Marks & Spencer Share News (MKS)

LONDON (Alliance News) - Stock prices in London are seen opening higher on Monday, following a higher close in the US on Friday, as investors look ahead to another busy week of UK earnings reports. In early company news, midcap stocks Victrex and Diploma reported contrasting first-half earnings, Metro Bank set out its plan to raise capital, and FirstGroup faced unrest from one of its shareholders.IG futures indicate the FTSE 100 index is to open 14.61 points higher at 7,217.90. The blue chip index closed down 4.12 points, or 0.1%, at 7,203.29 on Friday. Speciality chemicals company Victrex said it saw a much weaker first half and said it will be challenging to achieve year-on-year growth in the second half.For the six months ended March 31, pretax profit came in at GBP50.2 million, down 21% from GBP63.3 million last year, 13% lower at constant currency, on revenue of GBP145.7 million, down 13% from GBP166.6 million, down 12% at constant currency. The company said sales volume of 1,899 tonnes was 16% down on the prior year's 2,256 tonnes, reflecting the weakness in the Automotive unit and the associated impact on its Value Added Resellers segment, together with some de-stocking, particularly in the first quarter. Its gross margin slipped to 60.0% from 63.8%.Victrex maintained its interim dividend at 13.42 pence. "Looking towards the second half, headwinds in the form of currency and cost inflation will be broadly neutral, and incremental operating investment will be limited. We will also benefit from no bonus accrual. However, with some of our key industrial markets remaining weak, our base assumption is that any improvement would be gradual and back end weighted. Overall, our expectations are that it will now be challenging to achieve year-on-year growth in the second half, compared to the prior year period. We remain well placed for the medium to long term, with strong structural growth opportunities, a healthy new product pipeline and a highly cash generative business model," Chief Executive Jakob Sigurdsson said. Challenger bank Metro Bank said that its plan to raise GBP350 million of equity capital is "well advanced". The high street bank has commenced final discussions with existing shareholders and new investors, and the feedback continues to be positive, it said.Metro Bank said the equity raise is expected to in the form of a share placing, subject to shareholder approval, and is expected to be completed by the end of the second quarter of 2019. Public transport operator FirstGroup said it received a general meeting requisition notice from shareholder Coast Capital Management calling for the removal of six of the current eleven directors and appointing seven of their own nominees.FirstGroup said it has a strong management team in place with the right experience and remains committed to delivering shareholder value. The company added that it will continue to engage with Coast Capital. Technical products supplier Diploma said it saw another good first-half performance and is on track for further progress for the rest of the year. For the six months to March 31, pretax profit rose GBP40.1 million, up 13% from GBP35.4 million last year on revenue of GBP260.4 million, up 11% from GBP234.9 million the year before. The company raised its interim dividend to 8.5p from 7.7p last year. "Having visited our businesses in the last few months, I continue to be impressed by the quality of our teams and their commitment to excellent customer service. I feel confident that the group will deliver another strong financial performance this year and continue its excellent track record of shareholder value creation," said CEO Johnny Thomson.Elsewhere, HSBC raised oil major Royal Dutch Shell to Buy from Hold and Citigroup raised clothing and homewares retailer Marks & Spencer to Buy from Neutral. In the US on Friday, Wall Street ended higher, with the Dow Jones Industrial Average and S&P 500 up 0.4% and the Nasdaq Composite ending 0.1% higher.The Japanese Nikkei 225 index closed down 0.9%. In China, the Shanghai Composite is down 0.9%. Financial markets in Hong Kong is are closed for a public holiday. The US is expecting China to retaliate after trade negotiations ended without a deal on Friday and the US raised tariffs on Chinese goods, White House chief economic adviser Larry Kudlow said Sunday."The expected countermeasures have not yet materialized. We may know more today or even this evening or tomorrow," Kudlow said on Fox News Sunday.On Friday, the White House raised tariffs on USD200 billion worth of Chinese imports from 10% to 25% and announced plans to raise tariffs on USD300 billion of remaining Chinese imports.Kudlow said Sunday that the planned hike in tariffs on remaining Chinese imports could take around two months. China earlier Friday vowed to take "necessary countermeasures" after the tariffs were raised from 10% to 25%, but has not yet detailed exactly how it will respond."Against this backdrop it is unsurprising that the start of trading this week has seen markets in Asia come under pressure, though markets in Europe look set to open a little bit higher largely as a result of the residual effects of last week's late US rebound," said CMC Markets analyst Michael Hewson. The pound was quoted at USD1.3010 early Monday, marginally lower than USD1.3030 at the London equities close Friday.In political news, a cross-party Brexit deal will need to include a second referendum in order to receive the backing of Labour MPs, Keir Starmer said.The shadow Brexit secretary warned it was "impossible" to see how an agreement between the Conservatives and Labour could clear the Commons unless it guaranteed the deal would be put back to the public for a "confirmatory vote".Starmer made the comments ahead of crunch talks between Cabinet ministers and senior Labour figures on Monday, although speculation was growing over whether the negotiations will succeed.Speaking to the Guardian, the leading Labour negotiator said his colleagues and the party leadership would have to decide "in the coming days" if it was worth continuing with the talks.Meanwhile, The Times reported that the prime minister has been urged by Cabinet ministers to pull out of the talks and move to indicative votes by MPs.In economic news, the Irish construction sector growth accelerated in April, achieving the sixty-eight consecutive month of growth, survey data from Ulster Bank showed.The Ulster Bank construction Purchasing Managers' Index rose to 56.6 in April, from 55.9 in March. Any reading above 50 indicates expansion in the sector.