Virgin Money Holdings Share News (VM.)

LONDON (Alliance News) - Stocks in London opened flat to marginally lower on Monday as investors digested China's retaliation in its trade spat with the US, while CYBG cinched its takeover of Virgin Money.The FTSE 100 index was up 3.64 points, at 7,637.55 early Monday. The mid-cap FTSE 250 index was down 0.1%, or 25.41 points at 7,637.55. The AIM All-Share index was flat at 7,101.62.The Cboe UK 100 was down 0.2% at 12,942.42, the Cboe UK 250 was down 0.1% at 19,199.25, and the Cboe UK Small Companies was down 0.1% at 12,939.51."Amid growing signs of escalating trade tensions between the US and China, market risk sentiment has started the week on a soft note," said analysts at Lloyds. China announced USD50 billion worth of tariffs on goods from the US on Saturday in retaliation to new US tariffs announced the day before.The list includes a 25% duty on 659 imported items including agricultural products, automobiles and aquatic products, according to a statement from the Ministry of Finance. It did not provide further details on the exact items.The tariffs on USD34 billion worth of goods come into effect on July 6, the same day as US tariffs on China, with the additional USD16 billion to be imposed later.The Chinese ministry of finance criticized the new US tariffs on USD50 billion worth of Chinese goods, announced by President Donald Trump on Friday, as a violation of the World Trade Organization rules.On Monday, the FTSE Russell index review changes come into effect. Online grocer Ocado Group and gambling firm GVC Holdings are promoted to the FTSE 100. Conversely, private hospital group Mediclinic International and outsourcer G4S are demoted from the large cap index.On the London Stock Exchange, Associated British Foods was the best performer at the open up 2.5% after RBC Capital raised the Primark clothing chain owner to Outperform from Sector Perform. At the other end of the large cap index, DS Smith was the worst performer at the open down 1.8% despite the packaging firm reporting strong rise in profit and revenue for 2018 financial year on the back of volume growth, higher sales prices and contribution from acquisitions The company, which has cut its total dividend payout, also said that volume growth momentum has continued into the new financial year and that it continues to deliver in line with its previously announced medium-term targets for volume growth, return on sales and operating cash flow.For the 12 months to April 30, the company recorded pretax profit of GBP292 million, up 21% from GBP264 million in the year ago period, on a revenue of GBP5.76 billion and GBP4.78 billion, respectively.Profit, before tax and exceptional items, grew 21% to GBP473 million from GBP391 million.DS Smith declared a final dividend of 9.8 pence per share, down from 10.6p paid a year ago. Total payout for the 2018 financial year stood at 14.7p, down from 15.2p paid a year ago.The company said the final dividend payment is in line with its progressive dividend policy, where dividend cover is between 2.0 and 2.5 times, through the cycle.Rolls-Royce Holdings was down 1.4% following a strong share price performance, when the stock gained 13% last week. Rolls-Royce on Friday laid out its medium-term financial targets in the wake of a restructuring drive. Rolls-Royce is targeting to exceed GBP1 per share of free cash flow generation and a cash flow return on invested capital of 15% in the medium term.In the FTSE 250, Virgin Money Holdings was up 1.5% at 360.50 pence after the midcap challenger bank agreed terms for an all-share offer by rival CYBG - valuing Virgin Money at GBP1.70 billion.Under the terms of the offer, Virgin Money shareholders will receive 1.2125 new CYBG shares in exchange for each Virgin Money share, valuing each Virgin Money share at 371 pence. This is above the 355p at which Virgin Money closed on Friday and 19% above its price of 312p on May 4, before CYBG's approach was first known.Virgin Money shareholders will own 38% of the combined lender. CYBG said Richard Branson's Virgin Holdings supports the offer with its 34.8% stake in Virgin Money.CYBG, which owns the Clydesdale & Yorkshire bank brands in the UK, said it has agreed with Virgin Enterprises an exclusive, perpetual licence for the CYBG group to use the Virgin Money brand. It will pay a royalty of GBP12 million to GBP15 million per year for the brand name rights.Following completion of the offer, CYBG Chairman Jim Pettigrew, Chief Executive David Duffy and Chief Financial Officer Ian Smith will lead the combined group, with Virgin Money CEO Jayne-Anne Gadhia acting as a consultant for the period after the takeover.CYBG shares were up 0.1%. In mainland Europe, the CAC 40 in Paris was down 0.3% while the DAX 30 in Frankfurt was down 0.4% early Monday.The euro was lower quoted at USD1.1567 against USD1.1623 at the European equities close Friday.In a light economic events calendar on Monday there are Italy trade data at 0900 BST and the US NAHB Housing Market Index at 1500 BST.Sterling was marginally lower quoted at USD1.3238 early Monday, against USD1.3294 at the London equities close on Friday.In early domestic economic news, the average asking price for a house in the UK was up 0.4% on month in June, property tracking website Rightmove said.That followed the 0.8% increase in May. On a yearly basis, house prices advanced 1.7%, accelerating from 1.1% in the previous month.In addition, British households' financial pressures intensified slightly in June, largely reflecting greater living costs, results of a survey by IHS Markit and market research company Ipsos Mori revealed.The seasonally adjusted Household Finance Index dropped to 43.4 in June from May's 25-month peak of 44.9. Any score below 50 suggests pessimism regarding finances among the UK households.The Japanese Nikkei 225 index ended down 0.8%. Financial markets in China and Hong Kong are closed for the Dragon Boat Festival.