8th Jan 2020 11:08
(Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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J Sainsbury reported a sales fall in its third quarter, a period which includes the pivotal Christmas and Black Friday trading spells, though sales in groceries alone edged higher year-on-year. In the 15 weeks to January 4, total retail sales, excluding fuel, were down 0.7% from last year. Including fuel, sales were down 0.9%. On a like-for-like basis, sales excluding fuel also were 0.7% lower year-on-year, but the like-for-like decline stretched to 1.1% when including fuel sales. Grocery sales rose 0.4% from a year ago, with online grocery sales alone up 7.3%, The grocer reported that a record 385,000 customers ordered groceries online in the week before Christmas.
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Shares in private healthcare firm NMC Health slumped as Credit Suisse Group confirmed two shareholders have sold off 15% of the company. After the London market close on Tuesday, Credit Suisse said Saeed Mohamed Butti Mohamed Khalfan Al Qebaisi and Khaleefa Butti Omair Yousif Ahmed Al Muhairi were to sell shares worth around USD490 million in NMC. This was to reduce their own debts, the Swiss bank said. On Wednesday, it confirmed Al Qebaisi and Al Muhairi have sold a combined 31.2 million shares in NMC, a 15% stake. The shares were sold at 1,200 pence each, netting them USD493 million. Following the sale, Al Muhairi will own just short of 13% of NMC's shares. Al Qebaisi will own 4.7%. However, they will both have an additional 7% combined through a separate investment vehicle.
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Credit Suisse confirmed the same pair of investors sold a combined 6% stake in financial services firm Finablr. After the London market close on Tuesday, the investment bank said Al Qebaisi and Al Muhairi were to sell shares worth around USD75 million in Finablr. Credit Suisse confirmed on Wednesday the two sold 40.5 million Finablr shares in total at 135 pence each, for USD72 million. The Swiss bank did not specifically say how many shares they now hold, but did state that "residual" holdings are subject to a 90-day lock-up period.
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Greggs raised its annual profit guidance for its financial year, and it promised a GBP7 million special payment to employees, due to their "crucial contribution to business success". In the year ended December 28, the company said like-for-like sales were up 9.2% annually, and in total, they rose by 14% which would give Greggs full-year sales of GBP1.17 billion. To compare, total sales last year rose 7.2% to GBP1.03 billion, with like-for-like sales improving by 2.9%. In the fourth quarter alone, like-for-like sales rose by 8.7%, compared with growth of 5.2% in the same period last year. As a result of strong trading, particularly in the latter part of 2019, Greggs expects its annual underlying pretax profit to be higher than its previous expectations, even after the special payment to its workforce of roughly 23,000 employees.
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Anglo American said it is in advanced discussions to acquire Sirius Minerals. Anglo American is offering 5.50 pence per share for London-listed Sirius. The offer values Sirius at GBP386 million. The offer represents a 34% premium to Sirius's closing price on Tuesday and a 47% premium to the company's volume-weighted average price since mid-September, when Sirius embarked on a strategic review of its business. Anglo American believes its offer to buy Sirius can provide "certainty" to Sirius shareholders, as the mining giant will bring "financial, technical and marketing resources and capabilities to progress the project over time". Anglo American believes that the project has the potential to become a world-class, low-cost and long-life asset.
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MARKETS
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London shares were lower as tensions between the US and Iran escalated after Iran launched missiles at Iraqi bases housing US troops in retaliation for last week's US drone strike that killed senior Iranian commander Qasem Soleimani. Gold hit a seven-year high of USD1,611.20 an ounce overnight. NMC Health was the worst blue-chip performer, down 15%. Wall Street was pointed to a mixed open.
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FTSE 100: down 0.2% at 7,560.10
FTSE 250: down 0.8% at 21,652.55
AIM ALL-SHARE: down 0.1% at 957.58
GBP: firm at USD1.3130 (USD1.3118)
EUR: soft at USD1.1130 (USD1.1138)
GOLD: up at USD1,580.50 per ounce (USD1,568.77)
OIL (Brent): up at USD68.60 a barrel (USD68.02)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Iran fired missiles at Iraqi bases housing the US military, officials in Washington and Tehran said, in the first act of the Islamic republic's promised revenge for the drone strike which killed senior Iranian commander Qasem Soleimani and Hashed deputy chief Abu Mahdi al-Muhandis. The Pentagon said it was still "working on initial battle damage assessments" after "Iran launched more than a dozen ballistic missiles against US military and coalition forces in Iraq." There were no immediate reports on casualties. The Pentagon said the facilities had been on "high alert" after days of steadily mounting tension and exchanges of threats of war. "Iran took and concluded proportionate measures in self-defence" targeting a base from which a "cowardly armed attack against our citizens and senior officials" was launched, said Foreign Minister Mohammad Javad Zarif on Twitter. "We do not seek escalation or war, but will defend ourselves against any aggression," he added. Trump, who visited al-Asad with First Lady Melania Trump in December 2018, his first trip to US troops deployed in a war zone, said initial casualty assessments indicated "all is well." He tweeted that "assessment of casualties & damages taking place now. So far, so good!"
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Iranian state television claimed that the missile strikes on bases in Iraq killed 80 Americans, in a report citing what it called an informed Revolutionary Guards source. Iran launched 22 missiles overnight at the Iraqi bases used by US and other US-led coalition troops, the Iraqi army said. "At least 80 American military (personnel) were killed in this attack," the state television website reported. In addition, it said, unmanned aerial vehicles, helicopters and other military equipment had been severely damaged in the attack.
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House prices in the UK ended a subdued year on a stronger note, data from Halifax showed. House prices grew 4.0% year-on-year in December, the highest annual growth rate seen in 2019. Month-on-month, prices rose 1.7% - the biggest monthly increase in 2019 - and on the quarter were up 1.0%. Looking ahead, Halifax expects uncertainty in the UK economy to "ease somewhat" in 2020. This should spark an increase in transaction volumes and further price growth. However, longer-term issues, such as a shortage of homes for sale and low levels of house building, will continue to limit supply. The average house price stood at GBP238,963 in December, versus GBP234,886 in November and GBP230,721 at the start of 2019.
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UK Prime Minister Boris Johnson was on Wednesday expected to tell Ursula von der Leyen that Britain will not extend the Brexit transition period, in their first face-to-face meeting since she became European Commission chief. Downing Street said Johnson will call for the EU and Britain to work out "a confident and positive future relationship" by the end of December, when the implementation period - designed to cushion the effects of Brexit - is due to end. "Having waited for over three years to get Brexit done, both British and EU citizens rightly expect negotiations on an ambitious free trade agreement to conclude on time," his office said. "There will be no extension to the Implementation Period, which will end in December 2020." Lawmakers on Tuesday began three days of debate to enshrine Johnson's Brexit divorce deal into law, with few hurdles to its passing expected after he won a comfortable majority at last month's elections.
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