(Alliance News) - The following is a summary of top news stories Friday.
----------
COMPANIES
----------
BP cautioned third quarter production has been hampered by shut-downs due to Hurricane Barry. Alongside turnarounds in some highest-margin regions, the knock to Gulf of Mexico production caused by the hurricane will lower BP's third quarter production by around 100,000 barrels of oil equivalent per day. Hurricane Barry made landfall in Louisiana in July, causing significant damage. In the second quarter of 2019, total production was 3.8 million barrels of oil per day, 4% higher year-on-year. BP said the overall production mix, due to the disruption, had a greater proportion of production from regions with higher tax rates. As a result, the third quarter underlying tax rate for BP is set to be around 50%, far higher than the second quarter, but overall 2019 tax rate guidance is kept at 40%. BP also expects to reach its USD10 billion divestment target by the end of 2019, having previously aimed at completing it by the end of 2020.
----------
Man Group said the outlook for flows remains mixed following a decrease in funds under management in the third quarter of 2019. Man Group, a fund manager that focuses on private markets, said funds under management stood at USD112.7 billion at the end of September, down 1.5% from USD114.4 billion on June 30. The decline was driven by net outflows of USD1.1 billion, comprising sales of USD6.6 billion and redemptions of USD7.7 billion, and negative foreign exchange and other movements of USD1.3 billion, Man Group explained. Negative forex and other movements were driven by the US dollar strengthening against the Australian dollar, sterling and the euro, the company said. Man Group also highlighted its management fee margin continues to decline due to the ongoing mix shift towards institutional assets, which are at a lower margin.
----------
Jupiter Fund Management reported a quarter-on-quarter fall in assets under management due to a rise in outflows. In the third quarter ended September 30, assets under management fell by 1.8% to GBP45.09 billion from GBP45.91 billion at the end of June, the equity and bond investor said. Year-on-year, the assets fell by 5.5% from GBP47.72 billion. The fund manager reported a 22% quarter-on-quarter rise in gross inflows to GBP4.01 billion from GBP3.28 billion but this was more than offset by growth in gross outflows which increased by 37% to GBP5.33 billion from GBP3.88 billion.
----------
Interdealer broker TP ICAP said it has reached a settlement with the UK Financial Conduct Authority, which had been looking into trades made between 2008 and 2011. The regulator found former managers at TP ICAP "failed to act with due skill, care and diligence", and also said inadequate controls permitted "improper" broker conduct. TP ICAP will pay GBP15.4 million, which will be booked as an exceptional item in 2019 results.
----------
MARKETS
----------
London shares were higher amid optimism over US-China trade talks as President Donald Trump gets set to meet China's top trade envoy later on Friday. The pound surged on hopes that the EU and UK could still agree a Brexit deal ahead of the October 31 deadline. Wall Street was pointed to a higher open.
----------
FTSE 100: up 0.1% at 7,188.72
FTSE 250: up 1.3% at 19,492.00
AIM ALL-SHARE: up 0.5% at 860.35
GBP: up at USD1.2502 (USD1.2306)
EUR: up at USD1.1017 (USD1.1004)
GOLD: up at USD1,498.40 per ounce (USD1,493.91)
OIL (Brent): up at USD60.00 a barrel (USD58.75)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
UK and EU negotiators met Friday in a last-ditch bid to restart talks on an orderly Brexit, amid "promising signals" that a deal could still be possible just days before a key EU summit. British minister Stephen Barclay and EU negotiator Michel Barnier met for two hours behind closed doors in the Brussels headquarters of the EU, one day after talks between Prime Minister Boris Johnson and his Irish counterpart Leo Varadkar. As they met, the president of the European Council and host of next week's Brussels summit Donald Tusk warned that Britain has yet to come forward with a "workable, realistic proposal" for a Brexit deal. "A week ago I told Prime Minister Johnson that if there was no such proposal by today, I would announce publicly that there are no more chances, because of objective reasons, for a deal during the incoming European Council," he said.
----------
Ireland could see more than 70,000 job losses over the next two years if faced with a "disorderly, no deal Brexit," the Central Bank of Ireland warned. In its Quarterly Bulletin, the Central Bank provided a forecast for the Irish economy based on the two possible Brexit scenarios. "In the event of a disorderly, no deal Brexit, the key channels through which the economy will be affected will be through shocks to the exchange rate, trade, consumption and investment, leading to a marked deterioration in economic conditions," the bank said. If Britain and the EU can reach an agreement, it predicted that the GDP will be at 5% in 2019, 4.3% in 2020 and 3.9% in 2021.
----------
Germany's consumer price inflation came in at 1.2% in September, Destatis revealed, in line with economist expectations. The 1.2% year-on-year rise in prices compares to a 1.4% rise in August. On a month-on-month basis, the consumer price index was flat, again matching economist forecasts, according to FXStreet. September's harmonised CPI reading was up 0.9% on a yearly basis but down 0.1% from August.
----------
US and Chinese delegations will continue trade talks on Friday at the White House, US President Donald Trump said, claiming that the first day in the latest round of trade negotiations went "really well". Chinese Vice Premier Liu He took part in the first day of talks along with Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer. The president earlier indicated he would meet Liu. "Going to see them tomorrow right here," Trump told reporters outside the White House on Thursday. "It's going very well."
----------
Trump said he hopes to be able to mediate between Turkey and the Syrian Kurds, while also reiterating a threat to impose sanctions on Ankara if its military campaign steps over the line. "I hope we can mediate," Trump told reporters outside the White House on Thursday. "We are going to possibly do something very tough with respect to sanctions and other things," he said, after indicating he wants Turkey to "take it easy". The president has not been clear on where his red lines sit, but a senior State Department official told reporters that indiscriminate attacks on civilians and ethnic cleansing of Kurdish areas would not be tolerated.
----------
Copyright 2019 Alliance News Limited. All Rights Reserved.