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Reports UK

UK stock market morning note (June 16, 2014)

June 16, 2014, Monday, 07:24 GMT | 02:24 EST | 10:54 IST | 13:24 SGT
Contributed by SVS Securities

The FTSE 100 is called to open lower this morning with investors starting the trading week in cautious mood in light of the ongoing situation in Iraq, the forthcoming US Federal Reserve meeting and minutes from the Bank of England after the comments from the latter's Governor on interest rates. Overnight we had domestic economic news from Rightmove reporting that its monthly house price index of properties advertised for sale on its website rose 0.1% in early June, and on an annual basis the average house price was ahead 7.7%. The economic diary today now focuses on the US with the release of industrial production data. Commodity prices are firmer and on the foreign exchanges, the dollar is weaker against the pound, euro and yen but within narrow trading ranges. It is a quiet start to the week for major corporate news.


Company Announcements

Vodafone

It has announced a voluntary tender offer for Cobra Automotive Technologies valuing the Italian provider of security and telematic solutions at GBP115m. Vodafone added that the acquisition is in line with its strategy to expand its machine to machine (M2M) capability beyond connectivity with Cobra's telematics products also enabling it to provide a more comprehensive range of end-to-end services to automotive customers. The offer is subject to obtaining the relevant anti-trust approvals and is expected to complete in Q3 2014.

Majestic Wine

Final Results see PBT up slightly to GBP23.8m on total sales ahead 1.4% at GBP278.2m with lfl sales in UK retail stores down 0.1%. The total dividend is raised to 16p (15.8p). Online sales rose 5.8% to GBP27.7m, representing 11.4% of UK retail sales with the number of active customers ahead 2.9% to 643,000. It noted that as a result of the cost of the increased investments it is making and continued subdued market conditions, it is expecting a flatter growth profile for the 2015 financial year, adding that it anticipates a subsequent return to growth post its infrastructure investments.