LONDON MARKET MIDDAY: Stocks Slip Into Red Ahead Of ECB Decision

LONDON (Alliance News) - Stocks in London had slipped into the red by midday on Thursday, following early morning gains, as focus shifted from UK political instability to a finely balanced monetary policy decision by the European Central Bank.London's blue-chip index stumbled in spite of gains by the likes of TUI and Ocado, while Sports Direct International acted as a drag on the FTSE 250.The large-cap FTSE 100 index was down 7.49 points, or 0.1%, at 6,872.70 at midday. The mid-cap FTSE 250 was down 83.96 points, or 0.5%, at 17,905.01, and the AIM All-Share was up 0.1% at 890.11.The Cboe UK 100 was down 0.2% at 11,662.77, while the Cboe UK 250 was down 0.4% at 15,953.80. The Cboe UK Small Companies was up 0.1% at 11,018.16."European markets are failing to maintain the recent US-China centred gains, with Asian upside overnight failing to carry through into this morning's session...Today sees markets turn to the ECB for directional guidance, with Mario Draghi expected to announce the end of asset purchases," said IG market analyst Joshua Mahony.The European Central Bank announces its last monetary policy decision of 2018 at 1245 GMT, which will be followed by a press conference with ECB President Mario Draghi at 1330 GMT. The central bank is expected to nudge down its growth forecasts for 2018 and beyond, though the line guiding that interest rates will "remain at their present levels at least through the summer of 2019" is predicted by analysts to be left untouched. The euro was quoted at USD1.1375 at midday ahead of the ECB, up from USD1.1362 late Wednesday.In mainland Europe, the CAC 40 index in Paris and the DAX 30 in Frankfurt were flat and up 0.2% respectively at midday.In the US, stocks are pointed to a higher start with the Dow Jones Industrial Average called up 0.1%, the S&P 500 seen gaining 0.2% and the Nasdaq Composite set to rise 0.4%.Vicious feuding within the Conservative Party has continued despite UK Prime Minister Theresa May's victory in Wednesday's vote on her leadership and her call for politicians to "come together" in the national interest.Brexiteers led by Jacob Rees-Mogg repeated demands for the prime minister to quit as Tory leader, insisting the 200-117 vote showed she had lost the confidence of more than a third of her MPs and a majority of backbenchers. However, loyalists hit back, with one minister comparing members of the hardline European Research Group to ants surviving a nuclear holocaust.Following a dramatic 24 hours in Westminster, May is in Brussels on Thursday to address EU leaders at the two-day European Council to try and secure some tweaks to the Withdrawal Agreement so that it will be passed by Parliament.Remaining at the top of London's FTSE 100 throughout Thursday morning was travel firm TUI, up 5.3% as it posted a rise in underlying earnings for the full-year. Revenue for the financial year to September 30, excluding discontinued operations, grew 5.3% to EUR19.52 billion. Underlying earnings before interest, taxes and amortisation grew 4.1% to EUR1.15 billion. At constant currency, underlying Ebita rose 11% to EUR1.22 billion, just ahead of guidance.The holiday operator proposed a dividend of EUR0.72, up from EUR0.65 last year. In the 2019 financial year, TUI said it expects to deliver underlying earnings growth of at least 10% in a "challenging market environment".Ocado rose 2.0% after the online grocer reported continued growth in its fourth quarter with the online grocer seeing retail revenue up 12% on the previous year and confidently looking to the future. For the 13 weeks to December 2, Ocado's revenue jumped to GBP390.7 million from GBP328.9 million a year ago as weekly order numbers increased 13% to 320,000 from 283,000 though the average customer spent slightly less than a year earlier at GBP104.92 per order from GBP105.94.Ocado's robotic warehouses in Andover, Hampshire, and Erith, southeast London, continued to perform well in the quarter, the company added, with the latter, which opened this past summer, processing over 30,000 orders per week. Bunzl was up 1.3% as the distribution firm said revenue for 2018 is expected to increase by up to 9% at constant exchange rates due to organic growth of around 4% and a similar effect from acquisitions, net of disposals. In addition, Bunzl said it has acquired Denmark-based foodservice distributor CM Supply, which supplies foodservice disposables and packaging to customers in the hotel, restaurant and catering sector. CM Supply is forecast to make revenue of GBP4 million for 2018.G4S shares rose 9.1% to make them the best performers in the FTSE 250 as it started reviewing its options for the separation of its Cash Solutions business from the rest of the outsourcing group. Currently G4S has two business segments: Secure Solutions, which provides security services, and Cash Solutions, which provides cash management and payment services.G4S said it believes that a separation of the latter division would "enhance the focus and success of both businesses". The review of options is expected to be completed in 2019, with an update to come with the group's full year results in March.Not far behind was fellow outsourcer Serco, with shares up 8.8%, as the firm said it expects a double-digit increase in trading profit for 2018, and profit to rise in line with consensus expectations for 2019.Underlying trading profit for 2018 is expected to rise by 30% to 40% to the range of GBP90 million to GBP95 million, from GBP69.8 million the year before, and above the GBP80 million Serco had guided for at the start of the year.For 2019, Serco expects trading profit to be in the range of GBP95 million to GBP100 million, in line with market consensus, as a decline in the Middle East is offset by better performances elsewhere. Sports Direct International fell 10%, the worst performer in the FTSE 250, as the sporting goods retailer warned its acquisition of struggling department chain House of Fraser will dent its earnings for the full year.The FTSE 250 constituent said turning House of Fraser around will present "significant challenges", which will see its adjusted earnings before interest, taxes, depreciation and amortisation coming in "behind last year's results". Excluding House of Fraser, the firm guided for adjusted Ebitda growth between 5% and 15% by year end.The warning on House of Fraser came amid Sport Direct's interim results. In the six months to October 28, Sports Direct's pretax profit rose 62% to GBP74.4 million from GBP45.8 million a year prior, on the back of lower investment and finance costs.Investment costs fell to GBP4.8 million from GBP32.7 million last year, and finance costs were reduced to GBP19.3 million from GBP40.9 million. On an adjusted basis, however, excluding exceptional gains, costs and investments, the retailer's pretax profit dropped 27% to GBP64.4 million from GBP88.0 million. Revenue increased 4.5% to GBP1.79 billion from GBP1.71 billion, with House of Fraser contributing GBP70.1 million. Laith Khalaf, senior analyst at Hargreaves Lansdown, commented: "The core business of Sports Direct is holding up pretty well in challenging conditions for the high street, but House of Fraser has proved to be a fly in the ointment. That's only to be expected given the collapse of the department store, because turnarounds don't happen overnight."