EQN.L Share News (EQN)

LONDON (Alliance News) - Stocks in London are expected to rebound tepidly on Thursday following two consecutive sessions of losses amid heightened US-China trade tensions.In early UK company news, FirstGroup said it has started a sale process for its North American intercity coach operation, Greyhound, and has concerns over the regulatory environment for UK rail. Watches of Switzerland said it will be worth GBP647 million when it floats in London next week, and Daily Mail & General Trust reported a drop in interim profit despite a good performance from the unit which houses the Daily Mail newspaper.IG says futures indicate the FTSE 100 index of London large-caps to open 3.40 points higher at 7,188.70 on Thursday. The FTSE 100 index closed down 83.65 points, or 1.2%, at 7,185.30 on Wednesday.Stocks dropped on Wednesday after China threatened to restrict rare earths exports to the US as part of an ongoing trade war. "At present, the US completely overestimates its ability to manipulate the global supply chain," government mouthpiece People's Daily said, adding that industries in China and the US are "highly integrated" and that there would be "no winner" in a trade war."In the future, don't say that we didn't warn you beforehand!" the newspaper said.David Madden at CMC Markets said the fact that China has played this card "highlights how serious the situation has become"."The fear is evident by the moves in the bonds markets," Madden said. "The yield on the 10-year US government bond dropped to 2.21% a fresh 20 month low, while the 3-month bond yield touched 2.36%. The fact the longer-dated bond yield has dropped below the short-term bond yield has spooked investors as that phenomenon has historically forewarned recessions."In the US on Wednesday, Wall Street ended lower, with the Dow Jones Industrial Average ending down 0.9%, the S&P 500 down 0.7% and Nasdaq Composite off 0.8%.In Asia on Thursday, the Japanese Nikkei 225 index ended down 0.3%. In China, the Shanghai Composite is down 0.7%, while the Hang Seng index in Hong Kong is down 0.5%.The economic events calendar on Thursday has US first-quarter GDP figures at 1330 BST.In early UK company news, transport operator FirstGroup said it will be pursuing the sale of its Greyhound bus operations in North America. Going ahead, North America will be the firm's core market, however centred on First Student and First Transit which together generated 60% of group operating profit in 2019. In order to focus on this market, FirstGroup will be separating two of its divisions, one of which will be its UK Bus operator, First Bus. "First Bus has limited synergies with our other operations and, having set the business on the path to increased profitability, we believe now is the right time to pursue structural alternatives," the company explained. The other is North American intercity coach operation Greyhound."Greyhound has limited synergies with our other, predominantly contract-based, North American businesses and we believe that value for shareholders can best be delivered by seeking new owners," said Stagecoach, adding that a formal sale process for the unit has now begun.Turning to its UK rail operations, FirstGroup said it has "concerns with the current balance of risk and reward being offered".Separately, the transport operator said revenue for the six months to the end of March rose 11% to GBP7.13 billion while its pretax loss narrowed dramatically to GBP97.9 million from GBP326.9 million. On an adjusted basis, pretax profit rose 15% to GBP226.3 million.Johnson Matthey upped its annual payout following a sharp increase in profit, thanks to cost savings and a positive performance across all of its units.The speciality chemicals company reported 53% growth in pretax profit to GBP488 million in the financial year that ended on March 31 compared to GBP320 million reported the year earlier, as revenue rose 4.6% to GBP10.75 billion from GBP10.27 billion. Profit was slightly short of market expectations, however. According to company-compiled consensus figures for financial 2019, pretax profit was expected to jump 56% to GBP500.7 million. Financial services administration firm Equiniti said the separation of its EQ US division from Wells Fargo is now complete. "Completing the separation is an exciting milestone for Equiniti's business in the world's deepest capital market. It provides an opportunity to transform our US operations into a market-leading, technology-enabled business with a broad range of transfer agency and supporting services," said Chief Executive Guy Wakeley.The separation should now allow Equiniti to release operating synergies, which are being delivered as expected, and provides the ability to scale operations.Water firm Pennon Group reported flat profit for its recently ended financial year, but still raised its dividend by 6%.Revenue for the year to March 31 rose to GBP1.48 billion from GBP1.40 billion, with pretax profit broadly flat at GBP260.3 million versus GBP262.9 million the year before.Employment costs in the period rose to GBP208.8 million from GBP192.9 million, with 'other' operating expenses climbing to GBP639.6 million from GBP581.8 million.Pennon raised its dividend 6.4% to 41.06p from 38.56p.Daily Mail & General Trust reported a sharp fall in interim profit, though saw a better-than-expected result from its Consumer Media unit.Revenue for the half year to March fell 3% to GBP724 million from GBP746 million - though rose 1% on an underlying basis. Pretax profit halved to GBP50 million from GBP113 million. On an adjusted basis, pretax profit slipped 3% to GBP100 million.Consumer Media - the unit which houses the Daily Mail, The Mail on Sunday and MailOnline - reported a 1% rise in revenue on an underlying basis. MailOnline's underlying revenue growth of 16% offset a 3% decrease in print advertising revenue and a 2% decrease in circulation revenue. The firm said its annual outlook is broadly unchanged, though with Consumer Media expected to now post a low-single digit underlying revenue decline, revised from a mid-single digit decline.Security and anti-counterfeiting firm De La Rue said Martin Sutherland will be leaving as chief executive as the company posted a steep fall in annual profit.Revenue for the year to March rose 14% to GBP564.8 million, but pretax profit dropped to GBP31.5 million from GBP123.0 million. This was as total operating expenses climbed to GBP533.3 million from GBP370.9 million.The company took exceptional items of GBP27.9 million - versus a gain of GBP60.9 million the year before - which included a GBP18.1 million credit loss provision related to Venezuelan sanctions.Separately, the company said Sutherland will be leaving but will continue to serve as CEO until his successor is in place. "With a clear strategic vision now in place and being executed, now feels like the right time for me to hand over to a new leader, to take things to the next phase," said Sutherland, who has been CEO for almost five years.Watches of Switzerland said it will be worth just under GBP650 million when it floats on the London Stock Exchange next week.The luxury watch seller said it priced shares at 270p each, offering 57.4 million new shares to raise GBP155 million, plus 24.1 million existing shares to bring the total offer size to GBP220 million.Conditional dealings are due to begin on Thursday, while admission of the company's shares and unconditional dealings are expected to commence on Tuesday next week.In UK politics, Jeremy Corbyn said an election or referendum is now the "only way out" of the Brexit crisis following mounting pressure on the UK opposition leader to back a public vote.Corbyn said that going "back to the people" was now the only option when faced with the prospect of a no-deal Brexit and an incoming Tory prime minister "with no mandate".Labour has sought to appeal to both Leave voters in its northern England seats and Remainers in London and other cities, but lost half its MEPs and took just a 14% vote share as support switched to the clear alternatives offered by the Brexit Party and pro-EU Lib Dems and Greens.He said: "Labour will work with anyone across party boundaries and do whatever is necessary to stop a disastrous no-deal outcome, which would open the way for a frenzy of deregulation and a race to the bottom in jobs, rights and protections.The pound was quoted at USD1.2633 early Thursday, firm versus USD1.2616 late Wednesday.