Vodafone Share News (VOD)

(Alliance News) - Stocks in London are set to open lower on Friday, extending the previous session's losses as traders look ahead to a second quarter GDP reading from the US for confirmation the Federal Reserve will cut interest rates next week.In early UK company news, telecommunications firm Vodafone reported improving organic service revenue trends, Pearson backed its guidance and Rightmove reported a rise in interim profit.IG says futures indicate the FTSE 100 index of large-caps to open 7.65 points lower at 7,496.70 on Friday. The FTSE 100 index closed down 12.41, or 0.7%, at 7,489.05 on Thursday.In the US on Thursday, Wall Street ended in the red, with the Dow Jones Industrial Average ending down 0.5%, the S&P 500 down 0.5% and Nasdaq Composite closing 1.0% lower."European and US markets sank rather sharply yesterday, inhibited by mixed messaging from the European Central Bank about further stimulus, and the prospect that next weeks Fed meeting may not be as dovish as expected. This uncertainty has elicited a similar response from markets in Asia where the Bank of Japan also has a similar decision to make next week about easing policy further," said Michael Hewson at CMC Markets.In Asia on Friday, the Japanese Nikkei 225 index close down 0.5%. In China, the Shanghai Composite is up 0.2%, while the Hang Seng index in Hong Kong is down 0.5%."Today's first iteration of US Q2 GDP number could well introduce further doubt into market expectations of what sort of messaging that we might get from the Federal Reserve next week," said Hewson.US second quarter gross domestic product data are due at 1330 BST alongside personal consumption expenditure figures. "Early estimates are for a number between 1% and 2%, with recent revisions suggesting something nearer to 2%. Any number above 2% would inevitably raises questions as to why it's even necessary to consider a rate cut, but given weaknesses elsewhere in the global economy, it would still be a big surprise were the Fed not to go next week," said Hewson.According to the CME's FedWatch tool, a rate cut next week is 79% priced in by markets.In Europe on Friday, German import price index data are released at 0700 BST with French consumer confidence figures at 0745 BST. In early UK company news, Vodafone reported improving organic service revenue trends.Vodafone said first quarter organic service revenue fell 0.2%, which the company pointed out was an improvement on the 0.7% fall seen in the fourth quarter. Revenue was down 2.3% to EUR10.65 billion, with Europe down 2.1% and Rest of the World down 4.0%.Trading in the first three months of the financial year was in line with expectations, allowing the company to back previous guidance."Our service revenue growth improved during the first quarter, led by Italy, and mobile churn fell to another record low. Following a significant quarter of commercial activity, we expect the gradual recovery in our service revenues to continue, underpinning our financial outlook for the year," said Chief Executive Nick Read.The telecoms company also said that it will separate its European tower infrastructure business into a new company and seek either stock listing, or disposal of minority stake, in the tower business, depending upon market conditions. Proceeds will be applied toward reducing Vodafone's debts.Educational publisher Pearson reported underlying sales growth in the first half of the year and backed its annual guidance. Underlying revenue was up 2% for the six months to June 30, with North American up 1%, Core up 6% and Growth up 2%.Revenue was GBP1.83 billion for the half, down slightly from GBP1.87 billion a year ago. Pretax profit dropped sharply to GBP13 million from GBP202 million, largely because the company saw a net gain of GBP207 million in the first half of 2018, and only GBP6 million in the first six months of 2019.Continued momentum in "structural growth opportunities" and stabilisation in other parts of the business more than offsets expected declines in US Higher Education Courseware and US Student Assessment.Pearson raised its interim dividend to 6p from 5.5p.Pearson said its annual guidance remains unchanged, expecting an adjusted operating profit of between GBP590 million to GBP640 million.Rightmove said revenue rose in the first half of the year, as it separately agreed to buy Van Mildert.Revenue was up 10% in the first half to GBP143.9 million, with average revenue per advertiser growing more strongly than anticipated, up GBP90 on the same period a year ago to GBP1,077.Pretax profit improved to GBP108.1 million from GBP98.1 million a year ago. Meanwhile, housing transactions fell 4.6% year-on-year. "A 4.6% drop in transactions compared to 2018 has put pressure on some low-stock agency branches and created opportunity for others. We're focused on helping all our customers succeed by delivering the most significant and effective exposure for their properties and brands to compete to win home sale instructions and also by being the largest source of high quality leads," said Chief Executive Peter Brooks-Johnson.Separately, Rightmove said it has agreed to buy tenant referencing services firm Van Mildert for GBP16 million. Future deferred consideration is capped at GBP4 million.Released after the New York close in the US, Google parent Alphabet reported "strong" quarterly growth and unveiled buyback plans.Alphabet shares closed down 0.3% at USD1,135.94 on Thursday, but the stock was trading up 7.8% in after-hours trade.Revenue for the three months to June 30 was up 19% year-on-year to USD38.94 billion, with net income more than tripling to USD9.95 billion from USD3.20 billion.Alphabet said the board has decided to repurchase up to USD25.0 billion worth of its Class C stock.