Mothercare Share News (MTC)

LONDON (Alliance News) - Stock prices in London are seen opening in the green on Monday, as the pound increased slightly after David Davis resigned as UK Brexit Secretary. IG futures indicate the FTSE 100 index is to open up 32.90 points at 7,650.60. The blue chip index closed up 0.2% at 7,617.70 on Friday. The pound was higher quoted at USD1.3320 early Monday compared to USD1.3261 late Friday.In UK political news, Theresa May faces a leadership crisis after David Davis savaged the government's approach to Brexit while dramatically quitting as the minister responsible for the UK's departure from the European Union.His resignation was warmly welcomed by hardline Eurosceptics in the Tory ranks who were already expressing reservations about May's leadership after her Cabinet agreed a plan which would keep the UK closely tied to Brussels.The prime minister now faces a stormy meeting with Tory MPs and peers in Parliament on Monday evening as she tries to keep her fragile administration together."Today and the next few days will be key for Theresa May's survival and the buoyancy of the pound. The pound has fallen away from its opening high versus the US dollar, but not actually swung lower on the day, suggesting that investors believe she will keep hold of the reins," said London Capital Group's Jasper Lawler. In early UK corporate news, midcap gold miner Centamin reported a 25% decrease in gold production in the second quarter coming in at 92,803 ounces compared to 124,641 the second quarter last year. For the six months ended June 30, gold production fell to 217,099 ounces from 233,828 ounces in the corresponding period. Looking ahead, Centamin said it expects stronger production for the second half, driven by improvements in grade from the open pit as mining progresses into the sulphide ore and an increase in high grade stoping tonnes from the underground."We have experienced several challenges this year, resulting in the revision of our full year guidance in May. Our focus now remains firmly on delivering the underground operations back in line with forecasts and returning Sukari's production profile to a steady state," said Chief Executive Andrew Pardey.Mother and baby products retailer Mothercare said it is to launch a fully underwritten equity issue to raise GBP32.5 million from existing shareholders. The placing and open offer will be priced at 19 pence per new ordinary share and is at a 33.6% discount to the closing price of 28.6 pence on Friday.Mothercare also said its company voluntary arrangement proposal is now effective and its subsidiary Childrens World will be placed into administration. The company is to close 60 UK stores, but will continue managing 77 existing UK stores.In terms of outlook, the company said current trading continues to follow the patterns seen in the second half of the last financial year, with challenging conditions in the UK. It has also identified cost savings totalling GBP19 million together with GBP10 million cash realisation coming from its restructuring plans."Alongside the fundraising, we have been very busy on numerous fronts to restructure the Group for future profitability. Whilst the lack of full approval for the Childrens World CVA was disappointing, we have now found a solution which allows us to go further and faster with the right-sizing of our store portfolio. We have also identified significant areas for further efficiencies and cost savings, which will underpin our return to a sustainable future," said Chairman Clive Whiley.In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 0.4%, S&P 500 up 0.9% Nasdaq Composite ending 1.3% higher.On Friday, China slapped retaliatory tariffs on US goods after Washington imposed duties on Chinese imports, the first shots fired in a trade war between the two giants that could disrupt the global economy.The US tariffs, which took effect right after midnight Friday on the East Coast, constitute "bullying" and the beginning of the "biggest trade war in history," the Chinese Commerce Ministry said.Beijing then placed 25% tariffs on USD34 billion worth of US goods - the same value as the Chinese imports affected by Washington's tariffs."The trade situation will be in focus as President Trump will be in Europe this week for the NATO summit. Mr Trump has already voiced his opinion that he feels the US pay a relatively large amount to the NATO budget. Mr Trump is still playing the 'America first' card, and there is a possibility that global trading relations could take a further knock," said David Madden, market analyst at CMC Markets.The Japanese Nikkei 225 index closed up 1.2%. In China, the Shanghai Composite is up 2.2%, while the Hang Seng index in Hong Kong is up 1.7%.