14th Jan 2014 11:34
LONDON (Alliance News) - The following is a summary of top news stories Tuesday.
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COMPANIES
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AstraZeneca PLC said it expects revenues for 2017 to be roughly in line with 2013, and that it believes it will return to growth earlier than analyst consensus currently forecasts, in a statement ahead of its presentation at the JP Morgan Healthcare Conference In San Francisco. The pharmaceutical company said that it had made good progress with accelerating and replenishing is portfolio in its three core therapeutic areas: oncology, cardiovascular and metabolic disease, and respiratory, inflammation and autoimmune diseases.
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ASOS PLC, the popular 20-something online clothing and beauty retailer, started off the year with a bang, reporting Tuesday sales growth of 38% for the first four months of its new financial year. ASOS said total retail sales rose 38% year-on-year in the four months ended December 31, to GBP335.7 million, boosted by strong Christmas trading both at home and abroad. It reported growth in international retail sales also of 38%, and growth of 37% in the UK.
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Ashmore Group PLC said it recorded a USD3.5 billion net outflow in the second-quarter, as the asset manager was hit by investor uncertainty over emerging markets. Ashmore shares plummeted to the bottom of the FTSE 250 index following the announcement, dropping 51.70 pence or 13% to 357.10p. Ashmore said the net outflow meant the assets it manages shrunk to USD75.3 billion at the end of the second-quarter on December 31, 2013, compared to USD78.5 billion at the end of the first-quarter.
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IG Group Holdings PLC said its pretax profit in the first half rose by 17% as the financial spread betting firm's revenue increased on the back of strong client activity in the early part of the reporting period. The FTSE 250 constituent said it made a GBP95.1 million pretax profit in the six months ended November 30, compared with GBP81.1 million for the corresponding period last year.
IG also said it is on track to launch a cash equity service in the UK in the second half of calendar year 2014, as part of its efforts to diversify its business.
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Property services group Countrywide PLC said the fourth quarter continued to show strong growth, with total income up 25% compared with the previous year. In a trading update ahead of its full-year results for the year to December 31, Countrywide said fourth quarter income totalled GBP171.0 million, while full year income rose 11% to GBP584.8 million.
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Big Yellow Group PLC said revenue is up for the year, but has dipped on revenue and occupancy results from the previous quarter as the self-storage firm remains optimistic about its prospects for trading, expecting incremental improvements. Big Yellow reported a 6.5% rise in total store revenue for its 54 wholly-owned stores to GBP17.9 million for the third quarter to December 31, 2013, up from GBP16.8 million for the comparable quarter last year, but down 2.7% on the GBP18.4 million for the quarter to September 30 2013.
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The Unite Group PLC said it plans to acquire a student accommodation development project in Newcastle city centre from an unnamed firm, subject to achieving planning consent. Although the financial terms of the deal were not disclosed, Unite said the 200,000 square foot scheme will have a total development cost of GBP31 million and is expected to deliver a 9.5%-10% yield on cost, in line with its target returns.
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Housebuilder Barratt Developments PLC said it has been able to increase the number of new homes being built, as well as its profitability, in the six months ended December 31. It credited the continued recovery in the UK housing market across all regions. The firm said it completed 6,195 homes in the first half 2014, compared with 5,194 homes in the comparable period a year earlier, an overall increase of 19%, while net private reservations increased 37%.
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Balfour Beatty PLC said overall trading of its continuing businesses remains in line with expectations, but its order book has been hurt by negative foreign exchange movements and a continuing shift in the mix of its construction order book from the UK to the US. In a trading update ahead of its full year results, the infrastructure group said it expects its year-end order book from its continuing businesses to be broadly in line with the GBP13.5 billion from December 31, 2012.
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Cobham PLC said Richard Tyson, president of its Aerospace and Security Division, is resigning to become chief executive of TT Electronics PLC. The firm said Tyson will make the transition from his current role over the next few months, with a successor to be announced once the appointment is finalised. TT Electronics said Tyson will take over from Geraint Anderson who is stepping down as chief executive after six years in the position.
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Michael Page International PLC said that year-on-year gross profit was down 1.2% on a reported basis, while up 0.3% on a constant currency basis at GBP125 million for the fourth quarter as the firm record mixed trading results on the effect of adverse currency movements. Shares in the firm dropped during morning trading after the company released its trading update for the fourth quarter and the full-year. Michael Page said gross profit for the quarter was up 0.3% on a constant currency basis.
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MARKETS
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The UK's major stock indices are trading firmly lower as a busier corporate calendar fails to boost investor sentiment after heavy falls in US markets Monday.
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FTSE 100: down 16.56 at 6,740.59
FTSE 250: down 97.15 at 16,157.65
AIM ALL-SHARE: down 4.67 at 878.65
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GBP-USD: up at USD1.6424
EUR-USD: up at USD1.3681
GOLD: down at USD1,248.60 per ounce
OIL (Brent): up at USD106.68 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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UK inflation eased unexpectedly in December and hit the Bank of England's 2% target for the first since 2009, the Office for National Statistics said Tuesday. Consumer prices rose 2.0% year-on-year, following a 2.1% rise in November. The rate was forecast to remain stable at 2.1%. But on a monthly basis, consumer prices gained 0.4%, faster than the 0.1% rise posted in the prior month. Excluding energy, food, alcoholic beverages and tobacco, core inflation eased marginally to 1.7% in December from 1.8% in November.
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The ONS said UK factory gate inflation accelerated to 1% in December from 0.8% a month ago. Compared to November, output prices remained flat. Input prices, at the same time, dropped for the second straight month in December. Prices were down 1.2% annually, after easing 1% fall in November. On a monthly basis, input prices edged up 0.1%.
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Residential property pries in the UK increased at a weaker annual rate in November, contrary to economists' forecast for a faster growth, latest data showed. The house price index rose 5.4% in November from the same month of last year, the Office for National Statistics (ONS) said. This followed a 5.5% gain in October. Economists had forecast a faster growth of 5.9% for November.
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Eurozone industrial production recovered at a faster than expected pace in November, a report from Eurostat revealed. Industrial production increased 1.8% in November from October, when it was down by 0.8%. Economists were expecting an increase in production to 1.4%.
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GERMAN DEC WHOLESALE PRICES DOWN 1.8% ON YEAR VS. -2.2% IN NOVEMBER
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US Congressional negotiators late Monday unveiled a massive spending bill that would end the threat of another government shutdown, news reports said, ahead of a deadline midnight Wednesday. The USD1.1-trillion spending bill would fill in the blanks of a December budget agreement and fund federal agencies for the rest of the fiscal year, the reports said. The bill follows on the bipartisan budget agreement to partially repeal sharp spending cuts known as the sequester. The bill means the Pentagon will avoid a roughly 20-billion-dollar cut set to hit on Wednesday, and domestic agencies will receive funding increases, the Washington Post reported.
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The US Monday charged that China's import tariff on a special kind of US-produced high tech steel violates a ruling by the international trade mediator and has undermined US jobs and exports. US Trade Representative Michael Froman said the tariff had reduced US exports of the steel to China from USD250 million dollars a year to just USD3 million. Froman said the US was formally challenging China's failure to comply with the Word Trade Organization's (WTO) decision in November 2012 that found China was in breach of WTO rules.
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Japan's economy watchers' assessment of the current economic situation turned more upbeat in December, survey data released by the Cabinet Office revealed. The Eco Watchers' current conditions indicator increased to 55.7 in December from 53.5 in November and 51.8 in October. Economist had forecast a more modest rise to 54 for December. The better assessment of the current situation mainly reflected a strong holiday shopping season, improved consumer confidence and an increase in demand for goods prior to to the tax hike, the survey showed.
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Japan posted a current account deficit of 592.8 billion yen in November, the Ministry of Finance said - sliding into the red for the second straight month. The headline figure was well shy of forecasts for a shortfall of 368.9 billion yen following the 127.9 billion yen deficit in October. The current account shortfall also ballooned 230% on year versus expectations for an increase of 74% following the 130% decline a month earlier.
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Overall bank lending in Japan was up 2.6% on year in December, the Bank of Japan said, standing at 411.449 trillion yen. That follows the 2.4% increase in November.
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Thousands of Thai protesters marched peacefully on government offices in a bid to persuade civil servants to stop work and join their "Bangkok shutdown" campaign. The campaign, launched Monday, has occupied seven main intersections in the capital to pressure caretaker Prime Minister Yingluck Shinawatra and her cabinet to resign.
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Central African Republic's provisional parliament began the process of electing a new political leadership, days after the interim president was forced to resign. The 10-day negotiations are being led by National Transitional Council chairman Alexandre Ferdinand Nguendet, who signed a decree late on Sunday giving the country's 135 parliamentarians the authority to elect a new interim president. There has been a power vacuum in CAR since Friday, when Michel Djotodia and prime minister Nicolas Tiangaye stepped down, bowing to pressure from regional leaders.
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