Merlin Entertainments Share News (MERL)

LONDON (Alliance News) - Stocks in London ended higher on Tuesday with investors buying into global equities following last week's sharp sell off, although the FTSE 100's gains were impeded by the strengthening pound. The FTSE 100 index closed up 0.4%, or 30.18 points at 7,059.40. The FTSE 250 ended up 1.8%, or 346.42 points, at 19,149.87, and the AIM All-Share closed up 1.1%, or 10.39 points, at 996.89.The Cboe UK 100 closed up 0.4% at 11,979.99, the Cboe UK 250 closed up 1.7% at 17,358.17, and the Cboe UK Small Companies closed 0.1% higher at 11,675.46.In Paris the CAC 40 ended up 1.5%, while the DAX 30 in Frankfurt ended up 1.4%. IG Group market analyst Josh Mahony attributed the rise to investors taking the opportunity to buy into stocks following weakness in global equities over recent weeks."We have seen substantial gains today, providing traders with the feeling that they must get on board or risk missing out. However, it is worthwhile noting that the issues that provided these original doubts remain, with an Italian budget that is unlikely to pass through the European Committee and a Brexit process which remains fraught with apparently insurmountable hurdles," said Mahony.On the London Stock Exchange, Ocado Group ended as the best blue chip performer, up 5.5% after Merrill Lynch double upgraded the stock to Buy from Underperform saying the online grocer's "unique" business model stands it in good stead, while recent share price weakness provides investors with an opportunity to snap up shares. "We remain supportive of the online business model developed in the UK, flagging the unique shopping experience, high quality of service and strong proprietary technology behind it," analysts at the US investment bank said. Shares in equipment rental firm Ashtead Group ended up 4.5% ahead of third quarter earnings from US peer United Rentals on Wednesday. Ashtead generates the majority of its revenue from the US via its Sunbelt business.At the other end of the large cap index, British American Tobacco ended as the worst performer, down 4.6% after the tobacco giant revised down its revenue target for its tobacco heating products and e-cigarettes to GBP900 million from previous target of GBP1 billion. This was due to a reduction of planned end-of-year stocks in Japan and a recall of BAT's Vuse Vibe product in the US. BAT also said it expects full-year adjusted earnings per share growth to be hurt by a currency translation headwind of around 7%, on the assumption that exchange rates remain unchanged for the rest of the year.Shares in rival Imperial Brands ended 2.0% lower. Tesco closed down 3.4% following the release of the latest Kantar Worldpanel grocery market survey. For the 12 weeks to October 7, Tesco delivered a sales increase of 0.9% in the 12 week period, beating J Sainsbury, which grew sales by 0.6%. However, Tesco's market share declined by 0.6 percentage point to 27.4%, while Sainsbury's market share was down by 0.4 percentage point to 15.4%. Sainsbury's shares closed down 1.0%. Conversely, Ocado's sales growth was reported at 7.5%. In the FTSE 250, Meggitt closed up 7.1% after the aerospace components maker upgraded its revenue guidance on a stronger-than-expected performance in its core civil aerospace and defence business divisions and improving market conditions, particularly US defence spending. Meggitt now expects 2018 total organic revenue growth of between 7% to 8%, up from 4% to 6% seen previously.At the other end of the midcap index, Merlin Entertainment closed down 8.0% after the theme park and attractions operator said trading so far this year has been in line with expectations and expects to report 2018 results in line with market consensus.As at October 6, Merlin's year-to-date organic revenue growth was 4.7% and like-for-like revenue growth stood at 1.4%.Resort Theme Parks was Merlin's best performing segment, with 9.0% organic growth and 8.3% like-for-like growth in the year to October 6.Merlin also noted the cost environment remains challenging, with tighter labour markets in many parts of the world adding to the pressures resulting from employment law changes such - as the national living wage in the UK."A growing number of governments with more restrictive policies on immigration and, in the UK, the Brexit process are limiting freedom of movement and this issue could continue to affect large-scale employers of lower wage workers such as Merlin," said AJ Bell's Russ Mould. The pound was higher against the dollar quoted at USD1.3207 at the London equities close, compared to USD1.3159 at the close Monday, after data showed UK wage growth accelerated to its highest level since the financial crisis. "The greenback has struggled in recent weeks due to foreign currencies finding stronger support. The pound has firmed because of stronger UK data and hopes that a Brexit deal could be achieved in the coming days," noted Forex.com analyst Fawad Razaqzada.The UK unemployment rate remained at the lowest level in 43 years in the three months to August, helping the average earnings to increase further amid fears of no-deal Brexit, the Office for National Statistics said.The ILO jobless rate came in at 4.0%, in line with expectations, and was the lowest since February 1975. The number of unemployed decreased 47,000 from the previous quarter to 1.36 million.Average weekly earnings excluding bonuses advanced 3.1% annually, the highest since late 2008. At the same time, including bonuses, earnings gained 2.7%, compared to the expected growth of 2.8%.James Smith, an ING economist, highlighted that UK wage growth has been fundamental to the Bank of England's rate hike rationale and this upward trend is likely to keep the central bank's tightening on track.In addition sterling was also buoyed by Brexit optimism ahead of a European Union summit on Wednesday.Although, in the latest developments the EU is demanding UK Prime Minister Theresa May come forward with new ideas to break the impasse in Brexit negotiations, a day ahead of a key EU summit.The call from European Council president Donald Tusk came as May urged her Cabinet to "stand together and stand firm" on Brexit, after negotiations stalled in the run-up to a crucial summit.May will address the remaining 27 EU leaders before Wednesday's Brussels meeting, which had been billed as "the moment of truth" for Brexit but now seems certain to pass without a deal on the UK's withdrawal.Leaders of the EU27 will discuss how to step up preparations for a no-deal Brexit next March at their working dinner in May's absence, following her presentation, he said.Reports from Brussels suggested senior European Commission officials were casting doubt on the prospect of a special Brexit summit being declared for November if there is no movement on the key issue of the Irish border.The roadblocks to negotiations relate to the "backstop" agreement demanded by the EU to avoid a hard border by keeping Northern Ireland within the European customs area.The euro was marginally lower at USD1.1577 at the European equities close, against USD1.1590 late Monday. Stocks in New York were higher at the London equities close amid positive updates from some of the country's high profile companies.The DJIA was up 1.4%, the S&P 500 index up 1.4% and the Nasdaq Composite up 1.8%.Goldman Sachs Group reported earnings per share of USD6.28 for the third quarter of 2018 compared to USD5.02 for the third quarter of 2017.On average, 22 analysts polled by Thomson Reuters expected the bank to report profit per share of USD5.38 for the quarter. Analysts' estimates typically exclude special items. Net earnings applicable to common shareholders rose 21% year-over-year to USD2.45 billion.Net revenue were USD8.65 billion for the third quarter of 2018, 4% higher than the third quarter of 2017. The company said the increase compared with the third quarter of 2017 reflected higher net revenue in Investment Banking and Investment Management. Analysts expected revenue of USD8.38 billion for the quarter.Goldman Sachs was up 1.4% in New York.Morgan Stanley reported its third quarter earnings advanced from the same period last year. The bank's earnings came in at USD2.02 billion, or USD1.17 per share. This compares with USD1.69 billion, or USD0.93 per share, in last year's third quarter. Analysts had expected the company to earn USD1.02 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items. The company's revenue for the quarter rose 7.3% to USD9.87 billion from USD9.20 billion last year.Morgan Stanley was up 4.6% on Wall Street.Consumer goods giant Johnson & Johnson released earnings for its third quarter that increased from last year.The company's earnings totaled USD3.93 billion, or USD1.44 per share. This compares with USD3.76 billion, or USD1.37 per share, in last year's third quarter.Excluding items, Johnson & Johnson reported adjusted earnings of USD5.59 billion or USD2.05 per share for the period. The company's revenue for the quarter rose 3.6% to USD20.35 billion from USD19.65 billion last year.Johnson & Johnson was up 2.3% in New York. Brent oil was up quoted at USD80.80 a barrel at the London equities close from USD80.12 at the close Monday.Gold was higher quoted at USD1,230.44 an ounce at the London equities close against USD1,226.70 late Monday.The economic events calendar on Wednesday has UK and eurozone inflation readings at 0930 and 1000 BST respectively. There is also US housing starts figures at 1330 BST. In addition, Bank of England policymaker Ben Broadbent will speak at the Brookings Institute in Washington, DC at 1800 BST. Stock markets in Hong Kong will be closed on Wednesday for the Chung Yeung Festival.The UK corporate calendar on Wednesday has full year results from online fashion retailer ASOS and third quarter production from gold miner Hochschild Mining. There are also trading statements from education publisher Pearson, warehouses investor SEGRO, private hospital group Mediclinic International and housebuilder Barratt Developments.