Legal & General Share News (LGEN)

LONDON (Alliance News) - London's FTSE 100 index was outperforming European counterparts again on Wednesday amid gains for tobacco stocks and miners. The FTSE 100 index was 13.45 points higher, or 0.2%, at 7,196.88 Wednesday midday. The mid-cap FTSE 250 was down 29.28 points, or 0.2%, at 19,413.86, while the AIM All-Share index was 0.2% higher at 917.59.The Cboe UK 100 index was up 0.1% at 12,220.20, while the Cboe UK 250 was flat at 17,376.56, and the Cboe UK Small Companies up 0.1% at 11,176.26.In mainland Europe, the CAC 40 in Paris was down 0.1% while the DAX 30 in Frankfurt was 0.2% lower. "A mixed session in Europe highlights the ongoing uncertainty as traders look around for market drivers," commented Joshua Mahony, senior market analyst at IG."The US-China trade issue remains a core driver of market sentiment, with hopes of a breakthrough this month driving the bullish sentiment throughout US stocks in particular," he said. "However, with this current lull in US-China trade talks, we are starting to see some doubt creep in."Wall Street is pointed to a subdued start on Wednesday, with the Dow Jones and S&P 500 both called down 0.2% while the Nasdaq is set to dip 0.1% at the open. In the US economic calendar on Wednesday, ADP employment change is at 1315 GMT, a precursor to Friday's key nonfarm payrolls report, while the Federal Reserve's Beige Book is at 1900 GMT.Already released, the eurozone's construction sector saw faster growth in February, supported by activity in Germany and France while Italian firms experienced a fourth straight month of pull-back. IHS Markit's construction Purchasing Managers' Index for the eurozone rose to 52.6 in February from just 50.6 in January. A reading above 50 signals expansion in the segment, while one below indicates a slowdown.Meanwhile, a Paris-headquartered think tank has warned Britain could be tipped into an economic recession that could spill out across the global economy under a severely disruptive no-deal Brexit.The Organisation for Economic Co-operation & Development said a no-deal withdrawal would knock around 2% off UK growth over the next two years, but cautioned the effects would be "stronger still" in a disorderly exit from the EU.It would likely spark a UK recession - two or more quarters of negative growth in a row - which could cause a "major adverse shock" in the EU and beyond, it said.The stark warning comes as UK Prime Minister Theresa May faces questions on Wednesday from members of Parliament after two members of her Cabinet held fresh talks in Brussels in a renewed effort to secure changes to the controversial Irish backstop.The prime minister is likely to be pressed on the negotiations, after the trip by Brexit Secretary Stephen Barclay and Attorney General Geoffrey Cox, when she appears before the Commons for PMQs.Cox and Barclay were seeking to allay fears that the backstop could leave the UK trapped in a customs union with the EU, in a bid to win over Tory MPs ahead of further votes next week. May is set to bring her deal back to the Commons for a vote by March 12.If it is rejected, MPs will get the chance to either back a no-deal Brexit or call for the UK's departure from the EU to be delayed beyond the current March 29 deadline.Helping the FTSE 100 stage a better performance than European peers were gains by tobacco majors British American Tobacco, up 3.9%, and Imperial Brands, up 1.3%. The head of the US Food & Drug Administration Scott Gottlieb will resign in April after two years in the role to spend more time with his family."I'll depart knowing that the FDA is strong, its people outstanding, and its mission well recognized and deeply respected across the government and indeed, across the world. I hope to have the opportunity to continue to work with you to advance our goals in the weeks before I depart," Gottlieb wrote in a letter shared by the FDA on Tuesday.Under Gottlieb, the health agency has pushed to regulate e-cigarettes in the US, in particular to stem sales of flavoured e-vapour products to young people, and has also mulled a ban on menthol cigarettes."Altria's shares only climbed 80bps yesterday and we don't think a substantial share price swing in the UK tobacco companies is warranted without greater clarity on any changes to the tobacco control path, if any," Nico von Stackelberg at Liberum commented, referring to the US-listed tobacco firm. "It will be interesting to watch if the new appointment will pursue more farmer, retailer and tobacco manufacturer friendly policies," the analyst added.DS Smith was among the risers in London as well, up 4.1% after the packaging firm agreed to sell off its plastics division for USD585 million to private equity firm Olympus Partners.The sale will see DS Smith receive net cash of GBP400 million after taxation and expenses. The proceeds will be used to reduce its debt.DS Smith added that trading since the start of November has "continued to be strong" and in line with its expectations.Miners such as Antofagasta, BHP Group and Glencore traded in the green - up 1.3%, 1.3% and 1.2% respectively - after China's state planner said the government would implement measures to boost domestic consumption.Limiting gains for the blue-chip index was financial services firm Legal & General, down 4.5%.The insurer reported a rise in operating profit but missed market consensus as the company topped GBP1 trillion in assets under management.In 2018, Legal & General's pretax profit increased 1.9% to GBP2.13 billion from GBP2.09 billion the year before. Legal & General has an estimated solvency II surplus of GBP6.9 billion over its solvency capital requirement, leading to a coverage ratio of 188% at the end of 2018 from 189% the year before. Market consensus had forecast Legal & General ending 2018 with a solvency II coverage ratio of 194%.Burberry shares declined 2.5% after Goldman Sachs cut its rating on the luxury fashion retailer to Sell from Neutral.Paddy Power Betfair was down 1.4% after the bookmaker reported annual earnings below both its own guidance and consensus due to increased investments in its US sports betting business. In addition, the FTSE 100 constituent said it intends to seek shareholder approval in May to change its name to Flutter Entertainment, saying the new name will better reflect the increasing diversity of its brands.Paddy Power delivered GBP451 million of underlying earnings before interest, taxes, depreciation, and amortization in 2018, 4.7% lower than GBP473.2 million the prior year, primarily as a result of investment in the US sports betting.In its own guidance, the company had said it would deliver Ebitda of between GBP465 million and GBP480 million, while the market's consensus forecast stood at GBP497 million.Shares in FTSE 250-listed defence firm Ultra Electronics climbed 11% as it raised its dividend despite annual profit slipping. In 2018, pretax profit narrowed to GBP42.6 million from GBP60.6 million the year prior. Revenue slipped 1.1% to GBP766.7 million from GBP775.4 million the year before, though rose 2.2% on an organic basis. Ultra proposed a 37.0 pence per share final dividend, up from 35.0p the year prior. For the full year, the dividend rose to 51.6p from 49.6p the year before.