(Alliance News) - M&A activity among London listings remained active on Friday, with Amerisur Resources, Eddie Stobart and Carpetright all agreeing to takeover offers.
However, there was more bad news for the UK primary market, as digital media firm DNEG postponed its planned IPO.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: up 0.5% at 7,328.92
----------
Hang Seng: flat at 26,327.77
Nikkei 225: closed up 0.7% at 23,303.32
DJIA: closed down 1.63 points at 27,781.96
S&P 500: closed up 0.1% at 3,096.63
----------
GBP: firm at USD1.2878 (USD1.2855)
EUR: firm at USD1.1017 (USD1.1000)
Gold: down at USD1,463.93 per ounce (USD1,465.47)
Oil (Brent): down at USD62.42 a barrel (USD62.95)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Friday's Key Economic Events still to come
EU ECOFIN budget meeting of EU finance ministers
1100 GMT Ireland goods exports and imports
1000 CET France IEA Oil Market Report
1100 CET EU foreign trade
1100 CET EU harmonised consumer price index
0830 EST US advance monthly sales for retail & food services
0830 EST US Empire State Manufacturing Survey
0830 EST US weekly export sales
0830 EST US import & export price indices
0915 EST US industrial production & capacity utilization
1000 EST US manufacturing & trade: inventories & sales
----------
The European Commission launched legal action against Britain on Thursday for breaching its EU obligations, after London said that it would not nominate an EU commissioner ahead of a snap general election next month. London's decision, announced in a letter late Wednesday, cast doubt on commission president-elect Ursula von der Leyen's plans to take up office on December 1. Delays in approving her top team had already pushed back the initial November start date. The commission should be composed of one top official from each EU member state. Nonetheless, von der Leyen's team announced Thursday that she planned to stick to the December schedule. "The aim of president-elect von der Leyen remains to have the new college take office on December 1," a spokesman said, adding: "We are currently assessing carefully the next steps." London now has until next Friday, November 22, to respond to the EU infringement procedure, the commission said. Under the process, the EU's executive can refer Britain to the European Court of Justice.
----------
The US economy is a global standout at the moment, showing none of the signs of trouble that have preceded other recessions, at least not yet, Federal Reserve chief Jerome Powell said Thursday. On a day when Germany and China each reported growth in the latest quarter of just 0.1%, Powell said, "the US economy is the star economy these days" with growth of about two percent. And "there is no reason to think that cannot continue," he told the House Budget Committee, quickly adding that he was worried about "jinxing" the outlook. In the final day of back-to-back appearances before Congress, Powell noted that while US manufacturing is in recession – partly due to lingering trade tensions – the consumer remains strong.
----------
Top US White House adviser Larry Kudlow said that the long-awaited mini trade deal with China was on track as part of a wider pact. "The deal is not complete but we've made enormous progress," he told reporters, adding that the talks were "coming down to the short strokes". His comments follow a week of unease about the much-vaunted talks, after US President Donald Trump dismissed Chinese claims of a plan to roll back tariffs as the negotiations progress, while reports said Beijing was uneasy about some aspects of the developing deal. And on Thursday, China's commerce ministry had said the US lifting of tariffs was a "condition" to reaching the preliminary deal – suggesting it was not imminent.
----------
Protesters who have barricaded themselves in a Hong Kong university partially cleared a road they were blocking and demanded the government commit to holding local elections on November 24. One lane of the Tolo Highway was cleared in both directions on Friday morning, but the road remained closed after workers sent to clean up shattered glass and other remaining debris were threatened by protesters with bows and arrows and hard objects, authorities said. The protesters at the Chinese University of Hong Kong said the road would be blocked again and warned of other unspecified consequences if the government didn't meet their demand within 24 hours.
----------
The BRICS group of emerging nations - Brazil, Russia, India, China and South Africa - reiterated their support for multilateralism and free trade, but slammed protectionism. In a joint declaration at the close of a two-day summit in Brasilia, the BRICS countries underscored "the fundamental importance of a rules-based, transparent, nondiscriminatory, open, free and inclusive international trade."
----------
BROKER RATING CHANGES
----------
BARCLAYS RAISES WHITBREAD TO 'OVERWEIGHT' ('EQUAL WEIGHT') - PRICE TARGET 4900 (4350) PENCE
----------
DEUTSCHE BANK RAISES EXPERIAN TO 'HOLD' ('SELL') - TARGET 2200 (2000) PENCE
----------
HSBC INITIATES M&G WITH 'BUY' - TARGET 295 PENCE
----------
GOLDMAN CUTS BERKELEY GROUP TO 'SELL' ('NEUTRAL') - TARGET 3860 (3953) PENCE
----------
COMPANIES - FTSE 100
----------
Pharmaceutical firm AstraZeneca has received European Commission approval for a type-2 diabetes treatment, it said. The EC has given the thumbs up to Qtrilmet, which is made up of metformin hydrochloride, saxagliptin, and dapagliflozin. Qtrilmet is a tablet taken once a day to improve glycaemic control in adults with the condition. The approval is based on data from five phase three trials, AstraZeneca said, which delivered positive efficacy and safety results. Qtrilmet received approval from regulators in the US in May this year.
----------
Anglo-Australian miner Rio Tinto said it will take part in and underwrite a fundraise by investee Energy Resources of Australia. ERA, which is listed in Sydney, is looking to clean up and close the Ranger uranium project area in the Northern Territory of Australia. Rio Tinto owns a 68% stake in ERA. ERA has been looking to raise AUD476 million, or USD323.4 million, to go towards the plan, but the firm has been unable to secure third-party underwriting support, so Rio Tinto will step in to "ensure ERA has the funds it needs". Darwin-based ERA said in a statement Rio Tinto will be taking up its 68% entitlement "in full", meaning about a USD221 million investment.
----------
COMPANIES - FTSE 250
----------
TalkTalk Telecom reported a 0.9% drop in revenue for the half-year to September, to GBP764 million. Pretax profit was GBP4 million excluding an accounting change, and GBP1 million including the new accounting standard, from a GBP4 million pretax loss a year before. TalkTalk said the fall in revenue was in part due to a decline from Carrier operations. Fibre net adds rose 52% to 292,000, including a record 174,000 new customers in the second quarter. TalkTalk, which held annual earnings guidance, said it was "pleased" with profit performance. It has kept the interim dividend flat at 1.0 pence per share.
----------
Publisher Future reported a 70% rise in revenue for the year to September to GBP221.5 million in what it described as a "transformational" year. Organic growth was 11%, with the rest provided by a number of acquisitions. Future described the results as "outstanding". Future's pretax profit approximately trebled to GBP12.7 million, with the adjusted figure also roughly trebling to GBP50.3 million. Future, which did not pay an interim dividend, has proposed a 1p per share payout for the year. It restarted dividend payments this time last year after a five-year hiatus, returning 0.5p.
----------
COMPANIES - OTHER MAIN MARKET AND AIM
----------
Oil firm Amerisur Resources has agreed a GBP242 million takeover by GeoPark, a Latin American oil and gas firm which has assets in Colombia, where Amerisur is focused, as well as several other countries in the region. GeoPark is paying 19.21 pence per Amerisur share, a 59% premium to Amerisur's closing price in mid-July when an offer period began of 12.1p. It is a 6.7% premium to Amerisur's price at the close in London on Thursday of 18.00p.
----------
Eddie Stobart Logistics confirmed it has agreed a deal with DBAY Advisors, whose fund will take a 51% stake in the holding company which owns the logistics firm's operating assets, injecting GBP55 million of new funding at the same time. Eddie Stobart is continuing with preparing results for the six months to May 2019, though it cannot say when they will be published. New adjustments means earnings before interest and tax will be a net loss of at least GBP12 million, and a full year Ebit profit will be no more than GBP2 million.
----------
Carpetright has agreed takeover deal by Meditor Holdings, which already owns just under 30% of the company. Meditor is paying 5p per Carpetright share it does not own, which values the struggling carpet retailer at GBP15.2 million. The company said the deal is "the only viable route" to make Carpetright a sustainable entity going forward.
----------
Construction firm Kier, which was demoted from the FTSE 250 back in June, said it is trading in line with expectations, and it is on track with cost savings, including cutting headcount by 1,200 by June next year. It has been awarded GBP1 billion of new work since June this year, it added. Chief Operating Officer Claudio Veritiero is leaving with immediate effect, Kier said. It is looking for his replacement, alongside an existing search for a new chair.
----------
Digital visual effects, animation, and stereo conversion company DNEG has postponed its initial public offering, it said, due to "ongoing market uncertainty". It had been targeting raising over GBP100 million, with a market capitalisation of around GBP666 million.
----------
Friday's Shareholder Meetings
Kier Group
----------
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.
Berkeley Group (BKG)
Experian (EXPN)
Whitbread (WTB)
M&G (MNG)