some of the data compromised by the hack may have included names, addresses, dates of birth, phone numbers and email addresses. But, more importantly, it said the details at risk also included TalkTalk account information and credit card or bank details of its customers. The Metropolitan Police Cyber Crime Unit has launched an investigation in to the incident, which TalkTalk said it ongoing. TalkTalk suffered its first cyber attack back in February.
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Cable and Wireless Communications late Thursday confirmed it is in talks with US cable company Liberty Global regarding a possible shares and cash takeover offer for C&W. The telecommunications company, which has operations in the Caribbean and Central America, said that shareholders are advised to take no action, and added there can be no certainty any firm offer will be made, or the terms on which any offer may be made. Under UK takeover code Liberty Global has until November 19 to either announce a firm intention to make an offer, or walk away.
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Data centre operator Telecity Group said the European Commission has begun a period of market testing, as part of commitments it has proposed to get approval for its GBP2.35 billion cash and share takeover by US peer Equinix. Telecity agreed the takeover from Equinix in May, terminating its previous deal to acquire Dutch data centre company Interxion Holding. As a result of this testing, the European Commission's Phase 1 review timetable is automatically extended by ten working days to November 13.
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William Hill reported a drop in net revenue and operating profit in the third quarter of 2015 and said it now expects full-year operating profit to be around the bottom of the analyst consensus range. The bookmaker said net revenue in the 13 weeks ended September 30 fell 9% on the same period the year before, as operating profit dropped 39%. As a result, the company now expects operating profit for the full year to be around the lower end of the GBP290.9 million to GBP312.1 million analyst consensus range. That would be down from the GBP372.2 million operating profit that William Hill achieved in 2014.
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Workspace Group said it has exchanged contracts for two acquisitions totalling GBP24.4 million. The real estate investment trust said it is buying Alexandra House in Wood Green for GBP14.0 million and Cannon Wharf in Surrey Quays for GBP10.4 million.
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Dechra Pharmaceuticals said it saw revenue rise 13% in its first quarter, driven by strong momentum across all of its business units, phasing of sales ahead of regional price increases, and contributions from its new subsidiaries. The veterinary pharmaceutical company's revenue was held back by the weaker euro and stronger dollar, however, and at constant currency revenue would have risen 21% in the quarter to end-September.
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Landscape products company Marshalls said its expectations for the full-year remain unchanged. In a short statement ahead of its analyst and investor day, being held in Leamington Spa on Friday, the company said its expectations for the year are consistent with those outlined at its interim results in August. In those results, Marshalls said trading conditions continue to be strong in its key markets and said that if this continued into the second half, its results for the year should come in ahead of its original expectations.
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MARKETS
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UK indices were trading higher, continuing the rally from Thursday after ECB President Mario Draghi hinted at further economic stimulus measures at the central bank's next meeting in December.
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FTSE 100: up 0.8% at 6,424.80
FTSE 250: up 0.5% at 17,120.63
AIM ALL-SHARE: up 0.4% at 747.70
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GBP: flat at USD1.5400 (USD1.5419)
EUR: flat at USD1.1114 (USD1.1156)
GOLD: up at USD1,172.34 per ounce (USD1,167)
OIL (Brent): up at USD48.45 a barrel (USD47.97)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Eurozone private sector growth unexpectedly strengthened in October to its fastest pace in two months, led by the surprise improvement in the services activity, while manufacturing expansion held steady, preliminary figures from a Markit Economics survey showed. The flash composite purchasing managers' index that represents both manufacturing and services rose to a two-month high of 54 from 53.6 in September. Economists had expected a score of 53.4.
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Germany's factory sector growth slowed more-than-expected in October, while services activity unexpectedly revealed strong growth that was the fastest in seven months, preliminary data from a Markit Economics survey showed. The flash purchasing managers' index for the manufacturing sector fell to a five-month low of 51.6 from 52.3 in September. The reading was expected to ease to 51.7.
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European Central Bank chief Mario Draghi signalled on Thursday the ECB plans to boost its EUR1.1 trillion monetary stimulus plan in December to head off the threat to the eurozone posed by deflation and slowing emerging economies. "The degree of monetary accommodation will need to be re-examined at our December meeting," Draghi told a press conference after the ECB's governing council left interest rates at an historic low of 0.05%. Draghi said the ECB's EUR60 billion bond-buying programme, or quantitative easing scheme, could be extended beyond its current cut-off date of September 2016 "if necessary". "We are ready to act if needed," he said. "We are open to a whole menu of monetary policy instruments." Driving the bank's deposit rate deeper into negative territory to help force more money into the eurozone's financial system was one of the methods under consideration, Draghi said.
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The UK Parliament on Thursday approved a principle of "English votes for English laws", meaning Scottish members could no longer have a final vote on laws solely for England or Wales. The Commons approved the change by a majority of 312 to 270, despite strong objections from some members. It adds an additional stage for parliamentary bills, in which a committee of solely English members, or English and Welsh members if appropriate, can examine legislation and have the right of veto before the whole parliament looks at it.
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British households perceive that the value of their home rose in October, though the rate of increase was slower than from the previous month, a survey from Knight Frank and Markit Economic showed. The house price sentiment index dropped to 58.1 in October from 59.3 in the previous month. However, a reading above 50 signals a rise in house prices.
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A leading economic index for China spiked in September, the latest survey from Conference Board revealed, climbing 1.6%. That follows the 1.0% increase in August and the 0.9% gain in July. The coincident index skidded 1.2% after rising 0.7% in August and 1.0% in July. "China's economic situation, as measured by the coincident index, slowed substantially in September, due to very weak consumer demand and a struggling industrial sector," said Andrew Polk, resident economist at the Conference Board China Center in Beijing.
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US congressman Paul Ryan said he would be a candidate for speaker of the House of Representatives, after he secured strong support from all factions of conservative opposition Republicans, who hold a majority in the lower chamber. The budget committee chairman who represents a rural district in the Midwestern state of Wisconsin is now poised to be elected next week to succeed Speaker John Boehner. Ryan, 45, who was the Republican vice presidential nominee in 2012.
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US President Barack Obama blocked a USD612 billion defence budget with a rare veto, saying the measure from Congress falls "woefully short" of what the military needs for the next year. He objected to a provision in the legislation impedes the closure of the US military prison at Guantanamo Bay, Cuba, and he said it would prevent a wide range of reforms needed to modernize the military for 21st-century threats. The budget passed the Senate and House of Representatives by large majorities.
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Airstrikes by a US-led coalition destroyed infrastructure in an oil field under the control of Islamic State forces in eastern Syria, a monitoring group said. "The strikes were carried on the al-Omar field near the city of Deir al-Zour. Our information is that it destroyed pipelines and oil storage tanks," Rami Abdel Rahman, head of the Britain-based Syrian Observatory for Human Rights, told dpa.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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