Marks & Spencer Share News (MKS)

LONDON (Alliance News) - The FTSE 100 lagged European counterparts on Tuesday as a surging pound put a dent in the overseas earnings-heavy index.Sterling surpassed the USD1.32 mark to trade around its best levels in a month as UK Prime Minister Theresa May dangled the possibility of an Article 50 extension. Meanwhile, Fresnillo, International Consolidated Airlines and Croda International were among the stocks weighing on the FTSE 100, while Ocado was the top gainer as it confirmed joint venture talks with Marks & Spencer.The FTSE 100 index closed down 32.62 points, or 0.5%, at 7,151.12. The FTSE 250 ended up 23.70 points, or 0.1%, at 19,270.68, and the AIM All-Share closed just 0.38 of a point higher at 913.04.The Cboe UK 100 ended down 0.4% at 12,154.24, the Cboe UK 250 closed up 0.4% at 17,211.50 and the Cboe Small Companies ended up 0.2% at 11,137.12.Sterling traded around its best levels in a month after UK Prime Minister Theresa May promised to give MPs a vote on extending Brexit negotiations or withdrawing from the EU without a deal if her plan is rejected next month.In a dramatic statement to the House of Commons, May confirmed that she will put her Withdrawal Agreement - including whatever additional assurances she has secured from Brussels - to a "meaningful vote" by March 12.If that fails, MPs will be offered two separate votes on the following days - one on a no-deal Brexit and, if that is defeated, the other on requesting an extension to the two-year Article 50 negotiation process to delay EU withdrawal beyond March 29.The sequence of votes will be proposed in an amendable motion tabled by the prime minister for debate and vote in the Commons on Wednesday."The markets clearly see this as a significant step that goes some way to taking no-deal off the table, even if the PM was at pains to stress that this isn't the case. Currency markets remain well supported with the pound close to its highest level of the month," said David Cheetham, chief market analyst at XTB.The pound was quoted at USD1.3263 at the London equities close Tuesday, compared to USD1.3065 at the close on Monday.In other Brexit news on Tuesday, Bank of England Governor Mark Carney warned he would "guarantee" a sharp downgrade to UK growth in a no-deal departure scenario, but said policymakers would provide all possible support to the economy.The governor told members of Parliament on the Treasury Select Committee it was certain the UK central bank's next inflation report in May would forecast a "material" fall in gross domestic product growth if the UK quits the EU with no deal.He said: "If we come back in May and if there's no deal, no transition, I guarantee the path of GDP in our forecast will be materially lower."He suggested delaying Article 50 was still not a better option than a deal or transition period and cautioned uncertainty was likely to linger for at least a year after Brexit even if an agreement is struck.But in signs of a row-back on previous warnings from the bank that it could raise UK interest rates as high as 5.5% to contain a no-deal fallout, Carney added it would provide "whatever monetary support it can" in the worst-case scenario.In European equities on Tuesday, the CAC 40 in Paris ended up 0.1%, while the DAX 30 in Frankfurt ended up 0.3%.The euro stood at USD1.1367 at the European equities close Tuesday, against USD1.1348 at the same time on Monday.Stocks in New York were slightly higher at the London equities close, with the DJIA up 0.1%, the S&P 500 index up 0.2%, and the Nasdaq Composite up 0.1%.In London, Fresnillo acted as a major drag on the FTSE 100 as the gold miner slumped 8.3% after posting a large drop in annual profit.Fresnillo's revenue for 2017 rose 0.5% to USD2.10 billion from USD2.09 billion, coming in just short of the USD2.11 billion revenue forecast of Barclays analysts.Pretax profit declined by 35% in 2018 to USD483.9 million from USD741.5 million, and earnings before interest, tax, depreciation, and amortisation fell by 14% to USD915.1 million from USD1.06 billion.Meanwhile, gold was quoted at USD1,326.74 an ounce at the London equities close Tuesday, flat compared to USD1,327.44 at the close on Monday.Brent oil, however, rose slightly to be quoted at USD65.30 a barrel at the London equities close Tuesday from USD64.78 late Monday."Oil is a little higher today as the energy has recouped some of the ground lost yesterday. The dust has settled in the wake of President Trump's tweet about oil price s being too high. The US is a close ally of oil producing nations like Saudi Arabia, so his comments are likely to be taken into consideration," said David Madden at CMC Markets.Back in the FTSE 100, British Airways parent International Consolidated Airlines slipped 4.3% after MSCI Global Standard Indexes said late Monday it will cut the airline operator from a benchmark index of the Spanish market.MSCI's decision followed IAG's choice, earlier in February, to fix the maximum level of share ownership by non-EU persons at 47.5%, its current level, ahead of the UK's exit from the EU on March 29. Croda International dipped 3.5%. The firm achieved profit growth in 2018 but also revealed an issue at its new US plant.In 2018, pretax profit widened 1.2% to GBP317.8 million from GBP314.1 million the year prior. This was after revenue fell 1.5% to GBP1.39 billion from GBP1.37 billion.However, Croda said its US biosurfactants factory - construction of which was its largest capital investment ever - was taken off line in November 2018 after a gasket issue from its construction."A thorough investigation is underway and we will bring the plant back on stream in a safe manner later in 2019," Croda explained in a statement. "Until that time, unrecovered operating costs of approximately GBP2 million per quarter are being incurred."Attempting to counteract the collection of stocks gathered at the bottom of the FTSE 100 was a double-digit rise for online grocer Ocado on confirmation it is involved in talks over a UK retail joint venture with high street stalwart Marks & Spencer. In separate statements on Tuesday, both Ocado and M&S confirmed the discussions but cautioned there is "no certainty that these discussions will result in any agreement or as to the timing of any such agreement".Earlier on Tuesday, the Evening Standard reported that Ocado and M&S are set to confirm plans for a joint venture as soon as Wednesday, while the Daily Mail had in January reported "secret" discussions between the pair.M&S shares closed up 3.2%, while Ocado shares surged 12%.Housebuilder Persimmon rose 3.0%, lifting peers in a positive read-across, as it reported an annual profit in excess of GBP1 billion.The FTSE 100-listed housebuilder reported pretax profit of GBP1.09 billion for 2018, up 13% from GBP966.1 million the year before, on revenue that rose by 3.9% to GBP3.74 billion from GBP3.60 billion.During the year, Persimmon delivered 16,449 homes to customers, up from 16,043 in 2017, and sold those houses at an average selling price of GBP215,563, reflecting a 1.1% increase from GBP213,321 the prior year.The solid results boosted other London-listed home construction firms, with Taylor Wimpey up 2.9%, Barratt Developments up 2.8% and Berkeley Group up 2.5%.Taylor Wimpey is due to report its own annual results on Wednesday.FTSE 250-listed builders' merchant Travis Perkins gained 12% as it posted a rise in adjusted profit for 2018, though did swing to a statutory loss.The company's pretax loss for 2018 was GBP49.4 million, sinking from a GBP289.7 million pretax profit in 2017.This was a result of GBP386.7 million of adjusting items compared to only GBP40.9 million in 2017, the bulk of which consisted of a GBP246 million impairment of goodwill and intangible assets in its Wickes home improvement business.However, adjusted profit before tax increased 1.2% to GBP347 million from GBP343 million in the prior year.Metro Bank shed 12% as it said it has entered a GBP350 million standby underwrite agreement and will release its 2018 results, updated medium-term strategy and 2019 capital plans after the market close. At the end of January, the challenger bank released a trading update which indicated its risk-weighted assets had increased 51% to GBP8.9 billion from GBP5.9 billion.Babcock International fell 4.6% after the defence firm backed its guidance but said it will book a GBP10 million Brexit-related charge. Babcock's earnings outlook for the year ending March 31 remains unchanged because the company believes it has made "good progress" in its three key markets of defence, aerial emergency services and nuclear.However, the UK's planned withdrawal from the EU is expected to cost Babcock an additional GBP10 million per annum as well as a one-off GBP10 million tax charge as the company has restructured its aerial emergency services unit to comply with EU operating requirements.In the economic calendar on Wednesday, the British Retail Consortium shop price index is at 0001 GMT while eurozone consumer confidence is at 1000 GMT and the US goods trade balance and durable goods orders both at 1330 GMT. Later are US pending home sales and factory orders, both at 1500 GMT.Also on Wednesday will be the results of the quarterly index review after the market closes, with John Wood Group and GVC Holdings seen slipping out of the FTSE 100 to be replaced by Phoenix Group Holdings and Just Eat. Stockbroker AJ Bell is set to join the FTSE 250 after floating in London last year, while retailers Superdry and Halfords are up for relegation.In Wednesday's corporate calendar are earnings from broadcaster ITV, miner Rio Tinto, wealth management firm St James's Place, and engineer Weir.