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(Alliance News) - Emerging markets asset manager Ashmore Group on Friday reported a "strong" financial 2019 as the company ended the period with sharp growth in assets under management, despite escalation of the US-China trade war.
At June 30, Ashmore's assets under management stood at USD91.8 billion compared to USD73.9 billion at the same point a year ago, representing a 24% jump.
"The year was positive for Emerging Markets as economic and political fundamentals continued to strengthen. While there have been some headwinds, for example the deteriorating US-China trade relationship, thus far these have had only a temporary impact on market sentiment, and therefore prices, but not a major effect on the aggregate Emerging Markets growth picture," Ashmore commented.
Ashmore delivered USD10.7 billion of net inflows in the period while its investment market performance added USD6.9 billion.
Chief Executive Mark Coombs said: "Ashmore has delivered strong results for the year on the back of AuM growth and continued investment outperformance. The backdrop for Emerging Markets remains relatively healthy, with economic indicators such as GDP growth and inflation continuing to trend favourably. The main risks relate to the US and the impact that its confrontational trade policy and slowing domestic growth will have on the broader global economy."
The stock was up 0.4% in early trade.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.2% at 7,255.06
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Hang Seng: up 0.5% at 26,636.59
Nikkei 225: closed up 0.5% at 21,199.57
DJIA: closed up 372.68 points, 1.4%, at 26,728.15
S&P 500: closed up 1.3% at 2,976.00
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GBP: up at USD1.2339 (USD1.2323)
EUR: flat at USD1.1044 (USD1.1046)
Gold: down at USD1,509.40 per ounce (USD1,515.10)
Oil (Brent): down at USD61.00 a barrel (USD62.02)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
South Africa World Economic Forum on Africa concludes in Cape Town
0830 BST UK Halifax house price index
0930 BST UK Bank of England quarterly inflation attitudes survey
1100 CEST EU GDP estimate
1100 CEST EU employment
0830 EDT US non-farm payrolls report
0830 EDT US weekly export sales
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Boris Johnson will continue campaigning for an election he is yet to successfully call, after a torrid day in which his brother resigned from Government while describing being torn between family and "the national interest". The UK prime minister will visit a farm in Aberdeenshire on Friday, to drum up support among voters, as opposition leaders continue their talks over how to prevent a no-deal Brexit on October 31. Labour and the SNP could again on Monday refuse to back the PM's renewed attempt to get an early election, because of concerns the poll should be delayed until a Brexit deadline extension has been secured.
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Soaring temperatures and Brexit uncertainty led to a dire month for the UK high street in August, figures show. Store sales fell 0.1% off an already poor base of minus 2.7% a year earlier, according to the BDO High Street Sales Tracker. The final week of the month resulted in a calamitous fall in sales as record-setting temperatures kept customers away. The last week of August saw total in-store like-for-like sales plummet by minus 5.10% from an already negative base of minus 1.10% for the equivalent week last year. The result marks six months of negative like-for-like in-store sales this calendar year, as shoppers tighten their belts in the face of mounting Brexit uncertainty.
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German industrial production slumped again in July, data from Destatis showed, though the rate of decline slowed slightly. Industrial production in July fell 4.2% on a year before and slipped 0.6% on the previous month. This compares to June's 4.7% year-on-year fall and 1.2% monthly fall. The June figures were revised, positively, from 5.2% and 1.5% falls respectively previously reported.
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North Carolina braced for a "long night" of strong winds and driving rain as Hurricane Dorian closed in on the coast Thursday after devastating the northern Bahamas, where it left at least 30 people dead and thousands homeless. Authorities in the state of Florida – which was largely spared by the storm – blamed six more deaths on the hurricane, US media reported, though they occurred as the victims were preparing for the storm's arrival or were evacuation-related. US weather forecasters warned that some areas of the Carolina coast could see dangerous storm surge of up to seven feet and between six and 12 inches of rain.
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Robert Mugabe, former prime minister and president of Zimbabwe whose rule was mired in accusations of human rights abuses and corruption, has died aged 95. His 40-year leadership of the former British colony was marked with bloodshed, persecution of political opponents and vote-rigging on a large scale. Zimbabwe President Emmerson Mnangagwa confirmed the death, calling Mugabe a "pan-Africanist who dedicated his life to the emancipation and empowerment of his people".
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BROKER RATING CHANGES
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TRADERS: BOFA CUTS TAYLOR WIMPEY TO 'NEUTRAL' ('BUY')
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TRADERS: BOFA RAISES BARRATT DEVELOPMENTS TO 'BUY' ('NEUTRAL')
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HSBC RAISES DUNELM GROUP TO 'HOLD' ('REDUCE') - TARGET 800 PENCE
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RBC RAISES PENNON TO 'OUTPERFORM' ('SECTOR PERFORM') - TARGET 875 (825) PENCE
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COMPANIES - FTSE 100
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Housebuilder Berkeley Group said conditions in London and the south east of England have remained "robust" in the first four months of the company's current financial year. Berkeley Group said the conditions are consistent with its previous financial year. For the 12 months to April 30, the FTSE 100 company had posted a pretax profit of GBP775.2 million, down 21% year-on-year. The homebuilder noted pricing has remained "stable", with forward sales still above GBP1.8 billion. "There is good underlying demand for new homes built to a high quality that are well located and properly priced to meet the local housing need, supported by good availability of mortgages. The wider market remains constrained by high transaction costs and the uncertainty in the macro political and economic environment," Berkeley added.
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COMPANIES - FTSE 250
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Engineer Weir Group has won a GBP100 million contract to work on the Iron Bridge magnetite iron ore project in Western Australia's Pilbara region. The Iron Bridge project is a joint venture between Fortescue Metals Group Ltd and Formosa IB Pty Ltd. Weir, which provides engineering to the mining, infrastructure, and oil & gas industries, will be carrying out energy saving services at the mine. The aim is to reduce energy consumption and wet tailings waste by over 30% compared to traditional mining technologies, Weir said. Iron Bridge is scheduled to start producing in 2022, with an output of around 22 million wet tonnes of ore a year once fully operational. The overall investment in the project stands at USD2.6 billion.
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Emerging markets asset manager Ashmore said it delivered a "strong" financial 2019. At June 30, Ashmore's assets under management stood at USD91.8 billion, 24% higher than the USD73.9 billion seen at the same point last year. Ashmore delivered USD10.7 billion of net inflows in the period while its investment market performance added USD6.9 billion. Chief Executive Mark Coombs said: "Ashmore has delivered strong results for the year on the back of AuM growth and continued investment outperformance. The backdrop for Emerging Markets remains relatively healthy, with economic indicators such as GDP growth and inflation continuing to trend favourably. The main risks relate to the US and the impact that its confrontational trade policy and slowing domestic growth will have on the broader global economy." Ashmore's pretax profit increased 15% year on year to GBP219.9 million.
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Building material supplier SIG said it made "further progress" in the first half, despite a drop in revenue and like-for-like sales. SIG's pretax profit declined sharply in the six months to June 30 to GBP5.2 million from GBP19.6 million the year before. Underlying revenue slipped 5.1% to GBP1.26 billion from GBP1.38 billion. SIG said its like-for-like sales were down 3.8% in the first half. "The significant improvements in the business during the first half of 2019 have been made against a backdrop of challenging trading conditions in many of the group's end markets. There has been a marked deterioration in the level of construction activity in the UK as the year has progressed and a number of key indicators are pointing to further weakening of the macro-economic backdrop, notably in the UK and in Germany," said SIG Chief Executive Meinie Oldersma.
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Greene King said its like-for-like Pub Company sales reduced 1.8% in the first 18 weeks of the pub operators financial year, ended September 1. Greene King noted, however, sales are up 1.5% over the most recent seven-week period. Greene King blamed the tough comparators for the reduction, which included the World Cup and warm weather. Pub Partners like-for-like net income was down 4.2% in the first 16 weeks, with "softer" like for like beer sales. In Brewing & Brands, total beer volumes is down 6.5% in the 18 week period, with Greene King's own-brewed volumes down 7.9%. Greene King noted but provided no further details on the GBP4.6 billion takeover approach by Hong Kong-listed property developer CK Asset Holdings announced last month.
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International Public Partnerships said its investments continued to generate strong operational cash flows in the first half. At June 30, the infrastructure investor's NAV per share stood at 150.3p, 1.5% higher than the 148.1p reported at December 31. The investment company upped its interim dividend by 2.6% to 3.59p from 3.50p the year before. INPP Chief Executive Michael Gerrard said: "The global outlook for infrastructure investment remains positive as the demand for the type of private capital we provide grows. The quality and resilience of our portfolio, combined with the future investment opportunities we are well-positioned to pursue, provides me with full confidence in the company's future."
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COMPANIES - INTERNATIONAL
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WeWork has slashed its valuation target by more than half after setting an ambitious goal for the fast-growing office-sharing startup, sources familiar with the company told AFP. WeWork's parent, We Co, is eyeing a target market value of around USD20 billion for its stock offering expected this month after hearing doubts about its prospects from potential investors over a USD47 billion valuation, according to sources who asked to remain anonymous. The New York-based startup launched in 2010 and offers shared, flexible workspace arrangements, with operations in 111 cities in 29 countries.
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French magistrates investigating the 2009 crash of a flight from Rio de Janeiro to Paris in which 228 people died have ordered charges against Airbus and Air France be dropped, legal sources told AFP. Air France flight AF447 plunged into the Atlantic during a storm on June 1, 2009, after the plane's Pitot tubes – which enable pilots to monitor their speed – malfunctioned. The sources said the magistrates had ordered that manslaughter charges brought against both Airbus and Air France, part of Air France KLM, be dropped. Magistrates Nicolas Aubertin and Fabienne Bernard said they found that the accident resulted from a unique convergence of elements "which thus brought up evidence of previously unperceivable dangers". As such, they said they could not ascribe fault to the companies in what appeared to be a case of pilot error.
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Exxon Mobil will sell its Norwegian oil & gas assets for up to USD4 billion, Reuters reported on Thursday. Exxon said in June that it was looking to sell its portfolio in the Scandinavian country. Its portfolio includes a minority stake in 20 oil fields operated by Norwegian energy company Equinor and Royal Dutch Shell. Reuters said the company has engaged in talks with interested parties including Aker BP, Sweden-listed Lundin Petroleum and Var Energi.
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Deutsche Post announced an expansion into China via subsidiary StreetScooter. StreetScooter has signed a memorandum of understanding with China's Chery Holding Group to begin producing, sourcing, and developing "last-mile" electric light commercial vehicles. Deutsche Post is looking to invest up to EUR500 million into the partnership, with mass production starting in 2021. It aims to produce up to 100,000 electric vehicles a year in China.
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Friday's Shareholder Meetings
MySale Group (re share placing)
Berkeley Group
Greene King
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