VEC.L Share News (VEC)

LONDON (Alliance News) - Stock prices in London are seen opening higher on Monday after US President Donald Trump suspended his plans for tariffs on Mexico, while hopes of lower US interest rates also lifted investor sentiment.In early UK company news, Ferguson will launch a USD500 million share buyback programme. Vectura's chief executive stepped down. MJ Gleeson's CEO also departed amid a row over remuneration. IG futures indicate the FTSE 100 index is to open 35.46 points higher at 7,367.40. The blue chip index closed up 72.09 points, or 1.0%, at 7,331.94 on Friday.On Friday, Trump said he would not impose the 5% tariff on Mexican imports as he had threatened, saying a deal had been reached on stemming flows of migrants from Central America.As part of the immigration deal, asylum seekers will be returned to Mexico to await their hearings in US courts. Mexico also has pledged to beef up security on its own southern border.Ferguson reported earnings growth in the third quarter of its current financial year and said that it will deliver annual results in line with market expectations.In addition, the FTSE 100 firm said it has surplus cash beyond its immediate re-investment needs. Therefore, it proposed to buy back USD500 million of shares over the next 12 months.In the past six years, Ferguson has returned USD3.5 billion of surplus cash to shareholders, it noted.The plumbing and heating products distributor reported revenue for the three months to the end of April of USD5.27 billion, up 6.2% from USD4.97 billion reported for the same period a year prior. On an organic basis, revenue climbed by 2.3%. Woodford Patient Capital Trust said it was pleased with the operational progress of its portfolio companies, noting last week's tumultuous events surrounding portfolio manager Woodford Investment Management.Last week, fund manager Neil Woodford's investment management company suspended dealings in its flagship Woodford Equity Income fund after a run of poor performance and rising redemptions. Woodford Patient Capital Trust maintained that it continues to have the potential to deliver attractive returns, in line with the long-term mandate of the company. Further, the operational performance of these businesses "is not impacted by recent events". Chair Susan Searle commented: "The board is closely monitoring the situation and is engaging with its shareholders and advisers. Separately, the board is in regular dialogue with the portfolio manager. The board wishes to emphasise the long-term approach of the company and will continue to keep shareholders updated as necessary."Vectura Group said Chief Executive James Ward-Lilley is to step down from his role and the board of the pharmaceutical company on June 30, without giving a reason. He had been CEO for four years.The company said Chief Financial Officer Paul Fry will assume the role of interim CEO in addition to his current duties as CFO. The search for Ward-Lilley's successor is underway. MJ Gleeson said Jolyon Harrison has stepped down as CEO of the housing regeneration firm with immediate effect over "remuneration and succession planning" matters. The company said it was unable to find acceptable basis for Harrison to continue as CEO. MJ Gleeson said it appointed James Thomson as interim CEO with immediate effect and also re-affirmed guidance to deliver annual results in line with expectations.Aviation services provider John Menzies confirmed a new long-term ground handling contract at London Luton airport from budget airline easyJet.John Menzies will handle 24,000 aircraft turns per annum at Luton for easyJet. "This contract is one of the largest single ground handling contracts in the UK and I am delighted to have secured it. This together with other recent contract gains demonstrates that our renewed focus on our UK business is starting to pay dividends, and I look forward to more progress throughout 2019," said John Menzies CEO Giles Wilson. The Japanese Nikkei 225 closed up 1.2% on Monday. In China, the Shanghai Composite is up 0.7%, while the Hang Seng index in Hong Kong is up 2.1%. Financial markets in China and Hong Kong reopened after being closed for the Dragon Boat Festival on Friday.Japan's economy grew at an annual rate of 2.2% in the January-to-March period, marking the second straight quarter of expansion, despite sluggish consumer spending, a government report showed.The reading was in line with the 2.2% growth forecast by analysts surveyed by the Nikkei Business Daily, and slightly revised up from an initial estimate of 2.1%, the Cabinet Office said.Meanwhile, China's exports rebounded in May, while imports dropped amid a protracted trade war with the US, official data showed.Exports rose 1.1% year-on-year, while imports fell 8.5%, the customs administration said. The trade surplus last month came in at USD41.65 billion, above analysts' expectations.China-US trade continued to fall significantly in May, with Chinese exports to the US dropping 8.4% and imports plunging 30%. Trade negotiations between the two countries have stalled, with Washington threatening to impose fresh tariffs on Chinese goods.In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average up 1.0%, S&P 500 up 1.1% and Nasdaq Composite up 1.7%.US stocks rose sharply on Friday as weak jobs data added to expectations that the Federal Reserve may cut US interest rates as soon as July.The pound was quoted at USD1.2704 early Monday, lower than USD1.2760 late Friday.UK retail footfall shrunk in May, hitting the lowest level on record in over six years, with declines experienced in every region and category, the latest BRC/Springboard Retail Footfall Monitor showed Monday.Figures covering the four weeks to May 25, showed a 3.5% drop in total retail footfall on the year before. In the same period a year before, footfall had slipped by just 0.4% on an annual basis.On a three-month basis, footfall decreased 0.7% on a year before, with the six and twelve-month averages both down 1.3% and 1.4% respectively.In the economic events calendar on Monday, there are UK industrial and manufacturing production data at 0930 BST.