Last checked at 
(Alliance News) - DIY retailer Kingfisher said Wednesday trading in the three months to October was "disappointing", with sales falling 3.7% to GBP2.96 billion.
Like-for-like revenue slipped 3.7%. Kingfisher said this "reflects continuing disruption from new range implementations, lower promotional activity and ongoing operational challenges in France, and softer market conditions in our main markets".
Kingfisher expects the UK market to remain subdued, and in France the firm continues to believe its Castorama stores will underperform the wider market.
The stock was down 7.4% in early trading Wednesday.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: down 0.6% at 26,887.36
----------
Hang Seng: down 0.8% at 26,887.36
Nikkei 225: closed down 0.6% at 23,148.57
DJIA: closed down 102.20 points, 0.4%, at 27,934.02
S&P 500: closed down 0.1% at 3,120.18
----------
GBP: down at USD1.2912 (USD1.2929)
EUR: soft at USD1.1066 (USD1.1080)
Gold: up at USD1,477.61 per ounce (USD1,473.28)
Oil (Brent): down at USD60.64 a barrel (USD61.16)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Wednesday's Key Economic Events still to come
0700 EST US MBA weekly mortgage applications survey
1030 EST US EIA weekly petroleum status report
----------
UK consumers are predicted to spend a record amount on Black Friday despite intensifying political uncertainty in the country, figures suggest. Shoppers are forecast to spend GBP2.53 billion on November 29, 3.4% more than last year, and GBP8.57 billion over the four days including Cyber Monday, according to a report by the Centre for Retail Research for VoucherCodes.co.uk. Spending in the UK is predicted to be the highest in Europe – 29% higher than second-highest Germany and more than Italy, Spain, Belgium and the Netherlands combined.
----------
The Chinese central bank cut its benchmark interest rates as expected on Wednesday to drive down lending costs amid slowing growth, Reuters reported. The People's Bank of China lowered the interest rate for its one-year loan prime rate to 4.15% from 4.20% previously. The five-year LPR was trimmed to 4.80% from 4.85% prior. The fresh cuts to interest rates follows a series of other lending rate reductions recently which are targeted to push banks to lend more to small and medium-sized business.
----------
Dozens of protesters were still barricaded inside a Hong Kong university at the centre of a stand-off between protesters and authorities on Wednesday. Around 800 people had left peacefully and cooperated with police as of 2300 HKST on Tuesday, including 300 minors, the Hong Kong government said in a statement. A group of 20 volunteer first-aiders left at around 2200 HKST. They were followed by around 10 "masked rioters" who tried to escape from the main entrance and were intercepted by police around 2300 HKST, the statement added. The South China Morning Post, a Hong Kong daily newspaper, estimated there were still around 60 to 100 protesters on campus.
----------
Beijing condemned the US Senate's passing of legislation that supports protesters in Hong Kong, a move that came at a sensitive juncture in trade talks between Washington and Beijing. Chinese Foreign Ministry spokesman Geng Shuang blasted the legislation, known as the Hong Kong Human Rights and Democracy Act, as "blatant" interference in China's internal affairs, at a time when protests in Hong Kong are becoming increasingly violent. Although the bill has now been passed by the lower chamber - the House of Representatives - and the upper chamber - the Senate - it is unclear whether US President Donald Trump will sign the bill into law. China will take "strong countermeasures" if the proposal becomes law, Geng said.
----------
Japan said its imports and exports fell sharply in October on the year prior, as trade with Asia and the US fell significantly. Data from the Japanese Ministry of Finance showed exports fell 9.2% to JPY6.577 trillion, about USD60.59 billion, from JPY7.243 trillion a year prior. Imports fell 15% to JPY6.560 trillion from JPY7.700 trillion the year before. The trade balance, however, swung to a JPY17.27 billion surplus in October from a JPY456.26 billion deficit a year prior.
----------
Italy's controversial budgetary plans will be among those in the spotlight as the European Commission gives its verdict on eurozone countries' draft budgets for 2020 on Wednesday. EU commissioners Valdis Dombrovskis and Pierre Moscovici will give their assessment of the 19 eurozone countries' draft budgets at an event in Brussels. Twelve months ago, Italy was in trouble with the EU for budget plans lambasted by Brussels as an "unprecedented" deviation from eurozone budget rules. At the time, Rome's dominant political figure was far-right deputy premier and interior minister Matteo Salvini, a man who relished picking fights with the EU establishment. Salvini is no longer in office, and Italy has a new, pro-EU government. But its budget plans for next year have been widely interpreted as being in continuity with those of previous governments.
----------
Two White House officials who listened in on Trump's July 25 phone call with the Ukrainian president said on Tuesday they considered Trump's comments during the call "unusual" and "improper". Trump's phone call with President Volodymyr Zelensky is central to an impeachment probe, which Democrats launched in September after a whistleblower reported details of the call. The whistleblower, whose identity continues to be protected, described the call as an apparent attempt to make military aid to Ukraine conditional on whether the country would launch an investigation into Trump's political rival Joe Biden and his son.
----------
BROKER RATING CHANGES
----------
GOLDMAN STARTS IAG WITH 'BUY' - PRICE TARGET 665 PENCE
----------
GOLDMAN STARTS EASYJET WITH 'SELL' - PRICE TARGET 1240 PENCE
----------
BARCLAYS RAISES EASYJET TO 'EQUAL WEIGHT' (UNDERWEIGHT) - PRICE TARGET 1250 (1100) PENCE
----------
GOLDMAN STARTS RYANAIR WITH 'BUY' - PRICE TARGET 17 EUR
----------
BERENBERG RAISES VESUVIUS TO 'BUY' ('HOLD') - TARGET 485 (520) PENCE
----------
COMPANIES - FTSE 100
----------
Sage Group reported "strong growth in high-quality" recurring revenue, with the figure up 11% organically to GBP1.56 billion. Total organic revenue rose 5.6% to GBP1.82 billion, with the reported figure up 4.9% to GBP1.94 billion. Sage's pretax profit slipped 9.3% to GBP361 million, and the underlying figure declined by 11% to GBP425 million. The company's annual dividend has risen 2.5% to 16.91 pence per share, and it has decided to return an extra GBP250 million to shareholders following the sale of Sage Pay, announced on Monday. The firm said profit was hit by increased investment as well as a rise in variable staff pay following "strong business performance". Sage's outlook is "optimistic", and it sees recurring revenue growth in its new financial year of 8% to 9%.
----------
United Utilities reported a 25% decline in pretax profit for the six months to September to GBP158.6 million, with the underlying figure rising 0.7% to GBP198.2 million. The utility's revenue for the half was up 2.1% to GBP935.5 million, and it has increased the interim return by 3.2% to 14.20p. The company said the profit fall was due to a rise in finance expenses by GBP99 million, which included fair value movements.
----------
Aviva has simplified into five divisions, the insurer said, and it is targeting GBP300 million of net savings by 2022. Operating profit for 2019 is "broadly in line" with expectations, and it will be investing GBP1.3 billion over the next three years. "Consistent with the operating trends reported in our 2019 interim results, we have seen continued progress in Canada and stronger sales in bulk purchase annuities, offset by weaker results in Aviva Investors and UK personal lines insurance," said Aviva.
----------
COMPANIES - FTSE 250
----------
Mitchells & Butlers reported like-for-like sales growth in the year to September 28, with total revenue rising 4.2% to GBP2.24 billion. Pretax profit increased on an adjusted basis by 11%, with the reported figure rising by 36% to GBP177 million. The pub owner, which has not paid a dividend, said it was a year of "strong trading with market outperformance and profit growth".
----------
Defence contractor Babcock International posted a pretax profit for the half to September of GBP152.5 million, more than double the GBP65.1 million a year before. Underlying, it fell 18% to GBP202.5 million. Babcock's revenue was 2.7% lower at GBP2.19 billion. The recent results were stated under accounting rule IFRS 16, which relates to the treatment of leases. Babcock has boosted the interim payout by 1.4% to 7.2p. Babcock, which said its combined order book and pipeline is at its highest ever level, said results met expectations and it has kept the annual outlook unchanged.
----------
SSP Group, which operates food and drink outlets in travel locations, reported 1.9% annual like-for-like sales growth, with both air and rail delivering growth. Revenue was up 9.0% to GBP2.79 billion. SSP's reported pretax profit climbed 7.8% to GBP197.2 million, and the underlying figure was 10% higher at GBP203.2 million. The firm is paying a final dividend of 6.0p per share, taking the year's total to 11.8p, 16% higher than the year before. SSP has also announced a GBP100 million share buyback. It said it was a "strong" annual performance, and trading in its new financial year is so far meeting expectations.
----------
Aston Martin Lagonda Global Holdings has unveiled its first sports utility vehicle in its 106-year history. The British luxury car maker hopes the GBP158,000 DBX will boost its flagging sales. Other specialist automotive firms such as Porsche and Lamborghini have previously enjoyed success by launching SUVs. The DBX will be built at Aston Martin's newly built factory in St Athan, South Wales.
----------
COMPANIES - INTERNATIONAL
----------
BB&T and SunTrust got final approval on Tuesday for their plan to join forces, creating a US regional banking giant in the industry's largest merger since the 2008 financial crisis. The US Federal Reserve and Federal Deposit Insurance Corp both gave a green light allowing the midsize banks to join forces, creating the sixth largest US commercial bank. The new entity – Trust Financial Corp – will have combined assets of over USD450 billion and deposits of over USD330 billion, the Federal Reserve said. The banks, which operate in the southeastern US, announced the union in February, and said they plan to conclude the deal December 6 and the conversion will take two years.
----------
Wednesday's Shareholder Meetings
Origin Enterprises
Rainbow Rare Earths
----------
By Tom Waite; thomaslwaite@alliancenews.com
London Briefing is available to subscribers as an email newsletter. Contact info@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
