LONDON (Alliance News) - London share prices were rising at midday, with the mining sector driving the blue-chip index higher, amid investor optimism as a fresh round of US-China trade talks was set to conclude on Friday.The FTSE 100 was 32.51 points higher, or 0.5%, at 7,199.90 on Friday at midday. The mid-cap FTSE 250 was up 69.88 points, or 0.4%, at 19,306.76, while the AIM All-Share index was flat at 908.81.The Cboe UK 100 index was up 0.6% at 12,230.00. The Cboe UK 250 was up 0.5% at 17,210.97. The Cboe UK Small Companies was down 0.2% at 11,162.48.In New York, stocks are pointed to a slightly lower open on Friday with the Dow Jones Industrial Average seen down 0.3%, the S&P 500 called 0.2% lower, and the Nasdaq on course to decline 0.1%.US and Chinese trade negotiators met Thursday at the White House to begin two days of meetings to resolve their trade dispute ahead of a Friday next week deadline.US Trade Representative Robert Lighthizer is leading the US team, while the Chinese side is led by Vice Premier Liu He.The high-level talks come after the latest round of negotiations in Beijing last week ended inconclusively and after a series of meetings between deputies earlier this week in Washington.The White House said Monday the negotiators would discuss "China's pledge to purchase a substantial amount of goods and services from the US"."Markets are showing signs of tentative optimism as Donald Trump lays out plans to meet with Chinese negotiator Liu He. Meanwhile, UK remains well bid as markets expect an extension to the article 50 deadline," said Joshua Mahony, senior market analyst at IG.UK Prime Minister Theresa May has been warned she could face a mass revolt of Conservative members of Parliament if the country appears on course for a no-deal Brexit.The leaders of the 100-strong Brexit Delivery Group of moderate Conservatives wrote to Chief Whip Julian Smith setting out widespread discontent at the prospect of a no-deal departure.Andrew Percy, one of the group's leaders, said dozens of his colleagues would be prepared to vote for measures to delay the March 29 exit date if the "intransigence" of hard-line Brexiteers meant May's deal is again rejected by MPs.Fresh Brexit talks have been scheduled for early next week as May heads towards another Commons showdown on her EU withdrawal stance. It is expected to take place on Wednesday.On the London Stock Exchange, miners were at the top of the FTSE 100 index, with Evraz up 3.1%, Anglo American rising by 2.9%, Glencore up 2.3%, BHP Group up 2.0% and Rio Tinto up 1.5%."It comes as no surprise to see the mining sector drive the FTSE 100 higher, with investors jumping on board amid improving trade sentiment," said Mahony.Barclays was among the worst performers in the blue-chip index, down 1.1%. The bank said Gerry Grimstone, a non-executive director of company and the chair of its retail arm, Barclays Bank, will step down from his role at the end of February. Nigel Higgins, who is joining the lender on Friday next week to be chair-elect of the company, will take over Grimstone's duties.Barclays on Thursday announced a higher dividend and pledged a greater focus on returns to shareholders, after litigation charges pulled down 2018 profit.Pearson was down 1.0% after rising 1.2% in early trade. The publishing company said Friday that pretax profit rose 18% to GBP498 million in 2018 from GBP421 million the year prior, despite revenue falling 8.4% to GBP4.13 billion from GBP4.51 billion.Although reported revenue saw a significant fall in 2018, on an underlying basis it fell a more modest 1%, hurt by Pearson's US Higher Education Courseware and US K12 Courseware businesses, the latter of which has now been sold.Looking ahead, Pearson has reiterated previous guidance for 2019 of adjusted operating profit in the range of GBP590 million to GBP640 million with adjusted earnings per share in the range of 56.5 pence to 62.0p. In 2018, adjusted earnings per share totalled 70.3p.Brokers, meanwhile, expressed mixed views on Pearson's full-year results, with Shore Capital encouraged by the company's financial performance but long-time Pearson sceptic Liberum raising questions on the company's ability to return to growth in 2020.GlaxoSmithKline was down 0.6% after UBS cut the drugmaker to Neutral from Buy.Moving to FTSE 250, Dairy Crest jumped 13% to 625 pence as it agreed a takeover by Canadian dairy firm Saputo.The company, which owns Cathedral City cheddar and Country Life butter, said Saputo will pay 620 pence in cash for each Dairy Crest share. The offer values Dairy Crest at about GBP975 million.The price is a 12% premium to Dairy Crest's closing price of 555p on Thursday, which had gave a market capitalisation of GBP863 million.The purchase will be funded by Saputo from debt, which will be provided under a credit agreement underwritten by the National Bank of Canada and Bank of Montreal. Dairy Crest's existing debt, which stood at GBP265.7 million at the end of March last year, will be refinanced using this credit agreement.Sub-prime lender Non-Standard Finance has made an all-share offer for peer Provident Financial, valuing Provident around GBP1.3 billion.Provident was 7.8% higher on midday, and Non-Standard Finance up 7.3%.The merger will see Non-Standard Finance issue 8.88 of its own shares per Provident share, valuing Provident's shares at around 511 pence each. Provident closed at 511.40p on Thursday, so there is no premium to the takeover proposal.So far, shareholders with over 50% of Provident have indicated they will accept the deal, including Woodford, Invesco, and Marathon.Serco was 5.3% higher, despite CFRA cutting its rating to Hold from Sell. Metro Bank rose 5.0% as it won GBP120 million funding from BCR, which was set up to implement the alternative remedies package agreed between the UK and the European Commission in connection with the taxpayer bailout of Royal Bank of Scotland.By contrast, CYBG was 5.1% lower, after failing to get a grant from the same body.The cash will go towards helping small and medium-sized businesses, Metro Bank said.Elsewhere, Flybe slumped 22%. It has completed the sale of operating subsidiaries Flybe Ltd and Flybe.com to Connect Airways, a consortium including Stobart Group.Flybe Group, now a non-trading entity, itself still needs shareholder approval to be sold, and the board has warned without a sale it will be wound up.Stobart Group, as part of the deal, has sold its Stobart Air and Propius businesses to Connect Airways, and this now also has completed. Stobart was up 4.7%.In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were up 0.3% and 0.5% higher, respectively at midday. Euro area annual inflation rate was 1.4% in January 2019, slowing from 1.5% in December, according to figures published on Friday by Eurostat. Annual inflation in the entire 28-nation European Union was 1.5% in January 2019, slowing from 1.6% in December. Still to come in the economic calendar on Friday is a speech by European Central Bank President Mario Draghi speech at 1530 GMT.
21 Mar 2016 08:14
