3i Group Share News (III)

LONDON (Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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Old Mutual said Chief Executive Julian Roberts is to stand down after seven years in the role, with the head of Standard Bank Group's wealth, insurance and non-bank financial services to take over in the fourth quarter of 2015. Roberts was appointed as chief executive in September 2008 after leading the group's Skandia business. He is being replaced by Bruce Hemphill, who took up his role at Standard Bank in February 2014 after joining the Johannesburg-based bank in 2013.
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Fresnillo said gold and silver production increased sharply in the first quarter, putting it on track to achieve its 2015 production guidance. The Mexico-based precious metal miner said silver production in the three months to end-March was 12.4 million ounces, up 18.9% on the year as increased processed ore volume and higher ore grade at the Saucito mine more than offset lower production at the Fresnillo mine. Gold production in the quarter was 182,000 ounces, up 62.4% on the year as the Herradura mine, which had been hit by a temporary explosives permit suspension a year earlier, was fully operational.
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AstraZeneca said the US Food and Drug Administration has granted Orphan Drug Designation for tremelimumab for the treatment of malignant mesothelioma, while the vast majority of an FDA committee had decided that a study into saxagliptin in patients with type 2 diabetes showed an acceptable cardiovascular risk profile. The US Orphan Drug Act provides for granting special status to a drug or biological product to treat a rare disease or condition, meaning the drug developer qualifies for development incentives such as tax credits for clinical testing.
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Burberry Group reported growth in revenue for the second half of its financial year and said it is facing "strong demand" for its core heritage trench coats and scarves. The fashion retailer said underlying revenue for the six months to March 31 was up 9% on the same period last year at GBP1.42 billion from GBP1.30 billion. Underlying retail revenue was up 13% at GBP1.06 billion from GBP928 million in the previous year. It said there was double-digit sales growth in the Americas and Europe, Middle East, India and Africa, with strong performances in the UK, France and Italy from both domestic and travelling luxury customers.
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Bunzl said revenue rose 6% in the first quarter of 2015 from a year earlier, buoyed mainly by acquisitions as it also said it has bought a personal protection equipment company in Turkey. The acquisitive distribution and outsourcing company said underlying revenue was up 2% in the three months to end-March, with the remainder of the revenue growth coming from acquisitions.
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German telecom firm Drillisch announced it has signed sale and purchase agreement with Dixons Carphone on the acquisition of The Phone House Deutschland. The transaction is anticipated to take place by the end of May at the latest. Drillisch specified that the purchase price has two components. The first component, which is due at closing, is foreseen to be paid in the form of new Drillisch shares and is expected to represent about 3% of the outstanding shares of Drillisch AG at closing. The second component consists of future excess cash flows of The Phone House.
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JD Sports Fashion reported growth in profit in its recent financial year, boosted by strong sales in sports fashion, and despite a difficult second half following a "very mild autumn and winter". The sportswear retailer reported an 18% rise in pretax profit for the year ended January 31 to GBP90.5 million from GBP76.8 million the year before. Revenue increased 25% to GBP1.5 billion from GBP1.2 billion, while like-for-like sports fashion sales grew 13% on the prior year. It will pay a total dividend of 7.050 pence per share, up 4.1% from 6.775p a year earlier.
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Pets at Home Group said it has signed a five-year, GBP260 million revolving credit facility to refinance its current debt. The FTSE 250-listed pet products and services company said the new facility replaces its existing GBP325 million of drawn facilities which carried a rate of LIBOR +1.9%. The new facility carries a rate of LIBOR +1.5%.
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Energy services company Hunting said the tough oil and gas industry market conditions in the first quarter will result in a sharp drop in operating profit, with its headcount reduced in the quarter and the outlook for both the rest of 2015 and 2016 unclear.
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Jupiter Fund Management reported an increase in assets under management during the first quarter, bolstered by positive market movements and net inflows to its mutual funds. The asset manager said that assets under management increased to GBP34.76 billion from GBP31.90 billion during the first three months of 2015. Net inflows of GBP872 million and a positive market movement of GBP1.99 billion were largely due to the showing of its mutual funds.
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Private equity company 3i Group is understood to be considering plans to sell its stake in independent building materials company MKM Building Supplies amid pledges in both the Conservative and Labour manifestos to boost housebuilding, Sky News reported. Sources told Sky that 3i is planning to sell its 40% stake in MKM, with a number of advisers already sounded out to handle the sale, which one source speculated could raise around GBP200 million.
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Funds run by US investor Wilbur Ross and Stanhope Investments are looking to sell off a big stake in Virgin Money, the Financial Times reported. According to the report, which cited people familiar with the situation, Ross and Stanhope Investments had been seeking to sell 45 million shares but the size of the offer increased to 60 million shares. The report said that the sale is likely to be priced at 400 pence per share.
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MARKETS
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UK equities have reversed a lower opening to trade higher, with miners benefiting from the expectation of further stimulus from the People's Bank of China, and oil related stocks trading strongly on the back of a rise in oil prices. The FTSE 100 hit a new record intraday high of 7,111.72 earlier in the session.
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FTSE 100: up 0.3% at 7,098.12
FTSE 250: up 0.2% at 17,894.40
AIM ALL-SHARE: up 0.3% at 744.18
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The euro is down against the dollar ahead of European Central Bank President Mario Draghi's press conference scheduled for 1330 BST. Brent oil rose beyond the USD60 a barrel mark for the first time in over a month continuing its upward momentum from Tuesday night.
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GBP: down at USD1.4718
EUR: down at USD1.0593

GOLD: down at USD1190.36 per ounce
OIL (Brent): up at USD60.47 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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The Conservative Party received a mixed reaction from the business community to its manifesto on Wednesday, with concerns raised over its plans to extend the Right to Buy scheme and on its immigration policies, as the Liberal Democrats and the UK Independence Party both prepared to table their own manifestos. The Tories key policy point in its manifesto launch on Tuesday was the extension of the Right to Buy scheme for housing association tenants, but businesses were broadly sceptical about the plans amid concerns that increased sales of limited stocks of cheaper rented homes will not help the country to address its acute housing shortage.
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Polling ahead of the General Election remained mixed on Wednesday, as the latest YouGov poll showed Labour restoring a two-point lead but the latest TNS poll showed the Conservatives surging into the lead and a forecast that the Tories will be the largest party but that no majority will be secured by either side. The daily YouGov/The Sun poll on Wednesday has Labour at 35%, a one-point improvement on Tuesday's poll and restoring a two-point lead for the party over the Tories, who sit at 33%. The only other change in the poll was for the Green Party, which lost a point following the launch of its manifesto on Tuesday.
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China's gross domestic product expanded 7.0% on year in the first quarter of 2015, the National Bureau of Statistics said. The headline figure was in line with expectations while slowing from 7.3% in the previous three months. On an annualized quarterly basis, GDP gained 1.3%, below expectations for 1.4% growth and down from 1.5% in the fourth quarter.
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Germany's consumer prices increased for the second straight month in March as initially estimated, final data from the statistical office Destatis showed. Consumer prices rose 0.3% in March from last year, following a 0.1% increase in February. The annual increase matched the preliminary estimate published on March 30. In January, consumer prices slid 0.4%, which was the first fall since September 2009.
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French consumer prices declined for the third straight month in March, data from the statistical office Insee showed. Consumer prices fell 0.1% year-on-year in March, slower than February's 0.3% decrease. This was the third consecutive fall. Economists had forecast prices to remain flat in March. Month-on-month, consumer prices rose 0.7%, in line with expectations.
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Japan's industrial production declined by less than estimated in February, final data from the Ministry of Economy, Trade and Industry showed. Industrial output dropped 3.1% month-on-month in February instead of a 3.4% fall estimated initially. On a yearly basis, production was down 2%.
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The European Central Bank is likely to be in a self-congratulatory mood when it meets Wednesday with signs that its new monetary stimulus plan is helping to spur economic growth and ease the threat of deflation in the eurozone. But looming large over the ECB's 25-head governing council meeting is the risk of a period of political and financial turmoil taking hold in the 19-member currency bloc as a result of the standoff between Greece and its eurozone partners over Athens' bid to renegotiate its bailout deal. Analysts are not expecting ECB to make any major announcements on Wednesday with the bank forecast to leave its benchmark refinancing rate on hold at its historic low of 0.05%.
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A measure that would allow the US Congress to weigh in on a deal over Iran's nuclear programme cleared its first legislative hurdle after lawmakers reached a compromise that the White House finds acceptable. The Senate Foreign Relations Committee unanimously approved an amended version of the Iran Nuclear Agreement Review Act of 2015 that would allow Congress to review a deal before any US sanctions on Iran are lifted. The measure would require Obama to submit the text of the agreement to Congress and prohibit the suspension of sanctions while legislators weigh the deal. The bill now advances to consideration by the full Senate.
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The Islamic State extremist group made major advances inside one of Iraq's largest oil refinery complexes and killed the commander of its garrison. The jihadists seized petrol and crude oil tanks, a security official, speaking on condition of anonymity, told dpa. The Baiji refinery, about 200 kilometres north of Baghdad, accounts for almost a third of Iraq's refinery capacity. It has been out of action since last year, when it was the scene of intense fighting.
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