10th Mar 2020 11:21
(Alliance News) - The following is a summary of top news stories Tuesday.
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COMPANIES
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Standard Life Aberdeen reported a slip in assets under management in 2019 - with a reduction in all four fund classes - but the company was able to keep its payout steady. Standard Life declared an unchanged total annual dividend of 21.6 pence, having promised a year ago to maintain its dividend level through its restructuring. The wealth manager recorded assets under management and administration of GBP544.6 billion at December 31, down 1.3% from the GBP551.5 billion seen at the end of 2018. Despite the drop, the result beat the market consensus forecast of GBP529.1 billion in assets. SLA recorded net outflows of GBP58.4 billion in 2019, which also outperformed the market expectation of GBP72.7 billion. The wealth manager was keen to point out that, excluding the outflows from losing the Scottish Widows mandate from Lloyds Banking Group, net outflows totalled only GBP17.4 billion.
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M&G reported a rise in assets under management in its maiden results after demerging from iconic insurer Prudential. As at December 31, the investment management firm had assets under management and administration of GBP351.5 billion, 9.4% ahead of the GBP321.2 billion seen at the end of 2018, and 2.8% ahead of the consensus market expectation of GBP342.30 billion. Total net outflows hit GBP8.9 billion in 2019, worse than market consensus of GBP7.2 billion, and slightly worse than the GBP8.7 billion net outflows recorded in 2018. M&G declared an ordinary dividend of 11.92 pence per shares, plus a special demerger dividend of 3.85p, giving a total annual dividend of 15.77p. Looking ahead, M&G believes the deadly coronavirus outbreak will continue to "unnerve" markets. It noted the "significant uncertainty" but was confident in its "resilient" balance sheet. M&G's Solvency II coverage ratio stood at 166% at March 6.
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Informa said it will not give any market guidance for 2020, due to the uncertainty caused by the Covid-19 virus epidemic, as it has rescheduled or cancelled 128 event brands for the year. However, the business events and publishing company reported a strong 2019 performance, with double-digit rises in profit and revenue. For the recent year, Informa reported a 13% rise in pretax profit to GBP318.7 million from GBP282.1 million in 2018. On an adjusted basis, however, pretax profit rose by 26% year-on-year to GBP821.4 million from GBP649.7 million, above consensus expectations of GBP809.5 million. Looking ahead, Informa said it has implemented its Covid-19 action plan, which includes a programme to reschedule or cancel its event brands.
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Saudi Arabian Oil, commonly called Saudi Aramco, said it will increase its oil output to 12.3 million barrels per day of crude oil in April, reflecting a rise over its maximum sustained capacity of 12.0 million barrels per day. The recently Riyadh-listed oil giant said it has agreed to provide its customers with the higher volumes with effect from the start of April. It said it expects the move to have "a positive, long-term financial effect". On Sunday, Saudi Arabia took the first shot in an oil war after cutting its price for April delivery by USD4 to USD6 a barrel to Asia and USD7 to the US, with Aramco selling its Arabian Light at an unprecedented USD10.25 a barrel less than Brent to Europe. This was after the failure by cartel the Organization of the Petroleum Exporting Countries and its allies to clinch a deal to cut production. A meeting of OPEC and non-OPEC producers was expected to agree to deeper cuts to counter the impact of the new coronavirus - but Russia refused to tighten its supply.
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MARKETS
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London shares were staging a mild rebound on Tuesday following the historic losses incurred on 'Black Monday', which saw the FTSE 100 drop below the 6,000 mark. Oil majors were among the blue chip risers tracing oil prices higher. US stock market futures were pointed to a higher open, with the Dow futures gaining 1,000 points, with the benchmark losing over 2,000 points in Monday's sell-off.
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FTSE 100: up 4.0% at 6,205.55
FTSE 250: up 3.5% at 18,151.77
AIM ALL-SHARE: up 2.4% at 820.45
GBP: down at USD1.3040 (USD1.3119)
EUR: down at USD1.1338 (USD1.1462)
GOLD: down at USD1,658.98 per ounce (USD1,668.05)
OIL (Brent): up at USD37.62 a barrel (USD36.22)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Britons with "minor" cold, flu or fever symptoms could soon to be asked to stay at home in self-isolation in a bid to tackle the coronavirus outbreak, while new government advice has warned against all but essential travel to Italy. England's chief medical officer, Chris Whitty, pointed to tighter measures aimed at protecting the public, particularly the vulnerable and elderly, which could be implemented in the next 10 to 14 days. It came as the government tightened travel restrictions on coronavirus-stricken Italy following the announcement that Italian authorities were to extend quarantine measures to the whole country. During a Downing Street press conference on Monday afternoon, UK Prime Minister Boris Johnson told reporters the UK will almost certainly move to the delay phase of tackling coronavirus.
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Travel was restricted across Italy and public gatherings were forbidden throughout the country as the government signed off on strict quarantine measures to fight the spread of the new coronavirus. Marriages and funerals were banned for more than three weeks and bars and restaurants were told to close at 1800 CET, with the prime minister urging people to "stay at home". The unprecedented measures, in place until April 3, were extended from several large areas of the north to Italy's entire population of more than 60 million in a decree signed Monday night. Since the COVID-19 disease first emerged in China late last year, Italy has become Europe's hardest-hit country and has seen a rapid rise in cases to more than 9,000, with 463 deaths so far. "All forms of gatherings in public places or sites open to the public" were banned, the decree said, while sporting events of all levels and disciplines were cancelled – stopping play in the top-flight Serie A football league.
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Chinese consumer inflation rose 5.2% on-year in February, slightly down from 5.4% the month before, which was the highest since October 2011. The reading was in line forecasts in a Bloomberg News survey. Food prices rose almost 22%, with pork increasing 135% - following a 116% rise in January - as the country's pig herds are ravaged by African Swine Fever that has seen millions of pigs culled. The National Bureau of Statistics also said medical goods had seen a rise as officials grappled with the coronavirus, which has infected more than 80,000 people and killed more than 3,000. The price of disinfection products increased 14.8% from January.
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Four years after his landmark primary victory in Michigan before the 2016 election, Bernie Sanders will learn on Tuesday whether the state will revive his campaign or relegate him to the role of protest candidate. Sanders proved his last US presidential bid was serious with his upset Michigan triumph, powered by his opposition to free trade and appeal among working-class voters. Michigan and five other states hold presidential contests on Tuesday at a critical point in the Democratic race. Former vice president Joe Biden is looking to quash Sanders' hopes and cement his own front-runner status just a week after resurrecting his beleaguered White House bid with a delegate victory on Super Tuesday.
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