Updates from TSB, Ryanair and Berkeley Group
The FTSE 100, once again, neared the 7,000 threshold on Thursday. The Big Board closed at 6,962.3, up 17 points; Fresnillo and RandgoldResources took the biggest jumps, up 5.4% and 3.2% (to 679p and 4826p). M&S shares also put on speed, up 3.1% to 531p. However Next shares took a drubbing on yesterday's cautious numbers from the company, down 4% to 7315p. BAT shares were also adrift, down 3.3% to 3668p.
The Dow Jones however took a different view to the City, losing 117 points to 17,959 with more energy sector pessimism; both Exxon and Chevron took hits (down 1.9% and 1.8% respectively).
We commerce with news that Spain's Banco Sabadell is to snap up TSB - 50% owned by Lloyds - for £1.7bn, equivalent to 340p per share. Initially, though, Sabadell will only take 10% of TSB.
The move could mean a windfall for TSB staff through the bank's employee share scheme. (It's thought around 8,000 staff are committed to the scheme.) Originally, it was thought the Co-op would take the TSB branches though the deal, disastrously, fell through.
"This is a significant and positive step for the Group," says António Horta-Osório, boss of Lloyds, "and will enable us to meet our commitments to the European Commission, well ahead of its mandated deadline."
Next, Ryanair and put on hold any thoughts about crossing the Atlantic with Michael O'Leary. Earlier week reports - fly to the US from £10 with Ryanair - have been dampened down. Some of the destinations aired had included Miami and Chicago.
Ryanair's board had rubber-stamped a plan to operate budget flights to the US within five years, in principle. The Europe-US route is highly profitable and the main players, currently, are BA and American Airlines.
"In the light of recent press coverage," Ryanair says however, "the Board of Ryanair Holdings Plc wishes to clarify that it has not considered or approved any transatlantic project and does not intend to do so."
Lastly, Berkeley Group Holdings. It reiterates previous guidance on full year earnings for the next three years to 30 April 2015, 2016 and 2017 though it acknowledges trading conditions are "normal" compared to "a high point in 2013".
Detailed planning consent it says has been secured on two pipeline sites at Hornsey and Kingston which are now unconditional; it has secured a further seven new consents on existing land holdings.
"The strength of Berkeley's balance sheet," it says, "continues to be supported by cash due over the next three years on forward sales which remains at the level reported at the half year."
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