SSE Share News (SSE)

LONDON (Alliance News) - Stock prices in London were mixed in early trade on Friday, with energy firms SSE and Centrica both slipping in the FTSE 100, while airline Flybe slumped once again after it warned a takeover is the only way to avoid a wind-up of the company. The FTSE 100 index of large-caps was 4.85 points higher, or 0.1%, at 7,098.84.The FTSE 250 was down 63.08 points, or 0.3%, at 18,736.18, and the AIM All-Share was also down 0.3% at 909.06.The Cboe UK 100 was down 0.1% at 12,055.64, while the Cboe UK 250 was 0.3% lower at 16,751.65 and the Cboe UK Small Companies flat at 11,140.89."Thursday really was a bad news day, with the European Commission and Bank of England both sharply revising lower their growth expectations for 2019, with the latter forecasting the worst year since the financial crisis," said Oanda's Craig Erlam. "This comes amid a global growth slowdown and a huge amount of Brexit uncertainty that's having a disproportionate impact on the UK.""This was followed by reports there will be no meeting between Trump and Xi this month, casting doubt on whether enough has been achieved in talks to avoid further tariffs being imposed," Erlam continued."As ever with these negotiations, it can be difficult to discern actual breakdowns from brinkmanship, especially when the narrative change from week to week."CNBC reported Thursday a Trump-Xi meeting is highly unlikely before the March 1 deadline, but the US is likely to keep tariffs at 10% rather than raise them to 25% as scheduled.CNBC said while Trump and Xi are set to meet "eventually" there is to much to be done before the deadline on trade as well as preparations for Trump's meeting with North Korea's Kim Jong Un, penned for the end of February.The report came after White House economic adviser Larry Kudlow told Fox Business the US and China have a "pretty sizeable distance to go" before reaching a trade deal.In the US on Thursday, Wall Street ended comfortably lower, with the Dow Jones Industrial Average ending 0.9% lower, the S&P 500 also down 0.9%, and the Nasdaq Composite 1.2% lower.The Japanese Nikkei 225 index closed 2.0% lower. Most financial markets in China remained closed for the Lunar New Year holiday, but the Hong Kong reopened re-opened for the first time since Monday. The Hang Seng index ended down 0.2%.In UK corporate news, FTSE 100 power utility SSE fell 1.4% early on as it mulls options for its Energy Services business, including a possible standalone demerger and listing, a sale, or other transaction of the consumer arm. SSE abandoned plans in December to try to merge the business with Innogy's npower. SSE said if there are no other option available, it could retain the unit as a separate ring-fenced business.The energy provider also warned the EU's decision on the UK's capacity market system could knock its annual earnings.In November, SSE guided for adjusted earnings earnings per share of 70 pence to 75p in its year ending March. However, a day later, the EU removed the European Commission's state aid approval of the capacity market and introduced a standstill until the method can be approved again.SSE believes the system is the best way to deliver power supply at low cost, but GBP60 million of income will not be able to be recognised. As a result, earnings per share guidance would be between 64p and 69p.SSE also reiterated plans for a GBP200 million buyback using funds from the recent sale of two Scottish wind farms.Peer Centrica was 2.7% lower in early trade in a read-across. Miner Anglo American was down 0.3%, following a ratings cut from UBS to Sell from Neutral. Gaining in the FTSE 250 was building materials firm Travis Perkins, up 1.5%, as Royal Bank of Canada upped its rating to Outperform from Sector Perform. Elsewhere, Thomas Cook was 9.4% lower, having ended 10% higher on Thursday after announced a review of its holiday airline including a possible sale. Struggling airline Flybe slumped 18%, having been down 37% initially, as it warned after the market close on Thursday it will have to wind-up without a sale. Flybe agreed a deal in January with Connect Airways, a joint venture among Stobart Group, Virgin Airways, and DLP Holdings, valuing at GBP2.2 million. The offer price was 1p a share, compared to a share price of 16.38p at the time. Since then, former Stobart boss Andrew Tinkler has offered a cash injection instead of a takeover, while shareholder Hoskin Partners has moved to remove Flybe Chair Simon Laffin.Earthport was 13% higher after Visa upped its initial offer in response to an offer from peer Mastercard. In December, Visa agreed a 30 pence per share offer for Earthport, but in January Mastercard made a 33p counterbid bid.Mastercard is now offering 37p per share, valuing Earthport at around GBP247 million. This is 12% higher than Mastercard's offer and 23% higher than its own initial bid.Mastercard, in its own statement on Friday, said it is now "considering its options" following Visa's new bid and will make a further announcement in "due course".On AIM, oil and gas firm Cluff Natural Resources surged 76% after it said it has signed a farm-out with giant Royal Dutch Shell for the P2252 and P2437 licences in the North Sea. Shell will take 70% of P2252 in return for paying all costs up to a well investment decision, and Shell will also get a 50% option ending April for USD600,000. In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were 0.1% and 0.2% lower, respectively, early Friday.Germany's exports rebounded at a faster-than-expected pace in December, exceeding expectations, and imports followed suit, figures from the Federal Statistical Office showed on Friday.Exports rose a calendar and seasonally-adjusted 1.5% from November, when they declined 0.3%. Economists had expected 0.5% growth. The pace of growth was the fastest since May's 1.6% gain.Imports climbed 1.2% month-on-month, recovering from a 1.3% slump in November. Economists had forecast 0.4% growth.The non-adjusted trade surplus fell sharply to EUR 13.9 billion from EUR 20.4 billion in November. Economists were looking for a surplus of EUR 17.3 billion.The pound was soft, quoted at USD1.2930 Friday, compared to USD1.2967 at the London equities close Thursday. Sterling slipped to an intraday low of USD1.2854 on Thursday immediately after the Bank of England's rate decision.The Bank of England slashed its growth forecasts for the UK economy, saying the outlook remained highly sensitive to the effects of Brexit "fog", while the nine-member Monetary Policy Committee held the bank rate at 0.75%.UK Prime Minister Theresa May has vowed to deliver Brexit on time on March 29, after agreeing a fresh round of talks with EU leaders to try to get her withdrawal agreement over the line.May described discussions in Brussels on Thursday as "robust but constructive" and insisted she was determined to "negotiate hard" over the coming days to secure legally-binding changes to the agreement which will render it acceptable to Parliament.Brexit Secretary Stephen Barclay and EU Chief Negotiator Michel Barnier will meet next Monday, while May and European Commission President Jean-Claude Juncker will have another meeting before the end of the month to take stock of the situation.But European Council president Donald Tusk poured cold water on any expectation of an imminent end to the current impasse, saying there was "no breakthrough in sight".