WPP Share News (WPP)

LONDON (Alliance News) - Stocks in London ended higher on Wednesday as markets reacted positively to softer trade rhetoric from the US, while the pound gained as traders bet on UK Prime Minister Theresa May surviving a leadership challenge. US President Donald Trump expressed optimism about striking a trade deal with Chinese President Xi Jinping in an interview with Reuters on Tuesday.Trump noted trade talks between US and Chinese officials were underway by telephone and suggested more meetings are likely."We'll probably have another meeting. And maybe a meeting of the top people on both sides," Trump said. "If it's necessary, I'll have another meeting with President Xi, who I like a lot and get along with very well."The FTSE 100 index closed up 73.25 points, or 1.1%, at 6,880.19. The FTSE 250 ended up 325.15 points, or 1.8%, at 17,978.41, and the AIM All-Share closed up 2.13 points, or 0.2%, at 888.34.The Cboe UK 100 ended up 0.8% at 11,685.90, the Cboe UK 250 closed up 1.4% at 16,010.22, and the Cboe Small Companies ended up 0.2% at 11,010.64.In Paris the CAC 40 ended up 1.4%, while the DAX 30 in Frankfurt ended up 2.2%. "Even with the surge in sterling the FTSE 100, and other markets too, are continuing to rally, on hopes the trade war problem will ease. Not only that, but hope springs eternal where a 'Santa rally' is concerned, and historically the pre-Christmas bounce tends to get going from today," said IG chief market analyst Chris Beauchamp.On the London Stock Exchange, Rolls-Royce closed up 4.5% after the jet engine maker confirmed its annual guidance and said it expects a sharp increase in its engine production and delivery volumes in 2019. Rolls-Royce said it expects its operating profit for 2018 to be in the upper half of its GBP300 million to GBP500 million prior guidance. In 2017, operating profit was GBP321 million. WPP closed up 4.5% after Berenberg raised the advertising company to Hold from Sell saying its shares look inexpensive, with a decent dividend yield. WPP on Tuesday closed up 4.8% after it set out a new three-year plan to return to growth. The stock remains down 35% so far in a year in which its founder Martin Sorrell departed.At the other end of the large cap index, John Wood ended as the worst performer, down 10%, despite the oilfield services company saying it returned to growth in 2018, with its financial performance expected to be in line with views.The oilfield services firm expects proforma revenue up by more than 10% on 2017, to between USD10.9 billion and USD11.1 billion. A year ago, proforma revenue came in at USD9.88 billion.Full-year earnings before interest, taxes and amortisation is expected to be in the range of USD620 million and USD630 million. RBC Capital Markets noted the forecast fell slightly below its USD640 million prediction. In 2017 Ebita was USD598 million.Looking ahead, John Wood said its outlook remains favourable but cited volatility in oil and gas prices as a hindrance. J Sainsbury closed down 7.2% after the supermarket chain, alongside peer Asda, said it will lodge an application with the Competition Appeal Tribunal for a judicial review of the Competition & Markets Authority's phase two investigation into their merger. The two supermarkets will ask for a review of the timetable and process, reflecting both companies' view that there currently is not sufficient time to consider all the evidence given the "unprecedented scale and complexity" of the case. Specifically, Sainsbury's said they will ask the UK anti-monopoly regulator for an additional 11 working days over the Christmas period to be able to respond to a "large amount of material" recently provided to the supermarket. In the FTSE 250, Marshalls closed up 10% after the concrete block-paving manufacturer said it expects to "exceed" full-year expectations, after revenue growth has accelerated of it, while it also announced the acquisition of brick maker Edenhall Holdings. Marshalls explained the boosted expectations were driven by "better" second half revenue growth which has resulted in "strong" trading.Languishing at the other end of the midcap index, Superdry closed down 38% after the fashion retailer's underlying profit halved amid tough market conditions and internal challenges. For the six months ended October 27, reported pretax profit nearly tripled to GBP26.4 million from GBP9.1 million a year prior. This was as revenue rose 3.1% to GBP414.6 million from GBP402.0 million a year before. On an underlying basis - excluding exceptional costs - pretax profit halved to GBP12.9 million from GBP25.3 million a year before. Superdry said it expects underlying pretax profit in a range of GBP55 million to GBP70 million for the full-year. Peel Hunt was expecting the figure to come in at GBP85.8 million. For the firm's previous financial year, underlying pretax profit came in at GBP97.0 million. The company said "unseasonably warm weather" that hurt demand for cold-weather clothing earlier this year continued through November and into December. Compounding its woes, Peel Hunt cut the stock to Hold from Buy. In domestic political news, May brushed off calls for her resignation, as she vowed to fight an effort to oust her as UK Conservative Party leader and prime minister "with everything I've got".Sterling had fallen to a 20-month low of USD1.2477 in early trade as reports emerged May would face a vote of no-confidence after disgruntled Conservative MPs formally launched a move to oust her.The pound was higher quoted at USD1.2655 at the London equities close, compared to USD1.2517 at the close Tuesday, as Conservative party members publicly gave their backing to their embattled leader. "Currency markets were surprisingly buoyant in the wake of the no-confidence vote against PM Theresa May announced this morning, increasingly betting the Prime Minister may be able to withstand the political pressure from her party and remain the leader of her party," said City Index analyst Fiona Cincotta. May was buoyed by cheers from her own backbenches in a raucous House of Commons as she stood at the despatch box to defend her position at Prime Minister's Questions.Husband Philip showed his support by watching from the public gallery, while Tory elder statesman Kenneth Clarke told MPs a leadership contest within months of the March 29 date of Brexit would be "irresponsible and unhelpful".Foreign Secretary Jeremy Hunt said May is "the best person to make sure we actually leave the EU on March 29", while Home Secretary Sajid Javid said a leadership contest would be seen as "self-indulgent and wrong".The vote will take place between 1800 GMT and 2000 GMT on Wednesday, with the result announced soon afterwards. May needs to secure the votes of 158 MPs - half the parliamentary party plus one - to remain as Conservative leader, though a vote of 100 or more against her would be sure to raise questions about whether she can continue. "Given Theresa May would be safe as Conservative leader for a year, a victory today could give her some political clearance to seek a broader Brexit consensus across the House of Commons. In our view, that could ultimately boost the odds of either a softer Brexit or a second referendum, which seem like the options most likely to garner a majority across Parliament," said analysts at ING. Meanwhile, German Chancellor Angela Merkel said an EU summit on Thursday and Friday would not result in any amendments to May's Brexit deal.May is due to brief her EU counterparts on the latest Brexit developments at the start of the summit on Thursday. She has been on a whistle-stop tour of European capitals seeking assurances to help get the Brexit deal through parliament.EU officials have stressed the bloc will not renegotiate the withdrawal agreement, which details the terms of the UK's departure from the EU. However there is willingness to help May win over those opposed to the deal domestically, where she faces a leadership challenge by eurosceptic Conservative lawmakers.The euro was firm at USD1.1362 at the European equities close, against USD1.1317 late Tuesday, ahead of the European Central Bank's interest rate decision on Thursday. The ECB Governing Council meets on Thursday in Frankfurt, announcing its last policy decision of 2018 at 1245 GMT. This will be followed by a press conference with ECB President Mario Draghi at 1330 GMT.New on Thursday will be the latest round of economic growth projections - in December produced jointly by euro area national central banks and ECB staff members - forecasting out to 2021 for the first time. Notably, both growth and inflation are expected to be revised downwards owing to weakening macroeconomic data from the bloc and falling oil prices.Stocks in New York were higher at the London equities close, with the DJIA was up 1.5%, the S&P 500 index gaining 1.6% and the Nasdaq Composite up 2.0%.On the US economic front, the Labor Department released a report showing consumer prices came in flat in the month of November, with a sharp pullback in gasoline prices offsetting increases in other prices.The report said the annual rate of consume price growth slowed to 2.2% in November from 2.5% in October, while the annual rate of core consumer price growth inched up to 2.2% from 2.1%.While the annual rate of core price growth edged higher, Andrew Hunter, US economist at Capital Economics, said there was little to suggest that it will rise much further from here."The recent softening in core inflation won't prevent the Fed from raising interest rates again next week and, with real economic growth likely to remain above trend in the near term, we still expect two more 25 basis point rate hikes in the first half of next year," Hunter said.Brent oil was higher quoted at USD61.20 a barrel at the London equities close from USD60.71 late Tuesday, after the Energy Information Agency reported inventories fell by 1.2 million barrels compared to analysts' expectations for a decrease of 3 million barrels.Gold was quoted at USD1,246.07 an ounce at the London equities close against USD1,242.75 late Tuesday.The economic events calendar on Thursday has Germany inflation data at 0700 GMT and US import and export price index readings at 1330 GMT. The UK corporate calendar on Thursday has full year results from Anglo-German travel company TUI and half year results from sportswear retailer Sports Direct International. There are also trading statements from online grocer Ocado Group, distribution firm Bunzl, and outsourcer Serco.