Another slew of mid-term reports on the LSE with BG, Shell and Diageo among the FTSE heavy hitters. A mixed bag for Asian stocks overnight despite some positive economic news from the US. Hong Kong stocks struggled to test fresh multiyear highs after seven straight days of gains, as the Hang Seng Index swung between small gains and losses in early trading Thursday.
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On release of its interm report BAE Systems (BA.) also announced that it had entered into an agreement for the proposed bolt-on acquisition of Signal Innovations Group, Inc, a provider of imaging technologies and analytics to the US intelligence and defence communities.
Genel Energy(GENL) the operator of the Sidi Moussa block, offshore Morocco, has begun drilling the SM-1 exploration well. It is be the latest in a series of exploration wells in the country – stakeholders include San Leon Energy (SLE) and Serica (SQZ).
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Redhall Group (RHL) reports that, after an extensive and thorough review by the new executive team, the Board has revised its forecasts for the year ending 30 September 2014 and now expects to broadly break even before exceptional items at the operating profit level.
Dutch engineering firm Arcadis announced that it has reached agreement with UK engineering consultancy Hyder Consulting (HYC) on the terms of a recommended cash offer. The offer values Hyder at approximately £256m.
Oil giant Royal Dutch Shell (RDSB) has described its performance as "robust" after its second-quarter profits more than doubled. Shell said profits for the period rose to $5.15bn (£3bn) from $2.39bn a year earlier.
Construction firm Balfour Beatty (BBY) said it had terminated talks with Carillion (CLLN) over a possible £3bn merger, only days after the possible deal was revealed. Balfour said in statement it had ended the talks after Carillion said it would only progress with a merger if its Parsons Brinckerhoff business remained part of the deal.
Argentina has defaulted on its debt obligations for the second time in 13 years. Last-ditch talks between Argentina’s finance minister and “vulture” bond holders failed to deliver a deal overnight, meaning Argentina has been unable to meet payments to other creditors. Credit rating firm Standard & Poor’s has ruled that Argentina was now in selective default.
In a pre-close statement, commercial flooring manufacturer James Halstead (JHD) said it expects profit before tax for the full year ended 30 June to exceed last year. It was reported that the first half year had been challenging with turnover only 1.7 per cent ahead of the prior year comparative but that there were improved sales in the first quarter.
Diageo's (DGE) full-year results has written off the value of its near 40 per cent stake in the Chinese white spirits company, Shuijingfang, by £264m after sales of “baiju” liquor tumbled in the face of anti-extravagance policies rolled out in China.
Afren (AFR) board has temporarily suspended the chief executive, Osman Shahenshah and its chief operating officer, Shahid Ullah. An independent review conducted by Willkie Farr & Gallagher (UK) LLP into the potential need for disclosure of certain previous transactions to the market, revealed evidence of unauthorised payments potentially for the benefit of the two board members. These payments were not made by the company. The investigation has not found any evidence that any other board members were involved….more to follow.
OTHER COMPANY NEWS:
New Zealand-focused Kea Petroleum (KEA) has issued an update on the drilling of Puka-3 and announced a 48 per cent rise in average daily output in the second quarter
