LONDON (Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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Rolls-Royce Holdings said it has won a USD500 million to provide its Trent 100 engines and after-care support for six Boeing 787-8 Dreamliner aircraft that Ethiopian Airlines has ordered. The British aircraft engine maker said the decision marks a "significant vote of confidence in the Trent 1000", Ethiopian having previously selected engines from another provider to power 13 Boeing 787 Dreamliner aircraft.
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Old Mutual priced the sale of a further stake in OM Asset Management, the boutique asset manager it spun off in a float on the New York Stock Exchange in the autumn of 2014, at USD17.50 a share. Old Mutual said the underwritten public offering of 13.3 million shares will close on June 22. It had announced the planned share sale on Monday.
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Media Buying giant WPP said that its GroupM operating company has bought New Zealand-based media agency Chemistry Media. It didn't provide any financial details about the transaction. Chemistry Media is a media planning and buying agency with operations in Auckland and Wellington. Key clients include Bank of New Zealand, Fonterra, Nestlé, and Restaurant Brands, WPP said.
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Berkeley Group Holdings joined UK housebuilding peers in reporting higher profit and revenue for its last financial year as its average selling prices rose strongly and it booked gains on land and asset sales, and it said the clear UK election result had underpinned its outlook. The company reported a pretax profit of GBP539.7 million for the year to April 30, up from GBP380.0 million a year before, as revenue grew to GBP2.12 billion, from GBP1.62 billion. Berkeley said it sold 3,355 new homes across London and the South of England, down from 3,742 a year before, but the average selling price rose strongly to GBP575,000 from GBP423,000.
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Evraz said it will spend about USD215 million in development capital expenditure in 2015 and about USD335 million in maintenance capital expenditure, as it predicted strong growth in production of large diameter gas pipeline in North America this year. The steel, mining and vanadium company is holding an investor day in London Wednesday, and said it will provide updates on key programmes and projects, as well as its near-term strategic goals.
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JD Sports Fashion said it has made a strong start in the first 19 weeks of its new financial year, ahead of its annual general meeting. The sports retailer said sales are growing in Europe, but warned that the weak euro will hit its margins in stores outside of the UK. "Whilst we are now trading against challenging comparatives for the remainder of the year, the board remains confident that current earnings expectations for the group for the year ended January 31, 2016 should be met," the company said in a statement.
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Betfair Group reported growth in pretax profit in its recently-ended financial year as a rise in customer numbers led to double-digit sales growth in all three of its divisions. The gaming company reported a pretax profit of GBP101.2 million in the year to April 30 from GBP61.1 million the year before, as revenue rose 21% to GBP476.5 million from GBP393.6 million. Betfair will pay a dividend of 34.0p, a 70% increase on the 20.0p paid the prior year.
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Software provider Anite and Keysight Technologies released a joint statement saying the two companies have reached an agreement for Anite to be acquired by a Dutch subsidiary of Keysight. The companies said the directors of Anite and two of its substantial shareholders have recommended the deal be approved by Anite shareholders. The GBP388 million recommended cash offer by Keysight Technologies Netherlands is for 126.0 pence per Anite share, representing a 22% premium to the closing price of Anite shares on Tuesday of 103.00p. The stock is up 24% at 127.80p midday Wednesday.
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MARKETS
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UK shares are mixed mid-morning, but the pound rose after UK unemployment data remained at record lows while the increase in average earnings was the strongest in four years in the three months to April.
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FTSE 100: down 0.3% at 6,689.12
FTSE 250: down 0.2% at 17,694.48
AIM ALL-SHARE: flat at 767.64
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The pound hit its highest level in a month of USD1.5748 against the dollar.
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GBP: up at USD1.5745
EUR: up at USD1.2740
GOLD: down at USD1178.88 per ounce
OIL (Brent): up at USD64.79 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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UK unemployment held steady at its lowest level in nearly seven years during the three months to April, while pay growth was the strongest in four years, exceeding economists' forecast, figures from the Office for National Statistics showed. The ILO jobless rate for the February to April period was 5.5%, which was down from 5.7% logged for the three months to January. It was also lower than the 6.6% recorded in the same period last year. Average earnings including bonuses grew 2.7% year-on-year during the three months to April. Economists had forecast 2.1% growth. The latest increase was the highest since June to August 2011, when pay grew 2.7%.
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Bank of England policymakers unanimously voted to maintain its key interest rate and quantitative easing at the meeting held early this month, the minutes showed. The Monetary Policy Committee voted 9-0 to retain its key rate at a record low 0.50% and asset purchase programme at GBP 375 billion.
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The British Chambers of Commerce expects annual UK inflation to remain around zero over the next three or four months and weak in the near term, before rising gradually towards to end of the year. The BCC expects inflation to still be slightly below the 2% target by the end of next year. This suggested that the Bank of England would not consider interest rate hike until the mid of 2016 at the earliest.
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A failure by Greek leaders and the country's creditors to reach a bailout deal would lead to the country's exit from the euro area, the Greek central bank said. In a statement regarding its report on monetary policy for 2014-15, the Bank of Greece says: "The conclusion of a new agreement with our partners is of the utmost importance to fend off the immediate risks to the economy."
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Eurozone consumer prices increased for the first time in six months in May, final data published by Eurostat showed. Consumer prices rose 0.3% year-on-year in May after being flat in April. The annual rate came in line with the flash estimate published on June 2. This was the first annual increase since last November and also the fastest since October 2014, when prices rose 0.4%.
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Hong Kong looks unlikely to adopt controversial voting reforms that triggered the biggest unrest in years in the Chinese territory, as pro-democracy legislators vowed to vote against them in a debate Wednesday. If the limited reforms pass, "there won't be incentive and pressure to amend the system" any further, warned legislator Alan Leong, member of an alliance of political parties against the legislation.
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The US House of Representatives voted to grant itself more time to find a way to pass legislation that would support President Barack Obama's beleaguered trade agenda. Lawmakers now have until July 30 to vote again on the trade measures, which failed in the House on Friday in a rebuff of Obama by his own Democrats. At issue is the so-called fast track trade authority that would clear the way for completion of trade deals under negotiation with Pacific Rim countries and the EU.
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NATO chief Jens Stoltenberg criticized Russia for its decision to add at least 40 new intercontinental ballistic missiles to its nuclear arsenal this year - a move that Moscow has blamed on the military alliance. "This nuclear sabre-rattling of Russia is unjustified, it's destabilizing, and it's dangerous," Stoltenberg said in Brussels.
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Plans to tackle a migration surge that has challenged Europe for months hit a hurdle, as EU interior ministers clashed over plans to redistribute asylum seekers. "There remain diverging opinions," Latvian Interior Minister Rihards Kozlovskis acknowledged after chairing talks in Luxembourg with his 27 EU counterparts. Latvia currently holds the bloc's presidency. The leaders are due to meet next week at a summit in Brussels.
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President Mahmoud Abbas has initiated the process of dissolving the one-year-old Palestinian government of national unity, officials confirmed. Abbas' unity government was agreed to by the president's Fatah movement, based in the West Bank, and Hamas, the Islamist movement in de facto control of the Gaza Strip, shortly after peace talks with Israel collapsed last year.
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Swiss banks have reported suspicious activity in the accounts of world football governing body FIFA, Switzerland's attorney general said. Federal prosecutor Michael Lauber said at a press conference in Zurich that banks had reported 53 possible cases of money laundering and his office was also analysing a "huge amount" (nine terabytes) of seized data. Switzerland are currently investigating how FIFA came to award the World Cups of 2018 and 2022 to Russia and Qatar respectively.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun
Copyright 2015 Alliance News Limited. All Rights Reserved.
UK dividends calendar - next 7 days
Friday 31 May | |
abrdn Property Income Trust Ltd | dividend payment date |
Albion Development VCT PLC | dividend payment date |
Alternative Income REIT PLC | dividend payment date |
Arbuthnot Banking Group PLC | dividend payment date |
Balanced Commercial Property Trust Ltd | dividend payment date |
Bankers Investment Trust PLC | dividend payment date |
Bellevue Healthcare Trust PLC | dividend payment date |
City of London Investment Trust PLC | dividend payment date |
CQS New City High Yield Fund Ltd | dividend payment date |
Custodian Property Income REIT PLC | special dividend payment date |
CVC Income & Growth Ltd EURO | dividend payment date |
CVC Income & Growth Ltd GBP | dividend payment date |
Derwent London PLC | dividend payment date |
Diverse Income Trust PLC | dividend payment date |
Dunedin Income Growth Investment Trust PLC | dividend payment date |
Ecofin Global Utilities & Infrastructure Trust PLC | dividend payment date |
EJF Investments Ltd | dividend payment date |
Elementis PLC | dividend payment date |
Global Opportunities Trust PLC | dividend payment date |
Greencoat UK Wind PLC | dividend payment date |
Henderson Far East Income Ltd | dividend payment date |
Henderson International Income Trust PLC | dividend payment date |
Henry Boot PLC | dividend payment date |
Ibstock PLC | dividend payment date |
IWG PLC | dividend payment date |
JPMorgan American Investment Trust PLC | dividend payment date |
JPMorgan Global Core Real Assets Ltd | dividend payment date |
Kier Group PLC | dividend payment date |
Marwyn Value Investors Ltd | dividend payment date |
Mobeus Income & Growth VCT PLC | dividend payment date |
NB Global Monthly Income Fund Ltd | dividend payment date |
Octopus Renewables Infrastructure Trust PLC | dividend payment date |
Picton Property Income Ltd | dividend payment date |
Portmeirion Group PLC | dividend payment date |
PPHE Hotel Group Ltd | dividend payment date |
PRS REIT PLC | dividend payment date |
Reach PLC | dividend payment date |
Robert Walters PLC | dividend payment date |
Senior PLC | dividend payment date |
Shaftesbury Capital PLC | dividend payment date |
Sherborne Investors (Guernsey) C Ltd | dividend payment date |
STV Group PLC | dividend payment date |
Target Healthcare REIT PLC | dividend payment date |
Taylor Maritime Investments Ltd | dividend payment date |
TwentyFour Select Monthly Income Fund Ltd | dividend payment date |
Vesuvius PLC | dividend payment date |
Weir Group PLC | dividend payment date |
Monday 3 June | |
4imprint Group PLC | dividend payment date |
Ascential PLC | special dividend payment date |
Ashtead Technology Holdings PLC | dividend payment date |
BAE Systems PLC | dividend payment date |
J Smart & Co (Contractors) PLC | dividend payment date |
JPMorgan China Growth & Income PLC | dividend payment date |
JPMorgan Claverhouse Investment Trust PLC | dividend payment date |
Vector Capital PLC | dividend payment date |
Zotefoams PLC | dividend payment date |
Tuesday 4 June | |
GCP Asset Backed Income Fund Ltd | dividend payment date |
GCP Infrastructure Investments Ltd | dividend payment date |
Spectra Systems Corp | ex-dividend payment date |
Wednesday 5 June | |
Carr's Group PLC | dividend payment date |
Ecora Resources PLC | dividend payment date |
Epwin Group PLC | dividend payment date |
Genuit Group PLC | dividend payment date |
Glencore PLC | dividend payment date |
Porvair PLC | dividend payment date |
Sabre Insurance Group PLC | special dividend payment date |
Thursday 6 June | |
Aberforth Split Level Income Trust | ex-dividend payment date |
Abrdn European Logistics Income PLC | ex-dividend payment date |
AJ Bell PLC | ex-dividend payment date |
Albion Technology & General VCT PLC | ex-dividend payment date |
Arbuthnot Banking Group PLC | ex-dividend payment date |
Assura PLC | ex-dividend payment date |
Balanced Commercial Property Trust Ltd | ex-dividend payment date |
Billington Holdings PLC | ex-dividend payment date |
BlackRock Sustainable American Income Trust PLC | ex-dividend payment date |
Bodycote PLC | dividend payment date |
Capital Gearing Trust PLC | ex-dividend payment date |
Computacenter PLC | ex-dividend payment date |
Downing Strategic Micro-Cap Investment Trust PLC | ex-dividend payment date |
Edinburgh Investment Trust PLC | ex-dividend payment date |
Energean PLC | ex-dividend payment date |
Equals Group PLC | ex-dividend payment date |
FDM Group Holdings PLC | ex-dividend payment date |
Gemfields Group Ltd | ex-dividend payment date |
Good Energy Group PLC | ex-dividend payment date |
Helios Underwriting PLC | ex-dividend payment date |
Henderson European Focus Trust PLC | ex-dividend payment date |
Informa PLC | ex-dividend payment date |
Integrafin Holdings PLC | ex-dividend payment date |
J Sainsbury PLC | ex-dividend payment date |
Jersey Electricity PLC | ex-dividend payment date |
JLEN Environmental Assets Group Ltd | ex-dividend payment date |
Johnson Matthey PLC | ex-dividend payment date |
Judges Scientific PLC | ex-dividend payment date |
Learning Technologies Group PLC | ex-dividend payment date |
Legal & General Group PLC | dividend payment date |
Marshalls PLC | ex-dividend payment date |
Menhaden Resource Efficiency PLC | ex-dividend payment date |
Michelmersh Brick Holdings PLC | ex-dividend payment date |
Microlise Group PLC | ex-dividend payment date |
National Grid PLC | ex-dividend payment date |
National World PLC | ex-dividend payment date |
Pets At Home Group PLC | ex-dividend payment date |
Renew Holdings PLC | ex-dividend payment date |
Restore PLC | ex-dividend payment date |
Riverstone Credit Opportunities Income PLC | ex-dividend payment date |
Robinson PLC | ex-dividend payment date |
RTC Group PLC | ex-dividend payment date |
Smiths News PLC | ex-dividend payment date |
STS Global Income & Growth Trust PLC | ex-dividend payment date |
Topps Tiles PLC | ex-dividend payment date |
Utilico Emerging Markets Trust PLC | ex-dividend payment date |
VH Global Sustainable Energy Opportunities PLC | ex-dividend payment date |
Vodafone Group PLC | ex-dividend payment date |
Wickes Group PLC | dividend payment date |
WPP PLC | ex-dividend payment date |
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