Metro Bank Share News (MTRO)

LONDON (Alliance News) - London stocks opened lower on Wednesday, with Marks & Spencer the stand-out drag on the FTSE 100 as it laid out plans to raise GBP600 million and cut its dividend to fund an online grocery joint venture with Ocado.The FTSE 100 was 48.65 points lower, or 0.7%, at 7,102.47 early Wednesday. The mid-cap FTSE 250 was down 77.38 points, or 0.4%, at 19,193.30, while the AIM All-Share index was down 0.4% at 909.25.The Cboe UK 100 index was down 0.8% at 12,060.41 The Cboe UK 250 was down 0.4% at 17,137.02. The Cboe UK Small Companies flat at 11,137.73.The lower open comes after a lower close in the US overnight, following "dovish comments" from Fed Chair Powell, said Michael van Dulken at Accendo Markets. "Powell's comments sent the USD to 3-week lows and, in conjunction with the increasing likelihood of Brexit delay, the GBP is strong, hampering the FTSE's large international cohort," van Dulken said.Sterling was quoted at USD1.3268 early Wednesday, firm compared to USD1.3263 at the London equities close on Tuesday and maintaining its gains from earlier this week.UK Prime Minister Theresa May has issued a plea to MPs to back a Brexit deal, telling Parliament to "do its duty" ahead of another series of votes on the government's negotiating strategy.MPs will vote on the prime minister's negotiating strategy for Brexit and a series of amendments on Wednesday evening, ahead of another "meaningful vote" on Theresa May's Withdrawal Agreement next month.On Tuesday, May promised to give MPs a vote on extending Brexit negotiations or withdrawing from the EU without a deal if her plan is rejected next month.In mainland Europe, the CAC 40 in Paris and the DAX 30 in Frankfurt were down 0.3% and 0.4% respectively.In Asia on Wednesday, the Japanese Nikkei 225 index closed up 0.5%. In China, the Shanghai Composite closed up 0.4%, while the Hang Seng index in Hong Kong finished 0.1% lower.Ocado was the top gainer in London's FTSE 100 in early trade, up 3.5% after confirming its joint venture with Marks & Spencer, and building on Tuesday's 12% rise.However, M&S shares were down 7.4% in early dealings. The high street retailer will raise GBP600 million in equity to fund its share of the deal, and at the same time will be rebasing its dividend by 40%.Naeem Aslam at ThinkMarkets said the dividend cut will cause investors to "feel some pain" but they should be compensated by the subsequent sales growth the Ocado deal should generate."For M&S, this is their first opportunity to deliver their food at the doorsteps of their customers, something which they have not done before and it was badly needed in this market," said Aslam.Ocado and M&S have agreed to establish a partnership comprising Ocado's UK grocery retail business and branding and sourcing from M&S. M&S will pay Ocado GBP750 million, including deferred consideration, for a 50% stake in the joint venture. The announcement confirmed a deal previously reported by the Daily Mail in January and then by the Evening Standard on Tuesday, which caused Ocado shares to rise in the previous session.The venture will combine M&S's branded food and beverage range with Ocado's existing range of own label and third party branded products. M&S products will be available on the platform by September 2020, replacing Ocado's current sourcing agreement with Waitrose.The proceeds will enable Ocado to fund fully the development of all Customer Fulfilment Centres currently committed to with Ocado Solutions' partners, the company said.M&S said it anticipates potential synergies for M&S Food of at least GBP70 million per year, to be achieved by the third year following completion.The deal will be primarily financed by equity, said M&S, with the firm intending to conduct a fully underwritten rights issue to raise up to GBP600 million. At the same time, M&S will reset its dividend by 40% to a "sustainable level".M&S expects to pay a 7.1p final dividend in respect of its current financial year, down from 11.9p last year."I have always believed that M&S Food could and should be online. Combining the strength of our food offer with leading online and delivery capability is a compelling proposition to drive long-term growth," said M&S Chief Executive Steve Rowe.Housebuilder Taylor Wimpey was up 1.6% as the housebuilder reported annual profit growth after "another" strong year in 2018.Pretax profit for 2018 was GBP810.7 million, up 19% on last year. Excluding exceptional items pretax profit came in at GBP856.8 million, slightly above company-compiled analyst consensus of GBP854.0 million and up 5.5% on the GBP812.0 million generated in 2017.At the end of 2018, Taylor Wimpey's order book was "very strong", with 8,304 homes from 7,136 homes at the end of 2017. This was valued at GBP1.78 billion, from GBP1.63 billion a year before."2018 was another strong year for Taylor Wimpey with good progress against our strategic priorities. We delivered in line with our expectations, achieving a strong sales rate and record revenues," commented Chief Executive Pete Redfern.Metro Bank shares tumbled 18%, leaving the stock down 51% in the past three months, as the lender Tuesday afternoon said it has entered a standby underwrite agreement to raise GBP350 million.Then, after the market close, the challenger bank posted an adjusted pretax profit of GBP50 million, up from GBP20.8 million the year before, in line with guidance at the end of January. Prior to January's update, analysts had expected a profit of GBP59 million. Net interest margin fell by 12 basis points in the year to 1.81% from 1.93% a year prior, while Metro Bank's common equity tier one ratio fell to 13.1% from 15.3% in 2016.Ted Baker slumped 12% after the retailer said it expects pretax profit for its recently ended financial year to be lower than the year before due to foreign exchange movements, system upgrades and warehouse transitions.The fashion retailer expects pretax profit for the year ended January 26 to be in the region of GBP63 million, before costs related to House of Fraser, the acquisition of No Ordinary Shoes and the ongoing independent external investigation into Chief Executive & Founder Ray Kelvin.In the economic calendar on Wednesday, eurozone consumer confidence is at 1000 GMT and the US goods trade balance and durable goods orders both at 1330 GMT. Later are US pending home sales and factory orders, both at 1500 GMT.