BT Share News (BT.A)

(Alliance News) - Stocks in London ended broadly higher on Friday on hopes of a de-escalation in the US-China trade war as the G20 summit in Osaka continues.US President Trump and Chinese President Xi will meet on the sidelines of the G20 summit on Saturday as investors mull over mixed messages on the trade deal front.Trump and Xi are not expected to come out of the meeting with a concrete trade deal, but investors will be looking for signs of progress toward kick-starting the stalled negotiations between the two economic superpowers.Forex.com analyst Fawad Razaqzada said: "Ahead of the talks, Trump has already indicated a trade deal with China was possible this weekend. Trump also warned he's prepared to impose tariffs on most remaining Chinese imports if they don't agree. "So, it looks like the outcome of the meetings will likely be a binary one. If they make progress, then a delay in raising tariffs or cancelling some of the previously announced-levies are likely, and talks could resume between the two nations in July. "However, if trade talks falter, it will be plan B: more tariffs on Chinese goods. Ahead of the meetings, sentiment is cautiously optimistic with European markets slightly higher but overall remain in consolidation mode."The FTSE 100 index closed up 23.30 points, or 0.3%, at 7,425.63, ending the week up 0.2%.The FTSE 250 index closed up 147.64 points, or 0.8%, at 19,462.10, ending the week up 0.7%, and the AIM All-Share closed down 4.28 points, or 0.5%, at 919.33, ending the week down 1.6%.The Cboe UK 100 ended up 0.4% at 12,609.35, the Cboe UK 250 closed up 0.8% at 17,412.02, while the Cboe Small Companies ended down 0.8% at 11,293.75.In Paris the CAC 40 ended up 0.8%, while the DAX 30 in Frankfurt ended up 1.0%. On the London Stock Exchange, International Consolidated Airlines ended the best performer, up 5.0%, after the British Airways parent said it has converted two of the 100 Airbus A320neo options announced in August 2013 into firm orders for Iberia.The aircraft's list price, as of January 2012, was USD94.0 million per plane, although they are sold at a substantial discount from the list price. The two new aircraft will be delivered in 2021 and will be used to replace two A320ceos in the airline's short haul fleet.The company, which also owns British Airways, said the new fuel efficient aircraft will bring both cost efficiencies and environmental benefits to Iberia's fleet.Moreover, housebuilders ended among the blue chip risers amid a pledge from Conservative Party leadership race frontrunner Boris Johnson, who is said to be considering an overhaul of stamp duty in the event of a no deal Brexit.Berkeley Group closed up 4.2%, Persimmon up 3.1%, Taylor Wimpey up 1.5% and Barratt Developments up 1.5%. Burberry Group closed up 4.1% after Goldman Sachs raised the fashion house to Neutral from Sell. At the other end of the large cap index, BT Group closed down 1.1% after the UK Office of Communications confirmed new rules will give rival broadband and mobile networks providers greater access to BT Openreach's infrastructure. In the FTSE 250, Merlin Entertainments ended the best performer, up 14% at 449.10p. The theme park and attractions operator has agreed to a GBP4.77 billion takeover offer from a group comprising the investment vehicle of Lego's founding family, US private equity firm Blackstone and a Canadian pension fund. The deal values Merlin shares at 455p each in cash, representing a 15% premium compared to the attraction operator's closing price of 395p on Thursday. The deal values Merlin - which operates Legoland theme parks among a number of other attractions - at GBP4.77 billion on a fully diluted basis, and implies an enterprise value of GBP5.91 billion. The bid is from Berkeley Bidco, a newly-formed company owned by Kirkbi, Blackstone Core Equity Partners and the Canada Pension Plan Investment Board. Kirkbi and Blackstone jointly controlled Merlin in the eight years prior to its 2013 float in London.Elsewhere, London market debutante Airtel Africa closed at 69.80 pence, down 13% from its initial public offering price of 80p, valuing the firm at around GBP2.67 billion. The offer comprises of 744.0 million new shares and at current levels Airtel's market value would place the firm safely in contention for a spot on London's mid-cap FTSE 250 index.Airtel Africa takes top spot in the London market IPO rankings so far in 2019, trumping second and third placed Network International Holdings and Trainline, which had market capitalisations of GBP2.20 billion and GBP1.68 billion respectively on admission. The pound was quoted at USD1.2705 at the London equities close, up from USD1.2674 at the close Thursday. Meanwhile, stockpiling gave the UK economy a lift in the first quarter of 2019 amid fears among manufacturers of a no-deal Brexit, according to the Office for National Statistics.The ONS said UK GDP increased by 1.8% in the first quarter of 2019, up from 1.4% in the final quarter of 2018, according to a final estimate by the ONS. The reading was unrevised from the previous estimate and matched consensus estimates supplied by FXStreet.On a quarterly basis, the UK economy increased by 0.5% in the first quarter, up from 0.2% in the fourth quarter of 2018. The first quarter reading was unrevised from the previous estimate and in line with market expectations.The ONS noted stockbuilding for Brexit added 0.7% to first-quarter growth.Nancy Curtin, chief investment officer at Close Brothers Asset Management, said: "With investors already on edge over a global slowdown, they remain eagle-eyed for any further indication of weakness at home. If inflation starts to slide, concerns will increase that we are heading towards a deflationary recession."With the No-Deal Brexit cause rejuvenated, political uncertainty continues to wrack the minds of investors, and businesses are refraining from deploying capital. The UK economy will likely remain sluggish until the Brexit dilemma is finally resolved."The euro stood at USD1.1382 at the European equities close, higher than USD1.1365 late Thursday, after eurozone consumer prices increased at a steady pace in June.Inflation came in at 1.2%, the same rate as seen in May and in line with expectations. Final data is due on July 17.The European Central Bank targets inflation "below, but close to 2%."Meanwhile, core inflation that excludes energy, food, alcohol and tobacco, increased more-than-expected to 1.1% from 0.8% in May. Economists had forecast core prices to advance 1%."The increase in core inflation seems to have been due to a rebound in volatile transport and holiday prices, rather than rising underlying price pressures, so it should not deflect the ECB from policy in the coming months", Andrew Kenningham, an economist at Capital Economics, said.Stocks in New York were higher at the London equities close with the DJIA, the S&P 500 index and the Nasdaq Composite all up 0.2%.On the economic front, the Commerce Department released a report showing US personal income increased by more than expected in the month of May, while personal spending rose in line with estimates.Personal income climbed by 0.5% in May, matching the advance seen in April. Economists had expected income to rise by 0.3%.The report said disposable personal income, or personal income less personal current taxes, also increased by 0.5% for the second straight month.Additionally, the Commerce Department said personal spending rose by 0.4% in May following an upwardly revised 0.6% increase in April.The reading on inflation said to be preferred by the Federal Reserve showed the annual rate of core consumer price growth was unchanged at 1.6%.Brent oil was quoted at USD65.30 a barrel at the equities close, down from USD66.34 at the close Thursday.On Monday, the Organisation of the Petroleum Exporting Countries and its allies will congregate in Vienna, Austria to discuss oil production levels. The 176th OPEC meeting will start on Monday and end on Tuesday. Heading into the meeting, it is still unclear whether the 14 OPEC countries and the 10 additional countries led by Russia will reduce their oil output even further, or whether they will simply prolong their current agreed limit that runs out at the end of June.Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said it remains to be seen whether the two dozen countries will be disciplined enough to stick to their agreements.Gold was quoted at USD1,411.62 an ounce at the London equities close, up from USD1,405.65 late Thursday.Lingering tensions between the US and Iran, Trump's earlier comments about the security relationship with Japan and his demand that India should withdraw "very high tariffs" on US goods also boosted appeal for safe-haven bullion.The economic events calendar on Monday has manufacturing PMI readings from China overnight, as well as Italy, France, Germany, the eurozone and UK at 0845 BST, 0850 BST, 0855 BST, 0900 BST and 0930 BST respectively. Financial markets in Hong Kong are closed on Monday for the Special Administrative Region Establishment Day holiday. There are no events scheduled in the UK corporate calendar on Monday.London Close is available to subscribers as an email newsletter. Contact info@alliancenews.com