Paddy Power Betfair Share News (PPB)

LONDON (Alliance News) - Stocks in London on Wednesday are set to pull back from the gains achieved thus far this week as investors await signs of "tangible" progress between the US and China amid their ongoing trade war.In early company news, Legal & General's assets under management topped GBP1 trillion, Paddy Power Betfair reported a dip in annual profit as it invested in the US and set out plans to rename itself Flutter, and Melrose Industries and DS Smith both made disposals.IG says futures indicate the FTSE 100 index of large-caps to open 10.53 points lower at 7,172.90 on Wednesday. The FTSE 100 index closed up 49.04 points, or 0.7%, at 7,183.43 on Tuesday, the UK blue-chip stock index up 1.1% since the week began."Investors aren't prepared to run the current rally any further without more tangible evidence of progress towards a US-China trade deal or concrete evidence of improved global economic health," commented Jasper Lawler at London Capital Group. Equities this week have been buoyed on hopes of improved relations between the world's two largest economies, after the Wall Street Journal reported on Sunday that talks have progressed far enough that the two sides could reach a formal agreement at a potential meeting around March 27.In the US on Tuesday, there was a subdued session on Wall Street with the Dow Jones Industrial Average ending down 0.1%, the S&P 500 also down 0.1% and Nasdaq Composite ending slightly lower. In Asia on Wednesday, the Japanese Nikkei 225 index closed down 0.6%. In China, the Shanghai Composite ended up 1.6%, while the Hang Seng index in Hong Kong is up 0.3%.In the economic calendar on Wednesday, US ADP employment change is at 1315 GMT, a precursor to Friday's nonfarm payrolls, while the Federal Reserve's Beige Book is at 1900 GMT.In the UK, Prime Minister Theresa May will face questions 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.In UK company news, financial services firm Legal & General said it expects momentum to continue into 2019 as it beat analyst expectations by achieving the milestone of GBP1 trillion in assets under management in 2018.Assets under management at the end of the year stood at just over GBP1 trillion, up 3% on GBP983 billion in 2017, with external net flows of GBP42.6 billion, versus GBP43.5 billion last year. Total gross written premiums were up 3% to GBP2.62 billion.Pretax profit rose slightly to GBP2.13 billion from GBP2.09 billion last year, with operating profit up 10% to GBP1.90 billion.Legal & General raised its full-year dividend by 7% to 16.42p."Our strategy positions us well despite the broader environment, our current trading is strong, and we expect this momentum to continue in 2019," said Chief Executive Nigel Wilson.Paddy Power Betfair reported revenue growth for 2018 but earnings were hit by the bookmaker's investment in the US market, as the FTSE 100 constituent laid out plans to rename itself to better reflect the "diversity" of the group.Revenue rose 7% in 2018 to GBP1.87 billion, though pretax profit slipped 11% to GBP219 million. Lower earnings were attributed to investment in the US sports betting market, where Paddy Power said it has secured an "early podium position".The betting firm kept its full-year dividend flat at 200p per share. "I'm really pleased with the way that the group performed in 2018 in what was a challenging year for the sector with regulatory and tax changes," said Chief Executive Peter Jackson, adding that 2019 has begun in line with expectations.Paddy Power said it will be seeking approval at its annual general meeting in May to rename the group as Flutter Entertainment, to better reflect the "increasing diversity" of the company.Melrose Industries said it has agreed to sell the unit previously known as GKN Off Highway Powertrain to a US-based private equity firm.Melrose also said its subsidiary, Fokker Aerospace, has completed the sale of its minority 43.6% interest in Societe Anonyme Belge de Constructions Aeronautiques.Together, the two sales are expected to generate net proceeds of GBP200 million.DS Smith also reported a disposal on Wednesday, of its Plastics division to Olympus Partners for an enterprise value of USD585 million, or GBP450 million."This sale represents an important step in DS Smith's continued progress as a leader in sustainable packaging and accelerates the programme of deleveraging, alongside organic cashflow," the blue-chip packaging firm explained. The proceeds are expected to be used to reduce financial gearing.Turning to current trading, DS Smith said business has continued to be strong and in line with expectations. The firm said it has continued to see good corrugated box volume growth, while its US unit has been generating strong margins and returns ahead of the acquisition case. Just Eat said it expects revenue and earnings growth in 2019 following a strong set of results for 2018.Revenue for 2018 rose 43% on last year to GBP779.5 million, leading the online takeaway platform to swing to a pretax profit of GBP101.7 million from a GBP76.0 million loss the year before. Underlying earnings before interest, tax, depreciation and amortisation rose 6% to GBP173.9 million.UK revenue was up 27% despite "exceptionally hot weather" in July and August, Just Eat said, with the segment seeing 112.8 million orders in 2018, which was 17% higher than last year.Looking ahead, Just Eat expects another strong revenue showing in 2019. Sales are expected between GBP1.0 billion to GBP1.1 billion, with underlying Ebitda between GBP185 million to GBP205 million. Provident Financial said Non-Standard Finance's unsolicited takeover offer has "major strategic flaws", as the subprime lender report that it has "substantially resolved" issues with the UK Financial Conduct Authority.Non-Standard Finance in February made a hostile all-share takeover offer worth GBP1.3 billion for Provident Financial, with the support of just over 50% of Provident's shareholders.Provident Financial on Wednesday said that as well as the offer undervaluing the company, it comes with "significant operational and execution risks" due to the changing regulatory environment.Ahead of its delayed annual results next week, Provident Financial said it believes it has "substantially resolved" all outstanding regulatory issues with the FCA, with its refund programme for the Vanquis Bank Repayment Option Plan "99% implemented".Provident Financial added that it expects to announce shortly a new chair of Vanquis Bank.