14th Apr 2016 10:09
LONDON (Alliance News) - The following is a summary of top news stories Thursday.
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COMPANIES
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Unilever reported a fall in revenue in the first quarter of 2016 in a "volatile" market which it said was harmed by negative foreign exchange rates, slowing volume growth and price deflation. The personal care and household products company said revenue in the first quarter of 2016 slipped by 2.0% to EUR12.5 billion, hit by negative currency movements and slowing volume growth. Underlying sales, however, grew by 4.7%, while underlying volume was up 2.6%. "Consumer demand remained fragile. Volume growth slowed further in the markets in which we operate, with market growth weak in emerging markets, negligible in North America and negative in Europe," Unilever said
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Luxury goods retailer Burberry Group warned of further challenges in its current financial year as sales declined in the second half. Burberry said total sales in the six months to the end of March fell to GBP1.41 billion from GBP1.42 billion a year earlier. Underlying constant currency retail revenue was flat year-on-year in the half, while wholesale revenue fell 1.0% and licensing revenue fell in line with its expectations amid reductions to licensing income in Japan.
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Houebuilder Persimmon reported a strong start to 2016, with private sales rates and average selling prices continuing to rise after the strong growth it reported in 2015, but noted planning delays is "hindering the drive" to boost house volumes. The group said total forward sales revenue in the first 15 weeks of 2016, including legal completions taken so far this year, are up 8.0% at GBP2.15 billion, compared with GBP2.00 billion in the year earlier period.
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Entertainment One said it has received "no approach", following a report from the Financial Times that ITV is understood to be eyeing a takeover approach for the film and television producer. The FT report, citing people familiar with the matter, said ITV has held early talks with Entertainment One, the owner of the Peppa Pig franchise, about a potential deal, though no decision has been taken yet.
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JD Sports Fashion expressed confidence on its outlook after delivering a rise in annual pretax profit driven by strong like-for-like sales growth. The sports clothing and trainers retailer said its pretax profit for the 52 weeks to January 30 was GBP131.6 million, up 45% on the GBP90.5 million it made a year earlier. Revenue grew to GBP1.82 billion in the recent financial year, up 20% from GBP1.52 billion a year earlier. The company will pay a final dividend of 6.20 pence per share, up 5.1% year-on-year, taking its total payout up to 7.40p from 7.05p the year before.
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PZ Cussons said the overall performance in its most recent trading period was in line with expectations, while its outlook for the year also remains in line, but warned on difficulties in the Nigerian market. The consumer products company, which makes brands including Imperial Leather and Carex, said a better performance in Europe and Asia offset more difficult trading conditions in Africa in the period between January 27 and April 13. "Whilst the overall outlook for the financial year remains in line with expectations, the situation in Nigeria remains extremely fluid and is the largest variable to the year-end outturn," PZ Cussons said.
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Debenhams reported growth in profit in the first half of its financial year as it revealed the search for a new chief executive is underway. The department store operator said pretax profit in the 26 weeks ended February 27 grew to GBP93.8 million from GBP88.9 million in the first half of the prior year, as revenue remained broadly flat at GBP1.327 billion from GBP1.325 billion. Debenhams said that while it achieved a record Christmas, the rate of sales growth in the half was reduced due to it carrying less stock into the post-Christmas sale.
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Recruiter Hays said its net fee income grew in the third quarter despite a slowdown in activity in the UK & Ireland. Hays said its total net fee income for the third quarter to the end of March grew 5.0% year-on-year and was up 4.0% on a like-for-like, constant currency basis.
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MARKETS
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The UK's main indices were lower, with Burberry and housebuilders weighing on the FTSE 100. Investors are also looking ahead to the Bank of England interest rate decision and policy statement, due at 1200 BST. Wall Street was pointed to a lower open.
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FTSE 100: down 0.1% at 6,354.81
FTSE 250: down 0.4% at 16,976.80
AIM ALL-SHARE: up 0.1% at 732.11
GBP: down at USD1.4163 (USD1.4211)
EUR: flat at USD1.1256 (USD1.1276)
GOLD: down at USD1,210.05 per ounce (USD1,244.08)
OIL (Brent): flat at USD44.02 a barrel (USD44.26)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Labour leader Jeremy Corbyn will say Labour is "overwhelmingly" in favour of Britain staying in the EU as he makes his first major intervention in the referendum campaign. Corbyn - who during the leadership contest did not rule out backing Brexit and who was accused of giving only lukewarm public support so far to the "remain" cause - will point to serious "shortcomings" in Brussels. But he will say the Conservatives, not the EU, were responsible for the crisis in the British steel industry and a failure to tackle tax avoidance and that Labour would work with continental allies on such issues. And he will set out what he describes as a "strong socialist case for staying in", including the protection of workers' rights, strict environmental standards and the protection of consumers from rip-off charges.
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The house price balance in the UK weakened considerably in March, the latest survey from the Royal Institution of Chartered Surveyors showed, with a score of 42%. That was well shy of forecasts for a reading of 50%, which would have been unchanged from February. RICS points to apprehension ahead of the forthcoming referendum on EU membership, which is likely weighing on potential home buyers.
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Euro area consumer prices were unchanged in March after a decline in the previous month, revised data from Eurostat showed. The consumer price index showed no change from the same month a year ago, following a 0.2% drop in February. Headline inflation initially reported for March was a 0.1% fall, a second straight decline. Headline inflation has been below the European Central Bank's target of 'below, but close to 2%' since early 2013.
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Wages are rising across the US, according to the latest Beige Book report from the Federal Reserve. Anecdotal surveys from the twelve Federal Reserve Districts suggest that national economic activity continued to expand in late February and March, though the pace of growth varied from region to region. Most encouraging, labour market conditions continued to strengthen and business spending generally expanded. Wages increased in all but the Atlanta region, and several Districts reported signs of a pickup in wage growth over the last survey period.
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US presidential frontrunners Donald Trump and Hillary Clinton are leading in their respective parties' upcoming primaries in Maryland, according to the results of a NBC4/Marist poll. Forty-one percent of likely Republican primary voters support Trump, followed by Senator Ted Cruz at 29% and Ohio Governor John Kasich at 24%. Meanwhile, the poll showed Clinton with a substantial lead over Senator Bernie Sanders among likely Democratic primary voters. The poll found that 58% of likely Democratic primary voters support Clinton, while just 36% favour Sanders.
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Argentina took a decisive step towards ending its years-long billion-dollar debt battle with US hedge funds when a US appeals court lifted an order preventing the nation from paying debt holders and blocking its access to capital markets. Buenos Aires is now free to borrow in international markets in order to settle long-standing debts to the hedge funds, thus bringing a 15-year legal struggle to an end. The dispute stemmed from debts left outstanding in the wake of Argentina's bankruptcy at the end of 2001.
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China said it will penalize 357 officials in connection with a vaccine scandal that has eroded public trust in the government. The officials were implicated in the illegal sale of improperly stored vaccines, state media reported Thursday. Some will face dismissal or demotion, according to a decision made at a State Council executive meeting on Wednesday.
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By Arvind Bhunjun; [email protected]; @ArvindBhunjun
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