Market News:
FTSE 100 6773.04 -118.39 -1.72%
FTSE 250 17090.64 -117.46 -0.68%
FTSE AIM All-Share 716.20 -3.53 -0.49%
FTSE 100 Dragged Down By Oil, Miners
London's FTSE 100 slumps, weighed by hefty losses in resources
stocks. BP falls 2.1%, Royal Dutch Shell drops 2.4% and Premier Oil
falls 4.3% as the price of crude heads south. The price of Brent
falls 1.3% to $55.58/bbl as the dollar appreciates on comments by
Fed's Jeffrey Lacker that there is a "strong case" for the Fed to
begin raising rates in June. The miners are also hard hit, with BHP
Billiton and Glencore at least 2.0%. These losses come despite the
British economy growing at a faster pace than previously thought in
2014, with fourth quarter GDP climbing 0.6%, from the previous 0.5%
estimate. On the flip side, Kingfisher climbs 3.4% after announcing
a new efficiency plan.
Top Stories:
U.K. Raises 2014 Growth Figure
The British economy grew at a faster pace in 2014 than
previously thought but the incomes of Britons barely nudged higher,
according to figures released on Tuesday that give fresh ammunition
to both the country's main political parties ahead of Britain's
upcoming national election.
Companies News:
H-P Says It Sued Two Former Autonomy Executives
Hewlett-Packard Co. said it has filed suit in London against two
former senior officials of Autonomy, the U.K. software firm that
H-P purchased and then accused of misrepresenting its financial
condition.
AngloGold Ashanti Seeks US Partner Or Buyer, Receives Mali
Approach
South Africa-based gold miner AngloGold Ashanti Ltd (ANG.JO)
said Tuesday it is seeking a joint venture partner or a buyer for
its only U.S. gold mine and has received an approach to purchase it
stakes in the Sadiola and Yatela gold mines in Mali.
Eckoh Hails Strong Trading in Fourth Quarter
Eckoh PLC (ECK.LN), a payments services provider, performed
strongly in the fourth quarter with trading boosted by several
contract wins, it said Tuesday.
Kingfisher FY Net Profit Falls, Will Close Stores
European home improvement retailer Kingfisher PLC (KGF.LN)
Tuesday reported a fall in full year net profit amid difficult
trading in France and said it will close stores in the U.K. and
mainland Europe as part of an efficiency plan.
Worthington Group in Merger Talks with Overseas Listed
Company
Investment firm Worthington Group PLC (WRN.LN) has been
negotiating to merge with an overseas listed company on terms that
would represent a significant premium to the company's suspended
share price.
Teck Resources Denies It Is in Merger Talks With Antofagasta
Teck Resources Ltd. said Monday that it isn't in talks with
Chile's Antofagasta PLC regarding a possible merger of the two
miners.
Thomas Cook Sees Improvement in Europe, Pricing Pressures
Continue
Travel group Thomas Cook Group PLC (TCG.LN) Tuesday said trading
in Continental and Northern Europe is improving, but added that
conditions in many of its markets remain tough, with pricing
pressures caused by excess airline capacity and intense
competition.
Gulf Keystone Petroleum Chairman Simon Murray to Retire
Gulf Keystone Petroleum Ltd. (GKP.LN) said Tuesday Non-Executive
Chairman Simon Murray is to retire from the board and be replaced
by senior independent director Andrew Simon on an interim basis
while it searches for a permanent replacement.
Gulf Keystone Petroleum Raises $40.7M in Placing
Oil group Gulf Keystone Petroleum Ltd (GKP.LN) Tuesday said it
has raised $40.7 million in a placing of 85.9 million shares at 32
pence each, to strengthen its financial position.
Shanks Sees FY Broadly in Line, Reorganizes Group Structure
Shanks Group PLC (SKS.LN), a waste-to-product business, on
Tuesday said it expects trading for the year ended March 31 to be
broadly in line with expectations and announced a reorganization of
its group structure.
Mitie Sees FY Headline Operating Profit Slightly Below Views
Outsourced service provider Mitie Group PLC (MTO.LN) Tuesday
said it expects its full year headline operating profit to be
slightly below current market expectations due to the effects of
government spending cuts on its homecare and social housing
businesses.
John Wood Secures Engineering Contract from Total
Energy services company John Wood Group PLC (WG.LN) said Tuesday
that it has been awarded a multi-million dollar engineering
contract by French oil and gas company Total SA (FP.FR).
Pinewood to Raise GBP30M Via Placing
Pinewood Group PLC (PWS.LN), a provider of services to the film
and television industry, on Tuesday announced a placing of 8
million new shares at a price of 375 pence per share to raise 30
million pounds ($44.2 million).
Amec Foster to Manage EDF Energy's UK Nuclear Power Stations
Engineering and project management company Amec Foster Wheeler
PLC (AMFW.LN) said Tuesday that it has secured a nine-year contract
from EDF Energy to provide project management services to all of
EDF's U.K. nuclear power stations and technical offices.
Daniel Stewart Securities Says No Deals in Offing as Shares
Soar
Daniel Stewart Securities PLC (DAN.LN) Tuesday responded to a
huge spike in its share price by saying it isn't considering any
deals.
Daniel Stewart: Rob Terry Buys 31.3M Shares, Now Holds 7.4%
Stake
Daniel Stewart Securities PLC (DAN.LN) said Tuesday that Rob
Terry now holds 52 million shares in the company, representing 7.4%
of the company's issued ordinary shares, having purchased 31.3
million shares at prices ranging from initially 0.15 pence (0.22
cents) to 0.554 pence.
Other News:
Nielsen to Merge Into U.K. Unit as Part of Planned
Relocation
Nielsen NV outlined more details of its plan to change its
corporate structure as it moves its headquarters to the U.K. from
the Netherlands.
Market Talk:
Investors Cheer Kingfisher's Vision
1300 GMT Kingfisher shares pop 3.5% higher to 378p after new CEO
Veronique Laury outlined her new strategy for the company. Says the
company will shut around 60 B&Q stores in the U.K. and Ireland
in the next two years, around 15% of B&Q's selling area, while
the Big Box format is set to be relaunched across Europe and
Screwfix German trials extended. According to analysts at
Jefferies, "the focus on driving a better integrated, leaner group
is clear." Adds that for the foreseeable future, "trends in the
French market will remain key." Jefferies has a hold recommendation
with a 350p target price.
Sainsbury's to Enhance Tech Capability with Digital Push
1252 GMT Sainsbury's is creating 480 jobs in London and
Coventry, largely offsetting the reduction of 500 office-based
store support roles it announced in January. The new jobs are
focused on "strengthening its in-house digital and technology
capabilities as customers seek more convenient and intuitive ways
to shop using new technology." Retailers have been battling it out
to make the customer experience a better one, as they grapple with
competition from hard discounters. Sainsbury's said it will open a
new digital lab this summer, giving people a space to "work and
test new ways of shopping." The retailer is upgrading its
infrastructure and business systems as well. J. Sainsbury shares
are down 0.5% at 260p.
Equities First Resurfaces with Urban&Civic Deal
1235 GMT Equities First, which lends money using shares as
collateral, stirred controversy last year when a string of
directors of listed companies handed over shares in exchange for
loans. The loans are non-recourse, so borrowers can walk away if
they choose. In that case, the deal amounts to a share sale.
Concern this can be a cover for surreptitious off-loading of shares
led to an outcry in the case of insurance outsourcer Quindell,
whose directors had to clarify misleading statements about their
dealings. No new EFH deals involving London-listed companies had
been disclosed since then--until an update from Urban&Civic
late Monday. The property developer said deputy chairman Robert
Adair handed over two million shares as security for a loan.
Urban&Civic is the first main market-listed company to disclose
an EFH loan.
Contact: London NewsPlus, Dow Jones Newswires;
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