27th Nov 2019 11:22
(Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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British American Tobacco said it expects to report robust results in 2019, following a strong performance in the second half, particularly in the US. In the US, the London & Johannesburg-listed tobacco firm said it delivered good revenue on a constant currency basis, supported by pricing and reduced discounting. BAT continues to expect US industry volumes for 2019 to be down by 5.5%, while for 2020 it expects a drop in the range of 4% to 6%. In the Vapour division, Vuse is growing its value share in the US, with Vuse Alto's share at 11% in October, and the Vuse family value share at 18%. Overall, BAT said it expects to report a rise in adjusted operating profit for 2019 in the upper half of its 5% to 7% guidance range. Constant currency revenue for the year, meanwhile, is also expected to grow in the upper half of its guidance range, which is between 3% and 5%.
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Hikma Pharmaceuticals said it has submitted a response to deficiencies in its US application for a generic version of GlaxoSmithKline's Advair Diskus inhaler. In 2018, the FTSE 100-listed pharmaceuticals firm received a complete response letter from the US Food & Drug Administration for its generic, which treats asthma and chronic obstructive pulmonary disease, meaning its abbreviated new drug application had not been accepted. Since then, Hikma has completed a clinical endpoint study and provided other information requested by the FDA. Hikma said its new submission addresses the FDA's questions from the complete response letter.
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Marston's said it swung to pretax loss in its recent financial year but reported an increase in revenue as it said it is "well prepared for the all-important Christmas and New Year period". The brewer and pub operator said for the 52 weeks ended September 28, its revenue was GBP1.17 billion, an increase from GBP1.14 billion in comparative period a year ago. Marston's swung to a pretax loss of GBP20.0 million, compared to GBP54.3 million profit in 2018. The firm's results were hit by a GBP43.4 million impairment of underperforming Destination and Premium properties and a GBP48.7 million loss reflecting interest rate swap valuation movements. The company proposed a final dividend of 4.8 pence per share, unchanged from a year before, resulting in a total dividend for the year of 7.5p per share, also in line with 2018.
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Britvic posted a 24% decline in annual profit due to an impairment charge relating to its proposed sale of three French manufacturing sites to Refresco Group. The soft drinks business, which owns the Fruit Shoot, Robinsons, and J2O brands, reported a GBP110.3 million pretax profit for the 52 weeks ended September 29, down from the GBP145.8 million profit reported for the 52 weeks to September 30, 2018. Revenue, however, rose 3.3% to GBP1.55 billion from GBP1.50 billion year-on-year. Britvic is recommending a 21.7p per share final dividend, taking the full year dividend up 6.4% to 30.0p from 28.2p. Going forward, Britvic believes the current macroeconomic environment is still uncertain, but is it expecting to make progress in the year ahead.
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Brewin Dolphin reported a rise in funds over its financial year, pushed by strong inflows from its Discretionary funds. At September 30, the asset manager's total funds under management stood at GBP45.0 billion, up 5.1% from GBP42.8 billion at the same point a year ago. Brewin Dolphin's Direct Discretionary funds grew 4.8% to GBP26.3 billion, resulting in a 6.6% rise in total Discretionary funds to GBP40.1 billion. Brewin Dolphin saw GBP1.3 billion in net inflows with investment performance adding a further GBP600 million. The company's income rose by 3.1% in the twelve months to September 30 to GBP339.1 million from GBP329.0 million, but pretax profit slipped 8.6% to GBP62.6 million from GBP68.5 million. Brewin Dolphin is proposing a final dividend of 12.0 pence per share, giving a full year dividend of 16.4p - both flat on the year before.
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MARKETS
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London shares were higher with US-China trade progress hopes still alive after US President Donald Trump described a deal as in its "final throes". The pound was up against the dollar ahead of the closely-watched YouGov multiple-level regression and post-stratification poll results at 2200 GMT. This UK poll correctly forecast a hung parliament in 2017. Wall Street was pointed to a higher open ahead of US GDP data at 1330 GMT.
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FTSE 100: up 0.5% at 7,441.60
FTSE 250: up 0.4% at 20,936.20
AIM ALL-SHARE: up 0.1% at 916.40
GBP: up at USD1.2880 (USD1.2845)
EUR: soft at USD1.1005 (USD1.1015)
GOLD: flat at USD1,459.55 per ounce (USD1,460.48)
OIL (Brent): down at USD63.36 a barrel (USD63.77)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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UK shop prices fell for the sixth month in a row in November with retailers offering discounts as the festive season gets into full swing, figures from the British Retail Consortium and Nielsen showed. Shop prices, according to the BRC-Nielsen Shop Price Index, were down 0.5% year-on-year, following on from a 0.4% fall in October. Month-on-month, prices were flat following a 0.1% decrease in October. Food prices were up 1.4% year-on-year, slowing from the 1.6% increase posted in October, while the cost of non-food items fell 1.6%, versus a 1.5% fall in October.
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House price growth in London is showing signs of firming up following a period in the doldrums, according to a report. Less than a quarter (23%) of London postcodes have registered negative house price growth in October, down from 82% registering price falls a year ago, according to Zoopla. But the rate of annual growth in property values is slowing across the UK's major cities generally. Annual house price growth in every city covered by the index has now been running below 5% for three months in a row – in August, September and October.
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Jeremy Corbyn will try to steer his party's campaign back towards the NHS Wednesday after a bruising day of questioning about his tax plans and anti-Semitism in the Labour Party. The Labour leader was accused of not being fit to be prime minister by the Chief Rabbi and was forced to admit that some low-income taxpayers could end up paying more under the party's manifesto proposals. The Conservatives will also want to move the focus onto their agenda again after the party was accused by the Muslim Council of Britain of "denial, dismissal and deceit" over Islamophobia within its ranks. Corbyn also faced awkward questions on tax. His party has said it will not raise rates of income tax, National Insurance and VAT paid by the lowest-paid 95% of taxpayers and that only the richest 5% will pay more. But an interviewer pointed out that Labour's plans to scrap the marriage allowance, which lets married couples reduce their tax burden by GBP250 a year, would hit lower-income taxpayers .
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A darkly angry, sometimes swearing US President Donald Trump vowed to win landslide reelection at a Florida campaign rally Tuesday ahead of a Thanksgiving break spoiled by looming impeachment. The rally in Sunrise, located just north of Miami, saw Trump unleash harsh invective against his political foes, calling out Democrats' "depravity" and claiming that "the failed Washington establishment" is targeting him because he is "exposing a rigged system". As always, Trump reserved special venom for American journalists, whom he called "some of the most corrupt people in the world". The attack prompted thousands in the crowd to turn and boo and shout insults at media outlets covering the event.
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A major tunnel in Hong Kong reopened on Wednesday and a week-long police siege of a nearby university appeared to be winding down, closing one of the more violent chapters of the city's anti-government protests. The Cross-Harbour Tunnel, which links Hong Kong Island to the rest of the city, had been closed for two weeks after protesters blocked the approach with tons of debris and set the toll booths on fire. A search of the Hong Kong Polytechnic campus the previous day found just one woman, in weak condition, and a senior university official said it was unlikely anyone else remained.
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