EI Group Share News (EIG)

LONDON (Alliance News) - Stock prices in London are called higher Friday, with markets optimistic despite a lack of any concrete progress from trade talks between the US and China.In company news, low-cost, regional airline Flybe has agreed to be purchased by a joint venture including Stobart Group and Virgin Atlantic, while retailers Moss Bros and Quiz have reported disappointing Christmas periods. IG futures indicate the FTSE 100 index is to open 29.7 points higher at 6,948.00. The blue chip index closed up 36.24 points, or 0.5%, at 6,942.87."The main two stories the market has been following, the Fed and the US/China trade played a helping hand buttressing investor risk sentiment overnight as US equities rose for the fifth straight session weathering a bout of negativity from weaker holiday sales while some of the shine initially faded from the US-China trade talks," said Oanda's Stephen Innes."But indeed, the ability for the market to rally in the face of bearish news is a sure hallmark normalcy is returning to the markets which suggest current momentum can be sustained."US Federal Reserve Chairman Jerome Powell on Thursday predicted no recession in 2019, and said the US central bank will be patient in determining when to hike interest rates.Fed Vice Chairman Richard Clarida also said the Fed could afford to take a wait-and-see stance on interest rates if headwinds to the US economy from financial markets or global growth prove persistent.St Louis Federal Reserve Bank President James Bullard, a member of the Fed's Open Market Committee, likewise took a dovish tone, saying he will only support further hikes if inflation expectations pick up. In UK corporate news, a consortium made up of Stobart Group, Virgin Atlantic, and a company owned by Cyrus Capital Partners are to buy struggling budget airline Flybe for GBP2.2 million.The joint venture, Connect Air, will pay 1 pence per share to Flybe shareholders. Shares closed at 16.38p on Thursday.Connect Air also will buy Stobart's regional airline and aircraft leasing business Stobart Air for GBP40 million to fold in.In addition to the discounted purchase price, Connect Air will provide GBP100 million in funding to Flybe. This is composed of GBP20 million as an initial bridge loan, and then GBP80 million operational funding once the takeover is completed. In the FTSE 250, builders merchant Grafton reported a strong increase in revenue for 2018, growing 8.7% to GBP2.95 billion.At constant currency rates revenue rose 8.4 year-on-year, and average daily like-for-like revenue grew 4.3%. As a result, Grafton expects earnings before interest, tax, and amortisation for 2018 to be "slightly" ahead of the top end of market expectations, which sees a range of GBP185.1 million to GBP188.5 million. In 2017, adjusted Ebita was GBP160.9 million. Manufacturing revenue growth was strong at 19%, while growth in the Netherlands was another highlight at 18%. Revenue growth in the UK was 7.7% and in Ireland 8.4%. Insurer Hastings said Chief Financial Officer Richard Hoskins is to depart the company, with MS Amlin CFO John Worth to join in the next few months as a replacement. Elsewhere, pub owner and operator Ei Group has sold 370 commercial properties for GBP348 million to a new company set up by investment funds managed by Davidson Kempner Capital. The portfolio is a "significant" proportion of Ei Commercial Properties' overall assets, Ei said, and a sale is a "successful outcome" of its previously announced sale process. AO World is on track to meet its long-term plans, the electrical retailer said, and expects to meet expectations for the year to March 2019. For the three months to December, AO World's revenue grew 8.2% year-on-year, and the company said customers responded well to its Black Friday offering. UK quarterly revenue growth was 4.4%, while in Europe it was 31%, stronger than in the second quarter, as anticipated, AO World said.In other takeover news, Norway's DNO has bought another 3.7% of Faroe Petroleum, meaning it now has either acceptances or owns just over 76% of Faroe. It will now be able to call its GBP641.7 million offer unconditional.DNO had set a 75% acceptances threshold for the de-listing of Faroe from the London Stock Exchange. Retailer Moss Bros reported a 0.6% rise in sales for the 23 weeks to Janaury 5, but on a like-for-like basis sales were down 1.0%.Performance improved between October and January, the company said, but Black Friday required deeper discounting than planned, meaning gross margins have been impacted.Customer footfall issues means physical stores have underperformed, but the e-commerce channel has shown "strong momentum". Fellow clothing retailer Quiz grew its revenue by 8.4% in the six weeks to January 5, with online revenue rising 34%. However, sales were below expectations over Christmas, Quiz warned, and it has revised its revenue forecasts for its year ending March 31.It now expects revenue at GBP133.0 million, below market expectations, from GBP116.4 million the year before. Gross margins are set to be around 60.5% from 62% year-on-year. Quiz's earnings before interest, tax, depreciation, and amortisation is guided at GBP8.2 million, from GBP11.5 million a year prior. In local political news, UK Prime Minister Theresa May has reached out to union leaders as she makes an 11th-hour attempt to reach out to her political opponents to get her Brexit deal through the Commons.Downing Street said the prime minister had "constructive" phone conversations about her Brexit deal with trade union leader Len McCluskey of Unite, a Brexit supporter and close confidant of Labour leader Jeremy Corbyn, as well as Tim Roache of the GMB.Number 10 also confirmed ministers would "consider very seriously" moves by Labour members of Parliament to safeguard workers' rights after Brexit in an attempt to win support for her deal, if the backbench amendment was selected by the Speaker.The amendment would keep EU rules on pay and conditions, health and safety issues, and environmental standards.However senior opposition figures rowed back against the overtures, saying it was too little, too late.Sterling was quoted at USD1.2751 early Friday, lower compared to USD1.2775 at the close Thursday.Back in the US, President Donald Trump travelled Thursday to Texas for a visit to the US-Mexico border as he intensifies his push for a wall, a demand the opposition Democrats in Congress flat-out reject.The stalemate over funding the wall has resulted in a partial government shutdown that will reach day 21 on Friday, tying a record for the longest government shutdown in US history.Trump held a round-table discussion with border guards, local politicians and fellow Republicans who testified to the need for building a wall or barrier to stop illegal immigration, human trafficking and the flow of illicit drugs."It's clearly a crisis," Trump said. "A lot of the crime in our country is [committed] by people who are coming through right here."He said again Thursday he might declare a national emergency in order to circumvent Democrats in Congress who are blocking funding for a wall."I'm not prepared to do that yet, but if I have to do that, I will," he added.In the US on Thursday, Wall Street ended in the green, with the Dow Jones Industrial Average closing 0.5% higher, the S&P 500 also up 0.5%, and the Nasdaq Composite ending up 0.4%. In Asia on Friday, the Japanese Nikkei 225 index ended down 1.0%. In China, the Shanghai Composite closed up 0.7%, while the Hang Seng index in Hong Kong is 0.5% higher.The economic events calendar on Friday has UK industrial and manufacturing figures at 0930 GMT and US inflation readings at 1330 GMT. In addition, the US monthly budget statement for December is set to be released at 1900 GMT.