UDG.L Share News (UDG)

LONDON (Alliance News) - Stocks continued to take their cue from the latest trade war headlines, on Tuesday racking up some gains after US President Donald Trump showed signs of leniency towards Chinese tech giant Huawei.The FTSE 100 was up 51.86 points, or 0.7%, at 7,362.74 midday. The index had closed down 0.5% on Monday.The mid-cap FTSE 250 was up 134.83 points, or 0.7%, at 19,470.42 on Tuesday. The AIM All-Share was up 0.2% at 959.03.The Cboe UK 100 index was up 0.8% at 12,488.94. The Cboe UK 250 was up 0.7% at 17,491.55, though the Cboe UK Small Companies was up 0.2% at 11,859.88.In European equities, the CAC 40 in Paris and the DAX 30 in Frankfurt were up 0.5% and 1.0% respectively. "President Trump's decision to grant US companies doing business with Huawei a three-months reprieve has been taken by stock markets as a positive signal, boosting Asian markets as well," said Fiona Cincotta, senior market analyst at City Index. Last week, US President Donald Trump signed an executive order effectively banning the Chinese firm from using US technology without government permission.However, the US Commerce Department late Monday announced a grace period of 90 days on the new policy. The US will continue to allow the Chinese technology major to purchase US goods in order to maintain existing networks and provide software updates to existing Huawei handsets.Huawei will not be allowed to buy American parts and components to manufacture new products without license approvals.This delay should allow US firms enough time to handle the fallout for US users of Huawei phones and rural networks, said Cincotta.She added: "The move demonstrates the difficulties the US is facing in trying to use retaliatory measures against China as part of their trade talks given that any such move has implications for US businesses and can actually undermine the raison d'etre of the trade dispute, which is to support US Inc."In the US on Tuesday, stocks are pointed to an upbeat session, with the Dow Jones and S&P 500 both seen up 0.4% while the Nasdaq is called 0.7% higher. Also reflecting on US-China relations, the Organization for Economic Co-operation & Development warned that global growth is set to remain "subpar" if trade tensions persist. The world outlook remains weak and there are many downside risks which "cast a dark shadow"."Governments can and must act together to restore growth that will be sustainable and benefit all," OECD Chief Economist Laurence Boone urged.The global economy is set to expand 3.2% in 2019, slowing from 3.5% in 2018. In 2020, this is set to improve slightly to 3.4%. In March, the Paris-based think tank had expected the world economy to advance 3.3% this year and 3.4% the next. The OECD forecasts UK GDP to slow to 1.2% in 2019, from 1.4% in 2018. In 2020, the economy is set to expand by just 1.0%.The think tank warned that Brexit-related uncertainty will continue to constrain investment until there is clarity over the UK's future trading relationship with the EU.This comes as UK Prime Minister Theresa May meets her Cabinet on Tuesday to attempt to secure support for a "bold offer" to members of Parliament across the Commons to finally win backing for her Brexit deal.In a sign of the divisions within the party, Chancellor Philip Hammond will use a major speech on Tuesday night to deliver a rebuke to would-be leaders considering a no-deal Brexit.The prime minister's efforts to get her Brexit deal through hinge on a package of measures contained in the Withdrawal Agreement, which is due to be considered by MPs in early June. Despite the collapse of cross-party talks with Labour, the Bill contains a series of commitments on workers' rights and environmental protections designed to appeal to opposition MPs.Defeat for the bill will accelerate May's departure from Downing Street, with the prime minister due to set out the timetable for the contest to replace her after the vote.The pound was quoted at USD1.2693 at midday, down from USD1.2731 late Monday and trading around its worst levels since early January. In London at midday, Galliford Try was boosted 12% after unveiling restructuring plans for its construction unit. At the beginning of April, the company launched a review of its Construction business with plans to simplify its structure and refocus on key markets.The business will concentrate on its core strengths in Building, Water and Highways, Galliford explained, resulting in a reduction of up to 350 staff members across the UK. This will generate savings of up to GBP15 million from 2021, moving the unit closer to a goal of operating margins of 2% by that year. In the current year, financial 2019, Construction's profitability will be hurt by the review, with a write down of GBP40 million in respect of restructuring costs and legacy and current projects. Furthermore, the restructured business's target annual revenue will reduce to GBP1.3 billion, the company said. UDG Healthcare gained 7.5% after raising its annual guidance and making two purchases. Revenue for UDG's first half to March 31 was USD656.6 million, a drop of 2.8% from USD675.3 million year-on-year, while pretax profit was USD30.3 million versus just USD1.7 million a year before. Adjusted diluted earnings per share growth was 5.1% to 21.21 cents from 20.19 cents.The company also announced two acquisitions, Putnam Associates and Incisive Health, for up to just over USD100 million.Reflecting these acquisitions and trading being in line with expectations, the firm raised its full-year guidance for adjusted EPS growth on a constant currency basis to between 5% and 7%.Electrocomponents rose 4.7% as it posted a solid rise in annual profit.For the financial year that ended in March, pretax profit widened 16% to GBP195.2 million from the GBP168.6 million the year prior. This was after revenue rose 9.9% to GBP1.88 billion from GBP1.71 billion the year before, up 8.5% on a like-for-like basis. Electrocomponents added that like-for-like revenue growth has "seen a moderation" during the first seven weeks of its new financial year.Meanwhile, Entertainment One slipped 8.0% as annual profit dropped on one-off charges. For the financial year ended March, pretax profit plummeted 43% to GBP36.8 million from GBP64.9 million the year prior. This was after revenue fell 8.6% to GBP941.2 million from GBP1.03 billion the year before. Profit was held back by a rise in one-off charges to GBP68.0 million from GBP7.1 million the year prior, primarily related to impairments of its Home Entertainment unit. Adjusted pretax profit - excluding exceptional costs - widened 20% to GBP155.9 million from GBP130.2 million the year prior. WH Smith dipped 1.2% as it reported a strong set of third quarter results but said Chief Executive Stephen Clarke will step down at the end of October.Carl Cowling, managing director of the company's High Street business, will take over the role of CEO from November 1, a promotion which WH Smith said was "part of its long-term succession planning". Meanwhile, WH Smith reported a 15% sales increase, up 1% on a like-for-like basis, across the business in the 11-week period from March 1 to May 18. WH Smith's Travel division saw sales up 26%, or 3% on a like-for-like basis. Majestic Wine was up 4.0% after it confirmed that a number of parties are interested in its retail business.In late March, the company said it will be restructuring and renaming itself under its Naked Wines brand, which it bought in 2015 for GBP70 million. On Monday, Sky News said private equity firm OpCapita was one of a number of parties interested in buying Majestic Wine's store network, for at least GBP100 million.