TOP NEWS: Standard Chartered Profit Slips As It Confirms US Probe

LONDON (Alliance News) - The following is a summary of top news stories Wednesday.
----------
COMPANIES
----------
Standard Chartered PLC reported a small slip in half-year pretax profit, with the decline limited thanks to the non-repeat of a USD1.0 billion goodwill impairment charge for its Korea business, though its operating performance was hit by a weaker performance in its financial markets division. In a statement, the emerging markets-focused bank said it made a USD3.25 billion pretax profit in the six months ended June 30, compared with USD3.33 billion in the corresponding period last year. Standard Chartered also confirmed that "certain issues" have been identified with its post-transaction surveillance system, which is part of its anti-money laundering systems and controls and is separate from its sanctions screening systems. It said it is in discussions with the New York Department of Financial Services and the independent monitor over the issues.
----------
Barclays PLC said it will continue receiving legal advice and will work to evaluate the potential financial impact of the decision made by the US Court of Appeals for the Second Circuit on Tuesday regarding Lehman Brothers Holdings Inc. The court ruled the bank will be entitled to around USD6 billion in disputed assets as part of its acquisition of Lehman's brokerage unit at the height of the financial crisis in 2008. The decision will be a setback for Lehman creditors, who have been working to recoup money. The dispute centres on how to dispose of 'cash' assets held by the brokerage, which was acquired by Barclays following Lehman's collapse into bankruptcy in September 2008. This includes around USD4 billion in margin assets held by third-parties and USD1.9 billion in clearance box assets used to process securities trades.
----------
BHP Billiton PLC's iron ore exports could be set to slow, after tug boat engineers at Australia's biggest iron ore port announced plans on to stop work for four hours on August 9, 11 and 13 over a pay dispute. The strike by the Australian Institute of Marine and Power Engineers at Port Hedland continues a dispute with Teekay Shipping, a part of Teekay Corp, which moves a quarter of the world's seaborne iron ore and more than half of Australia's iron exports. However, BHP said that it will take steps to stop the industrial action as it believes the union missed a deadline to file notice of a work stoppage.
----------
Legal & General Group PLC reported a 7.1% rise in pretax profit, driven in the main by the performances of its retirement and private equity arms. Legal & General increased its interim dividend to 2.90 pence from 2.40p. In a statement, the FTSE 100 life pensions and investment company reported a GBP636.0 million pretax profit in the six months ended June 30, compared with GBP594.0 million in the corresponding period last year.
----------
Low-cost airlines easyJet PLC and Ryanair Holdings PLC reported rises in traffic and load factors for July. easyJet said it flew 6.4 million passengers during the month, up 7.7% on the 6.0 million passengers flown in July last year. Load factor - the measure of how full its seats were - also rose during the month, up 1.3% to 92.9% from 91.6% in 2013. Ryanair said its traffic in July rose 4% to 9.15 million passengers from the 8.84 million flown in July last year, while load factor was 3% higher at 91% from 88% in July 2013.
----------
Water industry regulator Ofwat wrote to United Utilities Group PLC, Bristol Water and Thames Water Utilities Ltd to inform the companies their re-submitted plans on individual price controls still contain "very material differences" against its assessment on efficient wholesale costs. The watchdog said its concerns centre on United Utilities' wholesale wastewater price control, the future planned expenditures on the wholesale water price control plans at Bristol Water, and the proposed separate price control for Thames Water's Thames Tideway Tunnel project.
----------
The Sage Group PLC said that it has appointed Stephen Kelly as group chief executive officer, succeeding Guy Berruyer, with effect from November 5. Kelly has served as chief operating officer for the UK government, responsible to the minister for the Cabinet Office since 2012. In the role he was responsible for Efficiency & Reform, as well as encouraging the government's agenda for small and medium-sized organisations. Before this he held roles at at NASDAQ-listed Chordiant Software Inc and London Stock Exchange-listed Micro Focus International PLC.
----------
SABMiller PLC said it has plans to appoint Jan du Plessis as chairman in July next year, to succeed John Manser. In December last year, Chairman Graham Mackay died after battling with a long-term illness. The board appointed acting Chairman John Manser as chairman with immediate effect, and appointed Guy Elliott as senior independent director in succession to Manser. In a statement, SABMiller said du Plessis, aged 60, will join the board as an independent non-executive director with effect from September 1, after which it intends to appoint him as chairman in succession to Manser at the conclusion of its annual general meeting in July 2015, when Manser retires.
----------
Ferrexpo PLC said pretax profit jumped in its first half due to a large reduction in operating costs through production efficiencies and the devaluation of the Ukrainian currency. The iron-ore producer, which operates solely in Ukraine, said its pretax profit increased 65% to USD247.6 million for the six months ended June 30 from USD149.9 million the previous year. The company said revenue fell 2.0% to USD758.9 million from USD774.7 million due to lower benchmark iron ore prices, which on average fell by 19% compared to the same period the previous year. Ferrexpo maintained its interim dividend at 3.3 US cents per share.
----------
Al Noor Hospitals Group PLC said Chief Executive Officer and founder Dr Kassem Alom will step down, effective October 1. The private hospital group said that, in line with its succession plan, it has appointed Ronald Lavater as CEO with effect of the same date. He joins the company from healthcare firm Johns Hopkins Medicine International where he is currently serving as senior executive for the Middle East region.
----------
Grainger PLC said group sales revenues fell in the ten months to July 31 but profits were boosted on the back of better margins on its sales and a rise in prices achieved against the comparable period last year. The residential property company said group sales revenues totalled GBP236.5 million for the period, a drop against the GBP258.7 million a year earlier. The fall came in spite of a rise in the number of units sold by the firm over the period, up to 2,358 against 2,091 a year earlier.
----------
Interserve PLC posted a big rise in revenue and pretax profit in the first half of 2014 and hiked its dividend on the back of improved demand in international construction and support-services businesses. The FTSE 250-listed support services and construction firm said revenue jumped 29% to GBP1.37 billion in the six months ended June 30 from GBP1.07 billion in the same period a year earlier, boosted by higher revenue from its support services, construction and equipment services businesses. Pretax profits rose 36% to GBP50.2 million from GBP36.8 million last year, leading the company to hike its interim dividend by 10% to 7.5 pence from 6.8 pence. The group said it secured GBP2 billion in new contracts over the six-month period and said its pipeline of future work now stands at GBP7.5 billion.
----------
MARKETS
----------
Stocks are trading significantly lower across the UK and Europe, following a negative sessions in both US and Asian markets, as global investor sentiment takes a knock from signs of increasing tension among Russia, Ukraine, and western leaders.
----------
FTSE 100: down 1.0% at 6613.49
FTSE 250: down 1.2% at 15173.32
AIM ALL-SHARE: down 0.9% at 748.96
----------
The pound fell to a two-day low of 1.6826 against the US dollar after data showed that the UK industrial production rose by less than expected in June.
----------
GBP-USD: down at USD1.6839
EUR-USD: down at USD1.3358

GOLD: up at USD1288.65 per ounce
OIL (Brent): down at USD104.78 a barrel

(changes since end of previous GMT day)
----------
ECONOMICS AND GENERAL
----------
British industrial production grew by less than expected in June as oil and gas extraction declined from May, data showed. Month-on-month, industrial and manufacturing output grew 0.3% each in June, the Office for National Statistics said. Economists had forecast both industrial production and manufacturing output to rise 0.3%. The increase in June reversed a 0.6% fall in May industrial output. Manufacturing output was down 1.3% in May. On a yearly basis, industrial production grew 1.2% in June, slower than the 1.5% rise forecast by economists. At the same time, manufacturing output advanced 1.9%, which was also weaker than the expected increase of 2.1%.
----------
UK house prices increased more than expected in July, reversing the last month's decline, data showed. House prices grew 1.4% in July from the prior month, survey data from Halifax showed. Economists had forecast a 0.4% rise in July after falling by revised 0.4% in June. Halifax said monthly movements tend to be volatile. Since last December there have been four monthly price increases and four price falls. In three months to July, house prices were 3.6% higher than in the preceding three months. On a yearly basis, prices continued its upward trend. Prices advanced 10.2% from the same period of last year.
----------
The UK Department of Energy & Climate Change announced new legislation aimed at stopping price rigging in the wholesale gas and electricity market. Under the new proposals, anyone found guilty of energy price rigging faces up to two years in jail, when currently people can only be investigated and fined for manipulating the energy market.
----------
German factory orders declined unexpectedly in June as both domestic and foreign orders decreased from prior month, data showed. Factory orders were down by an adjusted 3.2% in June from May, when it fell by 1.6%, Destatis reported. Economists had forecast a 0.9% increase for June. Within total orders, domestic orders declined 1.9% in June. Foreign orders dipped by 4.1% as demand from euro area plunged 10.4%.
----------
Ukraine said Tuesday its forces were preparing to take control of the rebel-held cities of Donetsk and Lufthansa, where the humanitarian situation was rapidly deteriorating according to local authorities. The United Nations said that some 730,000 people have left the region for Russia, while Russia reiterated that it wants a "humanitarian mission" deployed in eastern Ukraine. In Washington, the Pentagon said that the Russian military build-up of more than 10,000 troops had moved closer to Ukraine's eastern border. They were equipped with artillery, armored tanks, air defence and special forces, said spokesman Admiral John Kirby.
----------
Israeli and Egyptian officials held several hours of talks on a long-term Gaza truce late on Tuesday after a three-day ceasefire went into effect and the last Israeli soldiers pulled out of the Palestinian enclave. The Israeli delegation returned to Tel Aviv before midnight, as planned, after Egyptian security officials updated them on demands put forward earlier by Palestinian negotiators, an Egyptian security source who accompanied the delegates to Cairo airport told dpa.
----------
The death toll rose to 589 from an earthquake in south-western China, with nine people still missing and 2,401 injured, the Ministry of Civil Affairs said. Military and civilian rescue teams were still battling to send medical aid and relief supplies to remote villages in the mountainous region. They were clearing blocked roads and trying to drain several barrier lakes formed by landslides. Sunday's 6.5-magnitude quake was the most damaging one in Yunnan province for 14 years, forcing the evacuation of 230,000 people from collapsed homes and vulnerable areas, the provincial government said.
----------
A uniformed Afghan soldier killed a top US officer and wounded a German brigadier general and 14 others Tuesday in a shooting attack at a military school west of Kabul, Afghan and German defence officials said. The Pentagon identified the US officer as Major General Harold J Greene, a 34-year-veteran of the Army. The two-star general was believed to have been the highest ranking US soldier killed in the war since the terrorist attacks on the US on September 11, 2001, said Admiral John Kirby, the spokesman.
----------
By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

Copyright 2014 Alliance News Limited. All Rights Reserved.