LONDON (Alliance News) - Stock prices in London are seen opening marginally higher on Monday following a strong close in the US on Friday and gains in Asia overnight, as US President Donald Trump said he intends to delay an increase in tariffs on Chinese imports.In early UK corporate news, Bunzl announced a further acquisition after reporting strong earnings growth in 2018, while Hammerson is targeting disposals of over GBP500 million in 2019, or even up to almost GBP1 billion, after it had a tough 2018 due to woes in the UK retailing sector.IG futures indicate the FTSE 100 index will start 26.1 points higher at 7,204.70. The blue chip index closed up 11.21 points, or 0.2% at 7,178.60 on Friday."President Trump announced overnight that the early March deadline for the implementation of higher tariffs on Chinese imports will be delayed. Stocks in Asian pushed higher on the back of this, in particular, the Shanghai market. It was reported that 'substantial progress' has been made between the two sides, and that fuelled the rally," said CMC Markets analyst David Madden.The Japanese Nikkei 225 index closed up 0.5%. In China, the Shanghai Composite closed up 0.7%, while the Hang Seng index in Hong Kong is up 0.5%.In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.7%, S&P 500 up 0.6% and Nasdaq Composite up 0.9%.Trump has said he will extend a deadline to escalate tariffs on Chinese imports, citing "substantial progress" in weekend talks between the two countries.Trump tweeted on Sunday that there had been "productive talks", adding that: "I will be delaying the US increase in tariffs now scheduled for March 1."Trump says that, if negotiations progress, he will meet with Chinese President Xi Jinping at his Florida resort to finalise an agreement.US and Chinese negotiators met through the weekend as they seek to resolve a trade war that has rattled financial markets over the past year.In UK company news, outsourcing company Bunzl said it acquired a further safety business in the US for an undisclosed sum as its earnings grew in the year to December 31.Bunzl's pretax profit rose 4% in 2018 to GBP424.8 million from GBP409.3 million on a revenue, that increased by 6% to GBP9.08 billion from GBP8.58 billion. On a constant currency basis, revenue improved by 9%. The growth was due to the benefit of acquisitions and "good" contributions from all business areas. During the year Bunzl completed seven acquisitions for a total of GBP165.2 million.The FTSE 100-listed company declared a final dividend of 35.0 pence, taking the total payout to 50.2p, up 9% year-on-year. "Looking forward, despite mixed macroeconomic conditions, with an active pipeline of acquisition opportunities we believe that the prospects of the group are positive due to its strong market position and well established and successful strategy to grow the business both organically and by acquisition," said Chief Executive Frank van Zanten. AB Foods said it expects its interim adjusted earnings per share to be broadly in line with the same period last year. For the full year, the food producer and clothing retailer's outlook is unchanged, with adjusted operating profit and adjusted earnings per share expected to be in line with last year.For its Grocery division, AB Foods expects revenue and operating profit to be ahead of last year, with a further improvement in margin. Meanwhile, the Sugar unit's revenue from continuing operations is expected to be lower than in the first half the year prior due to lower sugar prices.In addition, sales at Primark are expected to be 4% ahead of last year in the first half, driven by increased retail selling space partially offset by a 2% decline in like-for-like sales.Hiscox reported a sharp rise in annual profit, ahead of consensus, in set of "good results" in a "challenging year" as the insurer upped its dividend payout. For the year ended December 31, pretax profit rose to USD137.4 million from USD39.7 million the year before. Excluding foreign currency effect, pretax profit increased to USD151.1 million from USD120.6 million the year before.Analysts had forecast pretax profit for the FTSE 100-listed insurer at USD129 million.In 2017, profit performance was harmed by Hiscox reserving USD225 million for claims in what it termed a "historic year" for natural catastrophes, as hurricanes hit the Caribbean and US and earthquakes struck Mexico.Among mid-caps, engineer Weir Group has entered into an agreement to sell its Flow Control division, which provides engineered pumps, to investment firm First Reserve for an enterprise value of GBP275 million.The transaction remains subject to regulatory and other approvals, with completion expected in the second quarter of 2019. The plan to sell the division was first announced in April last year alongside the acquisition of ESCO, an energy services firm. Hammerson is in talks over disposals worth almost GBP1 billion, the shopping centre owner said, as it reported a swing to a significant annual loss.Currently, the FTSE 250 company said, it is in talks over asset sales worth more than GBP900 million.These sales would allow it to reduce net debt to below GBP3 billion. At the end of 2018, the net debt figure was GBP3.4 billion, down slightly from GBP3.5 billion a year prior. Hammerson posted a GBP268.5 million pretax loss for 2018, from a GBP411.6 million profit in 2017. The figure was hurt by revaluation losses as well as losses on property sales.The value of Hammerson's portfolio slipped to GBP9.94 billion at the end of 2018, down 5.9% on the figure a year before.Gold miner Centamin reported a decline in pretax profit to USD152.7 million in 2018 from USD207.4 million a year before, as revenue decreased 11% to USD603.2 million.Earnings were hurt by lower gold sales, which fell 10% year-on-year to 484,322 ounces, while the average gold sales price remained broadly unchanged at USD1,267 per ounce. Gold production also declined in 2018 to 472,418 ounces from 544,658 ounces, due to the "operational challenges". For 2019, gold production guidance is between 490,000 and 520,000 ounces.The company proposed a final dividend of 3.0 US cents, bringing the total payout to 5.5 US cents. Elsewhere, Daily Mail & General Trust has confirmed that it is reviewing options for its holding in Euromoney Institutional Investor, which it said is consistent with its stated strategy of increasing portfolio focus.The Sunday Times reported that Daily Mail & General Trust is considering selling its remaining interest in FTSE 250-listed business events organiser and publisher Euromoney Institutional Investor and returning the cash to shareholders.DGMT, the publisher of the Daily Mail newspaper, sold down its stake in Euromoney to 49% from 67% back in December 2016 and now is considering selling remainder to a fund a GBP750 million special cash return to shareholders, according to the newspaper.Laura Ashley meanwhile confirmed that no bid has been received for the company.The Sunday Telegraph said fashion retailer Laura Ashley has received a takeover offer from Manchester-born entrepreneur Michael Flacks. Flacks is to approach Laura Ashley's Malaysian controlling shareholders about taking it private and reviving it.The reported approach comes after Laura Ashley shares dropped on Wednesday last week as it revealed a swing to an interim loss and warned of lower annual profit.
21 Nov 2019 16:05
