Telecom Plus Share News (TEP)

LONDON (Alliance News) - Stocks in London ended mixed on Tuesday, although the FTSE 100 managed to move off six-month lows, as fears over the Italian debt crisis and rising US bond yields continued to cast a shadow. In addition, investors have, for the most part, shrugged off news the International Monetary Fund lowered its forecast for US and Chinese economic growth.Citing the "negative effect of recent tariff actions", the IMF said economic growth in the US and China is now expected to slow to 2.5% and 6.2%, respectively, next year.The FTSE 100 index closed up 0.6%, or 4.26 points at 7,237.59. Although, the blue chip index fell to an intraday low of 7,184.28 in early trade - its lowest level in six months. The FTSE 250 ended down 0.5%, or 96.48 points, at 19,549.60, and the AIM All-Share closed down 1.1%, or 11.41 points, at 1,028.59.The Cboe UK 100 ended flat at 12,287.63, the Cboe 250 closed down 0.7% at 17,726.85, and the Cboe Small Companies ended 0.7% lower at 11,872.07."Traders are worried about Italy's proposed budget deficit, and the rise in US government bond yields is weighing on sentiment too. Italy's finance minister, Giovanni Tria, still plans to run a budget deficit of 2.4%, despite the pushback back from Brussels. The rise in borrowing costs for the Italian government is playing on traders' minds, and there is a growing fear that we could be heading for another round of the eurozone debt crisis," said David Madden, market analyst at CMC Markets.On the London Stock Exchange, Schroders ended among the blue chip risers, up 2.2% after Berenberg raised the wealth manager to Buy from Hold saying its potential tie-up with UK lender Lloyds Banking Group for the mandate to manage a portfolio of assets can provide strategic benefits. In addition, miners recovering from falls on Monday after China's central bank reduced the reserve requirement ratio for banks for the fourth time this year to cut financing costs and prop up economic activity.Anglo American closed up 2.8%, Rio Tinto up 1.8%, Antofagasta up 1.5%, Glencore up 1.5% and BHP Billiton up 1.4%.In a statement released Sunday, the People's Bank of China said that it will reduce the ratio of cash that banks should retain as reserves by 100 basis points, with effect from October 15.The latest 1 percentage point cut is set to release USD175 billion.The bank reiterated that it will continue to implement prudent and neutral monetary policy. The reduction will not lead to currency depreciation, the bank added."For the miners, a dramatic increase in the amount of cash available for banks to loan out will drive investment, in turn benefitting companies whose product is demanded in times of growth. Over the long term, the mining sector looks a good buy, yet much of the short-term volatility will be dictated by affairs in China and the pathway of US trade negotiations," said IG Group's Josh Mahony. At the other end of the large cap index, Paddy Power Betfair ended as the worst performer down 5% after the bookmaker said if the Irish government's new betting duty was in place for the previous financial year, it would have paid an additional GBP20 million.The Irish government, in its 2019 budget, increased the rate of betting duty payable to 2% from 1% of betting stakes from Irish customers and to 25% from 15% of betting exchange commissions from Irish customers.Paddy Power Betfair said if the increased rates had applied to its Irish sportsbook stakes & exchange revenues in the 12 months ended June, it would have had to pay an additional GBP20 million of betting duty.The new duty will come into effect starting January 2019.In the FTSE 250, Telecom Plus ended as the best performer, up 8.5% after Peel Hunt raised the multi-utility supplier to Buy from Add saying it can thrive as the energy landscape in the UK changes, amid the imminent introduction of a price cap on energy prices. Greggs closed up 4.6% after the bakery chain said it traded well in the third quarter, which was affected by hot weather, as expectations for the full year remain unchanged. Greggs said hot weather made sales patterns more difficult to predict in the 13 weeks to September 29 resulting in lower-than-normal trading margin in the first part of the quarter, offset by improved trading in September. Like-for-like sales in company-managed shops for the three-month period increased 3.2% versus 5.0% in the year ago period. Total sales grew by 7.3% versus 8.6%. In the year-to-date, same store sales were up 2.1%, with total sales growing 5.9%. The pound was higher quoted at USD1.3141 at the London equities close, compared to USD1.3061 at the close Monday.In domestic political news, a group of eurosceptic lawmakers opposed to UK Prime Minister Theresa May's "Chequers" plan for Brexit will vote against it in parliament, a leading rebel warned.Steve Baker said he and other members of the European Research Group of pro-Brexit Conservatives will not accept the kind of "half in, half out" deal for leaving the EU that May appears to be close to agreeing with EU leaders.Speaking on BBC Radio 4's Today programme, the lawmaker was responding to reports that May could reach a deal to keep an open Irish border after Britain leaves the EU in March by keeping the current customs arrangements beyond a 21-month transitional period.In Paris the CAC 40 ended up 0.4%, while the DAX 30 in Frankfurt ended up 0.3%. The euro was firm at USD1.1482 at the European equities close, against USD1.1476 late Monday, although the single currency remained under selling pressure amid the escalating crisis in Italy.In the latest developments, Italy should "tone down the hostility" against the EU, Economy Minister Giovanni Tria said, amid more negative market reactions to Rome's higher deficit plans.The EU's executive, the European Commission, has cautioned Italy against spending plans that flout budget discipline rules and have spooked markets, prompting a sell-off of Italian government bonds."We are entering a phase of constructive dialogue" with the commission in which there is "a need to tone down the hostility", Tria - a technocrat with no formal political affiliation - said in a parliamentary hearing in Rome.In Brussels, meanwhile, the commission also sought to calm the atmosphere, after a meeting Tuesday between the speaker of the lower house of parliament, Roberto Fico, and commission President Jean-Claude Juncker."This was a good meeting, a moment to cool down the temperature," Juncker's spokesman Margaritis Schinas said following the talks, noting that it was up to Italy to find the means of staying within EU budget rules."As a result of the dollar strength and euro weakness, the EUR/USD has broken and remained below the pivotal level of USD1.1530 ahead of the upcoming inflation figures from the US on Wednesday and Thursday. It appears as though the only thing that could save the EUR/USD would be the prospects of a significantly weaker US inflation figures, which look unlikely. So, we may see further weakness in this pair over the next couple of days," Forex.com analyst Fawad Razaqzada said. Stocks in New York were broadly higher at the London equities close as treasury yields turned lower after extending a recent upward trend in early trade.The DJIA was flat the S&P 500 index up 0.2% and the Nasdaq Composite up 0.6%.Upbeat economic data pushed treasury yields higher in recent sessions, leading to concerns the US Federal Reserve could raise interest rates more aggressively than previously anticipated.The ten-year yield reached its highest level in over seven years last Friday, while the thirty-year bond yield climbed to its highest level since 2014.In the coming days, greater emphasis is sure to be placed on reports on US producer and consumer prices as well as comments by several Federal Reserve officials.Brent oil was up quoted at USD84.75 a barrel at the London equities close from USD83.49 at the close Monday. Gold was higher quoted at USD1,189.48 an ounce at the London equities close against USD1,185.30 late Monday. The economic events calendar on Wednesday has Italy industrial output figures at 0900 BST, UK industrial and manufacturing data at 0930 BST and US producer prices at 1330 BST. In addition, Andy Haldane, the Bank of England's chief economist, will speak at the Advisory, Conciliation and Arbitration Service Future of Work Conference in London at 1000 BST. The UK corporate calendar on Wednesday has trading statements from pub operator Marston's, recruiter PageGroup and ten pin bowling operator Hollywood Bowl Group.