17th Feb 2020 10:58
(Alliance News) - The following is a summary of top news stories Monday.
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COMPANIES
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NMC Health reported a slate of board departures including the resignation of founder and joint Non-Executive Chair Bavaguthu Raghuram Shetty. The departures comes as NMC tries to unravel the shareholdings of some of its major investors. The Abu Dhabi-based hospital operator said Shetty, who had been banned from attending board meetings for inaccurately reporting shareholdings in the company, has resigned with immediate effect. Mark Tompkins will continue as the sole non-executive chair, NMC said. The FTSE 100-listed company separately announced the departures of Chief Investment Officer Hani Buttikhi and Director Abdulrahman Basaddiq. Their resignations are with immediate effect.
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Jupiter Fund Management confirmed a potential GBP370 million all-share deal for Merian Global Investors. Jupiter will be issuing Merian shareholders 95.4 million shares, giving Merian shareholders an approximate 17% stake in the combined company. There is also an additional deferred payment of up to GBP20 million depending on performance targets being met. Merian had asset under management of GBP22.4 billion as of the end of 2019, and the merger will create a company will assets of GBP65 billion. Jupiter, a member of the FTSE 250, said the deal "significantly enhances" its UK investment capability, and widens the range of investment services available to clients.
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Tullow Oil announced disappointing drilling results at the Marina-1 exploration well off the coast of Peru. The well did not find any "significant" hydrocarbons, Tullow said. It was testing the La Cruz and Mal Pelo formations, with some minor gas shows found but no discoveries in the main targets. Tullow said the well was drilled to a total depth of 3,022 metres, in water 362 metres deep. Marina-1 will now be plugged and abandoned. Tullow has a 35% interest in the well, which is operating by Karoon Energy with a 40% stake. Pitkin Petroleum holds the remaining 25%.
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Just Eat Takeaway.com said it has issued another 1.5 million shares as a result of further acceptances from Just Eat shareholders. Just Eat Takeaway.com, a name emerging from Just Eat PLC and Takeaway.com NV's merger, said its offer worth 916 pence per Just Eat share has now been accepted by 670.1 million Just Eat shares in total, representing 98% of shares. Once the further 1.5 million Just Eat Takeaway.com shares have been issued, the combined company will have 142.4 million shares issued in total. The offer for the remaining Just Eat shares remains open "until further notice" and 14 days' notice will be provided before it closes.
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MARKETS
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London shares were higher after China unveiled a new set of financial measures in the fight against the coronavirus. Over the weekend, China's central bank offered additional funds to banks to help manufacturers and businesses amid the coronavirus outbreak. In addition, China's central bank cut the interest rate of medium-term lending facility to 3.15% from 3.25% on Monday. In the FTSE 250, Jupiter was the best performer, up 5.7%. Financial markets in the US are closed on Monday for the Presidents Day holiday.
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FTSE 100: up 0.2% at 7,426.27
FTSE 250: up 0.1% at 21,814.84
AIM ALL-SHARE: up 0.2% at 967.92
GBP: firm at USD1.3036 (USD1.3028)
EUR: flat at USD1.0845 (USD1.0842)
GOLD: flat at USD1,580.30 per ounce (USD1,581.60)
OIL (Brent): firm at USD57.30 a barrel (USD57.15)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Hundreds of flood alerts remain in place across Britain after storm Dennis battered the country, with one woman feared missing after being swept away by floodwater. Severe weather conditions over the weekend saw winds of more than 90 miles per hour lash parts of the UK, while more than a month's worth of rain fell in 48 hours in places. Major incidents were declared due to flooding in South Wales as well as in Worcestershire and Herefordshire, while a record number of flood warnings and alerts were issued by the Environment Agency (EA). On Monday, the UK government said it had activated the Bellwin scheme to provide financial assistance to storm-hit areas.
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UK exporters are still struggling with the impact of Brexit uncertainty and weaker global trade, a business group has warned. The British Chambers of Commerce said clarity was needed on the future trading relationship with the EU after a study found that manufacturing export orders weakened for a second consecutive quarter at the end of last year. Its survey of more than 3,300 exporters also showed that exchange rates remained the top concern for two thirds of manufacturing firms which export goods.
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New UK Chancellor of the Exchequer Rishi Sunak may delay the date of next month's government Budget in order to give himself more time to prepare, a senior minister has said. Transport Secretary Grant Shapps said ministers had still not been told whether the Budget would go ahead on March 11 as planned after Sajid Javid's resignation. "I know that the Budget plans are well advanced but I also know that Rishi Sunak, the new chancellor may want time," Shapps told Sky News's Sophy Ridge On Sunday programme. "I haven't heard whether the date of March is confirmed as yet. He is probably looking at it, I should think this week."
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China may postpone its annual parliament session, state media said, as the country battles to control the outbreak of the new coronavirus. China's ruling council will "deliberate a draft decision" over postponing the 10-day National People's Congress, said official news agency Xinhua, ahead of the meeting due to start on March 5. The top parliamentary meeting has been held annually in March for the past 35 years. More than 70,000 people have been infected by the epidemic in mainland China, which started in central Hubei province and has spread across China and to other countries. It has claimed 1,770 lives and prompted the closure of many schools, entertainment venues and large-scale events across China. A meeting of China's elite Politburo Standing Committee next week is expected to "deliberate a draft decision on postponing the third annual session of the 13th NPC", according to Xinhua.
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Japan has suffered its worst quarterly GDP contraction in more than five years, with a tax hike and a deadly typhoon taking a toll on the world's third-largest economy. The nation's gross domestic product in the three months to December shrank 1.6% from the previous quarter, even before the novel coronavirus outbreak in China hit Japan, according to official data published on Monday. The quarter was marked by a rise in consumption tax from eight percent to 10%, as well as Typhoon Hagibis, which killed more than 100 people and caused widespread flooding. Monday's data snapped four quarters of growth and was the biggest contraction since the second quarter of 2014 when the economy shrank 1.9%.
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France has warned Britain to expect a bruising battle with the EU in the forthcoming negotiations on a post-Brexit trade deal. French foreign minister Jean-Yves le Drian predicted the two sides would "rip each other apart" as they strove for advantage in the talks. Speaking at the annual Munich Security Conference, he made clear that Brussels will defend its interests when negotiations begin next month. "I think that on trade issues and the mechanism for future relations, which we are going to start on, we are going to rip each other apart," he said. "But that is part of negotiations, everyone will defend their own interests." Le Drian, a close ally of President Emmanuel Macron, is the latest senior EU figure to warn that the negotiations will be difficult.
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