BT Share News (BT.A)

LONDON (Alliance News) - The following is a summary of top news stories Tuesday.
----------
COMPANIES
----------
UK media and telecoms regulator Ofcom said it will begin the process to enforce the legal separation of BT Group's network infrastructure arm, Openreach, in line with plans it laid out earlier this year, after BT failed to offer acceptable remedies to prevent the action. "BT's proposals still fall short in important areas. These include the transfer of people and assets, and the level of influence that BT group executives could exert over the management of Openreach," Ofcom said. The regulator is now proceeding with a formal notification to require the legal separation of the division, meaning it will become a distinct company with its own board, comprised in the majority of non-executive directors, including a chairman not affiliated with BT. This should mean Openreach is guaranteed "greater independence" to make investment decisions, and would have a "duty to treat all of its customers equally", Ofcom said.
----------
Merlin Entertainments said it anticipates reporting "good profit growth" in 2016, after achieving a positive performance across the company in the first 47 weeks of the year. In a brief trading update, the theme park and attractions operator said underlying trading in the Midway Attractions group in the 47 weeks ended November 19 was consistent with that reported in September, while the Resort Theme Parks group enjoyed a strong Halloween period, helped by favourable weather. LEGOLAND Parks showed "continued positive momentum" following two years of "exceptional growth", although Merlin did note that trading in Florida remains soft due to challenging market conditions.
----------
SSP Group reported higher profit in its recently ended financial year thanks to good growth in air passenger travel, which offset weaker footfall among rail passengers following recent terrorist attacks in France and Belgium. SSP, which operates food and drink outlets at airports and train stations, said pretax profit in the year ended September 30 grew to GBP105.6 million from GBP76.8 million the year before, as revenue rose to GBP1.99 billion from GBP1.83 billion and like-for-like sales increased by 3.0%. SSP said sales growth was driven by increased air passenger travel throughout the year, retailing initiatives it implemented, and new contract openings across the world.
----------
Cranswick reported 38% growth in profit in the first half of its financial year, thanks to higher revenue from both its pork and poultry products, and said it is well-positioned to meet expectations for the full year. The pork and poultry producer said pretax profit in the six months to the end of September grew to GBP40.4 million from GBP29.2 million the year before, as revenue rose 16% to GBP580.8 million from GBP501.0 million. The company said adjusted pretax profit rose by 24%, while underlying revenue was up 8.0%. Cranswick will pay an interim dividend of 13.1p, up from 11.6p the year before.
----------
Shaftesbury said pretax profit came in at less than a quarter of the figure recorded the prior year, but said both footfall and trading in its portfolio was buoyant. The real estate investment trust, which owns retail, restaurant and leisure assets across London's West End, posted revenue of GBP106.2 million for the year ended September 30, up from GBP98.7 million the prior year. However, pretax profit shrank to GBP99.1 million from GBP467.3 million a year earlier, after the surplus on the revaluation of Shaftesbury's investment properties came in much lower. Shaftesbury declared a total dividend for the year of 14.70p per share, up 6.9% from the 13.75p per share offered the prior year.
----------
Housebuilder and regeneration company Countryside Properties said the UK housing market had been more challenging at the higher price points, but said its pretax profit still almost tripled in its financial year. Countryside, which listed in London in February, said its current trading was robust, with both sales rates and values above year-end figures at September 30. The group said the markets in which it operates have recovered following the European Union referendum in June, and reservations remain robust. In its financial year, Countrywide said its revenue grew 23% to GBP671.3 million from GBP547.5 million the prior year. Pretax profit rose to GBP78.6 million from GBP28.0 million. Countryside declared a maiden full year dividend of 3.40p per share.
----------
MARKETS
----------
London shares were flat to lower at mid-morning with miners and oil stocks weighing on the blue-chip index ahead of Wednesday's OPEC meeting in Vienna. The pound was trading firm against the dollar after UK mortgage approvals rose to a seven-month high. Wall Street was pointed to a higher open.
----------
FTSE 100: down 0.7% at 6,749.39
FTSE 250: flat at 17,526.68
AIM ALL-SHARE: down 0.1% at 820.75

GBP: firm at USD1.2457 (USD1.2423)
EUR: firm at USD1.0594 (USD1.0589)

GOLD: down at USD1,187.40 per ounce (USD1,190.07)
OIL (Brent): down at USD47.42 a barrel (USD48.30)

(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
UK mortgage approvals increased to a seven-month high in October, the Bank of England reported. The number of mortgages approvals increased to 67,518 in October from 63,594 in September. This was the highest since March, when approvals totaled 69,994. The expected level was 65,000. Total lending to individuals increased by GBP4.9 billion in October compared to GBP4.7 billion in September. Within total lending, secured lending rose GBP3.3 billion, the same increase as seen in September but slightly bigger than the expected GBP3.2 billion. Consumer credit increased by GBP1.6 billion or 0.9% in October from September. Credit was forecast to grow GBP1.5 billion.
----------
The UK government has sought to play down suggestions Britain will be unable to remain in the single market after it leaves the EU after a memorandum carried by a senior Conservative Party aide suggested it was "unlikely". Ministers faced fresh accusations that they had no strategy for Brexit after a long-lens camera in Downing Street caught the handwritten note which read: "What's the model? Have your cake and eat it." The memo - which refers to some of the likely difficulties to arise during the negotiations - was being carried under the arm of an aide to Tory vice-chairman Mark Field as they emerged from a meeting with the Department for Exiting the EU at 9 Downing Street. A government spokesman said: "These individual notes do not belong to a government official or a special adviser. They do not reflect the government's position in relation to Brexit negotiations."
----------
England and Wales could shiver through the coldest evening of the autumn so far on Tuesday night as frosty yet dry conditions herald the start of winter, forecasters have predicted. Meteorologist Mark Wilson told the Press Association temperatures would struggle to get higher than 6C amid a sunny and cold day in England and Wales, with Scotland expected to experience milder conditions of up to 9C. While it is unlikely overnight temperatures for the entire UK will drop lower than the coldest of the season so far - which was -12C in parts of Scotland last week - Britain could get its coldest night of autumn on Tuesday night with temperatures in some areas forecast to get as low as -8.
----------
Large, privately-owned companies could be required to comply with the same standards of corporate governance as those listed on the stock exchange, under UK government plans for tackling boardroom abuses to be unveiled on Tuesday. UK Prime Minister Theresa May indicated ministers were determined to curb the "irresponsible minority" of private firms whose "careless" behaviour left employees, pensioners and customers to suffer when they ran into trouble. The move follows widespread public anger over department store chain BHS, which collapsed after being sold by high street tycoon Sir Philip Green for GBP1, with the loss of thousands of jobs and leaving company pensioners facing an uncertain future.
----------
Embattled South Korean President Park Geun Hye said she was prepared to resign from her position as president, but would let the parliament decide on her exact political fate. Speaking in a televised address, Park said that she would be prepared to let lawmakers decide how long she should remain in office, if necessary. The embattled South Korean president made the statement days after hundreds of thousands of people took to the streets to demand her impeachment. Park, whose approval rating dropped last week to 4%, is accused of having allowed close friend Choi Soon Sil to meddle in state affairs and of giving her access to official state documents.
----------
Thailand's parliament formally invited Crown Prince Maha Vajiralongkorn to become the country's next king, the parliament's president said in a live televised broadcast. The National Legislative Assembly passed a motion to invite the crown prince to ascend the throne at a special session, NLA president Pornpetch Wichitcholchai said. Varijalongkorn still needs to accept the invitation before being proclaimed King Rama X. Vajiralongkorn, 64, is the only son of late king Bhumibol Adulyadej, who died on October 13 after reigning for more than 70 years.
----------
The global coalition to counter the Islamic State movement has made "significant progress" against the terrorist group, but the 68 member governments know the effort is "a long-term fight," the US said. Ambassadors and senior diplomatic representatives from the member countries - newly including Libya, where Islamic State militants are active - met Monday at the State Department in Washington and discussed the progress of the effort.
----------
Following the death of former Cuban dictator Fidel Castro, US president-elect Donald Trump has suggested he will reverse the steps President Barack Obama has taken to normalize relations with Cuba. In a post on Twitter, Trump claimed he would eliminate the concessions Obama has granted Cuba unless the communist island nation agrees to a "better deal". "If Cuba is unwilling to make a better deal for the Cuban people, the Cuban/American people and the US as a whole, I will terminate deal," Trump said.
----------
Left-wing parliamentarians in Brazil filed a request for the impeachment of President Michel Temer over alleged corruption. Members of the Socialism and Liberty Party called for the impeachment after he allegedly pressured a former culture minister to approve a property development. Marcelo Calero, who resigned as culture minister 10 days ago, told police Temer pressured him to ease construction restrictions in a historical part of the city of Salvador de Bahia.
----------
By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

Copyright 2016 Alliance News Limited. All Rights Reserved.