Marks & Spencer Share News (MKS)

LONDON (Alliance News) - Stock prices in London are set to open lower on Wednesday following a soft session in the US overnight, while the pound continued to trade above the USD1.32 mark ahead of further UK parliamentary votes on the direction of Brexit this evening.In early company news, Ocado and Marks & Spencer confirmed plans to form a UK grocery joint venture, which will see M&S raise GBP600 million via a rights issue to fund its share as the high street stalwart also laid out plans to rebase its dividend.Meanwhile, St James's Place lifted its dividend though noted "challenging external factors", Experian abandoned its proposed acquisition of ClearScore, and Ted Baker anticipated a lower profit than last year.IG says futures indicate the FTSE 100 index of large-caps to open 22.62 points lower at 7,128.50 on Wednesday. The FTSE 100 index closed down 32.62 points, or 0.5%, at 7,151.12 on Tuesday."Whilst Asian markets inched higher overnight back towards 5 month highs, European bourses are set for a slow start after Wall Street's close lower. The 3 major US indices all closed in the red after a choppy session on Tuesday, as investors digested Jerome Powell's update," said London Capital Group's Jasper Lawler.In the US on Tuesday, Wall Street ended slightly lower, with the Dow Jones Industrial Average, the S&P 500 and Nasdaq Composite all declining 0.1%.US Federal Reserve Chairman Jerome Powell saw "conflicting signals" in his otherwise positive assessment of the US economy on Tuesday, noting market volatility at the end of 2018 and a decline in financial conditions that support growth.Powell said ongoing trade disputes were among issues the US central bank will closely monitor, along with slowing growth in China and Europe and Brexit negotiations."While we view current economic conditions as healthy and the economic outlook as favourable, over the past few months we have seen some crosscurrents and conflicting signals," Powell said in testimony prepared for delivery to the Senate banking committee.In Asia on Wednesday, the Japanese Nikkei 225 index closed up 0.5%. In China, the Shanghai Composite closed up 0.4, while the Hang Seng index in Hong Kong is 0.1% lower.Meanwhile, sterling was quoted at USD1.3253 early Wednesday, softer than USD1.3263 at the London equities close on Tuesday but still around its best levels since late January."The pound has kept hold of most of its gains from the previous session. Brexit will remain very much in focus for pound traders across the next two weeks as it moves to crunch point," said Lawler.UK Prime Minister Theresa May has issued a plea to MPs to back a Brexit deal, telling Parliament to "do its duty" ahead of another series of votes on the government's negotiating strategy.MPs will vote on the prime minister's negotiating strategy for Brexit and a series of amendments on Wednesday evening, ahead of another "meaningful vote" on Theresa May's Withdrawal Agreement next month.On Tuesday, 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 the economic calendar on Wednesday, 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 FTSE 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 face relegation.In early company news, grocer Ocado and high street stalwart Marks & Spencer said they have created a UK online grocery shopping joint venture.Ocado has agreed to establish a partnership comprising Ocado's UK grocery retail business and branding and sourcing from M&S. M&S will pay Ocado GBP750 million, including deferred consideration, for a 50% stake in the joint venture. The announcement confirmed a deal previously reported by the Daily Mail in January and then by the Evening Standard on Tuesday.This consideration will include GBP562.5 million in upfront cash and a deferred payment of GBP187.5 million, plus interest, payable five years after completion. Ocado will own the remaining 50% stake in the venture.The venture will combine M&S's branded food and beverage range with Ocado's existing range of own label and third party branded products. M&S products will be available on the platform by September 2020, replacing Ocado's current sourcing agreement with Waitrose.The proceeds will enable Ocado to fund fully the development of all Customer Fulfilment Centres currently committed to with Ocado Solutions' partners, the company said.M&S said it anticipates potential synergies for M&S Food of at least GBP70 million per year, to be achieved by the third year following completion.The deal will be primarily financed by equity, said M&S, with the firm intending to conduct a fully underwritten rights issue to raise up to GBP600 million. At the same time, M&S will reset its dividend by 40% to a "sustainable level". M&S expects to pay a 7.1p final dividend in respect of its current financial year, down from 11.9p last year."I have always believed that M&S Food could and should be online. Combining the strength of our food offer with leading online and delivery capability is a compelling proposition to drive long-term growth," said M&S Chief Executive Steve Rowe.Wealth management firm St James's Place lifted its dividend though sounded caution on "challenging external factors" currently being experienced.Gross inflows amount to GBP15.7 billion in 2018, up from GBP14.6 billion at the end of 2017, with net inflows of funds under management GBP10.3 billion, up from GBP9.5 billion last year. Funds under management at the year-end stood at GBP95.6 billion, up from GBP90.76 billion last year.Profit before shareholder tax rose 14% to GBP211.9 million from GBP186.1 million.The firm declared a final dividend of 29.73 pence per share, bringing its full-year payout to 48.22p, up 13% on last year."The business continues to perform well relative to the industry. However, challenging external factors, like those currently being experienced, are not in our control and the pace of fund flows has moderated compared with last year. I would note though that the inflows for the same period last year represent a very strong comparative," said Chief Executive Andrew Croft.Housebuilder Taylor Wimpey said it had "another strong year" as it posted growth in profit.Revenue for 2018 rose to GBP4.08 billion from GBP3.97 billion in 2017, as pretax profit grew to GBP810.7 million from GBP682.0 million. Excluding exceptional items, profit was up to GBP856.8 million from GBP812.0 million."Despite ongoing macroeconomic and political uncertainty, we have made a very positive start to 2019 and are encouraged to see continued strong demand for our homes. We enter the year with a strong order book," said Chief Executive Pete Redfern.Broadcaster ITV reported a higher annual profit though anticipated a challenging first half of 2019 following stronger comparatives a year ago.Total external revenue was up 3% to GBP3.21 billion, with ITV Studios revenue up 6% to GBP1.67 billion and advertising revenue up 1%. ITV's pretax profit grew to GBP567 million from GBP500 million in 2017.The company said it has started 2019 with "strong" on-screen and online viewing, though total advertising is forecast to be down 3% to 4% over the first 4 months due to "economic and political uncertainty".Further, the first half of 2019 is expects to be knocked by tough advertising comparatives last year, particularly in June against the World Cup, as well as the investments being made and the timing of ITV Studios deliveries being weighted to the second half.Rio Tinto reported a rise in annual profit and declared a special dividend.Pretax profit for 2018 came in at USD18.17 billion, up sharply from USD12.82 billion last year, as revenue rose marginally to USD40.52 billion from USD40.03 billion.The miner declared a final dividend of 135.96 pence per share, up from 129.43p in 2017, bringing the total for the year to 232.78p from 212.56p last year. In addition, Rio Tinto proposed a special payout of 183.55p."We have once again announced record cash returns to shareholders of USD13.5 billion on the back of USD18 billion of underlying Ebitda and a Return on Capital Employed of 19%. These strong results reflect the efforts of the team to implement our value-over-volume strategy as we continued to strengthen the portfolio and invest in future growth," said Chief Executive Jean-Sebastien Jacques.Credit checking firm Experian said it does not think the UK competition regulator will give the thumbs up to its proposed acquisition of ClearScore on satisfactory terms.Experian and ClearScore have therefore taken the decision to abandon the transaction. Ted Baker said it expects pretax profit for its recently ended financial year to be lower than the year before due to foreign exchange movements, system upgrades and warehouse transitions. The fashion retailer expects pretax profit for the year ended January 26 to be in the region of GBP63 million, before costs related to House of Fraser, the acquisition of No Ordinary Shoes and the ongoing independent external investigation into Chief Executive & Founder Ray Kelvin.For the previous financial year, the firm achieved a profit of GBP68.8 million.