WPP Share News (WPP)

LONDON (Alliance News) - The FTSE 100 opened tentatively higher on Tuesday as the dollar appreciated against the pound with DS Smith among the blue-chip risers, ahead of UK construction PMI data at 0930 BST. The FTSE 100 index was up 0.1%, or 8.16 points, at 7,512.76. The mid-cap FTSE 250 index was up 0.3% or 56.57 points, at 20,752.42. The AIM All-Share index was up 0.2%, or 2.26 points, at 1,109.50.The Cboe UK 100 was up 0.1% at 12,728.59, the Cboe UK 250 was up 0.2% at 18,787.23, and the Cboe UK Small Companies was flat at 12,266.49."The dollar is stronger this morning due to its status as a safe-haven currency, with corresponding pound weakness helping FTSE maintain its break-even posture," said Michael van Dulken, head of research at Accendo Markets.On the London Stock Exchange, DS Smith was up 2.0% after the paper and packaging company said it has continued to be "excited at its prospects", with good like-for-like volume growth in its financial year to date, across all regions.For the period since May 1, the start of the company's financial year, trading remained in line with management expectations, as the recovery of cost input increases remained steady, leading to a positive margin impact.In addition, North American Paper & Packaging division Interstate Resources performed strongly during the period. Additional capacity has been added through the acquisition of Corrugated Container Corp in June, with customers in Europe and the US looking to partner with DS Smith, it said.Lloyds Banking Group was up 1.1% after Berenberg raised the high street bank to Hold from Sell. At the other end of the large cap index, WPP was the worst performer, down 3.7% after it turned in a mixed half year performance, as the advertising company began life post founder Martin Sorrell."As chief executive, my focus will be on invigorating our company and returning the business to stronger, sustainable growth. Our review of strategy is underway, addressing our structure, our underperforming operations, particularly in the US, and how we position the company for the future. We will provide an update by the year end," said Chief Executive Mark Read, who was appointed Monday. For the half year ended June 30, reported revenue was down 2.1% at GBP7.49 billion compared to GBP7.65 billion last year; however on a constant currency basis revenue rose 2.9%. Headline pretax profit, meaning from normal business only, was down 7.4% to GBP735 million from GBP793 million the year prior and down 2.5% in constant currency. Net sales were up 0.7% in the second quarter, which is the first quarter of growth since the first quarter of 2017. This follows a 0.1% decline in the first quarter of the year, WPP said. However, reported headline earnings before interest, taxes, depreciation and amortisation, a key profit metric, was down 6.7% at GBP948.0 million compared to GBP1.02 billion the year before. On a constant currency basis the measure was down 1.9%. "There are concerns for the group, some of which have been inherited. The company is a sprawling mass of different businesses, although there has been a disposal or divestment of 15 of these so far, which should both focus the company and take some pressure away from a net debt figure which remains stubbornly high," said Interactive Investor analyst Richard Hunter. On the FTSE 250, Alfa Financial Software Holdings was the worst performer, down 16% after the asset finance industry focused software company said delays in some major contracts, a smaller number of completed projects. Moreover, the negative impact from a weakening in the dollar all led to a sharp fall in first half earnings and revenue.For the six months to June-end, Alfa Financial recorded pretax profit of GBP8.6 million, down from GBP14.0 million in the comparative year ago period, on a revenue of GBP32.9 million and GB45.1 million, respectively.Meanwhile, UK inflation report hearings start at 1315 BST before the Treasury Select Committee, following the central bank's interest rate hike last month. Bank of England Governor Mark Carney, Chief Economist Andy Haldane and Monetary Policy Committee member Silvana Tenreyro are all set to speak.The hearing take place amid media reports that the UK Treasury is in talks with Carney about staying on until 2020. The Canadian is due to leave in June 2019, ending six years as head of the UK's central bank, and an advert seeking a replacement had been expected to be posted by the end of September.However, the BBC reported on Monday that the UK government department is in talks with Carney over him staying at the helm until 2020.Carney announced in late 2016 that he would stay in his role until the end of June 2019, opting against a full eight-year term. But that would mean he will be in the hot seat for just three months after the UK formally leaves the EU in March, leaving a newcomer to navigate the aftermath of the divorce.The governor will be urged to come clean about his future when he appears in front of the powerful Treasury Select Committee on Tuesday."Carney will probably be questioned about rumours that he has been asked to stay on as BoE head for another year following his scheduled departure date in mid-2019. The bank's representatives may also be grilled on the Brexit assumptions in their forecasts and possibly about their likely policy reaction to alternative scenarios," said analysts at Lloyds. The pound was marginally lower quoted at USD1.2842 compared to USD1.2883 at the London equities close Monday, ahead of the UK construction PMI reading.The UK PMI reading for August is expected to come in at 55.0, down from the 55.8 score in July.In domestic economic news, UK retail sales continued to slow in August as consumers felt the pinch, despite warm weather fuelled-grocery spending and back-to-school purchases.Figures from the British Retail Consortium-KPMG sales monitor showed retail sales increased by 0.2% on a like-for-like basis compared to the same month in 2017. This compares to like-for-like growth of 0.5% in July, when buoyant spending on food and drink delivered a fillip to a beleaguered sector.Total sales growth also slowed, to 1.3% in August from 1.6% in July.In the economic calendar on Tuesday is the eurozone producer price index at 1000 BST, while there are Markit and ISM manufacturing PMIs from the US at 1445 BST and 1500 BST, respectively.In mainland Europe, the CAC 40 in Paris was flat while the DAX 30 in Frankfurt was up 0.1% early Tuesday.The euro was down quoted at USD1.1579, from USD1.1623 at the European equities close Monday.Financial markets in the US resume trading following the Labor Day holiday on Monday.The Japanese Nikkei 225 index closed down 0.1%. In China, the Shanghai Composite closed up 1.1%, while the Hang Seng index in Hong Kong is up 0.9%.