(Alliance News) - Stock prices in London were set to open higher on Friday, as PMI figures will be front and centre, after the World Health Organisation said it is too early to declare Chinese virus and a global public health emergency.
In early UK company news, UK Competition & Markets Authority has opened an investigation of Takeaway.com's all-share combination with UK peer Just Eat. In addition, pub chain Marston's cheered investors with improved performance in recent months.
The economic events calendar on Friday has purchasing managers' index readings from France, Germany, the eurozone, UK and US at 0815 GMT, 0830 GMT, 0900 GMT, 0930 GMT and 1445 GMT, respectively.
Meanwhile, the World Economic Forum in Davos, Switzerland, concludes on Friday.
IG says futures indicate the FTSE 100 index will open 52.53 points higher, or 0.7%, at 7,560.20 on Friday. The blue-chip index closed down 64.25 points, or 0.9%, at 7,507.67 on Thursday.
The CMA said Friday it is considering whether the acquisition by Takeaway.com of Just Eat will result in a "substantial" lessening of competition within any market for goods or services.
Earlier in January, Takeaway.com said its all-share tie-up with FTSE 100-listed Just Eat became unconditional, having won a bidding war with Johannesburg- and Amsterdam-listed internet investor Prosus.
An 800 pence per share cash offer from Prosus - which was spun off from media and internet giant Naspers in 2018 - was not enough to overcome the all-share merger proposal from the Dutch takeaway platform.
Takeaway.com's offer of 916p per Just Eat share became unconditional after receiving the backing of just over 80% of Just Eat shareholders.
On Thursday, Takeaway.com said it believes that a merger investigation is warranted. It also said that, together with its advisers, it will work with the UK monopoly regulator to respond to any questions it may have and is confident that merger clearance will be obtained.
Medical equipment manufacturing company Smith & Nephew on Friday said it has purchased California-based Tusker Medical, citing a strategy to invest in innovative technologies that address unmet clinical needs.
Tusker Medical is a developer of an in-office solution for tympanostomy tubes, which enables placement of ear tubes without general anaesthesia for patients six months and older.
The transaction was financed from existing cash and debt facilities, S&N said. The commercial terms have not been disclosed.
Marston's, a brewer and pub and hotel operator, said it has delivered a "creditable" performance the 16 week period to January 18 despite a "challenging" market.
Managed and franchise like-for-like sales growth at its pubs increased 1.0% during the period, Marston's said, driven by drinks sales. Food sales, meanwhile, were weak, the company noted.
Trading of pubs over the Christmas fortnight was strong, with like-for-like sales growth of 4.5%.
Turning to Marston's beer operations, the company said volumes during the period were slightly behind last year, reflecting weaker lager sales. Excluding lager, volumes were in line with last year.
"Our balanced pub portfolio enables us to perform well in the context of current market dynamics and our market-leading Beer Company has continued to increase market share in both the on and the off trade in the period," said Marston's Chief Executive Ralph Findlay.
Virgin Money UK said Chair Jim Pettigrew plans to retire by September 2021 as part of the board succession plan and good corporate governance practice.
Pettigrew has served nine years on the board of the banking and financial services provider.
Virgin Money UK said it has initiated a search process to allow time to identify his successor and enable an orderly handover.
Sterling was quoted at USD1.3131 early Friday, firm on USD1.3107 at the London equities close on Thursday.
"Shares in Europe look set for a strong start to trading on Friday morning. The World Health Organisation not designating the Wuhan coronavirus an international emergency has taken the fear gauge down a few notches," said London Capital Markets Analyst Jasper Lawler.
The World Health Organisation has said it is "too early" to declare an international public health emergency over the coronavirus outbreak as six people are tested for the illness in the UK.
The Scottish government has confirmed five people are being examined after presenting with symptoms of the illness.
Another patient is being tested to rule out coronavirus at Belfast's Royal Victoria Hospital, it is understood.
While none of the UK cases has been confirmed as the virus so far, two of those being tested in Scotland had been diagnosed with influenza after travelling to Wuhan, China.
Meanwhile, China on Friday confirmed a second death outside the epicentre of a SARS-like virus outbreak, raising the overall toll to 26 dead.
In Asia on Friday, the Nikkei 225 index in Tokyo closed up 0.1%. The Shanghai market was closed ahead of the Lunar New Year holiday. Hong Kong remained open, with the Hang Seng index up 0.2%.
Japan's consumer prices rose 0.7% year-on-year in December, the fastest rate of increase in seven months, the government said on Friday.
The figure however was still far off the 2% inflation target set by the Bank of Japan in April 2013 when it introduced aggressive monetary easing measures to combat deflation and reboot the economy.
The core consumer price index, which excludes fresh food, stood at 102.2 against a base of 100 for 2015, according to the Ministry of Internal Affairs and Communications.
The inflation rate for 2019 grew 0.6% from the previous year for the third straight year of increase, the ministry said.
Against the yen, the dollar was quoted at JPY109.54, up from JPY109.39.
In the US on Thursday, Wall Street ended mixed, with the Dow Jones Industrial Average down 0.1%, the S&P 500 index up 0.1% and the Nasdaq Composite up 0.2%.
Elsewhere in forex, the euro was trading at USD1.1049 early Friday, firm versus USD1.1036 late Thursday.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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