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DJ Biogen to End Development of Gosuranemab in Progressive Supranuclear Palsy >BIIB

By Colin Kellaher

Biogen Inc. (BIIB) Friday said it is ending development of gosuranemab for the brain disorder progressive supranuclear palsy and other primary tauopathies after a phase 2 study missed its primary endpoint.

The Cambridge, Mass., biopharmaceutical company said the main endpoint, as measured by the progressive supranuclear palsy rating scale at week 52, wasn't statistically significant, and said the study didn't show efficacy on key clinical secondary endpoints.

Biogen, which licensed gosuranemab from Bristol-Myers Squibb Co. (BMY), said it will continue a Phase 2 study of the drug for mild cognitive impairment due to Alzheimer's disease or mild AD, given differences in disease pathology.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

December 13, 2019 07:45 ET (12:45 GMT)

DJ Markets Rally as Trade and Brexit Uncertainties Recede -- Update
By Steven Russolillo and Joanne Chiu

Global stocks rallied Friday as signs of progress in resolving two major overhangs -- the U.S.-China trade spat and Brexit -- bolstered investors' optimism in what has already been a banner year for markets.

Investors poured into stocks and sold out of government bonds on speculation that prospects for corporate profits and economic growth were instantly brightened by the developments.

Futures linked to the S&P 500 index climbed 0.3%. That comes a day after equity benchmark closed at a record after President Trump said the U.S. and China were nearing a deal. Mr. Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday, The Wall Street Journal reported Thursday.

In Europe, where Brexit has weighed on investors for more than three years, the pan-continental Stoxx Europe 600 climbed 1.5% after earlier hitting its highest since April 2015. That followed a resounding election victory for Prime Minister Boris Johnson's Conservative Party overnight raised hopes for a quick divorce from the European Union. The U.K.'s FTSE 250 index touched a record.

"The geopolitical risks thought to be strangling world economic growth, incredibly, just in the last 24 hours, seem to be closer to getting resolved in a big, big way," said Chris Rupkey, chief financial economist at MUFG. "The outlook in 2020 looks better than it has in months."

Mr. Rupkey said he expects stocks around the world to keep rallying and bond yields to rise further.

In the U.K., the FTSE 250 gauge rose over 4%, its biggest move since May 2010. The pound gained 0.2% against the dollar on Friday, after advancing more than 2% late Thursday as exit polls showed Mr. Johnson would capture a clear majority.

"These results really make the U.K. equity markets investible again," said Sue Noffke, head of U.K. equities at Schroders. "Greater political clarity and less uncertainty really does reduce the level of risk for investors. In particular, international investors."

The U.K.'s 10-year yields rose close to 3 basis points to 0.855%, the highest since mid-June, compared with closing levels. The German 10-year bund yield climbed earlier in the day to minus 0.216%, its highest level since mid-June, before trading down to -0.248%.

"The U.K. election results -- from a risk-appetite point of view -- has been the cherry on the cake," said Andrea Iannelli, investment director, fixed income at Fidelity International.

A wait-and-see approach from the European Central Bank on changing interest rates, the Federal Reserve's cuts to keep the U.S. economy growing, a recent stabilization in economic outlook and the suggestion of a long-awaited trade deal "has made for a bullish Christmas for markets," Mr. Iannelli said.

The advances in U.S.-China trade talks also sent oil up to its highest since the days after the September attack on Saudi Arabia's oil facilities. Brent crude, the global benchmark, rose 1.2% and WTI gained 0.9%.

Over in Asia, Japan's Nikkei 225 index jumped 2.6% on Friday to close at the highest level this year. The Shanghai Composite Index rose 1.8%.

To be sure, previous breakthroughs in both trade and Brexit have proven to be false dawns. Trade tensions have dragged on for almost two years, and Mr. Johnson still faces the challenge of securing a long-term trade deal with the EU.

Still, the elevated political uncertainty, which is also fueled by U.S. impeachment proceedings, hasn't stopped many stock markets from enjoying an exceptional year.

The S&P 500 has rallied 26%, on pace for its best annual performance in six years. The rally has been underpinned by the Federal Reserve, which has cut interest rates three times this year to shore up growth. Earlier this week, the central bank kept rates steady and showed no appetite to raise them soon.

The Stoxx Europe 600 has risen 22% this year, while indexes in mainland China, Japan and Taiwan are up by double-digit percentages.

Some observers are concerned about how much more markets could rally from here. Eli Lee, head of investment strategy at Bank of Singapore, said investors should expect modest returns in the coming years, given already-rich equity valuations. "Although the bull market won't die in 2020, there are good reasons for return expectations to be moderate," he said.

--Joanna Chiu and Paul Davies contributed to this article.

Write to Steven Russolillo at steven.russolillo@wsj.com and Joanne Chiu at joanne.chiu@wsj.com

(END) Dow Jones Newswires

December 13, 2019 07:43 ET (12:43 GMT)

DJ Biogen To Discontinue Development Of Treatment For Rare Brain Disorder After Trial Misses Goals -- MarketWatch

Biogen Inc. (BIIB) said Friday a trial of a treatment for a rare brain disorder called progressive supranuclear palsy missed its main goal and that it will discontinue its development. The Cambridge, Mass.-based biotech said the phase 2 trial evaluating gosuranemab in treating the disorder, which causes problems with walking, balance and eye movements, also failed to meet clinical secondary endpoints. The company's Chief Medical Officer Alfred Sandrock Jr., said the results were disappointing. Biogen will continue a phase 2 study called Tango evaluating gosuranemab for mild cognnitive impairment due to Alzheimer's disease or mild AD. Shares were slightly higher premarket but are down 2.5% in 2019, while the S&P 500 has gained 26%.

-Ciara Linnane

(END) Dow Jones Newswires

December 13, 2019 07:40 ET (12:40 GMT)

 For more from MarketWatch: http://www.marketwatch.com/newsviewer 
DJ Johnson Sees Election Win as Mandate for Swift Brexit

LONDON—Fresh from a decisive electoral victory, U.K. Prime Minister Boris Johnson pledged to move quickly to take Britain out of the European Union, while promising to deliver billions of pounds in public spending to consolidate the Conservative Party’s once-in-a-generation gains among working-class voters still hurting from the financial crisis.

The Conservatives won 364 seats in the U.K. Parliament with just one seat yet to be declared, the party’s biggest win since former Prime Minister Margaret Thatcher’s 1987 re-election.

Mr. Johnson, who gambled that a snap election would give him the parliamentary majority he needed to break a protracted deadlock on how and when the U.K. will leave the EU, trounced the opposition Labour Party, which won 203 seats, its smallest total since 1935. Mr. Johnson appealed to frustrations over the Brexit stalemate, as well as economic pain in traditionally left-leaning industrial areas in northern England.

As a result, the Tories won 79 more seats than all other parties combined. They took traditional Labour districts such as Sedgefield, once the seat of former Prime Minister Tony Blair and in the opposition party’s hands since 1931.

Early Friday, Mr. Johnson reiterated his promise to take the U.K. out of the EU by the current Jan. 31 deadline.

“We will get Brexit done, on time, by the 31st of January, no ifs, no buts, no maybes,” he said in his victory speech.

The prime minister is expected to bring his bill on the terms of Britain’s split from the EU back to Parliament before Christmas, with full approval of the plan expected in January. Mr. Johnson, who came to power in July after Prime Minister Theresa May resigned in the wake of her failure to take the U.K. out of the EU, may also reshuffle his cabinet in the coming days.

After taking breakfast at the prime minister’s residence, Mr. Johnson visited Queen Elizabeth II to ask for permission to form a government, which she granted.

Early Friday, European Council President Charles Michel said the EU hopes British lawmakers will quickly ratify the Brexit bill and that the bloc stands ready for talks on a future trade deal.

If Parliament approves Mr. Johnson’s Brexit bill as expected, London and Brussels must undertake talks on a new agreement that will dictate the U.K.’s future economic relations with a trading bloc that represents about half of all British trade. The EU is expected to give the bloc’s chief Brexit negotiator, Michel Barnier, a fresh mandate to begin those negotiations with London.

The scale of Mr. Johnson’s victory may give him more leverage in those talks, but also more flexibility back home, since he will no longer be beholden to lawmakers who want a sharp break with the EU.

“A large majority gives Boris Johnson a much freer hand when negotiating a post-Brexit free-trade deal,” wrote Sara Hobolt, a professor of European politics at the London School of Economics, in an analysis Friday.

The British pound jumped about 2% to its highest level against the dollar since May 2018 after Thursday’s exit poll forecast a Tory win, and the currency held most of its gains early Friday. U.K. domestic stocks surged Friday, marking their strongest day since May 2010.

Early Friday, President Trump promised to move quickly on talks for a new U.S.-U.K. trade deal.

“Britain and the United States will now be free to strike a massive new Trade Deal after BREXIT,” Mr. Trump wrote on Twitter. “This deal has the potential to be far bigger and more lucrative than any deal that could be made with the EU.”

In his speech Friday, Mr. Johnson sought to consolidate a watershed realignment of Britain’s electoral map, with scores of long-held working-class seats in England and Wales switching to the Conservatives from Labour, drawn to Mr. Johnson’s pledge to deliver the Brexit they voted for in 2016.

Brexit gave Mr. Johnson the opportunity to transform his Conservative Party into a political machine that could appeal to voters spanning from the landed gentry to the working class.

Delivering his victory speech from a podium that bore the slogan, “The People’s Government,” Mr. Johnson promised to deliver on a campaign pledge to spend £100 billion ($131 billion) in new infrastructure and billions more on health care, schools and policing. He singled out fresh investment in the country’s National Health Service, a cherished institution that voters have traditionally felt is safer in Labour’s hands.

Mr. Johnson’s promise of budget largess appealed in particular to working-class areas that lost heavy industry and suffered from decaying infrastructure and worsening public services.

“You may only have lent us your vote,” he said. “Your hand may have quivered over the ballot paper before you put your cross in the Conservative box. I am humbled that you have put your trust in me, and that you have put your trust in us. And I and we will never take your support for granted.”

The party has also promised more spending on infrastructure such as railways in northern and central England, where many of its newly won districts are located.

Labour leader Jeremy Corbyn said he wouldn’t contest another election as leader of the party after voters soundly rejected his vision of heavy state intervention in the British economy, including the nationalization of water supply and the railways.

Mr. Corbyn promised a period of “reflection” following the defeat. Senior lawmakers from the party Friday suggested voters hadn’t been open to its message because of their focus on leaving the EU.

“We just couldn’t get through Brexit,” said John McDonnell, the party’s finance spokesman.

Mr. Johnson also promised to revamp the U.K.’s immigration system—an issue that helped drive the 2016 referendum toward a win for euroskeptics—by instituting a points-based system similar to that used in Australia, a country with strict policies on whom it admits.

While the Conservative Party extended its reach in England and Wales, the pro-independence Scottish National Party tightened its grip on one of the four countries that make up the U.K. SNP leader Nicola Sturgeon said her party’s 13-seat gain indicates that Scots want another referendum on whether to leave the U.K., a call Mr. Johnson is likely to reject.

In Northern Ireland, the Conservative Party’s former allies in the Democratic Unionist Party suffered losses. For the first time, the country elected more lawmakers who favor unification with Ireland than those who support continued membership of the U.K.

Corrections & Amplifications The British pound jumped to its highest level against the dollar since May 2018 after Thursday’s exit poll. An earlier version of this article incorrectly stated the level was the highest since 2016. (Dec. 13, 2019)

Write to Paul Hannon at paul.hannon@wsj.com

(END) Dow Jones Newswires

December 13, 2019 07:40 ET (12:40 GMT)

DJ The Daily Shot: Global Stock Markets, the Yuan, U.S. Grains Rally on Trade Deal News

To receive the Daily Shot newsletter in your inbox, please sign up at our Email Center. Previous issues of the Daily Shot are available online at DailyShotWSJ.com.

Have questions, feedback or comments? Contact author Lev.Borodovsky@DowJones.com.

Twitter: @SoberLook

The Daily Shot: 13-Dec-19 • The United States • The United Kingdom • The Eurozone • Europe • Asia - Pacific • China • Emerging Markets • Commodities • Equities • Rates • Global Developments • Food for Thought

1. There appears to be an agreement on an "interim" US-China trade deal, removing the risk of additional tariffs this week.

Source: @WSJ; Read full article

Here is how the markets reacted.

• US stocks:

• Treasury yields:

• The Treasury curve (steepening):

• The dollar (improved risk appetite tends to be a negative for the dollar):

• The yuan:

• US soybeans:

--------------------

2. November producer prices surprised to the downside. Both the headline and the core PPI measures were below market expectations.

Growth in prices of wholesale goods and services has been slowing.

Freight PPI appears to be stabilizing, suggesting that the sector's recession is easing.

Source: @TCosterg

--------------------

3. Once again, there was some confusion about the initial jobless claims data, which showed a spike.

A good portion of this increase was due to the late Thanksgiving holiday, which distorted seasonal adjustments. Below we have the unadjusted data.

Here are the continuing unemployment claims.

1. Early election results show a decisive victory for the Prime Minister's party. With the Tory majority confirmed, the current Brexit deal is now expected to be approved by Parliament.

Source: @WSJ; Read full article

It was not a good day for the Labour Party.

Source: BBC; Read full article

Source: BBC; Read full article

Here are the vote changes vs. 2017.

Source: BBC; Read full article

--------------------

2. With the possibility of a no-deal Brexit supposedly off the table, the pound soared.

• vs. USD:

• vs. EUR:

• Daily changes:

--------------------

3. Stocks, especially banks, are having the best day in years.

1. As expected, the ECB left policy unchanged. In her first press conference as the central bank's president, Christine Lagarde discussed the strategic review that she initiated.

Source: CNBC; Read full article

The ECB statement tone was roughly unchanged from the previous meeting.

Source: Natixis

The ECB doesn't expect to hit its inflation target of 2% even by 2022. Here are the staff projections.

Source: Frederik Ducrozet, Pictet Wealth Management

--------------------

2. The ECB's new TLTRO III program got off to a soft start, with banks showing tepid demand for the first tranche of the cheap loans. But there are five more TLTRO operations to come over the next couple of years, and there will be plenty of opportunities to tap this source of financing.

Source: Frederik Ducrozet, Pictet Wealth Management

Here is the overall TLTRO program maturity profile.

Source: Danske Bank

--------------------

3. Industrial production in the Eurozone remains soft.

But the PMI figures show some stabilization.

Source: Pantheon Macroeconomics

--------------------

4. Here is a long-term chart comparing service and manufacturing PMIs.

Source: Longview Economics

5. This scatterplot shows the price-to-book ratio by sector vs. the return on equity (ROE).

Source: Oxford Economics

1. Sweden's unemployment rate continues to grind higher.

Nordea's employment indicator for Sweden signals slower hiring ahead.

Source: Nordea Markets

Nonetheless, given the upward trend in inflation (see chart), Riksbank is expected to raise rates soon. The market is pricing in about a 50% probability of a hike next week. As a result, the Swedish krona has been strengthening (shown against the euro below).

--------------------

2. Next, we have the year-over-year changes in industrial production across several European economies.

Source: Scotiabank Economics

3. What percentage of senior members of European governments are female?

Source: @ECONdailycharts; Read full article

1. The Tankan survey painted a bleak picture of Japan's manufacturing sector.

Source: Nikkei Asian Review; Read full article

Here is the same index for small manufacturers.

The nation's service sector appears to be stable.

--------------------

2. Asian currencies rallied in response to the US-China trade news.

• The Taiwan dollar:

• The South Korean won:

3. Stocks rose sharply.

4. Australian and New Zealand bonds sold off.

--------------------

4. Singapore's retail sales report was disappointing.

5. This chart shows fintech VC activity across Asia.

Source: @financialtimes; Read full article

1. Stock markets in China and Hong Kong rallied on the back of the US-China interim deal news.

--------------------

2. Global investors have been loading up on Chinese bonds.

Source: BCA Research

3. Private firms (second chart below) are having a tough time issuing bonds.

Source: Gavekal

4. This chart shows the percentage of Chinese industrial firms that are losing money.

Source: @WSJ; Read full article

5. Despite the ongoing protests, Hong Kong remains a capital markets powerhouse.

Source: Fitch Ratings

1. EM currencies (chart below) and stocks (second chart) are rallying.

--------------------

2. Next, we have some updates on South Africa.

• Payrolls:

• Producer prices:

• The budget deficit:

Source: IIF

• Government debt maturity wall:

Source: IIF

• Mining output:

• The South African rand is rallying as global sentiment shifts into "risk-on" mode.

--------------------

3. Here are some charts on India.

• Industrial production (stabilizing?):

• Consumer inflation (increases driven by food prices):

• Limited foreign ownership of debt:

Source: @markets; Read full article

--------------------

4. Turkey's central bank cut rates by 200 bps.

5. So did Ukraine's central bank as inflation moderates.

1. US grains, cotton futures rallied in response to the trade news.

--------------------

2. This chart shows the correlation between gold and the 10yr Treasury yield.

Source: @TaviCosta

3. Fitch maintains its bearish outlook on metal prices into 2020.

Source: Fitch Solutions Macro Research

1. VIX futures are tumbling as market sentiment shifts to "risk-on."

2. Nasdaq finally got its IPO mojo back.

Source: @WSJ; Read full article

3. Next, we have some sector performance updates.

• Banks (responding to the trade deal):

• Energy:

• Tech and semiconductors:

• Industrials:

• Aerospace/defense:

1. Inflation expectations are rebounding.

2. Next, we have some updates on the Treasury market.

• The 10-year Treasury yield could see further upside based on past recoveries from economic slowdowns.

Source: Arbor Research & Trading

• Below are last year's and current forecasts for the 10yr yield.

Source: @WSJ; Read full article

• The 10-year Treasury yield is at short-term resistance after putting in a low in September.

Source: @DantesOutlook

--------------------

3. The Fed has now bought about half of the Treasury securities it shed during the "balance sheet normalization."

According to Deutsche Bank, while the total stock of Treasury bills outstanding is expected to grow, private holdings could shrink drastically in the first half of 2020 as the Fed continues its purchases. This could create a scarcity issue and drive up premiums in the sector.

Source: Deutsche Bank Research

--------------------

4. The demand for the Fed's repo financing remains robust, with balances holding above $200 bn.

And there is more financing coming at the end of the year.

Source: @financialtimes; Read full article

1. The risk-on sentiment in the markets is pressuring the dollar.

Source: @TheTerminal

2. According to Capital Economics, while monetary policy easing has caused financial conditions to loosen around the world, private sector credit growth is still quite subdued.

Source: Capital Economics

3. Rate cuts around the world continue.

Source: Deutsche Bank Research

Source: Oxford Economics

4. Finally, here is an updated forecast for this year's car sales (year-over-year).

Source: Fitch Ratings

--------------------

1. The largest public companies by market value:

Source: @markets; Read full article

2. Tricks used by retailers:

Source: @WSJ; Read full article

3. The share of Americans who moved:

Source: @WSJ; Read full article

4. States with the highest consumer debt delinquency rates:

Source: LendingTree; Read full article

5. The economic impact of terrorism:

Source: Statista

6. The number of individuals/entities sanctioned by the US government:

Source: @WSJ; Read full article

7. Sales of cigarettes:

Source: @_HannahRitchie, @OurWorldInData; Read full article

8. Factors contributing to dementia:

Source: @WSJ; Read full article

9. The environmental impact of different diets:

Source: @TheEconomist; Read full article

10. What do people mean when they say they don't want any gifts for Christmas?

Source: @YouGovUS; Read full article

--------------------

Have a great weekend!

(END) Dow Jones Newswires

December 13, 2019 07:40 ET (12:40 GMT)

DJ Conservative Victory Hits Cocoa Prices in London -- Market Talk

1232 GMT - Boris Johnson's decisive victory in the U.K. election has been good news for traders selling the pound and bad news for those selling cocoa. Benchmark international cocoa prices are set in dollars, but the chocolate ingredient trades in terms of pounds in the U.K. futures market. As a result, London cocoa prices are frequently driven by swings in sterling rather than weather in West Africa or demand from Swiss chocolate-makers. Cocoa is down 1.2% at GBP1,767 a metric ton in London and has fallen 14% over the past month, in which time the pound has gained 4.2% against the dollar. "It's purely on the back of the pound's strength," says a derivatives trader at a European bank. (joe.wallace@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 07:32 ET (12:32 GMT)

DJ Novartis Beovu Eye Disease Drug Nears Marketing Approval With CHMP Recommendation

By Carlo Martuscelli

Novartis AG (NOVN.EB) said Friday that the European Union's Committee for Medicinal Products for Human Use has given a positive opinion on its Beovu medicine as a treatment for wet age-related macular degeneration, bringing it to the verge of market authorization in the bloc.

The committee recommended that the European Commission approve the medicine to treat the eye disease following positive clinical trial results, the Swiss drug maker said.

In most cases a recommendation by the CHMP leads to marketing approval. Novartis said that it expects a decision to be made within three months.

The U.S. Food and Drug Administration approved Beovu for wet AMD in October.

Write to Carlo Martuscelli at carlo.martuscelli@wsj.com; @carlomartu

(END) Dow Jones Newswires

December 13, 2019 07:18 ET (12:18 GMT)

DJ Genentech: Tecentriq/Cotellic/Zelboraf Combo Study Meets Primary Endpoint

By Colin Kellaher

Roche Holdings AG's (ROG.EB) Genentech unit Friday said a phase 3 study of Tecentriq plus Cotellic and Zelboraf met its primary endpoint of progression-free survival in a form of the skin cancer melanoma.

Genentech said the study showed adding Tecentriq to Cotellic and Zelboraf helped to reduce the risk of disease worsening or death in people with previously untreated BRAF V600 mutation-positive advanced melanoma compared to placebo plus Cotellic and Zelboraf.

The company said the safety profile observed in the study was consistent with the known safety profiles of the individual drugs, adding that it plans to discuss the results with health authorities, including the U.S. Food and Drug Administration and European Medicines Agency.

Exelixis Inc. (EXEL) discovered Cotellic and is collaborating on the development of the drug with Genentech as part of a 2006 agreement.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

December 13, 2019 07:07 ET (12:07 GMT)

DJ Bank of England Could Cut Rates in 2020: EY Item Club -- Market Talk

1207 GMT - The Bank of England is likely to keep policy measures unchanged at its Dec. 19 meeting but could cut interest rates in 2020 as inflation looks set to stay below its target, EY Item Club says. There is "clearly a very real possibility" that the BOE could cut rates by 25 basis points to 0.50%, EY Item Club economist Howard Archer says. Inflation "looks likely" to undershoot the Bank's 2.0% target through 2020, thereby facilitating a rate cut, Archer says. If the U.K. economy "fails to show clear signs of picking up" in early 2020, "pressure will clearly mount" on the BOE to trim rates, he says.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 07:07 ET (12:07 GMT)

DJ Market Talk Roundup: Market Assesses Impact of UK -2-

1122 GMT - The FTSE 250 rises to an all-time high of 21,910 after the Conservative Party won by a comfortable majority in Thursday's U.K. general election. Shares in housebuilders Bellway, Bovis Homes and Crest Nicholson, real-estate firm Savills and lenders Virgin Money UK and OneSavings Bank are higher as investors expect the election result to reduce Brexit uncertainty. Transport firms Stagecoach and Go-Ahead gain as the threat of nationalisation under the opposition Labour Party's plans vanishes. "Anything largely exposed to the U.K. economy took off at the open," says Neil Wilson at Markets.com. The U.K.'s second-tier index is last up 904 points at 21,697. (renae.dyer@wsj.com)

1125 GMT - The U.K. could still leave the EU without a deal even after the Conservative Party's election victory reduced uncertainty surrounding the country's plan to leave the bloc, financial adviser DeVere Group says. DeVere says the government must set out firm and unequivocal assurances about avoiding a no-deal Brexit at the end of 2020. "The U.K. could still leave the EU without a deal if trade negotiations aren't concluded in a timely and successful manner," says DeVere Chief Executive Nigel Green. " Another cliff-edge of no-deal Brexit would serve as another hammer blow for investment and economic growth." (philip.waller@wsj.com)

1150 GMT - Sterling falls against the euro and pares gains versus the dollar as the market's excitement over a Conservative majority win in Thursday's U.K. general election fades. The Conservatives should be able to get their Brexit withdrawal agreement through parliament by the end of January but there is "uncertainty still lingering" over the outcome of U.K.-EU trade deal talks that will follow, Ricardo Evangelista at ActivTrades says. EUR/GBP is last up 0.1% on the day to 0.8345 after falling to a three-year low of 0.8277 overnight following an exit poll for the election that showed the Conservatives on course for an outright win. GBP/USD rises 0.1% to 1.3394, having earlier reached 1.3515, its highest level since May 2018.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 07:04 ET (12:04 GMT)

DJ Market Talk Roundup: Market Assesses Impact of UK Election Results

Among U.K. stocks, domestically-focused banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's convincing victory at Thursday's U.K. general election. Sterling gives back its early gains, however, as the market shifts focus to the challenges Prime Minister Boris Johnson will face in negotiation a new trade deal with the European Union. The following is a selection of comments from analysts and asset managers.

0901 GMT - Risk assets such as U.K. corporate bonds are likely to rally as the U.K.'s Conservative party commanded a comfortable majority at Thursday'sgeneral election, says David Zahn, head of European fixed income at Franklin Templeton."Although it was considered the most likely result in the run-up to the poll, we'd expect markets to react favourably," he says. "Risk assets such as corporate bonds will probably rally". (lorena.ruibal@wsj.com; @lorena_rbal)

0941 GMT - British banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's victory in Thursday's U.K. general election, Jefferies says. "Stocks on our buy list include BT Group, Royal Bank of Scotland, Centrica, Persimmon, Greencore, Dart Group, Paragon Banking Group dand Morrison's," Jefferies analyts say in a note. Reduced political uncertainty will supports banks, housebuilders, travel firms and retailers while the removal of the threat of the opposition Labour Party's nationalisation plans offers relief to utility providers, the analysts say. A stronger pound on the election result will hurt British American Tobacco and InterContinental Hotels Group and Rentokil, which all generate a large proportion of revenues in the U.S., they say. (renae.dyer@wsj.com)

0942 GMT - The ruling Conservative party majority at Thursday's U.K. general election is likely to quell Brexit-related uncertainty for no more than a "few months," while other credit challenges remain material, says Sarah Carlson, Moody's Investors Service senior vice president and lead U.K. sovereign analyst. "The U.K.'s other credit challenges, such as heightened fiscal risks and low productivity, will remain material in the absence of significant policy shifts," she says. (lorena.ruibal@wsj.com; @lorena_rbal)

1007 GMT - Sterling will fall back in 2020 as it becomes clear that U.K. Prime Minister Boris Johnson faces a severe challenge in negotiating a trade deal with the European Union in less than a year, says Howard Cunningham, a fixed-income manager at Newton Investment Management. "It's not job done," he tells Dow Jones Newswires. "It's the start of a difficult process. That's why I think gilts might be a better investment [than stocks] next year, because it will be tough." Brexit uncertainty has made businesses reluctant to invest, hampering the U.K. economy, and Cunningham says the Conservative majority is unlikely to encourage companies to spend more money. "Companies are still going to be thinking about where they're going to be in 12 months' time." (joe.wallace@wsj.com)

1008 GMT - Sterling will rise further in the coming months "if there is certainty around the timing and terms of a post-Brexit trade deal," says Neil Dwane, a strategist at Allianz Global Investors. Meanwhile investors in U.K. stocks will be "reassured by the defeat of Jeremy Corbyn's Labour Party," Dwane adds. "Corbyn's policy agenda had spooked markets with the prospect of increased corporate taxes and his proposed renationalization of key utilities and railways." Still, Dwane adds that sterling will come back under pressure if it emerges that the U.K. is on course to sever trade relations with the European Union without an agreement at the end of 2020. The pound is up 0.1% at $1.34, and has risen 2.1% this week. (joe.wallace@wjs.com)

1026 GMT - The pound will remain close to its current highs because the election result gives investors clarity about the next steps in Brexit, says Parisha Saimbi at BNP Paribas. "There is a window of certainty. We know the next steps," she tells Dow Jones Newswires. Traders will now watch whether Boris Johnson makes any major changes to his cabinet, Saimbi says. This will signal whether he might soften his pledge not to extend the transition period beyond the end of 2020, and whether the government might spend more than the Conservatives laid out in their manifesto. "If the transition period is extended that could unleash a bit of catchup in business investment," says Agne Stengeryte, rates strategist at the French bank. (joe.wallace@wsj.com)

1032 GMT - Friday's tepid selloff in the U.K. government bond market is more related to U.S.-China trade deal last night than U.K. Prime Minister Boris Johnson's electoral victory by a landslide, says Chris Jeffery, head of rates and inflation at Legal & General Investment Management (LGIM). "Donald Trump and Xi Jinping probably have more impact on the pricing of U.K. debt than Boris Johnson and Jeremy Corbyn," he says. Rather than in the conventional gilt market, the biggest impact of the election is likely to be seen in the performance of inflation-linked securities. "Given the rally in the pound, and the removal of the risk of a fiscal splurge under Labour, we expect a sharp fall in U.K. breakeven inflation as the day unfolds," he says. The 10-year gilt yield rises 4.1 basis points to 0.866% on the session, according to Tradeweb. Yields rise as prices fall.(lorena.ruibal@wsj.com; @lorena_rbal)

1100 GMT - An end to uncertainty as well as a likely boost from fiscal policy under the Conservative government should mean that the U.K. economy rebounds next year after a few years of "absolute and relative weakness," says Michael Strobaek, global chief investment officer at Credit Suisse. However, the ongoing tail risk of an abrupt end to the transition period could limit the economy's rise. Credit Suisse expects U.K. growth to reach an annualized rate of 2.0% by the end of next year, with the Bank of England remaining on hold in the first half of 2020 until the decision to extend the transition is made. After that, Credit Suisse expects a cautious rate increase in 2H once the rebound in growth materializes. (emese.bartha@wsj.com)

1105 GMT - There's not a lot of scope for sterling to rise further, says Tim Graf, head of macro strategy for EMEA at State Street Global Markets, who sees fair value in GBP/USD at 1.3340 and at 0.8670 per euro. "Sterling is now rich versus the other currencies for the first time since the referendum," he says, adding that fair value could shift a bit more in sterling's favour, as recent strength should have a dampening effect on inflation. "In time, that could move those fair values towards 1.36 and 0.84 respectively", though it seems unlikely given "we are then left with a post-election environment where a harder version of Brexit is possible, perhaps probable," he says. Sterling cuts its overnight loses, with GBP/USD last flat at 1.3383 and EUR/GBP is now up 0.2% at 0.8357. (lorena.ruibal@wsj.com; @lorena_rbal)

1106 GMT - Boris Johnson's U.K. election victory is good news for companies in Europe, says Thilo Brodtmann, executive director at German mechanical engineers association the VDMA. "While we continue to regard the departure of our British friends from the European Union as a mistake and regret it very much, companies can now expect Britain to leave on Jan. 31 2020 in an orderly manner," Brodtmann says. The expected distortions of a hard Brexit are thus initially avoided, however, Brodtmann says the EU and Britain must work on a free-trade agreement to be concluded by the end of the year. Otherwise, uncertainties would resume and that "must be avoided at all costs," Brodtmann says. (maria.martinez@wsj.com)

1111 GMT - Sterling has less scope to rise against the euro than the dollar after the Conservative Party's victory in Thursday's U.K. general election, says Kit Juckes, currency strategist at Societe Generale. EUR/GBP briefly fell to a three-year low of 0.8277 following news that the Conservatives were on course to secure a decisive majority, but it has erased those losses and is last up 0.2% at 0.8356. "Even with the euro's problems, that makes this rally looked stretched," Juckes says. The trade deal negotiations that will begin if U.K. parliament passes the Conservatives EU withdrawal agreement will "provide plenty of uncertainty and the economy's problems won't go away," he says. The euro will be helped by reduced trade and Brexit concerns but that will be offset by eurozone economic weakness, he says. Societe Generale expects EUR/GBP to trade between 0.82 and 0.88 in 2020. (renae.dyer@wsj.com)

1114 GMT - It is a sad moment for Europe and Germany because the option that the United Kingdom could still remain in the European Union is finally off the table after the British election results, Gabriel Felbermayr, president of the Kiel Institute for the World Economy (IfW) says. Felbermayr says the EU will be substantially transformed and Germany will lose an important ally for free trade and the common market. "The withdrawal agreement regulates the Brexit, but not the EU's future relations with the U.K.," Felbermayr says. The IfW highlights the difficulty of a comprehensive agreement and asks the EU Commission to start negotiations on a deep and comprehensive agreement with the U.K. immediately. (maria.martinez@wsj.com)

1118 GMT - Brown Brothers Harriman sees at least "three big consequences" from the the decisive majority win by the Conservatives in the U.K. election. Brexit will now happen by Jan. 31, 2020, while Labour will likely move to the center after its "resounding" defeat. Meanwhile, the Scottish National Party will intepret their victory in Scotland as a mandate for a second referendum, says BBH's currency strategist Ilan Solot. (emese.bartha@wsj.com)

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 07:04 ET (12:04 GMT)

DJ Sarepta Is Soaring and the Stock Market Is Ripping Higher -- Barrons.com
By Al Root

Stocks are ripping higher on Friday the 13th. The confluence of trade and Brexit news are the reasons.

Boris Johnson won a majority of seats in Britain's parliamentary election, clearing the way for a Brexit deal. What's more, U.S. and Chinese trade officials are inching closer to a phase-one trade deal.

Hong Kong's Hang Seng Index is up 2.6% in overseas trading. Europe's FTSE 100 Index is up 1.9%.

U.S. stocks are set to open higher as well. Dow Jones Industrial Average futures are up 0.6%. S&P 500 futures have risen 0.6%. Nasdaq Composite futures are up as well, rising about 0.5%.

Some stocks are making big moves as well.

Sarepta Therapeutics (ticker: SRPT) share are soaring, up almost 35% after the Food & Drug Administration approved a company drug for treating muscular dystrophy.

Royal Bank of Scotland (RBS) share are up a lot too, rising 12.2% in premarket trading. The U.K. election is the catalysts. Boris Johnson's majority means there is far less certainty on Brexit. Now Europe and the U.K. can negotiate an orderly separation.

Stock in Barclays (BCS), another British bank, are up as well, rising 9.4% in premarket trading.

There is some bad news, but not a lot. Costco Wholesale (COST) share are falling after the company reported earnings Thursday evening. Still, the stock is only down 0.8% after results beat Wall Street estimates. Costco shares are up about 46% year to date so invests are just "selling the news," A term Wall Street insiders use to explain what happens when stocks go down on seemingly good news.

Oracle (ORCL) shares are also falling after reporting earnings, down about 2%. Earnings were OK, if not good. The company met guidance and bottom line earnings of 90 cents a share beat Wall Street estimates by a penny. Oracle stock has also had a solid year, up more than 25% year to date as of Thursday's closing price.

Write to Al Root at allen.root@dowjones.com

(END) Dow Jones Newswires

December 13, 2019 07:02 ET (12:02 GMT)

DJ News Highlights: Top Global Markets News of the Day
Stocks Rally as Trade and Brexit Uncertainties Recede

China Offers No Confirmation on U.S. Trade Deal

Can Glampers Pull RV Makers Out of a Ditch?

Investment Bank Gets Aggressive on Cyber Tests

Boris Johnson Secures a Convincing U.K. Election Win

British Pound Surges as Johnson's Conservatives Win U.K. Election

Bond Defaults Reach Once-Safe Corners of Chinese Finance

Trump Agrees to Limited Trade Deal With China

Japan Big Manufacturers' Sentiment Weakest in Nearly Seven Years

Markets Welcome Christine Lagarde's First ECB Policy Meeting

Global stocks rallied as signs of progress in resolving two major overhangs-the U.S.-China trade spat and Brexit-bolstered investors' optimism late in what is already a banner year for markets.

China indicated that a near-term trade agreement with the U.S. has yet to be completed despite President Trump's signoff, highlighting the unpredictability of a negotiation process that has rattled global markets and businesses.

The recreational-vehicle industry is attracting new buyers and digging itself out of an inventory hole, but valuations look oversize.

Finding traditional penetration tests insufficient, investment bank Greenhill hired an outside firm to hack it using nation-state techniques.

British Prime Minister Boris Johnson won a decisive majority in the general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

The British pound rallied as Prime Minister Boris Johnson's Conservative Party secured a solid election victory, setting the stage for a January Brexit.

A commodity trader has become China's first state-owned enterprise to inflict losses on dollar bondholders in two decades, according to S&P Global Ratings, a new landmark in a rising wave of defaults.

President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday as part of a deal to boost Chinese purchases of U.S. farm goods and obtain other concessions, according to people familiar with the matter.

Sentiment among Japan's large manufacturers deteriorated to the weakest level in nearly seven years during the three months to December, a central bank survey showed Friday.

Bank stocks and government bonds reacted positively to Christine Lagarde's first policy decision as President of the ECB, taking their cue from her slightly more optimistic comments about growth in the eurozone.

(END) Dow Jones Newswires

December 13, 2019 07:00 ET (12:00 GMT)

DJ News Highlights: Top Company News of the Day
Ad Giant Dentsu Names Jacki Kelley as CEO of Americas

Delivery Hero Jumps on Woowa Buy

Henkel Hit After Profit Warning

Boeing's MAX Fixes Not Likely to Get FAA Approval Until February

Broadcom Expects Its Earnings to Bounce Back

Japan's Hoya Plans to Acquire NuFlare Technology for $1.35 Bln

Kate Spade CEO Anna Bakst to Depart

FTC Weighs Move Against Facebook Over How Its Apps Interact

'Fortnite' Developer Challenges Google Over App-Store Fees

Federal Reserve Lifts Consent Orders Against JPMorgan, U.S. Bancorp

Dentsu Aegis Network, a unit of Japan's Dentsu, named agency and media veteran Jacki Kelley as chief executive of its Americas operations, succeeding Nick Brien.

Germany's Delivery Hero will buy Woowa Brothers in a deal that values its South Korean rival at $4 billion, the latest move in consolidation in the food-delivery industry.

Shares in Henkel fell sharply after the consumer-products company said it expected lower earnings for fiscal 2020, warning that investments in marketing and IT were weighing on its results.

The global grounding of Boeing's 737 MAX is set to stretch to nearly a year as regulators expressed concern that the U.S. plane maker set unrealistic expectations for the jetliner's return to passenger service.

The chip maker promised an earnings recovery in the current year after the company posted weaker fourth-quarter figures, dented by the protracted U.S. export ban of some items to Chinese telecom giant Huawei.

Hoya Corp. plans to spend 147.72 billion yen to acquire all shares of NuFlare Technology Inc., a maker of semiconductor manufacturing equipment.

Luxury-brands company Tapestry said the head of its Kate Spade brand, Anna Bakst, is leaving at the end of 2019, marking a less than two-year tenure as leader of the struggling brand.

Federal officials are considering seeking a preliminary injunction against Facebook over antitrust concerns related to how its products interact, according to people familiar with the matter.

The creator of "Fortnite" is challenging Google's policy of taking a cut of payments made for app-related purchases at a time when regulators have started scrutinizing those kind of arrangements between tech companies and their vendors.

The Federal Reserve on Thursday lifted consent orders against JPMorgan Chase & Co. and U.S Bancorp stemming from what the central bank identified as weak anti-money laundering controls.

(END) Dow Jones Newswires

December 13, 2019 07:00 ET (12:00 GMT)

DJ News Highlights: Top Energy News of the Day
Oil Rises Amid Risk-On Trading

Energy & Utilities Roundup: Market Talk

EU Pledges to Cut Greenhouse-Gas Emissions to Net-Zero by 2050

Court Rules FirstEnergy Solutions Can't Just Walk Away From Power Contracts

Natural Gas Prices Remain Higher After Supply Data

Elliott Says PG&E-Backed Restructuring Plan Ignores State Mandates

Experts Blame Deadly Vale Dam Collapse on Drainage Problems

German Prosecutors Open Probe Into TÜV SÜD, Which Certified Failed Brazil Dam

Oil Inventories to Rise Despite OPEC Cuts, IEA Says

Aramco Valuation Hits Crown Prince's $2 Trillion Target

Oil prices held moderate gains in Europe at the beginning of what looks to be a day of risk-on activity, as the "trade story takes centre stage, " said ING.

The latest Market Talks covering Energy and Utilities

European Union leaders agreed to cut the bloc's greenhouse-gas emissions to net-zero by 2050, coupling efforts to fight climate change with a massive economic transition poised to test EU unity.

Bankrupt energy companies can't rip up power supply deals without taking the public interest into account, a federal appeals court said, ruling against FirstEnergy Solutions.

Natural gas prices held onto modest gains after government data showed domestic supplies fell by 73 billion cubic feet for the week, roughly in line with what analysts had expected.

Elliott Management Corp. is digging in against a PG&E Corp. shareholder strategy for ending the utility's bankruptcy, saying key demands of California officials wouldn't be satisfied under the proposal.

Vale SA said experts hired by the miner have concluded that drainage problems were largely to blame for the collapse of its dam in January that killed 270 people in Brazil.

Prosecutors in Germany have opened a criminal probe into the role of German safety inspector TÜV SÜD over the January collapse of a mine-waste dam in Brazil that killed 270 people.

Global oil stocks will still rise in the first quarter of 2020 despite attempts by the Organization of the Petroleum Exporting Countries and its allies to balance the market, the International Energy Agency said.

The Saudi government and its wealthiest citizens helped lift Aramco to Saudi Crown Prince Mohammed bin Salman's coveted valuation target of $2 trillion-if only for a few hours.

(END) Dow Jones Newswires

December 13, 2019 07:00 ET (12:00 GMT)

DJ Investors Pour Into U.K. Markets as Election Result Calms Brexit Jitters
By Anna Isaac

A decisive victory for Prime Minister Boris Johnson's Conservative Party in the British election sent investors scrambling to buy U.K. stocks and pushed the pound to its highest level against the dollar since May 2018.

The FTSE 100 index, which tracks the U.K.'s largest companies, rose 1.9%, marking its biggest gain since February. The rally was led by gains in stocks such as house builder Taylor Wimpey PLC and Royal Bank of Scotland Group PLC. The British pound earlier climbed to its highest level since May 2018 before easing slightly to trade at $1.3380 on Friday.

Investors are betting on a significant flow of capital back into the U.K. as Mr. Johnson's resounding electoral win sets the stage for lawmakers to trigger a long-delayed split with the European Union. Britain now appears poised to leave the EU by the end of next month, removing a major uncertainty that has weighed on U.K. businesses and investors' sentiment for more than three years.

"The U.K. market looks very attractive to international investors," in part because the pound is still below historic highs, said Emma Newton, portfolio manager at Newton Investment Management. "It's still relatively cheap and now some of the political uncertainty has been lifted."

Mr. Johnson's win and the easing of uncertainty could lead to a moderate rise in investments by businesses, according to investors and economists. But they also cautioned that the spending would remain limited unless there was swift action to secure the long-term future trade relationship with the EU. Mr. Johnson has said he would secure a new trade deal with the bloc by the end of 2020, when the U.K.'s period of transition out of the EU is up.

Still, the British pound remains below levels it hit before the Brexit referendum in June 2016, when it traded at $1.4807, adding to U.K. assets' attractiveness for foreign investors, Ms. Newton said.

The FTSE 250 equity index, which tracks smaller companies that are more focused on domestic operations, advanced 4.3%, the most in over a year. Finance companies such as Virgin Money UK PLC and OneSavings PLC led that rally.

Utility companies, which had come under pressure in the run-up to Thursday's election as investors took note of the Labour Party's proposal to nationalize some industries, were also among the day's biggest beneficiaries.

Electricity and gas supplier National Grid PLC, water company Severn Trent, telecommunications provider BT Group, and energy supplier Centrica PLC all posted gains.

"The things that are leading the charge are exactly those stocks that were leading the fall after the Brexit referendum," said Daniel McDonagh, head of European portfolios at Nedgroup Investments. "We've been surprised by the immediate relief shown in utilities stocks."

Retailers such as Associated British Foods PLC and apparel-chain Next PLC, as well as companies in the construction business such as Persimmon PLC and Barratt Developments PLC rose.

"Those companies that rely on imports will also see a boost from a strong pound and also from improved sentiment among U.K. consumers as political uncertainty eases," said Edward Park, deputy chief investment officer at BrooksMacdonald. He pointed to the retail sector as well as the home builders, which import materials.

Another even bigger concern for investors would be the terms of a trade deal with the EU for the services sector, which accounts for a lion's share of the U.K. economy, according to Victoria Shaw, an economist at Investec.

"One of the biggest things will be to watch what regulatory and other barriers U.K. services companies will face when trading with the EU," Ms. Shaw said. "That's the major unknown for the U.K. outlook."

Caitlin Ostroff contributed to this article

Write to Anna Isaac at anna.isaac@wsj.com

(END) Dow Jones Newswires

December 13, 2019 06:55 ET (11:55 GMT)

DJ Interbank Foreign Exchange Rates At 06:50 EST / 1150 GMT
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           109.66-67      109.30-31  +0.34   109.71   108.91  +0.07 
EUR/USD Euro            1.1176-79      1.1130-33  +0.41   1.1201   1.1125  -2.55 
GBP/USD U.K.            1.3394-96      1.3163-65  +1.75   1.3515   1.3149  +4.98 
USD/CHF Switzerland     0.9829-33      0.9845-49  -0.16   0.9867   0.9776  +0.15 
USD/CAD Canada          1.3162-67      1.3182-87  -0.15   1.3187   1.3151  -3.49 
AUD/USD Australia       0.6912-16      0.6908-12  +0.06   0.6939   0.6907  -1.96 
NZD/USD New Zealand     0.6614-20     0.6595-601  +0.29   0.6636   0.6595  -1.53 
 
Euro Rates 
 
EUR/JPY Japan           122.56-60      121.66-70  +0.74   122.67   121.17  -2.48 
EUR/GBP U.K.            0.8343-46      0.8451-54  -1.28   0.8459   0.8240  -7.19 
EUR/CHF Switzerland     1.0988-91      1.0960-63  +0.26   1.1035   1.0947  -2.37 
EUR/CAD Canada          1.4709-19      1.4666-76  +0.29   1.4747   1.4656  -5.92 
EUR/AUD Australia       1.6159-69      1.6104-14  +0.34   1.6175   1.6046  -0.61 
EUR/DKK Denmark         7.4728-35      7.4726-33  +0.00   7.4808   7.4623  +0.09 
EUR/NOK Norway        10.0568-618     10.1035-85  -0.46  10.1413  10.0572  +1.52 
EUR/SEK Sweden        10.4348-448    10.4505-605  -0.15  10.4765  10.4368  +2.83 
EUR/CZK Czech Rep.      25.500-30      25.508-38  -0.03   25.531   25.494  -0.76 
EUR/HUF Hungary         328.49-89      329.39-79  -0.27   329.92   328.66  +2.38 
EUR/PLN Poland          4.2725-43      4.2840-58  -0.27   4.2949   4.2721  -0.38 
 
Yen Rates 
 
AUD/JPY Australia        75.81-85       75.51-55  +0.40    75.99    75.39  -1.89 
GBP/JPY U.K.            146.88-94      143.86-92  +2.10   147.96   142.00  +5.02 
CAD/JPY Canada           83.29-33       82.88-92  +0.49    83.39    82.62  +3.67 
NZD/JPY New Zealand      72.53-60       72.08-15  +0.63    72.67    71.89  -1.46 
 
Other Dollar Rates 
 
USD/CZK Czech Rep.      22.802-52      22.905-55  -0.45   22.931   22.789  +1.82 
USD/HUF Hungary       293.78-4.18    295.95-6.35  -0.73   296.28   293.87  +5.00 
USD/DKK Denmark         6.6856-66      6.7130-40  -0.41   6.7137   6.6724  +2.68 
USD/NOK Norway      8.9970-9.0030     9.0761-821  -0.87   9.0791   8.9948  +4.15 
USD/PLN Poland          3.8233-38      3.8500-05  -0.69   3.8505   3.8218  +2.22 
USD/RUB Russia          62.312-82      62.706-76  -0.63   62.759   62.165  -9.96 
USD/SEK Sweden         9.3358-448     9.3888-978  -0.56   9.3972   9.3272  +5.51 
USD/ZAR S. Africa     14.3651-951   14.4823-5123  -0.81  14.5059  14.3680  +0.13 
 
USD/CNY China          6.9794-814     7.0196-216  -0.57   7.0206   6.9611  +1.48 
USD/HKD Hong Kong       7.7931-36      7.8033-38  -0.13   7.8074   7.7915  -0.49 
USD/MYR Malaysia        4.1321-71     4.1575-625  -0.61   4.1601   4.1345  +0.05 
USD/INR India           70.772-92      70.547-67  +0.32   70.865   70.485  +1.74 
USD/IDR Indonesia        13978-92       14018-32  -0.29    14025    13955  -2.75 
USD/PHP Philippines     50.579-99      50.541-61  +0.08   50.641   50.450  -3.64 
USD/SGD Singapore       1.3518-28      1.3536-46  -0.13   1.3546   1.3513  -0.78 
USD/KRW S. Korea     1171.74-3.74   1171.89-3.89  -0.01  1174.88  1168.55  +5.24 
USD/TWD Taiwan         30.191-221      30.222-52  -0.10   30.316   30.155  -1.23 
USD/THB Thailand       30.190-210     30.180-200  +0.03   30.250   30.130  -6.56 
USD/VND Vietnam         23139-209      23140-210   0.00    23200    23168  -0.09 
 
USD/BRL Brazil          4.0901-31     4.0894-924  +0.02   4.0919   4.0880  +5.42 
USD/MXN Mexico     18.9895-9.0195    19.0400-700  -0.27  19.0650  18.9919  -3.28 
USD/ARS Argentina     59.7314-735    59.7047-468  +0.04  59.8254  59.5081 +58.72 
 
Source: Tullett Prebon 
 

(END) Dow Jones Newswires

December 13, 2019 06:50 ET (11:50 GMT)

DJ Pound Turns Lower Vs. Euro as UK Election Relief Rally Fades -- Market Talk

1150 GMT - Sterling falls against the euro and pares gains versus the dollar as the market's excitement over a Conservative majority win in Thursday's U.K. general election fades. The Conservatives should be able to get their Brexit withdrawal agreement through parliament by the end of January but there is "uncertainty still lingering" over the outcome of U.K.-EU trade deal talks that will follow, Ricardo Evangelista at ActivTrades says. EUR/GBP is last up 0.1% on the day to 0.8345 after falling to a three-year low of 0.8277 overnight following an exit poll for the election that showed the Conservatives on course for an outright win. GBP/USD rises 0.1% to 1.3394, having earlier reached 1.3515, its highest level since May 2018.(renae.dyer@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 06:50 ET (11:50 GMT)

DJ UK Election Propels FTSE 250 to Record High
Market News: 
 
FTSE 100           7,410.35 +136.88 +1.88% 
FTSE 250          21,705.44 +912.41 +4.39% 
FTSE AIM All-Share   917.61  +18.28 +2.03%

Top News:

Companies News:

Other News:

Market Talk:

FTSE 250 Hits Record High After UK Election

1122 GMT - The FTSE 250 rises to an all-time high of 21,910 after the Conservative Party won by a comfortable majority in Thursday's U.K. general election. Shares in housebuilders Bellway, Bovis Homes and Crest Nicholson, real-estate firm Savills and lenders Virgin Money UK and OneSavings Bank are higher as investors expect the election result to reduce Brexit uncertainty. Transport firms Stagecoach and Go-Ahead gain as the threat of nationalisation under the opposition Labour Party's plans vanishes. "Anything largely exposed to the U.K. economy took off at the open," says Neil Wilson at Markets.com. The U.K.'s second-tier index is last up 904 points at 21,697.

Boris Johnson Secures a Comfortable U.K. Election Win

British Prime Minister Boris Johnson won a decisive majority in Thursday's general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

---

After Thumping Victory, Boris Johnson Focuses on Swift Brexit, Boost to Public Spending

Fresh from a decisive electoral victory, U.K. Prime Minister Boris Johnson pledged to move quickly to take Britain out of the European Union, while promising to deliver billions of pounds in public spending to consolidate the Conservative Party's once-in-a-generation gains among working-class voters still hurting from the financial crisis.

Anglesey Mining Likely to Seek Extra Funding Through Equity Issue

Anglesey Mining PLC (AYM.LN) said Friday that it will likely seek extra funding through an equity issue to cover cost increases at its project in Wales.

Shell Signs $10 Bln Revolving-Credit Facility

Royal Dutch Shell PLC (RDSA.LN) said Friday that it has signed a $10 billion line of credit which will be linked to the new secured overnight financing rate.

Hollywood Bowl FY 2019 Pretax Profit Rose 15%; FY 2020 Solid

Hollywood Bowl Group PLC (BOWL.LN) on Friday reported a 15% rise in pretax profit for fiscal 2019 and said that it has made a solid start to the current financial year with trading in line with management expectations.

Nakama Group Warns About Restructuring Options After Weak 1H 2020

Nakama Group PLC (NAK.LN) on Friday warned about considering restructuring options after reporting a significantly reduced pretax profit for the first half of fiscal 2020 as well as a tight cash position.

Proactis Holdings Considering a Number of Offer Proposals

Proactis Holdings PLC (PHD.LN) said Friday that it is considering a number of proposals that could potentially lead to final due diligence over a possible bid for the company.

UK CMA to Probe Viagogo's Acquisition of eBay's StubHub Ticketing Business

The U.K. Competition and Markets Authority said Friday that it is considering whether Viagogo Entertainment Inc.'s acquisition of EBay Inc's StubHub ticketing business will lessen competition in any U.K. market.

UK Still Faces No-Deal Brexit Jitters Despite Election Result

1125 GMT - The U.K. could still leave the EU without a deal even after the Conservative Party's election victory reduced uncertainty surrounding the country's plan to leave the bloc, financial adviser DeVere Group says. DeVere says the government must set out firm and unequivocal assurances about avoiding a no-deal Brexit at the end of 2020. "The U.K. could still leave the EU without a deal if trade negotiations aren't concluded in a timely and successful manner," says DeVere Chief Executive Nigel Green. " Another cliff-edge of no-deal Brexit would serve as another hammer blow for investment and economic growth."

UK Election Results Carry Political Consequences: BBH

1118 GMT - Brown Brothers Harriman sees at least "three big consequences" from the the decisive majority win by the Conservatives in the U.K. election. Brexit will now happen by Jan. 31, 2020, while Labour will likely move to the center after its "resounding" defeat. Meanwhile, the Scottish National Party will intepret their victory in Scotland as a mandate for a second referendum, says BBH's currency strategist Ilan Solot.

Pound Unlikely to Rise Further Against Euro: Societe Generale

1111 GMT - Sterling has less scope to rise against the euro than the dollar after the Conservative Party's victory in Thursday's U.K. general election, says Kit Juckes, currency strategist at Societe Generale. EUR/GBP briefly fell to a three-year low of 0.8277 following news that the Conservatives were on course to secure a decisive majority, but it has erased those losses and is last up 0.2% at 0.8356. "Even with the euro's problems, that makes this rally looked stretched," Juckes says. The trade deal negotiations that will begin if U.K. parliament passes the Conservatives EU withdrawal agreement will "provide plenty of uncertainty and the economy's problems won't go away," he says. The euro will be helped by reduced trade and Brexit concerns but that will be offset by eurozone economic weakness, he says. Societe Generale expects EUR/GBP to trade between 0.82 and 0.88 in 2020.

GBP/USD Fair Value at $1.3340 At Present: State Street

1105 GMT - There's not a lot of scope for sterling to rise further, says Tim Graf, head of macro strategy for EMEA at State Street Global Markets, who sees fair value in GBP/USD at 1.3340 and at 0.8670 per euro. "Sterling is now rich versus the other currencies for the first time since the referendum," he says, adding that fair value could shift a bit more in sterling's favour, as recent strength should have a dampening effect on inflation. "In time, that could move those fair values towards 1.36 and 0.84 respectively", though it seems unlikely given "we are then left with a post-election environment where a harder version of Brexit is possible, perhaps probable," he says. Sterling cuts its overnight loses, with GBP/USD last flat at 1.3383 and EUR/GBP is now up 0.2% at 0.8357.

Focus on Makeup of Conservative Government: BNP

1026 GMT - The pound will remain close to its current highs because the election result gives investors clarity about the next steps in Brexit, says Parisha Saimbi at BNP Paribas. "There is a window of certainty. We know the next steps," she tells Dow Jones Newswires. Traders will now watch whether Boris Johnson makes any major changes to his cabinet, Saimbi says. This will signal whether he might soften his pledge not to extend the transition period beyond the end of 2020, and whether the government might spend more than the Conservatives laid out in their manifesto. "If the transition period is extended that could unleash a bit of catchup in business investment," says Agne Stengeryte, rates strategist at the French bank.

Anglo American Shares Fully Valued on 2020 Estimates: Credit Suisse

1020 GMT - Anglo American has been a very strong performer among the large caps, but while the shares are reasonably supported at the current share price, there are fewer good reasons for accumulating the stock, Credit Suisse says. The Swiss bank no longer sees the group's growth outlook as being as strong a driver as earlier this year, downgrading the share rating to neutral from outperform. "Last, we see the shares as fully valued on 2020 estimates with various headwinds through the year that mean earnings momentum should retreat in 2020 compared with 2019," it says. As well as its rating change, Credit Swiss has a target price of 2,170 pence.

Conservative Victory Makes Gilts a 'More Tenable Investment': Newton IM

1013 GMT - The Conservative Party's victory in the U.K. election make government bonds "a more tenable investment," Howard Cunningham of Newton Investment Management says. Cunningham had bet against gilts before a Conservative majority was confirmed, partly because a Labour Party victory would have led to a major increase in government spending for which tax rises alone wouldn't have sufficed, he says. Cunningham is likely to unwind his short position on government bonds early next week, but doesn't think he will buy them outright. A Conservative government is also likely to borrow more since Prime Minister Boris Johnson has ruled out raising the three main taxes, while pressure to spend more on public services rises, Cunningham says.

Sterling to Keep Rising if UK Strikes Trade Deal: Allianz GI

1008 GMT - Sterling will rise further in the coming months "if there is certainty around the timing and terms of a post-Brexit trade deal," says Neil Dwane, a strategist at Allianz Global Investors. Meanwhile investors in U.K. stocks will be "reassured by the defeat of Jeremy Corbyn's Labour Party," Dwane adds. "Corbyn's policy agenda had spooked markets with the prospect of increased corporate taxes and his proposed renationalization of key utilities and railways." Still, Dwane adds that sterling will come back under pressure if it emerges that the U.K. is on course to sever trade relations with the European Union without an agreement at the end of 2020. The pound is up 0.1% at $1.34, and has risen 2.1% this week.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-9319

(END) Dow Jones Newswires

December 13, 2019 06:36 ET (11:36 GMT)

DJ Global Forex and Fixed Income Roundup: Market Talk

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

1135 GMT - The Russian ruble rises against the dollar as the country's central bank cut its benchmark interest rate by 25 basis points to 6.25%, the lower end of market forecasts. The Central Bank of Russia said inflation is falling faster than expected and would consider the necessity of a further rate reduction in the first half of 2020. Some market participants expected a rate cut of 50 basis points. USD/RUB falls 0.9% on the day to 62.3050, down from 62.3605 before the policy announcement. (renae.dyer@wsj.com)

1125 GMT - The U.K. could still leave the EU without a deal even after the Conservative Party's election victory reduced uncertainty surrounding the country's plan to leave the bloc, financial adviser DeVere Group says. DeVere says the government must set out firm and unequivocal assurances about avoiding a no-deal Brexit at the end of 2020. "The U.K. could still leave the EU without a deal if trade negotiations aren't concluded in a timely and successful manner," says DeVere Chief Executive Nigel Green. " Another cliff-edge of no-deal Brexit would serve as another hammer blow for investment and economic growth." (philip.waller@wsj.com)

1118 GMT - Brown Brothers Harriman sees at least "three big consequences" from the the decisive majority win by the Conservatives in the U.K. election. Brexit will now happen by Jan. 31, 2020, while Labour will likely move to the center after its "resounding" defeat. Meanwhile, the Scottish National Party will intepret their victory in Scotland as a mandate for a second referendum, says BBH's currency strategist Ilan Solot. (emese.bartha@wsj.com)

1114 GMT - It is a sad moment for Europe and Germany because the option that the United Kingdom could still remain in the European Union is finally off the table after the British election results, Gabriel Felbermayr, president of the Kiel Institute for the World Economy (IfW) says. Felbermayr says the EU will be substantially transformed and Germany will lose an important ally for free trade and the common market. "The withdrawal agreement regulates the Brexit, but not the EU's future relations with the U.K.," Felbermayr says. The IfW highlights the difficulty of a comprehensive agreement and asks the EU Commission to start negotiations on a deep and comprehensive agreement with the U.K. immediately. (maria.martinez@wsj.com)

1111 GMT - Sterling has less scope to rise against the euro than the dollar after the Conservative Party's victory in Thursday's U.K. general election, says Kit Juckes, currency strategist at Societe Generale. EUR/GBP briefly fell to a three-year low of 0.8277 following news that the Conservatives were on course to secure a decisive majority, but it has erased those losses and is last up 0.2% at 0.8356. "Even with the euro's problems, that makes this rally looked stretched," Juckes says. The trade deal negotiations that will begin if U.K. parliament passes the Conservatives EU withdrawal agreement will "provide plenty of uncertainty and the economy's problems won't go away," he says. The euro will be helped by reduced trade and Brexit concerns but that will be offset by eurozone economic weakness, he says. Societe Generale expects EUR/GBP to trade between 0.82 and 0.88 in 2020. (renae.dyer@wsj.com)

1106 GMT - Boris Johnson's U.K. election victory is good news for companies in Europe, says Thilo Brodtmann, executive director at German mechanical engineers association the VDMA. "While we continue to regard the departure of our British friends from the European Union as a mistake and regret it very much, companies can now expect Britain to leave on Jan. 31 2020 in an orderly manner," Brodtmann says. The expected distortions of a hard Brexit are thus initially avoided, however, Brodtmann says the EU and Britain must work on a free-trade agreement to be concluded by the end of the year. Otherwise, uncertainties would resume and that "must be avoided at all costs," Brodtmann says. (maria.martinez@wsj.com)

1105 GMT - There's not a lot of scope for sterling to rise further, says Tim Graf, head of macro strategy for EMEA at State Street Global Markets, who sees fair value in GBP/USD at 1.3340 and at 0.8670 per euro. "Sterling is now rich versus the other currencies for the first time since the referendum," he says, adding that fair value could shift a bit more in sterling's favour, as recent strength should have a dampening effect on inflation. "In time, that could move those fair values towards 1.36 and 0.84 respectively", though it seems unlikely given "we are then left with a post-election environment where a harder version of Brexit is possible, perhaps probable," he says. Sterling cuts its overnight loses, with GBP/USD last flat at 1.3383 and EUR/GBP is now up 0.2% at 0.8357. (lorena.ruibal@wsj.com; @lorena_rbal)

1100 GMT - An end to uncertainty as well as a likely boost from fiscal policy under the Conservative government should mean that the U.K. economy rebounds next year after a few years of "absolute and relative weakness," says Michael Strobaek, global chief investment officer at Credit Suisse. However, the ongoing tail risk of an abrupt end to the transition period could limit the economy's rise. Credit Suisse expects U.K. growth to reach an annualized rate of 2.0% by the end of next year, with the Bank of England remaining on hold in the first half of 2020 until the decision to extend the transition is made. After that, Credit Suisse expects a cautious rate increase in 2H once the rebound in growth materializes. (emese.bartha@wsj.com)

1042 GMT - The European Central Bank is unlikely to cut the deposit rate--currently at minus 0.50%--any further in 2020, according to Jean-Marie Mercadal, chief investment officer at OFI Asset Management. "We aren't expecting any more rate cuts in the next 12 months," he tells Dow Jones Newswires in an interview, confirming his previous view. With growing consciousness about the adverse effects of negative interest rates, financial markets have mostly priced out a further deposit rate cut by the ECB next year. Nevertheless, there are many market participants with views diverging from the market pricing, who see at least one more 10 basis-point cut. (emese.bartha@wsj.com)

1040 GMT - Russia's Central Bank cut its benchmark interest rate on Friday for the fifth time this year as inflation continues to fall. The bank lowers the rate to 6.25% from 6.5%, in line with expectations. The bank says that inflation is falling faster than expected and risks of a substantial global economic slowdown persist. It says that it will consider the necessity of further key rate reductions in the first half of 2020. The ruble trades higher, with USD/RUB down 0.6% at 62.38. (georgi.kantchev@wsj.com)

1037 GMT - The Conservative Party's win in the U.K. general election is unlikely to remove economic jitters any time soon, says wealth manager Kingswood. The firm points to considerable uncertainty over the scope of any trade deal with the EU, given that trade deals generally take years rather than months to negotiate. Boris Johnson has pledged that the transition period, during which nothing much will change, will end in December 2020 come what may, raising concerns about a potential no-deal exit. Growth also is expected to remain quite sluggish at no more than 1.5% or so. "This all suggests that while the economic outlook has undoubtedly improved, there will be no swift move to the sunlit uplands envisaged by Johnson," says Kingswood's Rupert Thompson. (philip.waller@wsj.com)

1034 GMT - The French pension system is not viable for the future and needs to be overhauled, Berenberg says. The current system is too expensive and unfair as "the panoply of 42 separate systems in the public sector awards costly privileges to some high-earning minorities such as train drivers," the brokerage says. Berenberg believes that French president Emmanuel Macron is on the right track and notes that he doesn't shy away from unpopular reforms. (olivia.bugault@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 06:35 ET (11:35 GMT)

DJ Russian Ruble Rises, Shrugging Off Rate Cut -- Market Talk

1135 GMT - The Russian ruble rises against the dollar as the country's central bank cut its benchmark interest rate by 25 basis points to 6.25%, the lower end of market forecasts. The Central Bank of Russia said inflation is falling faster than expected and would consider the necessity of a further rate reduction in the first half of 2020. Some market participants expected a rate cut of 50 basis points. USD/RUB falls 0.9% on the day to 62.3050, down from 62.3605 before the policy announcement. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 06:35 ET (11:35 GMT)

DJ India Is Slumping, Which Means That It's Time to Shop for Stocks -- Barrons.com
By Craig Mellow

While China's economic problems have hogged the headlines, India has seen the most dramatic slowdown in emerging markets.

Gross domestic product growth has slumped from 8% in mid-2018 to 4.5%, despite the landslide re-election of professedly pro-business prime minister Narendra Modi in May. Stocks have underperformed. The iShares MSCI India exchange-traded fund (ticker: INDA) has eked out a 5% gain this year; global emerging markets are up 12%.

Which means it's time to go shopping for Indian equities, thinks Rohit Chopra, an emerging markets portfolio manager at Lazard Asset Management. "We're overweight India for the first time in a while," he says. "Market jitters are providing opportunity to buy quality businesses with a long runway of growth."

India is passing through a wrenching but probably inevitable transformation from tiny to bigger businesses as communications and physical infrastructure improve, says Saurabh Mukherjea, founder of Marcellus Investment Managers in Mumbai. "It used to be each village had its own oil and flour mill," he observes. "Now big public companies provide those products instead."

The big reforms of Modi's first term accelerated the consolidation process. "Demonetization" crimped access to the cash that mom-and-pop shops ran on. A new goods and services tax overrode a patchwork of local levies, smoothing the environment for national chains. Revamped bankruptcy laws made putting zombie borrowers out of business easier.

India has been feeling the pain of this shifting paradigm as credit tightens and weaker players fold. An extensive shadow banking system finances both consumers and small enterprise has been the epicenter. The collapse of two big non-bank lenders froze funding for the whole sector. But gains should be coming soon, says Gaurav Malik, chief portfolio strategist at State Street Global Advisors. "It feels like the worst is behind us," he says. "I'm enthusiastic."

Indian bank stocks are already signaling recovery. Top private bank ICICI (IBN) has bounced by one-third over the past three months. No. 2 HDFC (HDB) is up more than 20%. But the sector still has room to run, says Aditya Kapoor, portfolio manager for the Ivy Emerging Markets Equity fund. Privately owned banks are gaining market share from state-owned rivals that still control two-thirds of the financial system, and from distressed non-bank lenders. Five rate cuts by the central bank this year, for a total of 1.35 percentage points, won't hurt either. "There are a ton of changes, and well-run private banks are coming out strong," he concludes.

Kapoor sees turnaround potential in Indian telecoms, where the three dominant cell networks lately agreed to a truce in a multiyear price war. Shares in Bharti Airtel (BHARTI.India), are up nearly 20% over the past month, while competitor Vodafone Idea (IDEA.India) has almost doubled. That could be just a start as monthly revenue per user climbs from a lowly $2, Kapoor predicts.

Modi's government, which seemed stunned for a while by the downturn, has sprung into action lately, slashing corporate tax rates from 30% to 22%, with a 15% preferential rate for new manufacturing -- a potential boon for downtrodden stocks in automotive and other industries. Next year could see a long-awaited rollback of byzantine restrictions on buying land. Still, India in the midst of a complex, epic transition is no place to invest passively without doing your homework, Mukherjea warns. "The market is creating a few winners and lots of losers," he says.

Email: editors@barrons.com

(END) Dow Jones Newswires

December 13, 2019 06:29 ET (11:29 GMT)

DJ European Midday Briefing: Resounding Johnson Win, Trade Hopes Rally Markets
European Markets:

American Markets Outlook:

Forex:

=========================== Top Stories:

Other News:

Analysis:

Global News:

European stocks jumped Friday as signs of progress in resolving two major overhangs-the U.S.-China trade spat and Brexit-bolstered investors' optimism late in what is already a banner year for markets.

Investors poured into stocks and sold out of government bonds, figuring that prospects for corporate profits and economic growth were instantly brightened by the developments.

The pan-continental Stoxx Europe 600 rose more than 1%, hitting an all-time high, and eclipsing its previous high water mark in April 2015, more than a year before the Brexit referendum.

In the U.K., the FTSE 100 index rose 1.9% after a resounding election victory for Prime Minister Boris Johnson's Conservative Party raised hopes for a quick divorce from the European Union. The broader FTSE 250 index jumped 4.4%, its biggest jump since May 2010, and scoring a fresh all time high.

"These results really make the U.K. equity markets investible again," said Sue Noffke, head of U.K. equities at Schroders . "Greater political clarity and less uncertainty really does reduce the level of risk for investors. In particular, international investors."

Market sentiment also received a strong boost after President Trump said the U.S. and China were nearing a trade deal. Mr. Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday, The Wall Street Journal reported Thursday.

"The geopolitical risks thought to be strangling world economic growth, incredibly, just in the last 24 hours, seem to be closer to getting resolved in a big, big way," said Chris Rupkey, chief financial economist at MUFG. "The outlook in 2020 looks better than it has in months."

The U.K.'s benchmark 10-year gilt yield rose to 0.855%, the highest since mid-June, having closed at 0.820% on Thursday and could edge above 0.9% said TD Securities, following the U.K. election results. Eurozone government bond yields also rallied, pushing the 10-year German Bund yield up to a six-month high of -0.223%.

In commodity markets, Brent crude oil reached its highest price since the aftermath of the attack on Saudi Arabian oil facilities in September. The global benchmark was up 1.5% at $65.19 a barrel.

Despite the risk-on tone of global markets, gold was up 0.3% at $1,475.90 a troy ounce, as the dollar-priced precious metal was supported by a weaker dollar.

Futures linked to the Dow Jones Industrial Average climbed 0.5% on Friday. That comes a day after the index for blue-chip stocks gained 0.8% on trade hopes.

U.S. government bond yields, which soared Thursday, eased back slightly in European trading. The yield on the 10-year Treasury note was last at 1.889% after jumping to 1.901% on Thursday. Thursday's gains was the 10-year yield's largest single-session climb since the day following the 2016 U.S. presidential election.

Investors were also awaiting U.S. retail sales data for November. Economists are expecting a rise of 0.5% compared with October. Consumer spending has provided a key boost to the U.S. economy this year and today's data will show if the trend continued last month.

The dollar was broadly lower in European trading, with the U.S. Dollar Index down 0.6% at 96.86. A U.S.-China trade deal, Britain's possible orderly exit from the EU, and looser monetary policy in the U.S. and Europe together set the stage for a "decent selloff" in the dollar, said Mansoor Mohi-uddin, senior macro strategist at NatWest Markets.

The British pound rallied sharply immediately after the release of an exit poll that indicated a strong majority for Prime Minister Boris Johnson's Conservatives in the next parliament following the election.

The pound surged to its highest level since May 2018, hitting $1.3515. It last stood at $1.3380.

"It's not just that he's got a majority it's that he's got a sizable majority," said Peter Kinsella, global head of foreign exchange strategy at Swiss private bank UBP. "That indicates we're going to get a swift ratification of the Brexit agreement."

Mr. Mohi-uddin, at NatWest Markets, said an orderly Brexit and certainty in U.K.-EU relations would draw central banks and other longer-term money managers back into British assets, helping sterling rally to $1.40 to $1.45 in the next few months.

The euro also strengthened against the dollar, buying $1.1178, as Mr. Johnson's victory was seen as likely to bring some near-term certainty to the U.K.'s exit from the European Union. The Brexit process has dogged the region with uncertainty for more than three years.

Boris Johnson Secures a Convincing U.K. Election Win

British Prime Minister Boris Johnson won a decisive majority in Thursday's general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

---

Delivery Hero Jumps on Woowa Deal

Germany's Delivery Hero will buy Woowa Brothers in a deal that values its South Korean rival at $4 billion, the latest move in consolidation in the food-delivery industry.

---

Henkel Hit After Profit Warning

Shares in Henkel fell sharply after the consumer-products company said it expected lower earnings for fiscal 2020, warning that investments in marketing and IT were weighing on its results.

Scotland's Voters Take a Different Path From England's

Boris Johnson's big victory on Thursday had little to do with Scottish voters, who will likely be pushing for another independence referendum now that the promise of Brexit has been reaffirmed.

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EU Pledges to Cut Greenhouse-Gas Emissions to Net-Zero by 2050

European Union leaders agreed to cut the bloc's greenhouse-gas emissions to net-zero by 2050, coupling efforts to fight climate change with a massive economic transition poised to test EU unity.

In U.K. as Elsewhere, Many Blue-Collar Voters Are Switching Allegiances

Boris Johnson's victory in Thursday's British elections was propelled by a striking shift in voter allegiances that mirrors a realignment seen in the U.S. and elsewhere in the West.

China Offers No Confirmation on U.S. Trade Deal

China indicated that a near-term trade agreement with the U.S. has yet to be completed despite President Trump's signoff, highlighting the unpredictability of a negotiation process that has rattled global markets and businesses.

---

Saudis Seek to Ease Tensions With Iran

EXCLUSIVE: Saudi Arabia is quietly trying to mend fences with Iran as the kingdom seeks to avoid heightened risks to its oil-dependent economy. The September attack on its oil facilities, says one Saudi official, "was a game-changer."

---

House Judiciary Committee Delays Its Vote on Articles of Impeachment

House Judiciary Committee Chairman Jerrold Nadler halted a marathon drafting session on two articles of impeachment against President Trump, calling for the session to resume Friday morning with votes.

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Giuliani Intensifies Push for Ukraine Probes

Rudy Giuliani is escalating his push for Ukraine to conduct investigations, undeterred by federal prosecutors probing his business dealings and an impeachment inquiry into his client, President Trump.

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Buttigieg Touts Progressive Economic Plan

Pete Buttigieg has leapt to the top tier of Democratic presidential candidates by touting himself as a moderate alternative, but his economic platform still embraces an expanded role for government and a shift to the left.

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Bipartisan Spending Deal Reached

Top lawmakers said they reached a tentative agreement on federal government spending, giving Congress and the White House about a week to approve the particulars before funding runs out after Dec. 20.

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New Zealand Recovers Six Bodies as Volcano Threatens to Erupt Again

The New Zealand military hurried to retrieve bodies early Friday from a volcano that scientists say has a significant chance of erupting again.

Write to william.horner@wsj.com

(END) Dow Jones Newswires

December 13, 2019 06:27 ET (11:27 GMT)

DJ UK CMA to Probe Viagogo's Acquisition of eBay's StubHub Ticketing Business
By Ian Walker

The U.K. Competition and Markets Authority said Friday that it is considering whether Viagogo Entertainment Inc.'s acquisition of EBay Inc's (EBAY) StubHub ticketing business will lessen competition in any U.K. market.

The regulator said that it is inviting comments from interested parties on their views by Jan. 10 before it makes a decision whether to proceed with a formal review of the deal.

EBay said last month that it had reached a deal to sell StubHub to Swiss ticket reseller Viagogo for $4.05 billion in cash. StubHub, one of the most popular platforms to buy and sell tickets to concerts, sports and other events, accounted for about 14% of the company's revenue in the third quarter.

Geneva-based Viagogo is an online marketplace for the resale of live sports, music and entertainment tickets. While both companies engage in ticket resale, Viagogo is a significant player internationally, while StubHub is mostly present in the U.S.

The deal is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.

Write to Ian Walker at ian.walker@wsj.com; @IanWalk40289749

(END) Dow Jones Newswires

December 13, 2019 06:25 ET (11:25 GMT)

DJ UK Election Results Carry Political Consequences: BBH -- Market Talk

1118 GMT - Brown Brothers Harriman sees at least "three big consequences" from the the decisive majority win by the Conservatives in the U.K. election. Brexit will now happen by Jan. 31, 2020, while Labour will likely move to the center after its "resounding" defeat. Meanwhile, the Scottish National Party will intepret their victory in Scotland as a mandate for a second referendum, says BBH's currency strategist Ilan Solot. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 06:18 ET (11:18 GMT)

DJ Shell Signs $10 Bln Revolving-Credit Facility
By Adriano Marchese

Royal Dutch Shell PLC (RDSA.LN) said Friday that it has signed a $10 billion line of credit which will be linked to the new secured overnight financing rate.

The Anglo-Dutch oil company said that the new line of credit will replace its current $8.84 billion revolving credit facility, and is signed in anticipation of the cessation of the London interbank offered rate.

The company also said that the interest and fees paid on the facility will be linked to the company's progress towards reaching its short-term net carbon footprint intensity target.

Shell has begun an initiative to reduce net carbon footprint of the energy product it sells which it says is in step with society as it moves toward meeting the aims of the Paris Agreement.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

December 13, 2019 06:17 ET (11:17 GMT)

DJ Pound Unlikely to Rise Further Against Euro: Societe Generale -- Market Talk

1111 GMT - Sterling has less scope to rise against the euro than the dollar after the Conservative Party's victory in Thursday's U.K. general election, says Kit Juckes, currency strategist at Societe Generale. EUR/GBP briefly fell to a three-year low of 0.8277 following news that the Conservatives were on course to secure a decisive majority, but it has erased those losses and is last up 0.2% at 0.8356. "Even with the euro's problems, that makes this rally looked stretched," Juckes says. The trade deal negotiations that will begin if U.K. parliament passes the Conservatives EU withdrawal agreement will "provide plenty of uncertainty and the economy's problems won't go away," he says. The euro will be helped by reduced trade and Brexit concerns but that will be offset by eurozone economic weakness, he says. Societe Generale expects EUR/GBP to trade between 0.82 and 0.88 in 2020. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 06:11 ET (11:11 GMT)

DJ China Offers No Confirmation on U.S. Trade Deal

BEIJING—China indicated that a near-term trade agreement with the U.S. has yet to be completed despite President Trump’s signoff, highlighting the unpredictability of a negotiation process that has rattled global markets and businesses.

Mr. Trump on Thursday approved a so-called phase-one trade pact that will scale back existing tariffs on Chinese imports and eliminate new levies scheduled to take effect on Sunday, in exchange for a written pledge from Beijing to buy tens of billions of dollars worth of U.S. farm products, among other concessions.

While Mr. Trump was “upbeat and enthusiastic about this breakthrough,” in the words of Michael Pillsbury, an adviser to the president during the trade talks, the mood in Beijing has been decidedly more sober.

None of China’s state-owned media outlets or economic agencies involved in the trade negotiations made any public statement on Friday about the deal endorsed by Mr. Trump. At a regular news briefing, Foreign Ministry spokeswoman Hua Chunying referred only to how news of the agreement helped fuel a surge in U.S. and European stocks. It also lifted Chinese shares. Pointedly, Ms. Hua didn’t confirm the existence of a deal.

Instead, she hewed to the line that Beijing has maintained throughout the nearly two-year trade battle with the Trump administration: “Any agreement must be mutually beneficial.”

The muted reaction from Beijing underscores uncertainty over whether the two sides can get to the finish line and produce a deal capable of withstanding intense political blowback both in Washington and Beijing.

President Trump, for instance, is vulnerable to criticism from China hawks who have advocated a hardened stance toward Beijing. Chinese President Xi Jinping, meanwhile, faces an increasingly tricky balancing act of his own, as he seeks to stabilize a wobbly bilateral relationship without appearing to give in to U.S. pressure.

Ensuring what senior leaders have described as a “balanced” agreement has been a priority for Chinese negotiators throughout the process. Beijing walked away from a nearly completed deal in early May because the leadership felt that the text of the agreement was too lopsided in Washington’s favor. That led the Trump administration to ramp up its trade war with China, putting a drag on the world economy.

Though Beijing sees the benefit in wrapping up a deal as quickly as possible this time around, it still wants to ensure that China doesn’t appear to have been pressured into making all the concessions. The perception of a one-sided agreement could subject Mr. Xi to criticism from within the ruling Communist Party and other parts of the society, Chinese officials fear.

“The U.S. side talks too much, and that’s the American style,” said Mei Xinyu, a trade analyst at a think tank affiliated with China’s Commerce Ministry. “If there is an agreement, both sides will have to make an official announcement. Without that, anything is possible.”

Having taken control over all the levers of power in China, Mr. Xi has staked his credibility and popularity in large part on his image as someone willing and able to stand up to foreign pressure. During the protracted trade battle with Washington, Chinese officials say, he has consistently directed his lieutenants to strike back at tariff increases imposed by the Trump administration.

Following the collapse of trade talks earlier this year, Chinese state media was also instructed to speak out aggressively against what was described as American hegemony.

By the time U.S. and Chinese negotiators renewed discussions in October with the near-term goal of reaching a limited deal centered around agricultural trade, officials say, Mr. Xi was eager to strike a deal to help alleviate pressure on the Chinese economy, which faces a variety of challenges. Yet he hasn’t given up his desire to claim victory.

A U.S. proposal made in the past week, reported by The Wall Street Journal early Thursday, appeared to offer an opportunity for both leaders to walk away with a win. Under the proposal, Washington would slash existing tariffs by as much as half on roughly $360 billion worth of China-made goods, in addition to canceling fresh tariffs on $156 billion in Chinese goods that Mr. Trump had scheduled to kick in on Sunday.

In return, China would guarantee purchases of large quantities of American merchandise, especially soybeans, poultry and other farm products. The U.S. side would also have the right to bump tariff rates back up to their original levels again should China fail to carry out its pledges as part of the deal.

It is unclear how the trade deal approved by President Trump might differ from that offer, since the White House hasn’t disclosed details on the agreement. Mr. Pillsbury, the Trump adviser, said Thursday that the deal calls for China to buy $50 billion worth of U.S. agricultural goods in 2020, along with energy and other products. In exchange, he said, the U.S. would reduce the tariff rates on many Chinese imports, which now range from 15% to 25%. He confirmed that the deal would include a so-called “snapback” provision that would restore the original tariff rates if Beijing fails to make the agreed-upon purchases.

During recent discussions, however, Chinese negotiators have been reluctant to commit to the promised purchases of U.S. goods and have instead insisted on a clause that would allow China to reimpose tariffs on U.S. products should Washington fail to follow through on its tariff-reduction promises.

“The U.S. side often complains that China doesn’t follow through on its promises,” said one Beijing official involved in economic policy making. “Well, we don’t always trust them, either.”

Write to Lingling Wei at lingling.wei@wsj.com

(END) Dow Jones Newswires

December 13, 2019 06:10 ET (11:10 GMT)

DJ Power Corp: Desmarais Family to Retain Control >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:09 ET (11:09 GMT)

DJ Power Corp, Power Financial To Redeem an C$350M of First Preferred Shares With Available Cash >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:08 ET (11:08 GMT)

DJ Power Corp To Increase Quarterly Dividend by 10% to C$0.4475 >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:08 ET (11:08 GMT)

DJ Power Corp Names Power Financial's R. Jeffrey Orr President, CEO >POW.T

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December 13, 2019 06:06 ET (11:06 GMT)

DJ Power Corp: Paul Desmarais Jr., Andre Desmarais to Retire as Co-CEOs >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:06 ET (11:06 GMT)

DJ Sprout Social IPO Prices at Midpoint of Expected Range >SPT

By Colin Kellaher

Social-media manager Sprout Social Inc. (SPT) said its initial public offering of 8.82 million shares was priced at $17 apiece, the midpoint of the expected range of $16 to $18.

The Chicago company, backed by Goldman Sachs Group Inc. (GS), New Enterprise Associates and Lightbank, said its shares will begin trading Friday on the Nasdaq Capital Market.

Sprout, which has granted the underwriters an option to buy an additional 1.32 million shares, previously said a $17-a-share pricing would yield net proceeds of about $134.9 million, or $155.8 million if the underwriters exercise their overallotment option.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

December 13, 2019 06:05 ET (11:05 GMT)

DJ Power Corp Plans Significant Near-Term Operating Cost Reductions >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:05 ET (11:05 GMT)

DJ GBP/USD Fair Value at $1.3340 At Present: State Street -- Market Talk

1105 GMT - There's not a lot of scope for sterling to rise further, says Tim Graf, head of macro strategy for EMEA at State Street Global Markets, who sees fair value in GBP/USD at 1.3340 and at 0.8670 per euro. "Sterling is now rich versus the other currencies for the first time since the referendum," he says, adding that fair value could shift a bit more in sterling's favour, as recent strength should have a dampening effect on inflation. "In time, that could move those fair values towards 1.36 and 0.84 respectively", though it seems unlikely given "we are then left with a post-election environment where a harder version of Brexit is possible, perhaps probable," he says. Sterling cuts its overnight loses, with GBP/USD last flat at 1.3383 and EUR/GBP is now up 0.2% at 0.8357. (lorena.ruibal@wsj.com; @lorena_rbal)

(END) Dow Jones Newswires

December 13, 2019 06:05 ET (11:05 GMT)

DJ Power Financial Minority Holders Also to Receive C$0.01/Share in Cash >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:04 ET (11:04 GMT)

DJ Power to Issue 1.05 Shares for Each Power Financial Share Held by Minority Holders

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:04 ET (11:04 GMT)

DJ Power Financial Minority Holders to Receive Power Corp. Shares >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:03 ET (11:03 GMT)

DJ Shell: New Facility Linked to New Secured Overnight Financing Rate

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 06:02 ET (11:02 GMT)

DJ Shell: New Facility Replaces Existing $8.84 Bln Credit Facility

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 06:02 ET (11:02 GMT)

WSJ Wealth Adviser Briefing: Bond Yields, Grocery Warehouses, Wealth Tax

JPMorgan Chase is taking a bigger swing at wealth management, revamping its business units in an effort to better compete with big-bank rivals such as Morgan Stanley. The bank is creating a unit that will combine its U.S. wealth-management operations for affluent clients and the Chase branch network's financial-advisory business, according to a memo reviewed by The Wall Street Journal.

Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.

PLANNING & INVESTING

Bond-Yield Forecasters Disagree on 2020 After 2019 Surprise: Investors are split about the direction of government-bond yields in 2020, a sign of confusion about the course of the economy and monetary policy.

MARKET TALK

From Dow Jones Newswires

Asia has trumped Continental Europe as an attractive location for cross-border investing among US private-equity and venture-capital firms, according to a survey of 200 firms conducted by midmarket financial advisory firm BDO USA. Among private-equity firms surveyed, 30% cited Asia and Southeast Asia as the most attractive region for cross-border investment, up from 27% of firms in a similar survey a year ago. By contrast, only 16% of firms surveyed cited Continental Europe as most attractive, down from 45% of firms in last year's survey. "Besides China, you have upticks in places like Korea, Vietnam and other [Asian countries]," said Scott Hendon, co-leader of global private equity at BDO USA. "We see a bit of dampening on some of the China stuff with the tariffs, but the overall market in Asia has bigger upside than the European or Latin American markets." (laura.kreutzer@wsj.com; @LauraKreutzer)

UBS assumed coverage of GE with a buy rating, encouraging clients to buy the stock ahead of 2020 when the firm predicts better understanding of a turnaround and the company's cash drags turning into cash flows. The stock, with a $14 price target, should continue to perform "as the narrative on the stock shifts from survival to transformation." UBS sees 2020 free cash flow of $2.3B excluding the biopharma business it is selling, compared to an estimate of $700M this year including $1.3B coming from biopharma. UBS sees 2022 cash flow of $5B-$6B. Shares rise 3.6% premarket to $11.36. (thomas.gryta@wsj.com; @tgryta)

BUSINESS & PRACTICE

Safeway Owner, Rival Grocers Bet on Smaller Warehouses: Food retailers are making big bets on small warehouses to bulk up their growing delivery businesses, as supermarkets try different approaches to get groceries to customers more efficiently.

IMPACT INVESTING

European Green Deal Calls for Taxes on Transport and Energy: Fossil-fuel and transport companies could end up paying tens of billions more in taxes under the European Green Deal, a package of proposals to fight climate change.

TALKING POINTS

Warren Wealth Tax Would Raise Nearly 30% Less Than Projected, Study Finds: Elizabeth Warren's wealth tax would raise $2.7 trillion over a decade, $1.1 trillion short of her presidential campaign's estimates, according to a new analysis from the Penn-Wharton Budget Model.

TRAVEL & LIFESTYLE

New Ways to Battle Procrastination: As digital distractions proliferate, psychologists are coming up with new strategies -- and early studies show promise.

ADVISER CALENDAR

- The Search For Returns: Niche Investment Strategies/ Dec. 16/ NYC

- National LINC/ Jan. 29-31/ Orlando, FL

- Large Firm Forum/ Feb. 11-13/ Scottsdale, AZ

- CEO Investor Forum/ Feb. 24/ NYC

ABOUT US

The Wealth Adviser Briefing covers topics of interest to wealth managers, financial planners and other advisers. The content is curated by the Dow Jones Newswires team using articles from the Newswires, Barron's, MarketWatch and The Wall Street Journal. The briefing is delivered to subscribers by email each workday morning at 6:30 a.m. ET. You can sign up here for email delivery.

For more information about our services for financial professionals, please visit DowJones.com

We welcome feedback. Please email newsletters@dowjones.com or contact Dwight Oestricher at dwight.oestricher@wsj.com

(END) Dow Jones Newswires

December 13, 2019 06:02 ET (11:02 GMT)

DJ Power Corp To Eliminate Dual-Holding Company Structure >POW.T

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:02 ET (11:02 GMT)

DJ Shell Signs Innovative $10 Bln Revolving Credit Facility

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 06:01 ET (11:01 GMT)

DJ Power Corp., Power Financial Announce Reorganization, Simplified Corporate Structure and Refocused Strategy

(MORE TO FOLLOW) Dow Jones Newswires (212-416-2800)

December 13, 2019 06:00 ET (11:00 GMT)

DJ UK Economy Set to Rebound After End of Uncertainty: Credit Suisse -- Market Talk

1100 GMT - An end to uncertainty as well as a likely boost from fiscal policy under the Conservative government should mean that the U.K. economy rebounds next year after a few years of "absolute and relative weakness," says Michael Strobaek, global chief investment officer at Credit Suisse. However, the ongoing tail risk of an abrupt end to the transition period could limit the economy's rise. Credit Suisse expects U.K. growth to reach an annualized rate of 2.0% by the end of next year, with the Bank of England remaining on hold in the first half of 2020 until the decision to extend the transition is made. After that, Credit Suisse expects a cautious rate increase in 2H once the rebound in growth materializes. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 06:00 ET (11:00 GMT)

DJ Walgreens, AbbVie, and 3 Other Dividend Aristocrat Stocks That Have Lagged the Market This Year -- Barrons.com
By Lawrence C. Strauss

The S&P 500 Dividend Aristocrats -- the companies which have raised their dividends for at least 25 straight years -- are known for their durability, especially in a difficult market.

For example, in last year's tumultuous fourth quarter, with the S&P 500 down 13.5%, the Aristocrats fell 8.6%.

2019 has hardly been tough for stocks, with the S&P 500 having returned about 26%.

Still, not all of the 56 Aristocrats have fared that well this year.

The worst five performers through Dec. 6 were Walgreens Boots Alliance (ticker: WBA), 3M (MMM), Franklin Resources (BEN), AbbVie (ABBV), and Clorox (CLX).

Earlier this week, Barron's wrote about the top-performing Aristocrats in 2019 led by Target (TGT). The Aristocrats as a whole gained 25.8% over that stretch, slightly behind the S&P 500's 26.4%.

Walgreens Boots Alliance, whose assets include drugstores in the U.S. and Europe, finished last among the Aristocrats, down 14.2% year to date. Its earnings have been flattish amid concerns about heightened competition from online retailers. Another worry is pressure on reimbursements from pharmacy-benefit managers, HMOs, and other third parties that pay for prescription drugs.

Walgreens is expected to earn $5.93 a share in its current fiscal year, which ends in August, down from $5.99 a share in its previous fiscal year, according to FactSet. The stock yields 3.1%.

Another laggard has been 3M, which makes variety of consumer, safety and industrial products. That includes sandpaper, adhesives, and window insulation kits, among many other products across various business lines.

The stock, which was down 10% this year through Dec. 6, yields 3.4%. In a note following the release of the company's third-quarter earnings, Morningstar analyst Joshua Aguilar wrote that "organic growth continues to slow." Other hurdles for the company, he added, include the recent weakness in the automotive, semiconductor, and Chinese markets.

Asset manager Franklin Resources also fared poorly, down 9%. It and other firms that have a lot of actively managed funds have had to contend with the surge of passive investing, notably index funds.

The firm reported that as of Nov. 30, its assets under management totaled $691.3 billion. The asset total declined slightly from Oct. 31 as net outflows offset market gains of underlying fund holdings.

The stock yields 4.1%.

AbbVie, a large pharmaceutical firm, also lagged behind, down 5.7% -- though the stock has performed better recently. In early November, the company reported adjusted quarterly earnings of $2.33 a share, beating the consensus by 3 cents, according to FactSet. The company also raised its earnings forecast for all of 2019.

The stock yields 5.4%.

The company is heavily dependent on its blockbuster drug Humira. In an effort to diversify its business, AbbVie said in June that it would buy Allergan (AGN).

Clorox, which yields 2.8%, has lost about 1.5% so far this year.

The company makes many consumer and professional products. They include Pine-Sol Cleaners, Liquid-Plumr, and products sold under the CloroxPro label.

CFRA Research, however, expects the company's organic sales to increase by 1% in fiscal 2020, which ends next June, and to face margin pressure. The consensus earnings estimate for fiscal 2020 is $6.15 a share, down from the $6.32 it earned in its previous fiscal year, according to FactSet.

Write to Lawrence C. Strauss at lawrence.strauss@barrons.com

(END) Dow Jones Newswires

December 13, 2019 05:59 ET (10:59 GMT)

DJ Interbank Foreign Exchange Rates At 05:50 EST / 1050 GMT
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           109.69-70      109.30-31  +0.36   109.71   108.91  +0.09 
EUR/USD Euro            1.1178-81      1.1130-33  +0.43   1.1201   1.1125  -2.53 
GBP/USD U.K.            1.3380-82      1.3163-65  +1.65   1.3515   1.3149  +4.87 
USD/CHF Switzerland     0.9836-40      0.9845-49  -0.09   0.9867   0.9776  +0.22 
USD/CAD Canada          1.3154-59      1.3182-87  -0.21   1.3187   1.3151  -3.55 
AUD/USD Australia       0.6913-17      0.6908-12  +0.07   0.6939   0.6907  -1.94 
NZD/USD New Zealand     0.6615-21     0.6595-601  +0.30   0.6636   0.6595  -1.52 
 
Euro Rates 
 
EUR/JPY Japan           122.61-65      121.66-70  +0.78   122.66   121.17  -2.44 
EUR/GBP U.K.            0.8353-56      0.8451-54  -1.16   0.8459   0.8240  -7.07 
EUR/CHF Switzerland   1.0997-1000      1.0960-63  +0.34   1.1035   1.0947  -2.29 
EUR/CAD Canada          1.4702-12      1.4666-76  +0.25   1.4747   1.4656  -5.97 
EUR/AUD Australia       1.6159-69      1.6104-14  +0.34   1.6172   1.6046  -0.61 
EUR/DKK Denmark         7.4727-34      7.4726-33  +0.00   7.4808   7.4623  +0.09 
EUR/NOK Norway         10.0602-52     10.1035-85  -0.43  10.1413  10.0626  +1.56 
EUR/SEK Sweden        10.4365-465    10.4505-605  -0.13  10.4765  10.4370  +2.85 
EUR/CZK Czech Rep.      25.504-34      25.508-38  -0.02   25.531   25.494  -0.75 
EUR/HUF Hungary       328.76-9.16      329.39-79  -0.19   329.92   328.67  +2.47 
EUR/PLN Poland          4.2772-90      4.2840-58  -0.16   4.2949   4.2721  -0.27 
 
Yen Rates 
 
AUD/JPY Australia        75.84-88       75.51-55  +0.44    75.99    75.39  -1.85 
GBP/JPY U.K.            146.74-80      143.86-92  +2.00   147.96   142.00  +4.92 
CAD/JPY Canada           83.36-39       82.88-92  +0.57    83.38    82.62  +3.75 
NZD/JPY New Zealand      72.56-63       72.08-15  +0.66    72.67    71.89  -1.42 
 
Other Dollar Rates 
 
USD/CZK Czech Rep.      22.802-52      22.905-55  -0.45   22.931   22.789  +1.82 
USD/HUF Hungary         294.08-48      295.95-06  -0.63   296.28   293.91  +5.10 
USD/DKK Denmark         6.6843-53      6.7130-40  -0.43   6.7137   6.6724  +2.66 
USD/NOK Norway      8.9986-9.0046     9.0761-821  -0.85   9.0791   9.0012  +4.17 
USD/PLN Poland          3.8261-66      3.8500-05  -0.62   3.8505   3.8218  +2.29 
USD/RUB Russia         62.189-259      62.706-76  -0.82   62.759   62.224 -10.14 
USD/SEK Sweden         9.3357-447     9.3888-978  -0.57   9.3972   9.3272  +5.51 
USD/ZAR S. Africa    14.3795-4095   14.4823-5123  -0.71  14.5059  14.3680  +0.23 
 
USD/CNY China           6.9779-99     7.0196-216  -0.59   7.0206   6.9611  +1.46 
USD/HKD Hong Kong       7.7976-81      7.8033-38  -0.07   7.8074   7.7975  -0.43 
USD/MYR Malaysia        4.1321-71     4.1575-625  -0.61   4.1601   4.1345  +0.05 
USD/INR India           70.770-80      70.547-67  +0.31   70.805   70.485  +1.73 
USD/IDR Indonesia        13978-92       14018-32  -0.29    14025    13955  -2.75 
USD/PHP Philippines     50.561-81      50.541-61  +0.04   50.641   50.450  -3.67 
USD/SGD Singapore       1.3520-30      1.3536-46  -0.12   1.3546   1.3513  -0.76 
USD/KRW S. Korea    1169.50-71.50   1171.89-3.89  -0.20  1174.88  1168.55  +5.04 
USD/TWD Taiwan          30.219-49      30.222-52  -0.01   30.316   30.155  -1.13 
USD/THB Thailand       30.190-210     30.180-200  +0.03   30.250   30.130  -6.56 
USD/VND Vietnam         23139-209      23140-210   0.00    23200    23168  -0.09 
 
USD/BRL Brazil         4.0895-925     4.0894-924  +0.00   4.0919   4.0880  +5.40 
USD/MXN Mexico     18.9923-9.0223    19.0400-700  -0.25  19.0650  18.9955  -3.27 
USD/ARS Argentina     59.7368-789    59.7047-468  +0.05  59.8254  59.5081 +58.73 
 
Source: Tullett Prebon 
 

(END) Dow Jones Newswires

December 13, 2019 05:50 ET (10:50 GMT)

DJ N American Morning Briefing: Analyst Ratings Changes

Agree Realty Raised to Buy From Neutral by Citigroup

Amneal Pharmaceuticals Cut to Market Perform From Outperform by Raymond James

Ansys Cut to Underweight From Neutral by JP Morgan

Apollo Global Management Cut to Neutral From Buy by UBS

Autodesk Cut to Underweight From Neutral by JP Morgan

Carlyle Group Cut to Neutral From Buy by UBS

Caterpillar Cut to Hold From Buy by Standpoint Research

Charles Schwab Raised to Buy From Neutral by Compass Point

Children's Place Cut to Neutral From Outperform by Wedbush

Children's Place Cut to Underperform From Neutral by Bank of America

FedEx Raised to Neutral From Sell by UBS

FormFactor Cut to Hold From Buy by Needham

General Electric Raised to Buy From Neutral by UBS

Glaukos Cut to Underweight From Overweight by Wells Fargo

Globus Medical Raised to Overweight From Equal-Weight by Wells Fargo

Healthcare Realty Raised to Buy From Neutral by Citigroup

Home Depot Cut to Accumulate From Buy by Gordon Haskett

Home Depot Raised to Outperform From Neutral by Credit Suisse

Kroger Raised to Outperform From In-Line by Evercore ISI Group

Mednax Raised to Buy From Hold by Stifel

Merit Medical Cut to Underweight From Equal-Weight by Wells Fargo

Miragen Therapeutics Cut to Neutral From Outperform by Baird

Model N Raised to Overweight From Neutral by JP Morgan

Oceaneering Raised to Outperform From In-Line by Evercore ISI Group

Physicians Realty Trust Raised to Buy From Neutral by Citigroup

Realty Income Raised to Buy From Neutral by Citigroup

Regency Centers Cut to Neutral From Buy by Citigroup

SeaSpine Holdings Cut to Underweight From Overweight by Wells Fargo

Shockwave Medical Raised to Overweight From Equal-Weight by Wells Fargo

Starbucks Raised to Overweight From Neutral by JP Morgan

Synopsys Raised to Overweight From Neutral by JP Morgan

UDR Inc Raised to Buy From Neutral by Citigroup

Unity Biotechnology Coverage Assumed by Cantor Fitzgerald at Overweight

VICI Properties Raised to Buy From Neutral by Citigroup

Weingarten Raised to Buy From Neutral by Citigroup

West Pharma Cut to Underperform From Neutral by Bank of America

(END) Dow Jones Newswires

December 13, 2019 05:45 ET (10:45 GMT)

DJ N American Morning Briefing: Canada Outlook

Earnings:

- No major earnings

---

Economic Indicators:

- 0830 October new motor vehicle sales

---

Company News:

Valeura Energy Sees Consistent Gas Flow Rates at Turkey Well

Valeura Energy Inc. (VLE.T) said Friday that production testing at its Devepinar-1 well in Turkey yielded gas flow rates similar to the results from previous tests, and that it is now interpreting the results.

---

Other News:

Bank of Canada Chief Comfortable With Country's Interest Rate Policy

Bank of Canada Governor Stephen Poloz reiterated his comfort with rate policy and the state of the country's economy on Thursday, suggesting he won't be dissuaded by a single month of disappointing jobs data.

The central bank's relatively upbeat outlook about the economy and its resilience persuaded officials last week to keep the main policy interest rate unchanged at 1.75%. That decision came under heavy scrutiny from some prominent Canadian market watchers after the employment report for November showed the economy shed over 71,000 jobs in the month. The unemployment rate surged to 5.9% from 5.5%.

"We don't normally put a lot of weight on individual data points, especially in the labor market report," Mr. Poloz said when asked about the November data. He said jobs data can be volatile, but a trend toward higher participation rates and lower unemployment rates mean that, on average, "we're at a nice spot in the labor market."

---

Omers Taps Chief Pension Officer as Next CEO

The Ontario Municipal Employees Retirement System has named Blake Hutcheson as its new chief executive. He will take the position next year when Michael Latimer steps down.

---

Market Talk:

Canada Stocks Post Small Gains

Canadian stocks rose Thursday, helped by shares of cannabis companies, energy firms and Canadian banks. The benchmark S&P/TSX Composite Index rose slightly to 16946. The blue-chip S&P/TSX 60 Index rose 0.2% to 1012. Aphria gained 7.6% and Aurora Cannabis climbed 6.8%. In addition, shares of Empire fell 9.3% after the company reported 2Q results earlier in the day.

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 05:45 ET (10:45 GMT)

DJ N American Morning Briefing: Resounding Boris Johnson Win Lifts Brexit Cloud
INVITATION TO NEWSPLUS TRAINING

DJIA 28266.00 136.00 0.48% S&P 500 3185.00 14.00 0.44% Nasdaq 100 8537.50 46.00 0.54% As of 5.21am FTSE 100 7387.55 114.08 1.57% Xetra DAX 13403.08 181.44 1.37% CAC40 5958.26 74.00 1.26% As of 5.25am Nikkei 24023.10 598.29 2.55% Shanghai 2967.68 51.98 1.78% Hang Seng 27687.76 693.62 2.57% As of 5.25am Snapshot:

Opening Call:

Equities:

Forex:

Bonds:

Commodities:

Top Stories Of The Day:

Get the most out of NewsPlus, Dow Jones's premier real-time news platform. Product experts will host a 30-minute, online session to give financial professionals insider tips on using NewsPlus. The session will be held at 12 p.m. ET on Tuesday, Dec. 17, 2019. Register here: https://attendee.gototraining.com/r/58402060580886273

-Stock futures higher; EUR/USD 1.1177-80; 10-year Treasury yield 1.895%; Nymex $59.75; gold $1475.30

-Watch for: Monthly retail & food services sales; import & export Price Indexes; manufacturing & trade inventories; Fed's Williams speaks at Borough of Manhattan Community College; President Trump meets Paraguayan President Mario Abdo Benitez; no earnings expected

Stock futures were higher Friday as signs of progress in resolving two major overhangs--the U.S.-China trade spat and Brexit--bolstered investors' risk appetite late in what is already a banner year for markets.

Global markets were sharply higher on the combination of easing geopolitical risks. In Europe, the Stoxx Europe 600 was up 1.7%--hitting an all-time high--with regional gains strongest among U.K. listed companies. In Asia, benchmark indexes put in strong performances, with Japan's Nikkei 225 on pace for one of its best days of the year after rising 2.6%.

In the U.K., the FTSE 100 index rose 1.7% after a resounding election victory for Prime Minister Boris Johnson's Conservative Party raised hopes for a quick divorce from the European Union. The broader FTSE 250 index jumped 4.5%, its biggest jump since May 2010, and scoring a fresh all time high.

"These results really make the U.K. equity markets investable again," said Sue Noffke, head of U.K. equities at Schroders. "Greater political clarity and less uncertainty really does reduce the level of risk for investors. In particular, international investors."

Market sentiment also received a strong boost after President Trump said the U.S. and China were nearing a trade deal. Mr. Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday, The Wall Street Journal reported Thursday.

"The geopolitical risks thought to be strangling world economic growth, incredibly, just in the last 24 hours, seem to be closer to getting resolved in a big, big way," said Chris Rupkey, chief financial economist at MUFG. "The outlook in 2020 looks better than it has in months."

The grounding of Boeing's 737 MAX is bound to stretch to nearly a year as U.S. regulators chided the plane maker for its slow delivery of information and warned it against setting unrealistic expectations for the jetliner's return to service.

The FAA is expected to approve fixes to a MAX flight-control system and related pilot training no sooner than February, about two months beyond what Boeing recently envisioned, according to people familiar with the matter. That means the troubled airliner might not carry passengers in the U.S. until the spring, with resumption of service in Europe and elsewhere likely coming weeks afterward.

---

Broadcom promised an earnings recovery in the current financial year after the chip maker posted weaker fourth-quarter figures, dented by the protracted U.S. export ban of some items to Huawei.

Broadcom said per-share earnings fell to $1.97 in the final quarter of the year ended Nov. 3, compared with $2.64 a year earlier. The more closely watched adjusted earnings, which strip out some one-time items, fell 8% to $5.39 a share, in line with expectations from analysts surveyed by FactSet.

The company gave an upbeat sales forecast for the financial year that began last month, after reporting $5.78 billion in revenue for its most recent quarter. Analysts had expected $5.77 billion. The company projected growth of about 10% to roughly $25 billion, compared with 8% sales growth in the year just ended.

---

Oracle said it won't replace its late co-CEO, Mark Hurd, leaving Safra Catz as the sole top executive leading the software giant after years of operating with an unusual, two-chief structure.

In the company's first earnings report since Mr. Hurd's death in October, Oracle founder and Chairman Larry Ellison described the two-CEO setup as unusual and not something Oracle is looking to repeat.

The company reported $9.61 billion in revenue for the quarter ended Nov. 30, missing analysts' projected $9.65 billion, according to FactSet. Profit for the second quarter rose to $2.31 billion, or 69 cents a share. Excluding stock-based compensation and other items, profit rose to 90 cents a year, from 80 cents a share a year earlier.

---

An affiliate of John Malone's Liberty Media is seeking Justice Department permission to buy a larger piece of iHeartMedia, according to people familiar with the matter, a deal that would put the nation's largest radio broadcaster under the same corporate umbrella as the leading concert promoter and satellite-radio giant SiriusXM.

Liberty owns a 4.8% stake in iHeart through Liberty SiriusXM Group; the deal now under consideration could give it control or outright ownership of the broadcaster, according to people familiar with the matter.

The government is considering the request, the people said, with one of them cautioning that Liberty hasn't decided what kind of transaction it would proceed with, if any, should it receive permission.

The dollar was broadly lower in European trading, with the U.S. Dollar Index down 0.6% at 96.86. A U.S.-China trade deal, Britain's possible orderly exit from the EU, and looser monetary policy in the U.S. and Europe together set the stage for a "decent selloff" in the dollar, said Mansoor Mohi-uddin, senior macro strategist at NatWest Markets.

The British pound rallied sharply immediately after the release of an exit poll that indicated a strong majority for Prime Minister Boris Johnson's Conservatives in the next parliament following the election.

The pound surged to its highest level since May 2018, hitting $1.3515. It last stood at $1.3407.

"It's not just that he's got a majority it's that he's got a sizable majority," said Peter Kinsella, global head of foreign exchange strategy at Swiss private bank UBP. "That indicates we're going to get a swift ratification of the Brexit agreement."

The euro also strengthened against the dollar, buying $1.1177, as Mr. Johnson's victory was seen as likely to bring some near-term certainty to the U.K.'s exit from the European Union. The Brexit process has dogged the region with uncertainty for more than three years.

U.S. government bond yields, which soared Thursday on trade deal hopes, eased back slightly in the global session.

The yield on the 10-year Treasury note was last at 1.895% after jumping to 1.901% on Thursday, from 1.786% Wednesday. Thursday's gains was the 10-year yield's largest single-session climb since the day following the 2016 U.S. presidential election.

The U.K.'s benchmark 10-year gilt yield rose to 0.855%, the highest since mid-June, having closed at 0.820% on Thursday and could edge above 0.9% said TD Securities, following the U.K. election results.

Eurozone government bond yields also rallied, pushing the 10-year German Bund yield up to a six-month high of -0.223%.

Brent crude oil reached its highest price since the aftermath of the attack on Saudi Arabian oil facilities in September.

The global benchmark was up 1.2% at $64.99 a barrel and WTI futures were up 1% at $59.75 a barrel.

Despite the risk-on tone of global markets, gold was up 0.2% at $1,475.30 a troy ounce, as the dollar-priced precious metal was supported by the greenback's decline.

House Judiciary Committee Delays Its Vote on Articles of Impeachment

House Judiciary Committee Chairman Jerrold Nadler halted a marathon drafting session on two articles of impeachment against President Trump, calling for the session to resume Friday morning with votes.

---

Scotland's Voters Take a Different Path From England's

Boris Johnson's big victory on Thursday had little to do with Scottish voters, who will likely be pushing for another independence referendum now that the promise of Brexit has been reaffirmed.

---

Saudis Seek to Ease Tensions With Iran

EXCLUSIVE: Saudi Arabia is quietly trying to mend fences with Iran as the kingdom seeks to avoid heightened risks to its oil-dependent economy. The September attack on its oil facilities, says one Saudi official, "was a game-changer."

---

Slow VA Payments Left Veterans Facing Collection Agencies

EXCLUSIVE: A whistleblower at the Department of Veterans Affairs spurred an investigation that found hundreds of millions of dollars in improper travel claims and a deeply flawed system used when veterans seek care outside the VA, according to an internal VA investigation made public Thursday by the Office of Special Counsel.

Write to william.horner@wsj.com

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 05:45 ET (10:45 GMT)

DJ Russia Cuts Benchmark Rate to 6.25% from 6.5% -- Market Talk

1040 GMT - Russia's Central Bank cut its benchmark interest rate on Friday for the fifth time this year as inflation continues to fall. The bank lowers the rate to 6.25% from 6.5%, in line with expectations. The bank says that inflation is falling faster than expected and risks of a substantial global economic slowdown persist. It says that it will consider the necessity of further key rate reductions in the first half of 2020. The ruble trades higher, with USD/RUB down 0.6% at 62.38. (georgi.kantchev@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 05:40 ET (10:40 GMT)

DJ Global Forex and Fixed Income Roundup: Market Talk

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

1037 GMT - The Conservative Party's win in the U.K. general election is unlikely to remove economic jitters any time soon, says wealth manager Kingswood. The firm points to considerable uncertainty over the scope of any trade deal with the EU, given that trade deals generally take years rather than months to negotiate. Boris Johnson has pledged that the transition period, during which nothing much will change, will end in December 2020 come what may, raising concerns about a potential no-deal exit. Growth also is expected to remain quite sluggish at no more than 1.5% or so. "This all suggests that while the economic outlook has undoubtedly improved, there will be no swift move to the sunlit uplands envisaged by Johnson," says Kingswood's Rupert Thompson. (philip.waller@wsj.com)

1034 GMT - The French pension system is not viable for the future and needs to be overhauled, Berenberg says. The current system is too expensive and unfair as "the panoply of 42 separate systems in the public sector awards costly privileges to some high-earning minorities such as train drivers," the brokerage says. Berenberg believes that French president Emmanuel Macron is on the right track and notes that he doesn't shy away from unpopular reforms. (olivia.bugault@wsj.com)

1032 GMT - Friday's tepid selloff in the U.K. government bond market is more related to U.S.-China trade deal last night than U.K. Prime Minister Boris Johnson's electoral victory by a landslide, says Chris Jeffery, head of rates and inflation at Legal & General Investment Management (LGIM). "Donald Trump and Xi Jinping probably have more impact on the pricing of U.K. debt than Boris Johnson and Jeremy Corbyn," he says. Rather than in the conventional gilt market, the biggest impact of the election is likely to be seen in the performance of inflation-linked securities. "Given the rally in the pound, and the removal of the risk of a fiscal splurge under Labour, we expect a sharp fall in U.K. breakeven inflation as the day unfolds," he says. The 10-year gilt yield rises 4.1 basis points to 0.866% on the session, according to Tradeweb. Yields rise as prices fall.(lorena.ruibal@wsj.com; @lorena_rbal)

1026 GMT - The pound will remain close to its current highs because the election result gives investors clarity about the next steps in Brexit, says Parisha Saimbi at BNP Paribas. "There is a window of certainty. We know the next steps," she tells Dow Jones Newswires. Traders will now watch whether Boris Johnson makes any major changes to his cabinet, Saimbi says. This will signal whether he might soften his pledge not to extend the transition period beyond the end of 2020, and whether the government might spend more than the Conservatives laid out in their manifesto. "If the transition period is extended that could unleash a bit of catchup in business investment," says Agne Stengeryte, rates strategist at the French bank. (joe.wallace@wsj.com)

1013 GMT - The Conservative Party's victory in the U.K. election make government bonds "a more tenable investment," Howard Cunningham of Newton Investment Management says. Cunningham had bet against gilts before a Conservative majority was confirmed, partly because a Labour Party victory would have led to a major increase in government spending for which tax rises alone wouldn't have sufficed, he says. Cunningham is likely to unwind his short position on government bonds early next week, but doesn't think he will buy them outright. A Conservative government is also likely to borrow more since Prime Minister Boris Johnson has ruled out raising the three main taxes, while pressure to spend more on public services rises, Cunningham says. (joe.wallace@wsj.com)

1008 GMT - Sterling will rise further in the coming months "if there is certainty around the timing and terms of a post-Brexit trade deal," says Neil Dwane, a strategist at Allianz Global Investors. Meanwhile investors in U.K. stocks will be "reassured by the defeat of Jeremy Corbyn's Labour Party," Dwane adds. "Corbyn's policy agenda had spooked markets with the prospect of increased corporate taxes and his proposed renationalization of key utilities and railways." Still, Dwane adds that sterling will come back under pressure if it emerges that the U.K. is on course to sever trade relations with the European Union without an agreement at the end of 2020. The pound is up 0.1% at $1.34, and has risen 2.1% this week. (joe.wallace@wjs.com)

1007 GMT - Sterling will fall back in 2020 as it becomes clear that U.K. Prime Minister Boris Johnson faces a severe challenge in negotiating a trade deal with the European Union in less than a year, says Howard Cunningham, a fixed-income manager at Newton Investment Management. "It's not job done," he tells Dow Jones Newswires. "It's the start of a difficult process. That's why I think gilts might be a better investment [than stocks] next year, because it will be tough." Brexit uncertainty has made businesses reluctant to invest, hampering the U.K. economy, and Cunningham says the Conservative majority is unlikely to encourage companies to spend more money. "Companies are still going to be thinking about where they're going to be in 12 months' time." (joe.wallace@wsj.com)

0956 GMT - German Bund yields are expected to trade in a narrow range over the course of 2020, according to BNP Paribas Markets 360. The valuation model points to a fair value of -0.42% for the German 10-year Bund yield, which based on fundamentals is expected to stabilize between -0.45% and -0.40% in the first quarter, says BNPP's head of European rates strategy Camille de Courcel. "Persistent uncertainly from trade negotiations, Brexit and spillover effects from the US are likely to weigh on valuations: we see the 10-year Bund yield returning to -0.50% in 1Q," she says. Outlook for the rest of 2020 suggests a limited rise, and BNPP sees a return to -0.30% by the end of 2020. The 10-year Bund yield trades at -0.245%, according to Tradeweb. (emese.bartha@wsj.com)

0942 GMT - The ruling Conservative party majority at Thursday's U.K. general election is likely to quell Brexit-related uncertainty for no more than a "few months," while other credit challenges remain material, says Sarah Carlson, Moody's Investors Service senior vice president and lead U.K. sovereign analyst. "The U.K.'s other credit challenges, such as heightened fiscal risks and low productivity, will remain material in the absence of significant policy shifts," she says. (lorena.ruibal@wsj.com; @lorena_rbal)

0941 GMT - British banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's victory in Thursday's U.K. general election, Jefferies says. "Stocks on our buy list include BT Group, Royal Bank of Scotland, Centrica, Persimmon, Greencore, Dart Group, Paragon Banking Group dand Morrison's," Jefferies analyts say in a note. Reduced political uncertainty will supports banks, housebuilders, travel firms and retailers while the removal of the threat of the opposition Labour Party's nationalisation plans offers relief to utility providers, the analysts say. A stronger pound on the election result will hurt British American Tobacco and InterContinental Hotels Group and Rentokil, which all generate a large proportion of revenues in the U.S., they say. (renae.dyer@wsj.com)

0901 GMT - Risk assets such as U.K. corporate bonds are likely to rally as the U.K.'s Conservative party commanded a comfortable majority at Thursday'sgeneral election, says David Zahn, head of European fixed income at Franklin Templeton."Although it was considered the most likely result in the run-up to the poll, we'd expect markets to react favourably," he says. "Risk assets such as corporate bonds will probably rally". (lorena.ruibal@wsj.com; @lorena_rbal)

0859 GMT - The re-pricing of U.K. inflation expectations has already begun after sterling rose sharply on a Conservative majority win at Thursday's election, but HSBC's U.K. rates strategist Daniela Russell expects a further decline in the breakeven rate, or the difference between the yield of a nominal bond and an inflation-linked bond of the same maturity. "The inflation market immediately needs to adjust to the overnight moves in sterling so we expect to see a sharp knee-jerk fall in breakevens," she says. "With cable [GBP/USD] back to the highest level since May 2018, inflation valuations are gradually edging back towards the trading regime which prevailed before the EU referendum in 2016." (lorena.ruibal@wsj.com; @lorena_rbal)

(END) Dow Jones Newswires

December 13, 2019 05:37 ET (10:37 GMT)

DJ Global Equities Roundup: Market Talk

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

1037 GMT - The Conservative Party's win in the U.K. general election is unlikely to remove economic jitters any time soon, says wealth manager Kingswood. The firm points to considerable uncertainty over the scope of any trade deal with the EU, given that trade deals generally take years rather than months to negotiate. Boris Johnson has pledged that the transition period, during which nothing much will change, will end in December 2020 come what may, raising concerns about a potential no-deal exit. Growth also is expected to remain quite sluggish at no more than 1.5% or so. "This all suggests that while the economic outlook has undoubtedly improved, there will be no swift move to the sunlit uplands envisaged by Johnson," says Kingswood's Rupert Thompson. (philip.waller@wsj.com)

1034 GMT - The French pension system is not viable for the future and needs to be overhauled, Berenberg says. The current system is too expensive and unfair as "the panoply of 42 separate systems in the public sector awards costly privileges to some high-earning minorities such as train drivers," the brokerage says. Berenberg believes that French president Emmanuel Macron is on the right track and notes that he doesn't shy away from unpopular reforms. (olivia.bugault@wsj.com)

1020 GMT - Anglo American has been a very strong performer among the large caps, but while the shares are reasonably supported at the current share price, there are fewer good reasons for accumulating the stock, Credit Suisse says. The Swiss bank no longer sees the group's growth outlook as being as strong a driver as earlier this year, downgrading the share rating to neutral from outperform. "Last, we see the shares as fully valued on 2020 estimates with various headwinds through the year that mean earnings momentum should retreat in 2020 compared with 2019," it says. As well as its rating change, Credit Swiss has a target price of 2,170 pence. (adriano.marchese@wsj.com)

1009 GMT - Singapore shares ended the session higher, as momentum returned to Asian markets amid growing clarity on U.S.-China trade relations and Brexit. The FTSE Straits Times Index closed 0.6% higher at 3214.05. Tech suppliers led the rise, with Venture Corp. climbing 3.8% to become the top gainer on the index. Peers such as Hi-P International and AEM Holdings advanced 2.0% and 1.6%, respectively. Heavyweight banks provided the market with further support, as United Overseas Bank gained 2.1%, DBS Group rose 1.3% and Oversea-Chinese Banking Corp. added 1.1%. (yifan.wang@wsj.com)

1008 GMT - Sterling will rise further in the coming months "if there is certainty around the timing and terms of a post-Brexit trade deal," says Neil Dwane, a strategist at Allianz Global Investors. Meanwhile investors in U.K. stocks will be "reassured by the defeat of Jeremy Corbyn's Labour Party," Dwane adds. "Corbyn's policy agenda had spooked markets with the prospect of increased corporate taxes and his proposed renationalization of key utilities and railways." Still, Dwane adds that sterling will come back under pressure if it emerges that the U.K. is on course to sever trade relations with the European Union without an agreement at the end of 2020. The pound is up 0.1% at $1.34, and has risen 2.1% this week. (joe.wallace@wjs.com)

1002 GMT - Malaysia's benchmark index closed higher following an overnight surge in U.S. stocks on hopes for an imminent U.S.-China trade deal. The Kuala Lumpur Composite Index added 0.2% to 1571.16, eking out a narrow gain for the week. The index was lifted by Petronas Gas, which rose 3.3%, continuing its gains after state-linked oil-and-gas company Petronas announced its block sale of shares in the company this week. Chemical-processor Petronas Chemicals Group also added 2.4%. Malaysia Airports was the top loser, sliding 4.3%. (ben.otto@wsj.com; @benottoWSJ)

0952 GMT - Altice's deal with Morgan Stanley Infrastructure Partners to create a fiber wholesale business in Portugal is good, says Bryan Garnier. The Amsterdam-listed telecoms company's subsidiary, Altice Portugal FTTH, should reach roughly 5.3 million homes post-2019 and 6 million businesses, Bryan Garnier says, with a valuation per home ranging from EUR770 to EUR875, which surpasses the EUR680 paid in France. "This very good valuation can be [partly explained] by the fact that the Portuguese network is mostly already built, whereas the French network was mostly to be built when the transaction was made," Bryan Garnier says. Altice shares trade 4.5% higher at EUR5.57. (mauro.orru@wsj.com)

0941 GMT - British banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's victory in Thursday's U.K. general election, Jefferies says. "Stocks on our buy list include BT Group, Royal Bank of Scotland, Centrica, Persimmon, Greencore, Dart Group, Paragon Banking Group dand Morrison's," Jefferies analyts say in a note. Reduced political uncertainty will supports banks, housebuilders, travel firms and retailers while the removal of the threat of the opposition Labour Party's nationalisation plans offers relief to utility providers, the analysts say. A stronger pound on the election result will hurt British American Tobacco and InterContinental Hotels Group and Rentokil, which all generate a large proportion of revenues in the U.S., they say. (renae.dyer@wsj.com)

0926 GMT - Informa's recent share-price weakness makes its valuation attractive for a core long-term media sector holding, Shore Capital says, as the investment group ups the stock to buy from hold. The U.K. events and academic-publishing group has a substantial portfolio of more than 900 events across a well-diversified range of sectors and geographic markets and should deliver despite uncertainty on the U.K.'s trading arrangements after Brexit, Shore Capital says. Revenue in the events industry is expected to grow ahead of GDP growth and Informa is well placed to participate in future consolidation, Shore Capital says. Shares rise 2.3%. (adria.calatayud@dowjones.com)

0923 GMT - Astra International's shares should rise on the $1.3 billion sale of its stake in Bank Permata, Trimegah Securities says, estimating that the transaction will provide an addition of IDR6.73 trillion to its 2020 net profit, equivalent to 2.5% of the Indonesian conglomerate's market capitalization. That will give the company more room to make investments as it seeks to reduce exposure in auto-related businesses, the brokerage says. Trimegah maintains a buy rating with a target price of IDR8,000. Shares were last up 4.2% to IDR6,825, paring back year-to-date losses to 17%. (ben.otto@wsj.com; @benottoWSJ)

0913 GMT - Hollywood Bowl remains as a core holding in the sector after "another tremendous year" for the company, Shore Capital says. The U.K. bowling operator's results were better than expected, with a positive outlook ahead as it increases its pretax profit forecast for fiscal 2020 by 600,000 pounds ($792,030) to GBP28.3 million, and for fiscal 2021 by GBP400,000 to GBP29.8 million, Shore Capital says. Shares are up 6.0% at 249.00 pence. (sabela.ojea@wsj.com; @sabelaojeaguix)

0904 GMT - Medco Energi Internasional is initiated at buy by UOB Kay Hian with a target price of IDR1,100, thanks to a full integration of Ophir Energy next year. UOB Kay Hian expects the company's net income to grow 47% on year to $63 million in 2020 following the integration, and predicts Ebitda to rise 10% to $653 million next year. An existing cost-recovery program and stable gas prices provide the company with a premium valuation over regional oil-and-gas firms, UOB Kay Hian says. Shares are 4.8% higher at IDR870. (Ronnie.Harui@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 05:37 ET (10:37 GMT)

DJ Conservative Poll Victory Unlikely to Lift UK Economic Clouds -- Market Talk

1037 GMT - The Conservative Party's win in the U.K. general election is unlikely to remove economic jitters any time soon, says wealth manager Kingswood. The firm points to considerable uncertainty over the scope of any trade deal with the EU, given that trade deals generally take years rather than months to negotiate. Boris Johnson has pledged that the transition period, during which nothing much will change, will end in December 2020 come what may, raising concerns about a potential no-deal exit. Growth also is expected to remain quite sluggish at no more than 1.5% or so. "This all suggests that while the economic outlook has undoubtedly improved, there will be no swift move to the sunlit uplands envisaged by Johnson," says Kingswood's Rupert Thompson. (philip.waller@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 05:37 ET (10:37 GMT)

DJ Investors May Take on More Risks Near Term: OFI AM

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 05:37 ET (10:37 GMT)

DJ Focus on Makeup of Conservative Government: BNP -- Market Talk

1026 GMT - The pound will remain close to its current highs because the election result gives investors clarity about the next steps in Brexit, says Parisha Saimbi at BNP Paribas. "There is a window of certainty. We know the next steps," she tells Dow Jones Newswires. Traders will now watch whether Boris Johnson makes any major changes to his cabinet, Saimbi says. This will signal whether he might soften his pledge not to extend the transition period beyond the end of 2020, and whether the government might spend more than the Conservatives laid out in their manifesto. "If the transition period is extended that could unleash a bit of catchup in business investment," says Agne Stengeryte, rates strategist at the French bank. (joe.wallace@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 05:26 ET (10:26 GMT)

DJ Bond Defaults Reach Once-Safe Corners of Chinese Finance

A commodity trader has become China’s first state-owned enterprise to inflict losses on dollar bondholders in two decades, according to S&P Global Ratings, a new landmark in a rising wave of defaults.

Chinese authorities are allowing more companies to renege on their debts, where once they would have found ways to engineer bailouts. So far defaults have mostly been concentrated in credit-starved private companies, but even some groups with state backing are now failing to repay creditors as promised.

This week Tewoo Group Co., a commodity trader owned by the municipal government of the northern city of Tianjin, completed a debt swap with holders of four dollar bonds totaling $1.25 billion, according to a notice by the agent handling the deal.

Investors could receive 37 cents to 66.7 cents on the dollar in cash for their bonds, or swap their holdings for new securities that paid much lower interest, according to S&P. It said the exchange represented the first offshore default by a state-owned enterprise in 20 years. Calls to Tewoo went unanswered.

Last week Peking University Founder Group, a conglomerate majority owned by one of Beijing’s top universities, failed to repay some yuan bondholderson time. It has until Tuesday to make creditors whole, or trigger defaults on its roughly $3 billion of dollar debt.

Owen Gallimore, head of credit strategy at Australia & New Zealand Banking Group Ltd, said Tewoo and Founder set a template for other state-linked groups in financially stretched Chinese provinces. “Issuers have realized that they do not need to pay offshore creditors back anymore,” he said.

Mr. Gallimore’s research shows that as of Dec. 10, some $56.7 billion of Chinese corporate dollar bonds were trading at yields of over 11%—levels that signal financial stress or more severe distress. About 87% of that total dollar amount was issued by private firms.

“The Chinese government will be more selective in bailing out state companies,” given slowing growth and local governments’ weakening finances, said Iris Pang, Greater China economist at ING Wholesale Banking.

S&P said other local authorities could offer less support to uncompetitive state firms. That could lead to higher funding costs for such companies, especially ones from weaker provinces, or those lacking a clear ownership structure or business model, said Cindy Huang, a senior director at S&P Global Ratings, in an email.

One issue for holders of Chinese debt is that definitions can be slippery and defaults aren’t always clear-cut. For example, companies can have significant state ownership without officially counting as state-owned enterprises, and there are different ways to classify local-government financing vehicles, which lower-level authorities use to raise off-balance funds.

“Definitions are highly subjective and vary,” said Mr. Gallimore at ANZ. He said the market was concerned that changing classifications could be accompanied by defaults.

In some cases, it can suit borrowers to play up their state connections. In addition, some debt is privately placed, meaning little public disclosure, and debtors often have a grace period in which to make good on a late payment.

In February, Qinghai Provincial Investment Group Co., a company controlled by the province’s state-asset administrator, was late in paying offshore creditors.

By the time it made the payment a few days later, some investors had called it the first Chinese offshore SOE default since the collapse of Guangdong International Trust and Investment Co., or Gitic, in the late 1990s.

One high-profile private borrower, textile and clothing conglomerate Shandong Ruyi Technology Group, is due to repay $345 million of dollar bonds on Dec. 19. That debt is trading at less than half of face value and Moody’s Investors Service this week cut the firm’s credit rating deeper into junk territory, citing “heightened refinancing risk.”

Write to Xie Yu at Yu.Xie@wsj.com

(END) Dow Jones Newswires

December 13, 2019 05:20 ET (10:20 GMT)

DJ Global Energy Roundup: Market Talk

The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.

1020 GMT - Anglo American has been a very strong performer among the large caps, but while the shares are reasonably supported at the current share price, there are fewer good reasons for accumulating the stock, Credit Suisse says. The Swiss bank no longer sees the group's growth outlook as being as strong a driver as earlier this year, downgrading the share rating to neutral from outperform. "Last, we see the shares as fully valued on 2020 estimates with various headwinds through the year that mean earnings momentum should retreat in 2020 compared with 2019," it says. As well as its rating change, Credit Swiss has a target price of 2,170 pence. (adriano.marchese@wsj.com)

0941 GMT - British banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's victory in Thursday's U.K. general election, Jefferies says. "Stocks on our buy list include BT Group, Royal Bank of Scotland, Centrica, Persimmon, Greencore, Dart Group, Paragon Banking Group dand Morrison's," Jefferies analyts say in a note. Reduced political uncertainty will supports banks, housebuilders, travel firms and retailers while the removal of the threat of the opposition Labour Party's nationalisation plans offers relief to utility providers, the analysts say. A stronger pound on the election result will hurt British American Tobacco and InterContinental Hotels Group and Rentokil, which all generate a large proportion of revenues in the U.S., they say. (renae.dyer@wsj.com)

0924 GMT - Brent crude oil is now at its highest price since the aftermath of the attack on Saudi Arabian oil facilities in September. The global benchmark is up 1% at $64.85 a barrel and WTI futures are up 0.7% at $59.62 a barrel. "It was President Trump's Tweet about getting very close to a trade deal with China that sparked a broader market rally," says DNB Markets's Helge Martinsen. The preliminary agreement is "something that reduces perceived risk of demand destruction that would be expected under a continued escalation scenario," JBC Energy notes. (david.hodari@wsj.com ; @davidhodari)

0904 GMT - Medco Energi Internasional is initiated at buy by UOB Kay Hian with a target price of IDR1,100, thanks to a full integration of Ophir Energy next year. UOB Kay Hian expects the company's net income to grow 47% on year to $63 million in 2020 following the integration, and predicts Ebitda to rise 10% to $653 million next year. An existing cost-recovery program and stable gas prices provide the company with a premium valuation over regional oil-and-gas firms, UOB Kay Hian says. Shares are 4.8% higher at IDR870. (Ronnie.Harui@wsj.com)

0848 GMT - The FTSE 100 advances 85 points, or 1.2%, to 7,358 as U.K. Prime Minister Boris Johnson is on track to win Thursday's general election by a large majority. Shares in housebuilders and U.K.-focused banks all rise sharply, with Persimmon up 12.4% and RBS up 11.2%, as the pound strengthens on the prospect that the election result will lead to reduced Brexit uncertainty. With the threat of the opposition Labour Party's plans to nationalise utilities and broadband out of the way, shares in telecoms giant BT Group and utility providers are also higher, all up around 7%. Meanwhile, reports that the U.S. and China agreed an initial trade deal in principle provided a further boost to investor sentiment. (renae.dyer@wsj.com)

0826 GMT - Ams's takeover offer for Osram is on track and the company is likely to take more control over the German manufacturer, Deutsche Bank says, resuming a buy rating at a price target of CHF52. The Austrian sensor maker is expected to close the deal in 2020 and propose a so-called domination agreement to gain more control over the German manufacturer. However, even without such agreement in place, "Ams effectively will have factual control and can change the supervisory board and in turn influence management board size and composition," according to the bank. (giulia.petroni@wsj.com)

0818 GMT - January Brent, as shown on the 30-minute chart, touched a day's high of $64.85 yesterday, and finally gained 0.8% for the whole session. It is currently off that high but has managed to trade at levels above the ascending 20-period moving average. And the 50-period moving average, also positively sloped, has been helping to maintain a bullish bias since yesterday. In addition, the relative strength index remains well-directed above the neutrality level of 50, indicating continued upward momentum for Brent. A revisit to $64.85 (yesterday's high) would open a path toward the next upside target at $65.30. The trailing key support has been raised to $64.15. A break below this level would call for a further decline toward $63.85 on the downside. January Brent is trading at $64.65 a barrel. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

0759 GMT - Brent crude oil is up 0.7% at $64.63 a barrel and WTI futures are up 0.5% at $59.48 a barrel at the beginning of what looks to be a day of risk-on trading activity. "Unsurprisingly markets have responded very positively to the latest developments...[as] the trade story takes centre stage," ING notes. President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday. That, the rally in the pound against the dollar--in which oil is denominated--and the ebbing of U.K. political uncertainty after a convincing election win for Prime Minister Boris Johnson, will likely distract traders from a week of bearish oil market data despite deeper OPEC+ cuts. (david.hodari@wsj.com; @davidhodari)

0658 GMT - China Gas Holdings, one of the country's top three natural-gas distributors, could maintain double-digit growth in annual earnings through 2022, CMB International says. A major growth driver will be its business of connecting rural households, many of which still use coal for heating, to natural gas, the investment bank says. China Gas could gain 4 million new household customers each year until 2024, it adds, initiating coverage of the stock with a buy rating and HK$38.00 target price. Shares are up 1.5% at HK$30.35. (martin.mou@wsj.com)

0529 GMT - China Resources Power's earnings will get a boost from multiple factors in 2020-2021, Bocom International says, expecting the company's power sales momentum will carry into next year as it installs new wind-power facilities. China Resources' profitability will also improve thanks to the expected drop in thermal-coal prices and the company's cost-control initiatives, Bocom says. Moreover, the energy group's earnings visibility is clarified as China stabilizes power-tariff rules after a major change this year, Bocom says. It raises the shares' target to HK$13.57 from HK$11.89 and keeps them at buy. Shares are last up 1.3% at HK$10.58. (yifan.wang@wsj.com)

0519 GMT - China Resources Gas will be able to support earnings expansion in 2020 despite an expected slowdown in sales growth, Bocom International says, raising the stock's target price to HK$43.40 from HK$42.00. Its recently acquired stake in an eastern China project will start full-year contribution next year, which should help boost earnings despite muted sales due to weak gas demand from industrial and commercial customers, Bocom says. It reckons the company could maintain an earnings compound annual growth rate of 13% for the next three years. But the stock's valuation isn't attractive enough, given shares have risen 35% year to date, Bocom says, keeping it at neutral. Shares are up 1.4% at HK$43.70. (yifan.wang@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 05:20 ET (10:20 GMT)

DJ Anglo American Shares Fully Valued on 2020 Estimates: Credit Suisse -- Market Talk

1020 GMT - Anglo American has been a very strong performer among the large caps, but while the shares are reasonably supported at the current share price, there are fewer good reasons for accumulating the stock, Credit Suisse says. The Swiss bank no longer sees the group's growth outlook as being as strong a driver as earlier this year, downgrading the share rating to neutral from outperform. "Last, we see the shares as fully valued on 2020 estimates with various headwinds through the year that mean earnings momentum should retreat in 2020 compared with 2019," it says. As well as its rating change, Credit Swiss has a target price of 2,170 pence. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 05:20 ET (10:20 GMT)

DJ Markets Rally as Trade and Brexit Uncertainties Recede -- Update
By Steven Russolillo and Joanne Chiu

Global stocks rallied Friday as signs of progress in resolving two major overhangs -- the U.S.-China trade spat and Brexit -- bolstered investors' optimism late in what is already a banner year for markets.

Investors poured into stocks and sold out of government bonds, figuring that prospects for corporate profits and economic growth were instantly brightened by the developments.

Japan's Nikkei 225 jumped 2.6% on Friday, putting the benchmark on pace for one of its best days of the year. Hong Kong's Hang Seng Index also gained 2.6%. The Shanghai Composite in China rose 1.2%.

In Europe, where Brexit has weighed on investors for more than three years, the pan-Continental Stoxx Europe 600 rose more than 1%, hitting an all-time high, and eclipsing its previous high water mark in April 2015, more than a year before the Brexit referendum.

Futures linked to the Dow Jones Industrial Average climbed 0.4%. That comes a day after the index for blue-chip stocks gained 0.8% on Thursday after President Trump said the U.S. and China were nearing a deal, while the S&P 500 closed at a record high. Mr. Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday, The Wall Street Journal reported Thursday.

"The geopolitical risks thought to be strangling world economic growth, incredibly, just in the last 24 hours, seem to be closer to getting resolved in a big, big way," said Chris Rupkey, chief financial economist at MUFG. "The outlook in 2020 looks better than it has in months."

Mr. Rupkey said he expects stocks around the world to keep rallying and bond yields to rise further.

In the U.K., the FTSE 250 rose 4.5%, its biggest move since May 2010, after a resounding election victory for Prime Minister Boris Johnson's Conservative Party overnight raised hopes for a quick divorce from the European Union. The pound was up 0.2% against the dollar on Friday, after gaining more than 2% late Thursday after exit polls showed Mr. Johnson gaining a clear majority.

"These results really make the U.K. equity markets investible again," said Sue Noffke, head of U.K. equities at Schroders. "Greater political clarity and less uncertainty really does reduce the level of risk for investors. In particular, international investors."

The U.K.'s 10-year yields rose close to 3 basis points to 0.855%, the highest since mid-June, compared with closing levels.

"Global conditions continue to improve, headlines on the phase 1 deal are pricing out uncertainty," said Geoffrey Yu, head of U.K. investment office at UBS Asset Management.

The advances in U.S.-China trade talks also sent oil up, with Brent crude rising 1.1% to $64.90 a barrel and WTI gaining 0.9% to $59.69 a barrel.

To be sure, previous breakthroughs in both trade and Brexit have proven to be false dawns. Trade tensions have dragged on for almost two years, while Britain's divorce from the EU has been bogged down in the country's Parliament since the June 2016 referendum.

Still, the elevated political uncertainty, which is also fueled by U.S. impeachment proceedings, hasn't stopped many stock markets from enjoying an exceptional year.

The S&P 500 has rallied 26%, on pace for its best annual performance in six years. The rally has been underpinned by the Federal Reserve, which has cut interest rates three times this year to shore up growth, a reversal after four increases last year. Earlier this week, the central bank kept rates steady and showed no appetite to raise them soon.

The about-face has rippled through global markets. The Stoxx Europe 600 has risen 21% this year, while indexes in mainland China, Japan and Taiwan are up by double-digit percentages. The MSCI All Country World index has risen more than 20%.

Some observers are concerned about how much more markets could rally from here. Eli Lee, head of investment strategy at Bank of Singapore, said investors should expect modest returns in the coming years, given already-rich equity valuations. "Although the bull market won't die in 2020, there are good reasons for return expectations to be moderate," he said.

Investors were also awaiting U.S. retail sales data for November, due today at 8:30 a.m. ET. Economists are expecting a rise of 0.5% compared with October. Consumer spending has provided a key boost to the U.S. economy this year and today's data will show if the trend continued last month.

--Anna Hirtenstein contributed to this article.

Write to Steven Russolillo at steven.russolillo@wsj.com and Joanne Chiu at joanne.chiu@wsj.com

(END) Dow Jones Newswires

December 13, 2019 05:14 ET (10:14 GMT)

DJ EDF Unveils Plan to Improve Nuclear-Sector Standards
By Giulia Petroni

Electricite de France SA (EDF.FR) on Friday presented a plan to improve the standards of the French nuclear-industrial sector.

The state-controlled French utility said the plan, called "Excell," will be initiated in 2020 and have a budget of 100 million euros ($111.3 million) for the 2020-21 period.

EDF will appoint a senior officer, who will report directly to EDF's Chairman and Chief Executive Jean-Bernard Levy, to oversee manufacturing standards, training and qualification.

Excell comes at a time when EDF has been dealing with a series of shortcomings at the Flamanville nuclear power plant. In October, Jean-Martin Folz released an audit report, saying the construction of a third-generation European Pressurized Water reactor in Flamville should be considered "a failure of EDF."

"The excell plan is expected to lay the groundwork for a renewal of confidence in France's nuclear industry, as well as to address the challenges described in Jean-Martin Folz's report," said Mr. Levy.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

December 13, 2019 05:09 ET (10:09 GMT)

DJ Global Forex and Fixed Income Roundup: Market Talk

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

1008 GMT - Sterling will rise further in the coming months "if there is certainty around the timing and terms of a post-Brexit trade deal," says Neil Dwane, a strategist at Allianz Global Investors. Meanwhile investors in U.K. stocks will be "reassured by the defeat of Jeremy Corbyn's Labour Party," Dwane adds. "Corbyn's policy agenda had spooked markets with the prospect of increased corporate taxes and his proposed renationalization of key utilities and railways." Still, Dwane adds that sterling will come back under pressure if it emerges that the U.K. is on course to sever trade relations with the European Union without an agreement at the end of 2020. The pound is up 0.1% at $1.34, and has risen 2.1% this week. (joe.wallace@wjs.com)

1007 GMT - Sterling will fall back in 2020 as it becomes clear that U.K. Prime Minister Boris Johnson faces a severe challenge in negotiating a trade deal with the European Union in less than a year, says Howard Cunningham, a fixed-income manager at Newton Investment Management. "It's not job done," he tells Dow Jones Newswires. "It's the start of a difficult process. That's why I think gilts might be a better investment [than stocks] next year, because it will be tough." Brexit uncertainty has made businesses reluctant to invest, hampering the U.K. economy, and Cunningham says the Conservative majority is unlikely to encourage companies to spend more money. "Companies are still going to be thinking about where they're going to be in 12 months' time." (joe.wallace@wsj.com)

0956 GMT - German Bund yields are expected to trade in a narrow range over the course of 2020, according to BNP Paribas Markets 360. The valuation model points to a fair value of -0.42% for the German 10-year Bund yield, which based on fundamentals is expected to stabilize between -0.45% and -0.40% in the first quarter, says BNPP's head of European rates strategy Camille de Courcel. "Persistent uncertainly from trade negotiations, Brexit and spillover effects from the US are likely to weigh on valuations: we see the 10-year Bund yield returning to -0.50% in 1Q," she says. Outlook for the rest of 2020 suggests a limited rise, and BNPP sees a return to -0.30% by the end of 2020. The 10-year Bund yield trades at -0.245%, according to Tradeweb. (emese.bartha@wsj.com)

0942 GMT - The ruling Conservative party majority at Thursday's U.K. general election is likely to quell Brexit-related uncertainty for no more than a "few months," while other credit challenges remain material, says Sarah Carlson, Moody's Investors Service senior vice president and lead U.K. sovereign analyst. "The U.K.'s other credit challenges, such as heightened fiscal risks and low productivity, will remain material in the absence of significant policy shifts," she says. (lorena.ruibal@wsj.com; @lorena_rbal)

0941 GMT - British banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's victory in Thursday's U.K. general election, Jefferies says. "Stocks on our buy list include BT Group, Royal Bank of Scotland, Centrica, Persimmon, Greencore, Dart Group, Paragon Banking Group dand Morrison's," Jefferies analyts say in a note. Reduced political uncertainty will supports banks, housebuilders, travel firms and retailers while the removal of the threat of the opposition Labour Party's nationalisation plans offers relief to utility providers, the analysts say. A stronger pound on the election result will hurt British American Tobacco and InterContinental Hotels Group and Rentokil, which all generate a large proportion of revenues in the U.S., they say. (renae.dyer@wsj.com)

0901 GMT - Risk assets such as U.K. corporate bonds are likely to rally as the U.K.'s Conservative party commanded a comfortable majority at Thursday'sgeneral election, says David Zahn, head of European fixed income at Franklin Templeton."Although it was considered the most likely result in the run-up to the poll, we'd expect markets to react favourably," he says. "Risk assets such as corporate bonds will probably rally". (lorena.ruibal@wsj.com; @lorena_rbal)

0859 GMT - The re-pricing of U.K. inflation expectations has already begun after sterling rose sharply on a Conservative majority win at Thursday's election, but HSBC's U.K. rates strategist Daniela Russell expects a further decline in the breakeven rate, or the difference between the yield of a nominal bond and an inflation-linked bond of the same maturity. "The inflation market immediately needs to adjust to the overnight moves in sterling so we expect to see a sharp knee-jerk fall in breakevens," she says. "With cable [GBP/USD] back to the highest level since May 2018, inflation valuations are gradually edging back towards the trading regime which prevailed before the EU referendum in 2016." (lorena.ruibal@wsj.com; @lorena_rbal)

0850 GMT - Commerzbank expects the average wage increase in Germany to be slightly lower in 2020 than this year due to economic weakness, Commerbank's economist Eckart Tuchtfeld says. Wage negotiations will directly affect about one third of those employed in Germany, a total of 10 million people, Tuchtfeld says. In March and April, negotiations will take place in the metal and electronic engineering industries, as well as the construction industry. Commerzbank expects the upward trend in wage growth rates started in 2016, increasing from 2% to about 3%, to pause in the coming year. Tuchtfeld says the increase in the average wage rate will be around 2.8%, retreating from the 3% mark despite the shortage of skilled workers and an unbroken construction boom. (maria.martinez@wsj.com)

0843 GMT - U.K. Prime Minister Boris Johnson's election victory paves the way to an orderly Brexit soon, and the end of the uncertainty is good news, says German asset manager Union Investment. "However, the topic will continue to be pursued by the stock markets," says chief economist Joerg Zeuner, adding that the next step is the renegotiation of economic relations between the EU and the U.K. As long as the future trade relations are not fixed, the situation remains uncertain and the markets won't be able to completely abandon Brexit even after the withdrawal, Zeuner adds. (emese.bartha@wsj.com)

0833 GMT - HSBC expects further strong gains in sterling as the U.K.'s Conservative Party are on course to secure a comfortable majority in Thursday's general election, potentially taking it to $1.45 by the end of 2020, from $1.3421 currrently, HSBC says. The result brings some "near-term clarity" on Brexit and means the "less market-friendly" policies proposed by the opposition Labour Party won't materialise but the debate could "quickly shift from the risks a no-deal Brexit to the risks of a no trade deal one," HSBC economist Simon Wells says, referring to U.K.-EU trade deal talks that will begin if parliament passes the Conservatives withdrawal agreement by the new January 31 Brexit deadline. (renae.dyer@wsj.com)

0822 GMT - Illiquid markets may accentuate market moves but regarding the input from Thursday's European Central Bank meeting, fixed-income markets will avoid big moves for the remainder of the month, HSBC says. With monetary policy already on autopilot after the September 2019 decision, markets were seeking insight into the policy delivery review which European Central Bank President Christine Lagarde has been championing for some time, HSBC says. "Specific details on this front were scanty but this means that any exaggerated fixed-income moves during the illiquid December period is unlikely," it says. (emese.bartha@wsj.com)

0821 GMT - Currently trading at 143.32, the Italian March BTP is on the downside and stands below its 50-period moving average at 143.50 on a 30-minute chart. From a technical point of view, the intraday RSI stands within its selling area between 50 and 30 and confirms the bearish bias. As a consequence, below horizontal resistance and overlap at 143.75, further weakness is expected toward the Dec. 11 bottom at 142.92 and toward horizontal support at 142.56 in extension. A third target is set at 142.20. Only a rebound above horizontal resistance at 143.75 would turn the outlook to bullish and favour a rise toward the Dec. 12 top at 144.21 and toward 144.45 in extension. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

(END) Dow Jones Newswires

December 13, 2019 05:08 ET (10:08 GMT)

DJ Sterling to Keep Rising if UK Strikes Trade Deal: Allianz GI -- Market Talk

1008 GMT - Sterling will rise further in the coming months "if there is certainty around the timing and terms of a post-Brexit trade deal," says Neil Dwane, a strategist at Allianz Global Investors. Meanwhile investors in U.K. stocks will be "reassured by the defeat of Jeremy Corbyn's Labour Party," Dwane adds. "Corbyn's policy agenda had spooked markets with the prospect of increased corporate taxes and his proposed renationalization of key utilities and railways." Still, Dwane adds that sterling will come back under pressure if it emerges that the U.K. is on course to sever trade relations with the European Union without an agreement at the end of 2020. The pound is up 0.1% at $1.34, and has risen 2.1% this week. (joe.wallace@wjs.com)

(END) Dow Jones Newswires

December 13, 2019 05:08 ET (10:08 GMT)

DJ Anglo American Cut to Neutral From Outperform by Credit Suisse

(END) Dow Jones Newswires

December 13, 2019 05:01 ET (10:01 GMT)

DJ ArcelorMittal Sets 2030 Emissions Goal for European Division

By Dieter Holger

ArcelorMittal (MT.FR), the world's largest steelmaker, said Friday that it has set a target to cut 30% of carbon-dioxide emissions at its European division manufacturing flat products by 2030.

Flat products include slabs, hot- and cold-rolled coil, coated steel products, tinplate and heavy plate. They are typically found in heavy machinery, construction and the automotive sector.

ArcelorMittal said it would achieve its goal by using clean power, so-called circular carbon energy sources such as waste biomass, and carbon capture-and-storage.

"It's not a one-size-fits-all model, as different parts of our business are at varying starting points," said Geert Van Poelvoorde, chief executive of ArcelorMittal Europe - Flat Products.

ArcelorMittal's ambitions come as the steel industry faces pressure from European lawmakers to lower its environmental impact. The steel industry is one of the top CO2 emitters globally, accounting for up to 9% of all direct fossil fuel emissions, according to the World Steel Association, a trade group based in Brussels.

"We've spent the last few years testing a range of technologies and now is the time to scale up and put them into action," Mr. Van Poelvoorde said.

Write to Dieter Holger at dieter.holger@wsj.com; @dieterholger

(END) Dow Jones Newswires

December 13, 2019 05:00 ET (10:00 GMT)

DJ News Highlights: Top Company News of the Day
Ad Giant Dentsu Names Jacki Kelley as CEO of Americas

Delivery Hero to Buy South Korea's Woowa

Henkel Hit After Profit Warning

Boeing's MAX Fixes Not Likely to Get FAA Approval Until February

Broadcom Expects Its Earnings to Bounce Back

Japan's Hoya Plans to Acquire NuFlare Technology for $1.35 Bln

Kate Spade CEO Anna Bakst to Depart

Aramco Valuation Hits Crown Prince's $2 Trillion Target

FTC Weighs Move Against Facebook Over How Its Apps Interact

'Fortnite' Developer Challenges Google Over App-Store Fees

Dentsu Aegis Network, a unit of Japan's Dentsu, named agency and media veteran Jacki Kelley as chief executive of its Americas operations, succeeding Nick Brien.

German food-delivery company Delivery Hero will buy Woowa Brothers in deal that values the South Korean rival at $4 billion.

Shares in Henkel fell sharply after the consumer-products company said it expected lower earnings for fiscal 2020, warning that investments in marketing and IT were weighing on its results.

The global grounding of Boeing's 737 MAX is set to stretch to nearly a year as regulators expressed concern that the U.S. plane maker set unrealistic expectations for the jetliner's return to passenger service.

The chip maker promised an earnings recovery in the current year after the company posted weaker fourth-quarter figures, dented by the protracted U.S. export ban of some items to Chinese telecom giant Huawei.

Hoya Corp. plans to spend 147.72 billion yen to acquire all shares of NuFlare Technology Inc., a maker of semiconductor manufacturing equipment.

Luxury-brands company Tapestry said the head of its Kate Spade brand, Anna Bakst, is leaving at the end of 2019, marking a less than two-year tenure as leader of the struggling brand.

The Saudi government and its wealthiest citizens helped lift Aramco to Saudi Crown Prince Mohammed bin Salman's coveted valuation target of $2 trillion-if only for a few hours.

Federal officials are considering seeking a preliminary injunction against Facebook over antitrust concerns related to how its products interact, according to people familiar with the matter.

The creator of "Fortnite" is challenging Google's policy of taking a cut of payments made for app-related purchases at a time when regulators have started scrutinizing those kind of arrangements between tech companies and their vendors.

(END) Dow Jones Newswires

December 13, 2019 05:00 ET (10:00 GMT)

DJ News Highlights: Top Global Markets News of the Day
Stocks Rally as Trade and Brexit Uncertainties Recede

Boris Johnson Secures a Convincing U.K. Election Win

British Pound Surges as Johnson's Conservatives Win U.K. Election

Trump Agrees to Limited Trade Deal With China

Japan Big Manufacturers' Sentiment Weakest in Nearly Seven Years

Government Bond Yields Surge After Trump Declares Progress on Trade

Markets Welcome Christine Lagarde's First ECB Policy Meeting

Bank of Canada Chief Comfortable With Country's Interest Rate Policy

U.S. Jobless Claims Jump to Highest Level Since 2017 Following Holiday Week

Bond-Yield Forecasters Disagree on 2020 After 2019 Surprise

Global stocks rallied as progress with two of the biggest overhangs for investors, trade and Brexit, bolstered risk appetite late in what is already a banner year for markets.

British Prime Minister Boris Johnson won a decisive majority in the general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

The British pound rallied as Prime Minister Boris Johnson's Conservative Party secured a solid election victory, setting the stage for a January Brexit.

President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday as part of a deal to boost Chinese purchases of U.S. farm goods and obtain other concessions, according to people familiar with the matter.

Sentiment among Japan's large manufacturers deteriorated to the weakest level in nearly seven years during the three months to December, a central bank survey showed Friday.

Yields on government bonds around the world soared Thursday, with the 10-year U.S. note jumping by its greatest amount in three years after President Trump said the U.S. and China were close to a trade deal.

Bank stocks and government bonds reacted positively to Christine Lagarde's first policy decision as President of the ECB, taking their cue from her slightly more optimistic comments about growth in the eurozone.

Bank of Canada Gov. Stephen Poloz gave no indication that a near-term interest rate cut is in the offing in remarks Thursday.

Initial jobless claims increased by 49,000 to a seasonally adjusted 252,000 in the week ended Dec. 7. It was the highest level of claims recorded since September 30, 2017. Economists had expected 212,000 new jobless claims.

Investors are split about the direction of government-bond yields in 2020, a sign of confusion about the course of the economy and monetary policy.

(END) Dow Jones Newswires

December 13, 2019 05:00 ET (10:00 GMT)

DJ London Shares Surge on Johnson Win, Trade Progress
Market News: 
 
FTSE 100           7,391.75 +118.28 +1.63% 
FTSE 250          21,710.60 +917.57 +4.41% 
FTSE AIM All-Share   917.31  +17.98 +2.00%

Top News:

Companies News:

Market Talk:

FTSE 100 Gains on Conservative Victory, US-China Trade Progress

0848 GMT - The FTSE 100 advances 85 points, or 1.2%, to 7,358 as U.K. Prime Minister Boris Johnson is on track to win Thursday's general election by a large majority. Shares in housebuilders and U.K.-focused banks all rise sharply, with Persimmon up 12.4% and RBS up 11.2%, as the pound strengthens on the prospect that the election result will lead to reduced Brexit uncertainty. With the threat of the opposition Labour Party's plans to nationalise utilities and broadband out of the way, shares in telecoms giant BT Group and utility providers are also higher, all up around 7%. Meanwhile, reports that the U.S. and China agreed an initial trade deal in principle provided a further boost to investor sentiment.

Boris Johnson Secures a Comfortable U.K. Election Win

British Prime Minister Boris Johnson won a decisive majority in Thursday's general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

Anglesey Mining Likely to Seek Extra Funding Through Equity Issue

Anglesey Mining PLC (AYM.LN) said Friday that it will likely seek extra funding through an equity issue to cover cost increases at its project in Wales.

Hollywood Bowl FY 2019 Pretax Profit Rose 15%; FY 2020 Solid

Hollywood Bowl Group PLC (BOWL.LN) on Friday reported a 15% rise in pretax profit for fiscal 2019 and said that it has made a solid start to the current financial year with trading in line with management expectations.

Nakama Group Warns About Restructuring Options After Weak 1H 2020

Nakama Group PLC (NAK.LN) on Friday warned about considering restructuring options after reporting a significantly reduced pretax profit for the first half of fiscal 2020 as well as a tight cash position.

Orderly Brexit Likely, But Uncertainties Remain: Union Investment

0843 GMT - U.K. Prime Minister Boris Johnson's election victory paves the way to an orderly Brexit soon, and the end of the uncertainty is good news, says German asset manager Union Investment. "However, the topic will continue to be pursued by the stock markets," says chief economist Joerg Zeuner, adding that the next step is the renegotiation of economic relations between the EU and the U.K. As long as the future trade relations are not fixed, the situation remains uncertain and the markets won't be able to completely abandon Brexit even after the withdrawal, Zeuner adds. (emese.bartha@wsj.com)

Proactis Holdings Considering a Number of Offer Proposals

Proactis Holdings PLC (PHD.LN) said Friday that it is considering a number of proposals that could potentially lead to final due diligence over a possible bid for the company.

UK Credit Challenges Persist Despite Conservative Majority: Moody's

0942 GMT - The ruling Conservative party majority at Thursday's U.K. general election is likely to quell Brexit-related uncertainty for no more than a "few months," while other credit challenges remain material, says Sarah Carlson, Moody's Investors Service senior vice president and lead U.K. sovereign analyst. "The U.K.'s other credit challenges, such as heightened fiscal risks and low productivity, will remain material in the absence of significant policy shifts," she says.

Banks, Housebuilders Among UK Election Winners: Jefferies

0941 GMT - British banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's victory in Thursday's U.K. general election, Jefferies says. "Stocks on our buy list include BT Group, Royal Bank of Scotland, Centrica, Persimmon, Greencore, Dart Group, Paragon Banking Group dand Morrison's," Jefferies analyts say in a note. Reduced political uncertainty will supports banks, housebuilders, travel firms and retailers while the removal of the threat of the opposition Labour Party's nationalisation plans offers relief to utility providers, the analysts say. A stronger pound on the election result will hurt British American Tobacco and InterContinental Hotels Group and Rentokil, which all generate a large proportion of revenues in the U.S., they say.

Informa's Valuation Is Attractive, Move to Buy: Shore Capital

0926 GMT - Informa's recent share-price weakness makes its valuation attractive for a core long-term media sector holding, Shore Capital says, as the investment group ups the stock to buy from hold. The U.K. events and academic-publishing group has a substantial portfolio of more than 900 events across a well-diversified range of sectors and geographic markets and should deliver despite uncertainty on the U.K.'s trading arrangements after Brexit, Shore Capital says. Revenue in the events industry is expected to grow ahead of GDP growth and Informa is well placed to participate in future consolidation, Shore Capital says. Shares rise 2.3%.

Hollywood Bowl's Future Is Bright: Shore Capital

0913 GMT - Hollywood Bowl remains as a core holding in the sector after "another tremendous year" for the company, Shore Capital says. The U.K. bowling operator's results were better than expected, with a positive outlook ahead as it increases its pretax profit forecast for fiscal 2020 by 600,000 pounds ($792,030) to GBP28.3 million, and for fiscal 2021 by GBP400,000 to GBP29.8 million, Shore Capital says. Shares are up 6.0% at 249.00 pence.

UK Election Presents Open Sky for IAG, Ryanair: HSBC

0845 GMT - The trading environment and investor sentiment surrounding airlines are sensitive to political and economic developments, HSBC says, as it expects the result of the U.K. election to have a positive impact on the sector's shares. The U.K. bank expects the airline industry to target re-entering the EU's common aviation market and raises its unit-revenue assumptions for IAG and Ryanair, while its costs estimates remain mostly unchanged. HSBC upgrades its recommendations for both European airlines to buy from hold and rises its target price to 750 pence from 550 pence for IAG, and to EUR16.00 from EUR12.25 for Ryanair. Shares in IAG are up 8.4% at 603.40 pence, while Ryanair shares are up 5.3% at 1239.75 pence.

Orderly Brexit Likely, But Uncertainties Remain: Union Investment

0843 GMT - U.K. Prime Minister Boris Johnson's election victory paves the way to an orderly Brexit soon, and the end of the uncertainty is good news, says German asset manager Union Investment. "However, the topic will continue to be pursued by the stock markets," says chief economist Joerg Zeuner, adding that the next step is the renegotiation of economic relations between the EU and the U.K. As long as the future trade relations are not fixed, the situation remains uncertain and the markets won't be able to completely abandon Brexit even after the withdrawal, Zeuner adds.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-9319

(END) Dow Jones Newswires

December 13, 2019 04:56 ET (09:56 GMT)

DJ Anglo American Cut To Neutral By Credit Suisse -- MarketWatch

Mining giant Anglo American was downgraded to neutral from outperform by Credit Suisse, which also slashed the target price to GBP21.70 from GBP26, as analyst Conor Rowley assumed coverage. "Sares have outperformed the underlying commodity mix materially YTD (10%), especially when compared with peers, a situation that has not been sustainable historically. Moreover, we no longer see the group's growth outlook as being as strong a driver as earlier this year," the analyst said.

-Steve Goldstein

(END) Dow Jones Newswires

December 13, 2019 04:52 ET (09:52 GMT)

 For more from MarketWatch: http://www.marketwatch.com/newsviewer 
DJ Interbank Foreign Exchange Rates At 04:50 EST / 0950 GMT
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           109.63-64      109.30-31  +0.30   109.67   108.91  +0.04 
EUR/USD Euro            1.1177-80      1.1130-33  +0.42   1.1201   1.1125  -2.54 
GBP/USD U.K.            1.3407-09      1.3163-65  +1.85   1.3515   1.3149  +5.09 
USD/CHF Switzerland     0.9821-25      0.9845-49  -0.24   0.9867   0.9776  +0.07 
USD/CAD Canada          1.3163-68      1.3182-87  -0.14   1.3187   1.3151  -3.48 
AUD/USD Australia       0.6914-18      0.6908-12  +0.09   0.6939   0.6907  -1.93 
NZD/USD New Zealand     0.6614-20     0.6595-601  +0.29   0.6636   0.6595  -1.53 
 
Euro Rates 
 
EUR/JPY Japan           122.54-58      121.66-70  +0.72   122.60   121.17  -2.50 
EUR/GBP U.K.            0.8337-40      0.8451-54  -1.35   0.8459   0.8240  -7.25 
EUR/CHF Switzerland     1.0979-82      1.0960-63  +0.17   1.1035   1.0947  -2.45 
EUR/CAD Canada          1.4710-20      1.4666-76  +0.30   1.4747   1.4656  -5.91 
EUR/AUD Australia       1.6161-71      1.6104-14  +0.35   1.6172   1.6046  -0.60 
EUR/DKK Denmark         7.4727-34      7.4726-33  +0.00   7.4808   7.4623  +0.09 
EUR/NOK Norway         10.0804-54     10.1035-85  -0.23  10.1413  10.0808  +1.76 
EUR/SEK Sweden        10.4416-516    10.4505-605  -0.09  10.4765  10.4370  +2.90 
EUR/CZK Czech Rep.     25.489-519      25.508-38  -0.08   25.531   25.494  -0.81 
EUR/HUF Hungary         328.52-92      329.39-79  -0.26   329.92   328.67  +2.39 
EUR/PLN Poland          4.2720-38      4.2840-58  -0.28   4.2949   4.2721  -0.39 
 
Yen Rates 
 
AUD/JPY Australia        75.80-84       75.51-55  +0.38    75.99    75.39  -1.90 
GBP/JPY U.K.          146.97-7.03      143.86-92  +2.16   147.96   142.00  +5.08 
CAD/JPY Canada           83.28-32       82.88-92  +0.48    83.33    82.62  +3.66 
NZD/JPY New Zealand      72.51-58       72.08-15  +0.59    72.67    71.89  -1.49 
 
Other Dollar Rates 
 
USD/CZK Czech Rep.     22.791-841      22.905-55  -0.50   22.931   22.789  +1.77 
USD/HUF Hungary       293.89-4.29    295.95-6.35  -0.70   296.28   293.97  +5.04 
USD/DKK Denmark         6.6851-61      6.7130-40  -0.42   6.7137   6.6724  +2.67 
USD/NOK Norway         9.0176-236     9.0761-821  -0.64   9.0791   9.0162  +4.39 
USD/PLN Poland          3.8225-30      3.8500-05  -0.71   3.8505   3.8218  +2.20 
USD/RUB Russia         62.369-439      62.706-76  -0.54   62.759   62.396  -9.88 
USD/SEK Sweden         9.3412-502     9.3888-978  -0.51   9.3972   9.3272  +5.57 
USD/ZAR S. Africa    14.3721-4021   14.4823-5123  -0.76  14.5059  14.3810  +0.18 
 
USD/CNY China           6.9813-33     7.0196-216  -0.55   7.0206   6.9611  +1.51 
USD/HKD Hong Kong       7.8018-23      7.8033-38  -0.02   7.8074   7.8020  -0.38 
USD/MYR Malaysia        4.1341-91     4.1575-625  -0.56   4.1601   4.1366  +0.10 
USD/INR India           70.720-30      70.547-67  +0.24   70.755   70.485  +1.66 
USD/IDR Indonesia        13978-92       14018-32  -0.29    14025    13955  -2.75 
USD/PHP Philippines     50.601-21      50.541-61  +0.12   50.641   50.450  -3.60 
USD/SGD Singapore       1.3516-26      1.3536-46  -0.15   1.3546   1.3513  -0.79 
USD/KRW S. Korea    1169.73-71.73   1171.89-3.89  -0.18  1174.88  1168.55  +5.06 
USD/TWD Taiwan          30.225-55      30.222-52  +0.01   30.316   30.155  -1.12 
USD/THB Thailand        30.210-30     30.180-200  +0.10   30.250   30.130  -6.50 
USD/VND Vietnam         23139-209      23140-210   0.00    23200    23168  -0.09 
 
USD/BRL Brazil         4.0891-921     4.0894-924  -0.01   4.0919   4.0880  +5.39 
USD/MXN Mexico        19.0166-466    19.0400-700  -0.12  19.0650  18.9955  -3.14 
USD/ARS Argentina     59.7228-650    59.7047-468  +0.03  59.8254  59.5081 +58.70 
 
Source: Tullett Prebon 
 

(END) Dow Jones Newswires

December 13, 2019 04:50 ET (09:50 GMT)

DJ Shares in Henkel Trade Lower After Profit Warning
By Kim Richters

Shares in Henkel AG & Co. KGaA (HEN.XE) traded lower Friday after the German consumer-products company late Thursday said it expected lower earnings for fiscal 2020.

The maker of Dial soap and Purex laundry detergent said investments in marketing and IT were weighing on its results, and it also cited a challenging market environment.

The company said it expects an adjusted EBIT margin for the next fiscal year of about 15%, compared with around 16.2% expected for 2019. Adjusted earnings per preferred share in fiscal 2020 are also expected to be lower than the forecast for fiscal 2019.

At 0931 GMT, shares in Henkel traded 3.3% lower at EUR91.26.

Analysts were surprised by Henkel's outlook, which was issued unexpectedly and was below market expectations.

The "gloomy" new forecast will likely lead to consensus downgrades, Jefferies said, adding that the company's margin outlook "will bring Henkel's profitability to a lower level than in 2013, reversing seven years of margin progress in two fell swoops."

Analysts at Bryan Garnier were particularly surprised by the company's new EBIT margin forecast, which they expected to be stable.

The bank also believes that the company was stepping up its investments, because the extent of the work to be done in its consumer division is larger than it previously thought.

Write to Kim Richters at kim.richters@wsj.com

(END) Dow Jones Newswires

December 13, 2019 04:45 ET (09:45 GMT)

DJ Banks, Housebuilders Among UK Election Winners: Jefferies -- Market Talk

0941 GMT - British banks, utilities, housebuilders and retailers are the main beneficiaries of the Conservative Party's victory in Thursday's U.K. general election, Jefferies says. "Stocks on our buy list include BT Group, Royal Bank of Scotland, Centrica, Persimmon, Greencore, Dart Group, Paragon Banking Group dand Morrison's," Jefferies analyts say in a note. Reduced political uncertainty will supports banks, housebuilders, travel firms and retailers while the removal of the threat of the opposition Labour Party's nationalisation plans offers relief to utility providers, the analysts say. A stronger pound on the election result will hurt British American Tobacco and InterContinental Hotels Group and Rentokil, which all generate a large proportion of revenues in the U.S., they say. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 04:41 ET (09:41 GMT)

DJ Oil at Three-Month Highs on Trade News -- Market Talk

0924 GMT - Brent crude oil is now at its highest price since the aftermath of the attack on Saudi Arabian oil facilities in September. The global benchmark is up 1% at $64.85 a barrel and WTI futures are up 0.7% at $59.62 a barrel. "It was President Trump's Tweet about getting very close to a trade deal with China that sparked a broader market rally," says DNB Markets's Helge Martinsen. The preliminary agreement is "something that reduces perceived risk of demand destruction that would be expected under a continued escalation scenario," JBC Energy notes. (david.hodari@wsj.com ; @davidhodari)

(END) Dow Jones Newswires

December 13, 2019 04:24 ET (09:24 GMT)

DJ Market Talk Roundup: Markets Cheer Convincing UK -2-

0810 GMT - The U.K. benchmark 10-year gilt yield could easily edge above 0.9% at the market open, says TD Securities. "We expect the curve to steepen as markets reprice the embedded Brexit term premia," the Canadian bank's rates strategists say. Yet the medium-term path for gilts is likely "to be choppy as thorny issues around the trade deal come into focus", they warn. The 10-year gilt yield is last at 0.875%, according to Tradeweb, having closed at 0.820% on Thursday.(lorena.ruibal@wsj.com; @lorena_rbal)

0843 GMT - U.K. Prime Minister Boris Johnson's election victory paves the way to an orderly Brexit soon, and the end of the uncertainty is good news, says German asset manager Union Investment. "However, the topic will continue to be pursued by the stock markets," says chief economist Joerg Zeuner, adding that the next step is the renegotiation of economic relations between the EU and the U.K. As long as the future trade relations are not fixed, the situation remains uncertain and the markets won't be able to completely abandon Brexit even after the withdrawal, Zeuner adds. (emese.bartha@wsj.com)

0848 GMT - The FTSE 100 advances 85 points, or 1.2%, to 7,358 as U.K. Prime Minister Boris Johnson is on track to win Thursday's general election by a large majority. Shares in housebuilders and U.K.-focused banks all rise sharply, with Persimmon up 12.4% and RBS up 11.2%, as the pound strengthens on the prospect that the election result will lead to reduced Brexit uncertainty. With the threat of the opposition Labour Party's plans to nationalise utilities and broadband out of the way, shares in telecoms giant BT Group and utility providers are also higher, all up around 7%. Meanwhile, reports that the U.S. and China agreed an initial trade deal in principle provided a further boost to investor sentiment. (renae.dyer@wsj.com)

0859 GMT - The re-pricing of U.K. inflation expectations has already begun after sterling rose sharply on a Conservative majority win at Thursday's election, but HSBC's U.K. rates strategist Daniela Russell expects a further decline in the breakeven rate, or the difference between the yield of a nominal bond and an inflation-linked bond of the same maturity. "The inflation market immediately needs to adjust to the overnight moves in sterling so we expect to see a sharp knee-jerk fall in breakevens," she says. "With cable [GBP/USD] back to the highest level since May 2018, inflation valuations are gradually edging back towards the trading regime which prevailed before the EU referendum in 2016." (lorena.ruibal@wsj.com; @lorena_rbal)

0901 GMT - Risk assets such as U.K. corporate bonds are likely to rally as the U.K.'s Conservative party commanded a comfortable majority at Thursday'sgeneral election, says David Zahn, head of European fixed income at Franklin Templeton."Although it was considered the most likely result in the run-up to the poll, we'd expect markets to react favourably," he says. "Risk assets such as corporate bonds will probably rally". (lorena.ruibal@wsj.com; @lorena_rbal)

(END) Dow Jones Newswires

December 13, 2019 04:23 ET (09:23 GMT)

DJ Market Talk Roundup: Markets Cheer Convincing UK Election Result

Sterling, gilt yields and U.K. stocks rally in a early reaction to the results of Thursday's U.K. general election, with the Conservative party on course for a very strong majority. Beyond the election results, however, some market watchers point to potential uncertainties surrounding next year's trade negotiations between the U.K. and EU. The following is a selection of commentary on the early market reaction.

2329 GMT -- -- GBP/USD has jumped by around three and a half U.S. cents to just short of 1.3500, the highest since May 22, 2018, after an exit poll showed the governing Conservatives will win 368 seats, says CBA. Exit polls have shown a high degree of accuracy: in the past last four elections, the average error of the exit polls for the number of Conservative seats won was only 5 seats. A majority Conservative government paves the way for the passage of the Brexit, while the difficult process of negotiating a new trade agreement with the EU by the end of December 2020 now begins. (james.glynn@wsj.com; Twitter @JamesGlynnWSJ)

1828 EST -- -- Though most eyes are on the pound and its 2.5% surge against the dollar, the euro is also up, rising 0.6% and currently at its highest level against the dollar since August. While the pound has been the most obvious target for investors betting on Brexit uncertainty, the euro has certainly caught its fair share of flack from the prospect of a disorderly Brexit, as well as the general economic malaise that has weighed on the region in recent years. The flip side of tonight's move, of course, is a decline in the dollar. The ICE Dollar Index is down 0.7% and back near July lows. The euro is the largest component in the basket of six currencies that make up the index. (ira.iosebashvili@wsj.com)

0140 GMT - Lingering concerns could cap the pound's upside potential after the U.K. election, even though GBP/USD stabilizing at 1.35 seems justified for now, Macquarie says. A key concern is that the 11-month grace period to negotiate a U.K. trade deal with the EU is too short. Macquarie expects the markets to face another "cliff-edge" scenario when the grace period ends, at which time U.K.-EU trade may be at risk of shifting back to WTO terms. Other worries include the failure of U.K. economic data to show material improvement as businesses continue to operate amid uncertainty. GBP/USD was last up 0.7% at 1.3478. (Ronnie.Harui@wsj.com)

0312 GMT - Any further gains in GBP/USD are likely to be capped around 1.40 because of uncertainty about phase two of the U.K.-EU talks, UBS says, after the pair hit a 19-month high earlier as U.K. election results trickled in. The deadline for extending the transition period for Britain's exit from the European Union beyond end-2020 is July 1 and worries about the approaching date could keep the pair at 1.30-1.40 until June, UBS says. That suggests a 0.82-0.88 range for EUR/GBP, the investment bank says. UBS's strategy is to be overweight on the pound, as it reckons the currency is cheap based on its measures of fair value. GBP/USD is last up 0.7% at 1.3474, while EUR/GBP is down 0.5% at 0.8296. (Ronnie.Harui@wsj.com)

0632 GMT - Sterling rallies against both the euro and the U.S. dollar as Prime Minister Boris Johnson's Conservative party wins an overall majority in Thursday's general election. GBP/USD is last up 0.6% at 1.3479, while EUR/GBP is down 0.5% at 0.8294. Sterling hit $1.3515, the highest level since May 2018, after the exit poll released at 2200 GMT on Thursday predicted the Conservatives commanded a comfortable majority. "Admittedly, sterling hasn't moved a whole lot since the announcement of the exit poll at 2200 GMT yesterday, but this could be the beginning of a wider rally in the pound," says David Madden, market analyst at CMC Markets. (lorena.ruibal@wsj.com; @lorena_rbal)

0647 GMT - British companies are eager for some clarity over Brexit and need a framework to plan for the future now the election is over, Director General of the Institute of Directors Jonathan Geldart says. "After years of parliamentary chaos, directors want to see a Government that is clear-sighted about the challenges facing businesses, and ambitious, but realistic, in its response," Geldart says. The shape of any deal with the EU is more important than the speed at which it is achieved, he says. (ian.walker@wsj.com)

0705 GMT - Sterling rallies as the Conservative party commands a strong majority in the U.K. general election, yet uncertainty over trade negotiations between the U.K. and the EU may limit further gains. "The trajectory of trade talks remains a major unknown factor for sterling at the moment," says Ranko Berich, head of market analysis at foreign exchange provider Monex Europe. "A strong majority could prove a double edged sword for sterling as the new Government could decide its majority means it has a strong hand for hardball tactics with the EU." GBP/USD is last up 0.6% at 1.3469, having earlier hit 1.3515, according to FactSet, its highest since May 2018. EUR/GBP is last down 0.5% at 0.8295, having hit 0.8277, its lowest in two and a half years.(lorena.ruibal@wsj.com; @lorena_rbal)

0717 GMT - No reaction so far in U.K. gilts from the big majority win by the Conservative party at Thursday's U.K. general election as the U.K. sovereign bond market hasn't started trading yet. However, the 10-year gilt yield, which closed Thursday at 0.820%, according to FactSet, is expected to rise 5-10 basis points on the election outcome, according to projections by Bank of America Merrill Lynch's rates strategists.(lorena.ruibal@wsj.com; @lorena_rbal)

0729 GMT - Implied volatility in GBP/USD maturing in one month slides to 7.05%, from levels above 11% on Thursday, after Prime Minister Boris Johnson's Conservative party commanded a big majority in Thursday's general elections, according to Refinitiv data. Implied volatility is an indicator of the cost of buying protection against wild currency swings. "It's now clear the U.K. will leave the EU," says Daniel Vernazza, chief international economist at UniCredit. "With a comfortable majority of seats in the House of Commons, Mr Johnson will have the flexibility to face down the hardliners in his party and avoid a cliff-edge at end-2020".(lorena.ruibal@wsj.com; @lorena_rbal)

0735 GMT - Gold prices slip as the U.S.-China trade deal and the decisive U.K. election result clear two sources of uncertainty that were hanging over the world economy. The U.S. agreed to a limited agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies that were set to kick in on Sunday. Meanwhile the Conservative Party won a majority, making it all but certain that the U.K. will leave the European Union at the end of January. Trade tensions and political stalemate in the U.K. had boosted gold for much of the year. Still, the precious metal is down only 0.1% at $1,471.50 a troy ounce, supported by a big fall in the dollar. (joe.wallace@wsj.com)

0743 GMT - Eurozone government bonds extend the selloff, pushing the 10-year Bund yield up by 4 basis points to a six-month high of -0.223%, according to Tradeweb data, after the results of the U.K. elections in which Prime Minister Boris Johnson secure a convincing win. "Today, investors will try to assess the consequences of a trade truce and of Brexit happening soon," KBC Bank's analysts says, adding that "the removal of those event risks is positive for risky assets." As risky assets gain, safe haven German Bunds lose appeal, causing prices to fall and yields to rise. The selloff began Thursday during European Central Bank President Christine Lagarde's first post-Governing Council press conference where she sounded slightly upbeat over the eurozone's economy. (emese.bartha@wsj.com)

0758 GMT - The skew on one-month risk reversals in GBP/USD shows investors have reduced demand for options protecting against sterling falling after the U.K. voters gave a majority of seats to the ruling Conservative party in Thursday's general election. The result trimmed the skew towards put options, or bets on the pound falling in future, over call options to 0.75% on Friday from 2.733% the previous day as U.K. voters cast their ballots. Sterling rises, although it trims gains from previous highs on exit poll projections, with GBP/USD last up 0.3% at 1.3430 and EUR/GBP down 0.3% at 0.8312. (lorena.ruibal@wsj.com; @lorena_rbal)

0759 GMT - Brent crude oil is up 0.7% at $64.63 a barrel and WTI futures are up 0.5% at $59.48 a barrel at the beginning of what looks to be a day of risk-on trading activity. "Unsurprisingly markets have responded very positively to the latest developments...[as] the trade story takes centre stage," ING notes. President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday. That, the rally in the pound against the dollar--in which oil is denominated--and the ebbing of U.K. political uncertainty after a convincing election win for Prime Minister Boris Johnson, will likely distract traders from a week of bearish oil market data despite deeper OPEC+ cuts. (david.hodari@wsj.com; @davidhodari)

0804 GMT - Sterling erodes gains after hitting an 18-month high of $1.3515 on the exit poll's prediction of a Conservative majority win on late Thursday. "We think we could easily have a meaningful pullback ... as profit-taking takes hold," says TD Securities. Strategists at the Canadian bank see a possibility that traders will want to take profits on sterling on Friday, even if they move afterwards to buy on dips. GBP/USD is last up 0.2% at 1.3418, while EUR/GBP is down 0.2% at 0.8322, having earlier dropped to a 2.5-year low of 0.8277, according to FactSet. (lorena.ruibal@wsj.com; @lorena_rbal)

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 04:23 ET (09:23 GMT)

DJ China Railway Construction Wins Major Economic-Zone Contract

By Yifan Wang

China Railway Construction Corp. Ltd. (601186.SH) has been selected as the main contractor to build a new economic zone in China that will receive 10.35 billion yuan (US$1.47 billion) of investment.

The company said Friday it won a contract to develop and construct a special economic zone in China's southern province of Hubei.

The government will contribute 6% of the total investment while the remaining funding will come from private capital and bank loans, China Railway Construction said. The construction group will also contribute some of the funding for the project, which will run for 10 years, it said.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

December 13, 2019 04:15 ET (09:15 GMT)

DJ ABB to Supply Power to Genting Hong Kong's Cruise Vessels
By Giulia Petroni

ABB Ltd. (ABBN.EB) said Friday that it has won a 157 million euros ($174.8 million) contract to supply power to Genting Hong Kong Ltd.'s (0678.HK) next generation of cruise vessels.

The Swiss engineering company said it will power six vessels, each 286 meters long, with its Azipod electric propulsion system.

The vessels are expected to be delivered in the 2023-24 period, ABB said.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

December 13, 2019 04:14 ET (09:14 GMT)

DJ A Kering-Richemont Merger Makes Strategic Sense: Bernstein -- Market Talk

0859 GMT - A Kering-Richemont merger would be a formidable strategic response to LVMH turning up the M&A pressure, Bernstein analyst Luca Solca says. Firstly, it would create a larger number-two player in luxury, Solca says, noting that LVMH had EUR46.83 billion revenue in 2018, compared with Richemont's EUR13.99 billion and Kering's EUR13.67 billion revenue for that year. Secondly, it would be highly complementary given Richemont's strength in hard luxury and Kering's soft luxury credentials, Solca says. Furthermore, Richemont's e-tailer business YNAP could be developed as the "house platform" for selling Kering and Richemont brands, turning it into a real asset, Solca says. (cristina.roca@dowjones.com)

(END) Dow Jones Newswires

December 13, 2019 04:00 ET (09:00 GMT)

DJ News Highlights: Top Energy News of the Day
Oil Prices Settle Higher on Trade Deal Optimism, Central-Bank Stimulus

EU Pledges to Cut Greenhouse-Gas Emissions to Net-Zero by 2050

Court Rules FirstEnergy Solutions Can't Just Walk Away From Power Contracts

Natural Gas Prices Remain Higher After Supply Data

Elliott Says PG&E-Backed Restructuring Plan Ignores State Mandates

Experts Blame Deadly Vale Dam Collapse on Drainage Problems

German Prosecutors Open Probe Into TÜV SÜD, Which Certified Failed Brazil Dam

Oil Inventories to Rise Despite OPEC Cuts, IEA Says

Aramco Valuation Hits Crown Prince's $2 Trillion Target

Chad 2019 Crude Oil Exports Fell On Year

Oil futures settled higher on Thursday, nearly recouping all losses from a day earlier, following a tweet from President Donald Trump that hinted the U.S. was close to a trade deal with China.

European Union leaders agreed to cut the bloc's greenhouse-gas emissions to net-zero by 2050, coupling efforts to fight climate change with a massive economic transition poised to test EU unity.

Bankrupt energy companies can't rip up power supply deals without taking the public interest into account, a federal appeals court said, ruling against FirstEnergy Solutions.

Natural gas prices held onto modest gains after government data showed domestic supplies fell by 73 billion cubic feet for the week, roughly in line with what analysts had expected.

Elliott Management Corp. is digging in against a PG&E Corp. shareholder strategy for ending the utility's bankruptcy, saying key demands of California officials wouldn't be satisfied under the proposal.

Vale SA said experts hired by the miner have concluded that drainage problems were largely to blame for the collapse of its dam in January that killed 270 people in Brazil.

Prosecutors in Germany have opened a criminal probe into the role of German safety inspector TÜV SÜD over the January collapse of a mine-waste dam in Brazil that killed 270 people.

Global oil stocks will still rise in the first quarter of 2020 despite attempts by the Organization of the Petroleum Exporting Countries and its allies to balance the market, the International Energy Agency said.

The Saudi government and its wealthiest citizens helped lift Aramco to Saudi Crown Prince Mohammed bin Salman's coveted valuation target of $2 trillion-if only for a few hours.

Crude oil exported by Chad fell 13.5%, in 2019 compared with the previous year, data publishe by Cameroon's Pipeline Steering and Monitoring Committee indicated.

(END) Dow Jones Newswires

December 13, 2019 04:00 ET (09:00 GMT)

DJ Markets Rally as Trade and Brexit Uncertainties Recede -- 2nd Update
By Steven Russolillo and Joanne Chiu

Global stocks rallied Friday as signs of progress in resolving two major overhangs -- the U.S.-China trade spat and Brexit -- bolstered investors' risk appetite late in what is already a banner year for markets.

Futures linked to the Dow Jones Industrial Average climbed 0.4%. The index for blue-chip stocks gained 0.8% on Thursday after President Trump said the U.S. and China were nearing a deal, while the S&P 500 closed at a record high. Mr. Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday, The Wall Street Journal reported Thursday.

In the U.K., the FTSE 100 index rose over 1% after a resounding election victory for Prime Minister Boris Johnson's Conservative Party overnight raised hopes for a quick divorce from the European Union. The pound rallied 0.2% against the dollar on Friday to trade at $1.3416, its highest level since June 2018.

"The geopolitical risks thought to be strangling world economic growth, incredibly, just in the last 24 hours, seem to be closer to getting resolved in a big, big way," said Chris Rupkey, chief financial economist at MUFG. "The outlook in 2020 looks better than it has in months."

Mr. Rupkey said he expects stocks around the world to keep rallying and bond yields to rise further.

The pan-continental Stoxx Europe 600 index advanced 1.1%.

In Asia, Japan's Nikkei 225 jumped 2.6% on Friday, putting the benchmark on pace for one of its best days of the year. Hong Kong's Hang Seng Index gained 2%. The Shanghai Composite in China rose 1.2%.

The WSJ U.S. Dollar Index fell 0.3%. A U.S.-China trade deal, Britain's possible orderly exit from the EU, and looser monetary policy in the U.S. and Europe together set the stage for a "decent selloff" in the dollar, according to Mansoor Mohi-uddin, senior macro strategist at NatWest Markets.

To be sure, previous breakthroughs in both trade and Brexit have proven to be false dawns. Trade tensions have dragged on for almost two years, while Britain's divorce from the EU has been bogged down in the country's Parliament since the June 2016 referendum.

Still, the elevated political uncertainty, which is also fueled by U.S. impeachment proceedings, hasn't stopped many stock markets from enjoying an exceptional year.

The S&P 500 has rallied 26%, on pace for its best annual performance in six years. The rally has been underpinned by the Federal Reserve, which has cut interest rates three times this year to shore up growth, a reversal after four increases last year. Earlier this week, it kept rates steady and showed no appetite to raise them soon.

The about-face has rippled through global markets. The Stoxx Europe 600 has risen 21% this year, while indexes in mainland China, Japan and Taiwan are up by double-digit percentages. The MSCI All Country World index has risen more than 20%.

Some observers are concerned about how much more markets could rally from here. Eli Lee, head of investment strategy at Bank of Singapore, said investors should expect modest returns in the coming years, given already-rich equity valuations. "Although the bull market won't die in 2020, there are good reasons for return expectations to be moderate," he said.

-- Anna Hirtenstein in London contributed to this article.

Write to Steven Russolillo at steven.russolillo@wsj.com and Joanne Chiu at joanne.chiu@wsj.com

(END) Dow Jones Newswires

December 13, 2019 03:51 ET (08:51 GMT)

DJ Interbank Foreign Exchange Rates At 03:50 EST / 0850 GMT
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           109.60-61      109.30-31  +0.28   109.67   108.91  +0.01 
EUR/USD Euro            1.1170-73      1.1130-33  +0.36   1.1201   1.1125  -2.60 
GBP/USD U.K.            1.3409-11      1.3163-65  +1.87   1.3515   1.3149  +5.10 
USD/CHF Switzerland     0.9830-34      0.9845-49  -0.15   0.9867   0.9776  +0.16 
USD/CAD Canada          1.3161-66      1.3182-87  -0.16   1.3187   1.3151  -3.50 
AUD/USD Australia       0.6921-25      0.6908-12  +0.19   0.6939   0.6907  -1.83 
NZD/USD New Zealand     0.6620-26     0.6595-601  +0.38   0.6636   0.6595  -1.44 
 
Euro Rates 
 
EUR/JPY Japan           122.42-47      121.66-70  +0.63   122.60   121.17  -2.59 
EUR/GBP U.K.            0.8328-31      0.8451-54  -1.46   0.8459   0.8240  -7.35 
EUR/CHF Switzerland     1.0983-86      1.0960-63  +0.21   1.1035   1.0947  -2.42 
EUR/CAD Canada          1.4701-11      1.4666-76  +0.24   1.4747   1.4656  -5.97 
EUR/AUD Australia       1.6130-40      1.6104-14  +0.16   1.6165   1.6046  -0.79 
EUR/DKK Denmark         7.4727-34      7.4726-33  +0.00   7.4808   7.4623  +0.09 
EUR/NOK Norway         10.0926-76     10.1035-85  -0.11  10.1413  10.0808  +1.88 
EUR/SEK Sweden        10.4434-534    10.4505-605  -0.07  10.4765  10.4370  +2.91 
EUR/CZK Czech Rep.     25.485-515      25.508-38  -0.09   25.531   25.496  -0.82 
EUR/HUF Hungary         328.56-96      329.39-79  -0.25   329.92   328.67  +2.40 
EUR/PLN Poland          4.2760-78      4.2840-58  -0.19   4.2949   4.2747  -0.29 
 
Yen Rates 
 
AUD/JPY Australia        75.86-90       75.51-55  +0.46    75.99    75.39  -1.82 
GBP/JPY U.K.          146.95-7.01      143.86-92  +2.15   147.96   142.00  +5.07 
CAD/JPY Canada           83.22-26       82.88-92  +0.41    83.33    82.62  +3.58 
NZD/JPY New Zealand      72.56-60       72.08-15  +0.64    72.67    71.89  -1.44 
 
Other Dollar Rates 
 
USD/CZK Czech Rep.      22.800-50      22.905-55  -0.46   22.931   22.789  +1.81 
USD/HUF Hungary         294.08-48      295.95-06  -0.63   296.28   293.97  +5.10 
USD/DKK Denmark         6.6886-96      6.7130-40  -0.36   6.7137   6.6724  +2.73 
USD/NOK Norway          9.0331-91     9.0761-821  -0.47   9.0791   9.0162  +4.57 
USD/PLN Poland          3.8275-80      3.8500-05  -0.58   3.8505   3.8239  +2.33 
USD/RUB Russia          62.511-81      62.706-76  -0.31   62.759   62.500  -9.67 
USD/SEK Sweden         9.3478-568     9.3888-978  -0.44   9.3972   9.3272  +5.64 
USD/ZAR S. Africa     14.4024-324   14.4823-5123  -0.55  14.5059  14.4077  +0.39 
 
USD/CNY China           6.9843-63     7.0196-216  -0.50   7.0206   6.9611  +1.55 
USD/HKD Hong Kong       7.8026-31      7.8033-38  -0.01   7.8074   7.8021  -0.37 
USD/MYR Malaysia       4.1360-410     4.1575-625  -0.52   4.1601   4.1371  +0.15 
USD/INR India           70.680-90      70.547-67  +0.18   70.755   70.485  +1.60 
USD/IDR Indonesia        13983-97       14018-32  -0.25    14025    13955  -2.71 
USD/PHP Philippines     50.615-30      50.541-61  +0.14   50.638   50.450  -3.58 
USD/SGD Singapore       1.3519-29      1.3536-46  -0.13   1.3546   1.3513  -0.77 
USD/KRW S. Korea     1170.50-2.50   1171.89-3.89  -0.12  1174.88  1168.55  +5.13 
USD/TWD Taiwan          30.251-81      30.222-52  +0.10   30.316   30.155  -1.03 
USD/THB Thailand        30.210-30     30.180-200  +0.10   30.250   30.130  -6.50 
USD/VND Vietnam         23139-209      23140-210   0.00    23200    23168  -0.09 
 
USD/BRL Brazil         4.0893-923     4.0894-924   0.00   4.0919   4.0880  +5.39 
USD/MXN Mexico        19.0243-543    19.0400-700  -0.08  19.0650  18.9955  -3.10 
USD/ARS Argentina     59.7398-818    59.7047-468  +0.06  59.8254  59.5081 +58.74 
 
Source: Tullett Prebon 
 

(END) Dow Jones Newswires

December 13, 2019 03:50 ET (08:50 GMT)

DJ Global Equities Roundup: Market Talk

The latest Market Talks covering Equities. Published exclusively on Dow Jones Newswires throughout the day.

0843 GMT - U.K. Prime Minister Boris Johnson's election victory paves the way to an orderly Brexit soon, and the end of the uncertainty is good news, says German asset manager Union Investment. "However, the topic will continue to be pursued by the stock markets," says chief economist Joerg Zeuner, adding that the next step is the renegotiation of economic relations between the EU and the U.K. As long as the future trade relations are not fixed, the situation remains uncertain and the markets won't be able to completely abandon Brexit even after the withdrawal, Zeuner adds. (emese.bartha@wsj.com)

0843 GMT - Hong Kong's Hang Seng Index ended the session 2.6% higher at 27687.76, the largest closing gain in more than three months, as renewed trade optimism buoyed the market. Casino operators led the rise as Galaxy Entertainment surged 6.9% and Sands China advanced 5.3%. Exporters went up too, with Techtronic Industries rising 4.1%, Sunny Optical Technology 2.4% higher and Shenzhou International adding 1.3%. Local companies also lodged gains. Billionaire Li Ka-shing's flagship CK Hutchison increased 4.7% and CK Infrastructure lifted 4.2%. (yifan.wang@wsj.com)

0833 GMT - The outlook for E.U. airlines has become clearer after the U.K. election result, which provides a better understanding of the political future of the country, HSBC says. "The trading environment for airlines and investor sentiment towards airlines are sensitive to political and economic developments," the bank notes. If the short-term future is less uncertain and shares should be positively impacted by the elections' results, HSBC believes that uncertainty could return in 2020. (olivia.bugault@wsj.com)

0833 GMT - The price-fixing fines for Thyssenkrupp, Voestalpine and Salzgitter's subsidiary Ilsenburger Grobblech are another burden for the steel producers, Baader Helvea says. The fines by the German cartel authority, around EUR646 million in total for the companies and three individuals, come "in a time of sluggish demand and margin pressure," Baader Helvea says. However, all three companies have expected and provisioned the fine, according to the bank. (kim.richters@wsj.com)

0826 GMT - Ams's takeover offer for Osram is on track and the company is likely to take more control over the German manufacturer, Deutsche Bank says, resuming a buy rating at a price target of CHF52. The Austrian sensor maker is expected to close the deal in 2020 and propose a so-called domination agreement to gain more control over the German manufacturer. However, even without such agreement in place, "Ams effectively will have factual control and can change the supervisory board and in turn influence management board size and composition," according to the bank. (giulia.petroni@wsj.com)

0759 GMT - Brent crude oil is up 0.7% at $64.63 a barrel and WTI futures are up 0.5% at $59.48 a barrel at the beginning of what looks to be a day of risk-on trading activity. "Unsurprisingly markets have responded very positively to the latest developments...[as] the trade story takes centre stage," ING notes. President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday. That, the rally in the pound against the dollar--in which oil is denominated--and the ebbing of U.K. political uncertainty after a convincing election win for Prime Minister Boris Johnson, will likely distract traders from a week of bearish oil market data despite deeper OPEC+ cuts. (david.hodari@wsj.com; @davidhodari)

0758 GMT - Manulife US REIT's recent acquisitions and organic growth from strong demand will likely push up distribution per unit, RHB says, raising the trust's target price to US$1.10 from US$1.00 at an unchanged buy rating. Two recent property purchases will help diversify Manulife's tenant base and income streams, while existing properties' rents are expected to rise in 2020-2021 during contract renewals, RHB says. Proposed changes to U.S. tax rules could lead to potential tax savings, RHB says. It adds that the trust's recent inclusion into a global index improves its investor visibility, which would help drive up the unit price. Units, down 2.5% at US$0.98, are up 27% year to date. (yifan.wang@wsj.com)

0748 GMT - USD/SGD falls after the U.S.-China trade deal and the U.K. election outcome boost investor sentiment. "All this market positivity is likely to weaken USD, adding to global liquidity, which is positive for emerging markets," Nomura analysts write in a note. "We believe there is still some space for markets to rally further in the near term," they add. USD/SGD is last at 1.3529 versus 1.3545 late Thursday in New York. (Ronnie.Harui@wsj.com)

0745 GMT - Nordic markets are expected to open sharply higher, with IG calling the OMXS30 up 1% at around 1776. "Stocks and other risk assets rallied this morning on news that the U.S. and China have landed a 'phase one' deal," Danske says. U.S. sources said the Dec. 15 round of U.S. tariffs on Chinese goods is off the table and Washington has offered to cut existing tariff rates by up to 50% in exchange for China making $50 billion of agricultural purchases and increased IP rights protection. "If confirmed, we believe this is good news as it means the two sides can move on to phase two," Danske says. Asian markets jumped, with Japan's Nikkei 225 gaining over 2.5%, and U.S. index futures suggest the equities rally will continue, Danske says. The OMXS30 closed at 1758.24, OMXN40 at 1668.58 and OBX at 824.21. (dominic.chopping@wsj.com)

0740 GMT - China's Wuxi Biologics (Cayman) Inc. can sustain growth as it gains more market share from global rivals thanks to its advanced technology platforms, CMB International says. Wuxi Biologics also enjoys lower labor costs and a rich talent pool in China, the investment bank says of the pharmaceutical services provider. The company's fast capacity ramp-up enables it to meet growing global demand for outsourcing drug manufacturing, CMB says. It initiates coverage of the stock with a buy rating and a target price of HK$106.18. Shares are up 3.0% at HK$95.20. (martin.mou@wsj.com)

0729 GMT - YiChang HEC ChangJiang Pharmaceutical will be able to maintain its advantage in flu drugs despite looming competition, Bocom International says. HEC's anti-flu medicine, Kewei, dominates the market with strong edge in cost, production capacity, sales channels and customer awareness, Bocom says. Even though some competitors' drugs are likely to be launched in coming years, their impact on HEC should be limited thanks to HEC's sales team and channel penetration advantages, Bocom says. The company's e-commerce push should also help expand market coverage, it adds. Bocom keeps the stock rating at buy with an unchanged target price of HK$46.00. Shares are down 0.5% at HK$37.95 and have gained 45% year to date. (yifan.wang@wsj.com)

0729 GMT - Industrial metals rise across the board, as President Trump's trade deal with China boosts the outlook for commodity demand in 2020. The U.S. agreed to a limited agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levels that were set to kick in on Sunday. The deal eases tensions between the world's two largest economies, which have weighed on base-metal prices for much of the year. Copper is up 0.2% at $6,176 a metric ton, aluminum up 0.3% at $1,778 a ton and zinc up 0.7% at $2,275 a ton. The advance isn't larger because the recent rise in metal prices has encouraged miners to sell their material in the futures market, says Catherine Birch at ANZ. (joe.wallace@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 03:43 ET (08:43 GMT)

DJ Orderly Brexit Likely, But Uncertainties Remain: Union Investment -- Market Talk

0843 GMT - U.K. Prime Minister Boris Johnson's election victory paves the way to an orderly Brexit soon, and the end of the uncertainty is good news, says German asset manager Union Investment. "However, the topic will continue to be pursued by the stock markets," says chief economist Joerg Zeuner, adding that the next step is the renegotiation of economic relations between the EU and the U.K. As long as the future trade relations are not fixed, the situation remains uncertain and the markets won't be able to completely abandon Brexit even after the withdrawal, Zeuner adds. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 03:43 ET (08:43 GMT)

DJ DME Oman Feb Crude Settles at $65.68/Bbl Dec 13, +$0.94

(END) Dow Jones Newswires

December 13, 2019 03:37 ET (08:37 GMT)

DJ Global Commodities Roundup: Market Talk

The latest Market Talks covering Commodities. Published exclusively on Dow Jones Newswires throughout the day.

0833 GMT - The price-fixing fines for Thyssenkrupp, Voestalpine and Salzgitter's subsidiary Ilsenburger Grobblech are another burden for the steel producers, Baader Helvea says. The fines by the German cartel authority, around EUR646 million in total for the companies and three individuals, come "in a time of sluggish demand and margin pressure," Baader Helvea says. However, all three companies have expected and provisioned the fine, according to the bank. (kim.richters@wsj.com)

0813 GMT - Gold, as shown on the 30-minute chart, remains on the downside after breaking below a bullish trend line drawn from Dec. 10. Despite a modest rebound, gold is capped by the descending 50-period moving average, while the MACD remains in the negative area, indicating that the bearish bias persists. As a result, unless the key resistance level at $1,473.0 (a previous support that now acts as a resistance) is surpassed, the precious metal is expected to decline to $1,464.0 and $1,461.5 on the downside. Alternatively, a break above $1,473.0 would signal that the gold price has stabilized and trigger a further rebound to $1,477.0 on the upside. Spot gold is trading at $1,469.3 an ounce. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

0735 GMT - Gold prices slip as the U.S.-China trade deal and the decisive U.K. election result clear two sources of uncertainty that were hanging over the world economy. The U.S. agreed to a limited agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies that were set to kick in on Sunday. Meanwhile the Conservative Party won a majority, making it all but certain that the U.K. will leave the European Union at the end of January. Trade tensions and political stalemate in the U.K. had boosted gold for much of the year. Still, the precious metal is down only 0.1% at $1,471.50 a troy ounce, supported by a big fall in the dollar. (joe.wallace@wsj.com)

0729 GMT - Industrial metals rise across the board, as President Trump's trade deal with China boosts the outlook for commodity demand in 2020. The U.S. agreed to a limited agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levels that were set to kick in on Sunday. The deal eases tensions between the world's two largest economies, which have weighed on base-metal prices for much of the year. Copper is up 0.2% at $6,176 a metric ton, aluminum up 0.3% at $1,778 a ton and zinc up 0.7% at $2,275 a ton. The advance isn't larger because the recent rise in metal prices has encouraged miners to sell their material in the futures market, says Catherine Birch at ANZ. (joe.wallace@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 03:33 ET (08:33 GMT)

DJ Cartel Fines Are Another Burden for Steel Producers: Baader Helvea -- Market Talk

0833 GMT - The price-fixing fines for Thyssenkrupp, Voestalpine and Salzgitter's subsidiary Ilsenburger Grobblech are another burden for the steel producers, Baader Helvea says. The fines by the German cartel authority, around EUR646 million in total for the companies and three individuals, come "in a time of sluggish demand and margin pressure," Baader Helvea says. However, all three companies have expected and provisioned the fine, according to the bank. (kim.richters@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 03:33 ET (08:33 GMT)

DJ Sterling Could Rise to $1.45 By End-2020: HSBC -- Market Talk

0833 GMT - HSBC expects further strong gains in sterling as the U.K.'s Conservative Party are on course to secure a comfortable majority in Thursday's general election, potentially taking it to $1.45 by the end of 2020, from $1.3421 currrently, HSBC says. The result brings some "near-term clarity" on Brexit and means the "less market-friendly" policies proposed by the opposition Labour Party won't materialise but the debate could "quickly shift from the risks a no-deal Brexit to the risks of a no trade deal one," HSBC economist Simon Wells says, referring to U.K.-EU trade deal talks that will begin if parliament passes the Conservatives withdrawal agreement by the new January 31 Brexit deadline. (renae.dyer@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 03:33 ET (08:33 GMT)

DJ FTSE 250 Soars After Johnson Election Victory
Market News: 
 
FTSE 100           7,338.48  +65.01 +0.89% 
FTSE 250          21,657.69 +864.66 +4.16% 
FTSE AIM All-Share   911.54  +12.21 +1.36%

Top News:

Companies News:

Market Talk:

British Midcaps Soar After Conservative Victory -- MarketWatch

Domestic-oriented, U.K. midcaps surged in early action Friday after the Conservatives secured a decisive general election victory, but top British stocks were largely left behind. The midcap FTSE 250 jumped 4% while the large-cap FTSE 100 added just 0.5%, as the surge in sterling weighed on big U.K.-based multinationals who generate the bulk of their revenue outside of the country. Big gainers in the FTSE 250 included Travis Perkins , up 19%, and Virgin Money UK , up 18%.

Boris Johnson Secures a Comfortable U.K. Election Win

British Prime Minister Boris Johnson won a decisive majority in Thursday's general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

Hollywood Bowl FY 2019 Pretax Profit Rose 15%; FY 2020 Solid

Hollywood Bowl Group PLC (BOWL.LN) on Friday reported a 15% rise in pretax profit for fiscal 2019 and said that it has made a solid start to the current financial year with trading in line with management expectations.

Nakama Group Warns About Restructuring Options After Weak 1H 2020

Nakama Group PLC (NAK.LN) on Friday warned about considering restructuring options after reporting a significantly reduced pretax profit for the first half of fiscal 2020 as well as a tight cash position.

Proactis Holdings Considering a Number of Offer Proposals

Proactis Holdings PLC (PHD.LN) said Friday that it is considering a number of proposals that could potentially lead to final due diligence over a possible bid for the company.

Sterling Faces 'Meaningful PullBack' as Traders Take Profits: TD Securities

0804 GMT - Sterling erodes gains after hitting an 18-month high of $1.3515 on the exit poll's prediction of a Conservative majority win on late Thursday. "We think we could easily have a meaningful pullback ... as profit-taking takes hold," says TD Securities. Strategists at the Canadian bank see a possibility that traders will want to take profits on sterling on Friday, even if they move afterwards to buy on dips. GBP/USD is last up 0.2% at 1.3418, while EUR/GBP is down 0.2% at 0.8322, having earlier dropped to a 2.5-year low of 0.8277, according to FactSet.

Sterling Traders Trim Bets on Lower Pound After Johnson's Victory

0758 GMT - The skew on one-month risk reversals in GBP/USD shows investors have reduced demand for options protecting against sterling falling after the U.K. voters gave a majority of seats to the ruling Conservative party in Thursday's general election. The result trimmed the skew towards put options, or bets on the pound falling in future, over call options to 0.75% on Friday from 2.733% the previous day as U.K. voters cast their ballots. Sterling rises, although it trims gains from previous highs on exit poll projections, with GBP/USD last up 0.3% at 1.3430 and EUR/GBP down 0.3% at 0.8312.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-9319

(END) Dow Jones Newswires

December 13, 2019 03:32 ET (08:32 GMT)

DJ Gazprom Targets Dividend Payout Equivalent to 50% of Adjusted Profit by 2021
By Ian Walker

Gazprom PJSC (GAZP.RS) said Friday that it is planning to pay 50% of its adjusted net profit as dividends by 2021 and targeting 1.10 trillion Russian Rubles ($17.67 billion) of investments for 2020.

The Russian gas giant said that it will gradually increase dividend payouts with at least 30% of adjusted net profit in 2019, 40% in 2020 and no less than 50% by 2021.

Gazprom also said that it expects borrowings for 2020 to be RUB557.8 billion.

Both the dividend policy and budget proposal have been approved by the management committee and will now be submitted to the board for consideration, Gazprom said.

Write to Ian Walker at ian.walker@wsj.com

(END) Dow Jones Newswires

December 13, 2019 03:30 ET (08:30 GMT)

DJ Global Energy Roundup: Market Talk

The latest Market Talks covering Energy markets. Published exclusively on Dow Jones Newswires throughout the day.

0826 GMT - Ams's takeover offer for Osram is on track and the company is likely to take more control over the German manufacturer, Deutsche Bank says, resuming a buy rating at a price target of CHF52. The Austrian sensor maker is expected to close the deal in 2020 and propose a so-called domination agreement to gain more control over the German manufacturer. However, even without such agreement in place, "Ams effectively will have factual control and can change the supervisory board and in turn influence management board size and composition," according to the bank. (giulia.petroni@wsj.com)

0818 GMT - January Brent, as shown on the 30-minute chart, touched a day's high of $64.85 yesterday, and finally gained 0.8% for the whole session. It is currently off that high but has managed to trade at levels above the ascending 20-period moving average. And the 50-period moving average, also positively sloped, has been helping to maintain a bullish bias since yesterday. In addition, the relative strength index remains well-directed above the neutrality level of 50, indicating continued upward momentum for Brent. A revisit to $64.85 (yesterday's high) would open a path toward the next upside target at $65.30. The trailing key support has been raised to $64.15. A break below this level would call for a further decline toward $63.85 on the downside. January Brent is trading at $64.65 a barrel. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

0759 GMT - Brent crude oil is up 0.7% at $64.63 a barrel and WTI futures are up 0.5% at $59.48 a barrel at the beginning of what looks to be a day of risk-on trading activity. "Unsurprisingly markets have responded very positively to the latest developments...[as] the trade story takes centre stage," ING notes. President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday. That, the rally in the pound against the dollar--in which oil is denominated--and the ebbing of U.K. political uncertainty after a convincing election win for Prime Minister Boris Johnson, will likely distract traders from a week of bearish oil market data despite deeper OPEC+ cuts. (david.hodari@wsj.com; @davidhodari)

0658 GMT - China Gas Holdings, one of the country's top three natural-gas distributors, could maintain double-digit growth in annual earnings through 2022, CMB International says. A major growth driver will be its business of connecting rural households, many of which still use coal for heating, to natural gas, the investment bank says. China Gas could gain 4 million new household customers each year until 2024, it adds, initiating coverage of the stock with a buy rating and HK$38.00 target price. Shares are up 1.5% at HK$30.35. (martin.mou@wsj.com)

0529 GMT - China Resources Power's earnings will get a boost from multiple factors in 2020-2021, Bocom International says, expecting the company's power sales momentum will carry into next year as it installs new wind-power facilities. China Resources' profitability will also improve thanks to the expected drop in thermal-coal prices and the company's cost-control initiatives, Bocom says. Moreover, the energy group's earnings visibility is clarified as China stabilizes power-tariff rules after a major change this year, Bocom says. It raises the shares' target to HK$13.57 from HK$11.89 and keeps them at buy. Shares are last up 1.3% at HK$10.58. (yifan.wang@wsj.com)

0519 GMT - China Resources Gas will be able to support earnings expansion in 2020 despite an expected slowdown in sales growth, Bocom International says, raising the stock's target price to HK$43.40 from HK$42.00. Its recently acquired stake in an eastern China project will start full-year contribution next year, which should help boost earnings despite muted sales due to weak gas demand from industrial and commercial customers, Bocom says. It reckons the company could maintain an earnings compound annual growth rate of 13% for the next three years. But the stock's valuation isn't attractive enough, given shares have risen 35% year to date, Bocom says, keeping it at neutral. Shares are up 1.4% at HK$43.70. (yifan.wang@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 03:26 ET (08:26 GMT)

DJ Ams Likely to Take More Control Over Osram: DB -- Market Talk

0826 GMT - Ams's takeover offer for Osram is on track and the company is likely to take more control over the German manufacturer, Deutsche Bank says, resuming a buy rating at a price target of CHF52. The Austrian sensor maker is expected to close the deal in 2020 and propose a so-called domination agreement to gain more control over the German manufacturer. However, even without such agreement in place, "Ams effectively will have factual control and can change the supervisory board and in turn influence management board size and composition," according to the bank. (giulia.petroni@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 03:26 ET (08:26 GMT)

DJ Trading Central: Gold's Key Resistance at $1,473.0 -- Market Talk

0813 GMT - Gold, as shown on the 30-minute chart, remains on the downside after breaking below a bullish trend line drawn from Dec. 10. Despite a modest rebound, gold is capped by the descending 50-period moving average, while the MACD remains in the negative area, indicating that the bearish bias persists. As a result, unless the key resistance level at $1,473.0 (a previous support that now acts as a resistance) is surpassed, the precious metal is expected to decline to $1,464.0 and $1,461.5 on the downside. Alternatively, a break above $1,473.0 would signal that the gold price has stabilized and trigger a further rebound to $1,477.0 on the upside. Spot gold is trading at $1,469.3 an ounce. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

(END) Dow Jones Newswires

December 13, 2019 03:13 ET (08:13 GMT)

DJ Trading Central: AUD/USD Rising -- Market Talk

0812 GMT Currently trading at $0.6926, the Aussie dollar remains on the upside and is supported by its rising 50-period moving average at $0.6902. As a consequence, as long as $0.6905 remains support, further advance toward Dec. 12 top at $0.6940 and toward horizontal resistance at $0.6965 is expected. A third target is set at previous overlap at $0.6990 in extension. Alternative scenario, a break below strong horizontal support at $0.6905 would invalidate this bullish view and trigger a weakness toward horizontal support at $0.6890 and even toward strong horizontal support at $0.6865 in extension. [This piece contains the opinions of Trading Central and does not constitute personalized investment advice or form part of any invitation or inducement to buy or sell any security. The author has been prohibited by Trading Central from purchasing or otherwise directly or indirectly acquiring any direct or indirect beneficial ownership of any instruments or markets for which Trading Central or its affiliates issues recommendations. To read more, visit bit.ly/1MehCU9.] (analysts-europe@tradingcentral.com)

(END) Dow Jones Newswires

December 13, 2019 03:12 ET (08:12 GMT)

DJ PJSC Gazprom Targets 50% of Adjusted Net IFRS Profit as Dividends

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 03:11 ET (08:11 GMT)

DJ PJSC Gazprom Adjusts Dividend Policy

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 03:10 ET (08:10 GMT)

DJ PJSC Gazprom to Submit 2020 Budget Plan to Board for Consideration

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 03:10 ET (08:10 GMT)

DJ PJSC Gazprom Targets RUB557.8B Borrowings for 2020

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 03:08 ET (08:08 GMT)

DJ Gazprom Targets RUB 1,104.7B Investments for 2020

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 03:08 ET (08:08 GMT)

DJ Sterling Faces 'Meaningful PullBack' as Traders Take Profits: TD Securities -- Market Talk

0804 GMT - Sterling erodes gains after hitting an 18-month high of $1.3515 on the exit poll's prediction of a Conservative majority win on late Thursday. "We think we could easily have a meaningful pullback ... as profit-taking takes hold," says TD Securities. Strategists at the Canadian bank see a possibility that traders will want to take profits on sterling on Friday, even if they move afterwards to buy on dips. GBP/USD is last up 0.2% at 1.3418, while EUR/GBP is down 0.2% at 0.8322, having earlier dropped to a 2.5-year low of 0.8277, according to FactSet. (lorena.ruibal@wsj.com; @lorena_rbal)

(END) Dow Jones Newswires

December 13, 2019 03:04 ET (08:04 GMT)

DJ News Highlights: Top Company News of the Day
Ad Giant Dentsu Names Jacki Kelley as CEO of Americas

Boeing's MAX Fixes Not Likely to Get FAA Approval Until February

Broadcom Expects Its Earnings to Bounce Back

Japan's Hoya Plans to Acquire NuFlare Technology for $1.35 Bln

Kate Spade CEO Anna Bakst to Depart

Aramco Valuation Hits Crown Prince's $2 Trillion Target

FTC Weighs Move Against Facebook Over How Its Apps Interact

'Fortnite' Developer Challenges Google Over App-Store Fees

Federal Reserve Lifts Consent Orders Against JPMorgan, U.S. Bancorp

Costco Sales Continue to Rise

Dentsu Aegis Network, a unit of Japan's Dentsu, named agency and media veteran Jacki Kelley as chief executive of its Americas operations, succeeding Nick Brien.

The global grounding of Boeing's 737 MAX is set to stretch to nearly a year as regulators expressed concern that the U.S. plane maker set unrealistic expectations for the jetliner's return to passenger service.

The chip maker promised an earnings recovery in the current year after the company posted weaker fourth-quarter figures, dented by the protracted U.S. export ban of some items to Chinese telecom giant Huawei.

Hoya Corp. plans to spend 147.72 billion yen to acquire all shares of NuFlare Technology Inc., a maker of semiconductor manufacturing equipment.

Luxury-brands company Tapestry said the head of its Kate Spade brand, Anna Bakst, is leaving at the end of 2019, marking a less than two-year tenure as leader of the struggling brand.

The Saudi government and its wealthiest citizens helped lift Aramco to Saudi Crown Prince Mohammed bin Salman's coveted valuation target of $2 trillion-if only for a few hours.

Federal officials are considering seeking a preliminary injunction against Facebook over antitrust concerns related to how its products interact, according to people familiar with the matter.

The creator of "Fortnite" is challenging Google's policy of taking a cut of payments made for app-related purchases at a time when regulators have started scrutinizing those kind of arrangements between tech companies and their vendors.

The Federal Reserve on Thursday lifted consent orders against JPMorgan Chase & Co. and U.S Bancorp stemming from what the central bank identified as weak anti-money laundering controls.

The warehouse retailer's comparable sales increased 5% in the latest quarter but e-commerce growth slowed.

(END) Dow Jones Newswires

December 13, 2019 03:00 ET (08:00 GMT)

DJ News Highlights: Top Global Markets News of the Day
Stocks Rally as Trade and Brexit Uncertainties Recede

Boris Johnson Secures a Convincing U.K. Election Win

Pound Surges as Johnson Sweeps to Victory

Trump Agrees to Limited Trade Deal With China

Japan Big Manufacturers' Sentiment Weakest in Nearly Seven Years

Government Bond Yields Surge After Trump Declares Progress on Trade

Markets Welcome Christine Lagarde's First ECB Policy Meeting

Bank of Canada Chief Comfortable With Country's Interest Rate Policy

U.S. Jobless Claims Jump to Highest Level Since 2017 Following Holiday Week

Bond-Yield Forecasters Disagree on 2020 After 2019 Surprise

Global stocks rallied as progress with two of the biggest overhangs for investors, trade and Brexit, bolstered risk appetite late in what is already a banner year for markets.

British Prime Minister Boris Johnson won a decisive majority in the general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

The pound has held onto strong gains as Boris Johnson swept to a convincing victory in the U.K. election.

President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday as part of a deal to boost Chinese purchases of U.S. farm goods and obtain other concessions, according to people familiar with the matter.

Sentiment among Japan's large manufacturers deteriorated to the weakest level in nearly seven years during the three months to December, a central bank survey showed Friday.

Yields on government bonds around the world soared Thursday, with the 10-year U.S. note jumping by its greatest amount in three years after President Trump said the U.S. and China were close to a trade deal.

Bank stocks and government bonds reacted positively to Christine Lagarde's first policy decision as President of the ECB, taking their cue from her slightly more optimistic comments about growth in the eurozone.

Bank of Canada Gov. Stephen Poloz gave no indication that a near-term interest rate cut is in the offing in remarks Thursday.

Initial jobless claims increased by 49,000 to a seasonally adjusted 252,000 in the week ended Dec. 7. It was the highest level of claims recorded since September 30, 2017. Economists had expected 212,000 new jobless claims.

Investors are split about the direction of government-bond yields in 2020, a sign of confusion about the course of the economy and monetary policy.

(END) Dow Jones Newswires

December 13, 2019 03:00 ET (08:00 GMT)

DJ Oil Rises Amid Risk-On Trading -- Market Talk

0759 GMT - Brent crude oil is up 0.7% at $64.63 a barrel and WTI futures are up 0.5% at $59.48 a barrel at the beginning of what looks to be a day of risk-on trading activity. "Unsurprisingly markets have responded very positively to the latest developments...[as] the trade story takes centre stage," ING notes. President Trump has agreed to a limited trade agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies set to take effect Sunday. That, the rally in the pound against the dollar--in which oil is denominated--and the ebbing of U.K. political uncertainty after a convincing election win for Prime Minister Boris Johnson, will likely distract traders from a week of bearish oil market data despite deeper OPEC+ cuts. (david.hodari@wsj.com; @davidhodari)

(END) Dow Jones Newswires

December 13, 2019 02:59 ET (07:59 GMT)

DJ Global Forex and Fixed Income Roundup: Market Talk

The latest Market Talks covering FX and Fixed Income. Published exclusively on Dow Jones Newswires throughout the day.

0758 GMT - The skew on one-month risk reversals in GBP/USD shows investors have reduced demand for options protecting against sterling falling after the U.K. voters gave a majority of seats to the ruling Conservative party in Thursday's general election. The result trimmed the skew towards put options, or bets on the pound falling in future, over call options to 0.75% on Friday from 2.733% the previous day as U.K. voters cast their ballots. Sterling rises, although it trims gains from previous highs on exit poll projections, with GBP/USD last up 0.3% at 1.3430 and EUR/GBP down 0.3% at 0.8312. (lorena.ruibal@wsj.com; @lorena_rbal)

0748 GMT - USD/SGD falls after the U.S.-China trade deal and the U.K. election outcome boost investor sentiment. "All this market positivity is likely to weaken USD, adding to global liquidity, which is positive for emerging markets," Nomura analysts write in a note. "We believe there is still some space for markets to rally further in the near term," they add. USD/SGD is last at 1.3529 versus 1.3545 late Thursday in New York. (Ronnie.Harui@wsj.com)

0743 GMT - Eurozone government bonds extend the selloff, pushing the 10-year Bund yield up by 4 basis points to a six-month high of -0.223%, according to Tradeweb data, after the results of the U.K. elections in which Prime Minister Boris Johnson secure a convincing win. "Today, investors will try to assess the consequences of a trade truce and of Brexit happening soon," KBC Bank's analysts says, adding that "the removal of those event risks is positive for risky assets." As risky assets gain, safe haven German Bunds lose appeal, causing prices to fall and yields to rise. The selloff began Thursday during European Central Bank President Christine Lagarde's first post-Governing Council press conference where she sounded slightly upbeat over the eurozone's economy. (emese.bartha@wsj.com)

0729 GMT - Implied volatility in GBP/USD maturing in one month slides to 7.05%, from levels above 11% on Thursday, after Prime Minister Boris Johnson's Conservative party commanded a big majority in Thursday's general elections, according to Refinitiv data. Implied volatility is an indicator of the cost of buying protection against wild currency swings. "It's now clear the U.K. will leave the EU," says Daniel Vernazza, chief international economist at UniCredit. "With a comfortable majority of seats in the House of Commons, Mr Johnson will have the flexibility to face down the hardliners in his party and avoid a cliff-edge at end-2020".(lorena.ruibal@wsj.com; @lorena_rbal)

0723 GMT - The FTSE 100 is expected to open 20 points higher at 7,293, according to CMC Markets, as the U.K. Conservative Party are on course for a comfortable majority after Thursday's general election, giving greater certainty over Brexit. News that U.S. President Donald Trump has agreed to a limited trade agreement with China will also be a major boost for European equities, with Asian indexes rising sharply. Significant gains for the pound following the Conservative victory will temper gains for the U.K. blue-chip index, where many of the stocks are internationally-focused. This means U.K. stocks are likely to underperform their European counterparts, with CMC expecting Germany's DAX to open 147 points higher at 13,368 and France's CAC 40 to be up 59 points at 5,943. (jessica.fleetham@wsj.com)

0717 GMT - No reaction so far in U.K. gilts from the big majority win by the Conservative party at Thursday's U.K. general election as the U.K. sovereign bond market hasn't started trading yet. However, the 10-year gilt yield, which closed Thursday at 0.820%, according to FactSet, is expected to rise 5-10 basis points on the election outcome, according to projections by Bank of America Merrill Lynch's rates strategists.(lorena.ruibal@wsj.com; @lorena_rbal)

0705 GMT - Sterling rallies as the Conservative party commands a strong majority in the U.K. general election, yet uncertainty over trade negotiations between the U.K. and the EU may limit further gains. "The trajectory of trade talks remains a major unknown factor for sterling at the moment," says Ranko Berich, head of market analysis at foreign exchange provider Monex Europe. "A strong majority could prove a double edged sword for sterling as the new Government could decide its majority means it has a strong hand for hardball tactics with the EU." GBP/USD is last up 0.6% at 1.3469, having earlier hit 1.3515, according to FactSet, its highest since May 2018. EUR/GBP is last down 0.5% at 0.8295, having hit 0.8277, its lowest in two and a half years.(lorena.ruibal@wsj.com; @lorena_rbal)

0647 GMT - British companies are eager for some clarity over Brexit and need a framework to plan for the future now the election is over, Director General of the Institute of Directors Jonathan Geldart says. "After years of parliamentary chaos, directors want to see a Government that is clear-sighted about the challenges facing businesses, and ambitious, but realistic, in its response," Geldart says. The shape of any deal with the EU is more important than the speed at which it is achieved, he says. (ian.walker@wsj.com)

0632 GMT - Sterling rallies against both the euro and the U.S. dollar as Prime Minister Boris Johnson's Conservative party wins an overall majority in Thursday's general election. GBP/USD is last up 0.6% at 1.3479, while EUR/GBP is down 0.5% at 0.8294. Sterling hit $1.3515, the highest level since May 2018, after the exit poll released at 2200 GMT on Thursday predicted the Conservatives commanded a comfortable majority. "Admittedly, sterling hasn't moved a whole lot since the announcement of the exit poll at 2200 GMT yesterday, but this could be the beginning of a wider rally in the pound," says David Madden, market analyst at CMC Markets. (lorena.ruibal@wsj.com; @lorena_rbal)

0623 GMT - China's industrial-production growth likely accelerated to 5.0% on year in November compared with October's 4.7% expansion, according to a Wall Street Journal poll of 15 economists. Retail sales growth may have sped up to 7.6% in November, up from a 7.2% increase in October, while fixed-asset investment may have held steady at 5.2% in the first 11 months of the year, according to the poll. The National Bureau of Statistics is set to release the data on Monday at 1000 local time. (grace.zhu@wsj.com)

0612 GMT - Japan's Nikkei Stock Average reached a 14-month high on rising optimism over U.S.-China trade relations and fading uncertainty over Brexit as the U.K. held elections. Electronics stocks led broader market gains, as chip-making-equipment maker Tokyo Electron added 5.9% while industrial-robot maker Yaskawa Electric advanced 5.4%. Investors are eyeing any further details of a potential U.S.-China trade agreement and the path for Brexit. The Nikkei Stock Average closed up 2.6% at 24023.10, the highest since October 2018. The USD/JPY is at 109.56 compared with 109.31 late Thursday in New York. The 10-year Japanese government-bond yield stays flat at -0.025%. (kosaku.narioka@wsj.com; @kosakunarioka)

0541 GMT - The yuan may extend gains on the U.S.-China trade deal, Nomura says. Its sensitivity analysis shows if the Dec. 15 tariffs are removed and existing tariffs are cut by 50%, the onshore yuan may rally to as high as 6.70 versus the greenback. A foreign exchange-related agreement in the trade deal and a possible removal of the Asian nation's forex manipulator label may also boost the yuan. Another currency that may strengthen is KRW, as South Korea's linkages with China and its export-reliant economy should benefit from a reduction in trade tensions, Nomura adds. USD/CNY was last down 0.7% at 6.9697. (Ronnie.Harui@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 02:58 ET (07:58 GMT)

DJ Sterling Traders Trim Bets on Lower Pound After Johnson's Victory -- Market Talk

0758 GMT - The skew on one-month risk reversals in GBP/USD shows investors have reduced demand for options protecting against sterling falling after the U.K. voters gave a majority of seats to the ruling Conservative party in Thursday's general election. The result trimmed the skew towards put options, or bets on the pound falling in future, over call options to 0.75% on Friday from 2.733% the previous day as U.K. voters cast their ballots. Sterling rises, although it trims gains from previous highs on exit poll projections, with GBP/USD last up 0.3% at 1.3430 and EUR/GBP down 0.3% at 0.8312. (lorena.ruibal@wsj.com; @lorena_rbal)

(END) Dow Jones Newswires

December 13, 2019 02:58 ET (07:58 GMT)

DJ Interbank Foreign Exchange Rates At 02:50 EST / 0750 GMT
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           109.61-62      109.30-31  +0.29   109.67   108.91  +0.02 
EUR/USD Euro            1.1163-66      1.1130-33  +0.30   1.1201   1.1125  -2.66 
GBP/USD U.K.            1.3415-17      1.3163-65  +1.91   1.3515   1.3149  +5.15 
USD/CHF Switzerland     0.9855-59      0.9845-49  +0.10   0.9867   0.9776  +0.42 
USD/CAD Canada          1.3167-72      1.3182-87  -0.11   1.3187   1.3151  -3.45 
AUD/USD Australia       0.6917-21      0.6908-12  +0.13   0.6939   0.6907  -1.89 
NZD/USD New Zealand     0.6609-15     0.6595-601  +0.21   0.6636   0.6595  -1.61 
 
Euro Rates 
 
EUR/JPY Japan           122.36-40      121.66-70  +0.57   122.60   121.17  -2.64 
EUR/GBP U.K.            0.8319-22      0.8451-54  -1.56   0.8459   0.8240  -7.45 
EUR/CHF Switzerland     1.1004-07      1.0960-63  +0.40   1.1035   1.0947  -2.23 
EUR/CAD Canada         1.4696-706      1.4666-76  +0.20   1.4747   1.4656  -6.00 
EUR/AUD Australia       1.6132-42      1.6104-14  +0.17   1.6165   1.6046  -0.78 
EUR/DKK Denmark         7.4725-32      7.4726-33   0.00   7.4808   7.4623  +0.09 
EUR/NOK Norway       10.0999-1049     10.1035-85  -0.04  10.1413  10.0808  +1.96 
EUR/SEK Sweden        10.4504-604    10.4505-605   0.00  10.4765  10.4370  +2.98 
EUR/CZK Czech Rep.      25.509-39      25.508-38  +0.01   25.531   25.507  -0.72 
EUR/HUF Hungary         329.00-40      329.39-79  -0.12   329.92   329.19  +2.54 
EUR/PLN Poland          4.2863-81      4.2840-58  +0.05   4.2949   4.2755  -0.05 
 
Yen Rates 
 
AUD/JPY Australia        75.81-85       75.51-55  +0.40    75.99    75.39  -1.89 
GBP/JPY U.K.            147.04-10      143.86-92  +2.21   147.96   142.00  +5.13 
CAD/JPY Canada           83.21-25       82.88-92  +0.40    83.33    82.62  +3.57 
NZD/JPY New Zealand      72.44-48       72.08-15  +0.48    72.67    71.89  -1.60 
 
Other Dollar Rates 
 
USD/CZK Czech Rep.      22.836-86      22.905-55  -0.30   22.931   22.789  +1.97 
USD/HUF Hungary       294.66-5.06    295.95-6.35  -0.44   296.28   294.31  +5.31 
USD/DKK Denmark         6.6927-37      6.7130-40  -0.30   6.7137   6.6724  +2.79 
USD/NOK Norway         9.0457-517     9.0761-821  -0.33   9.0791   9.0162  +4.71 
USD/PLN Poland          3.8391-96      3.8500-05  -0.28   3.8505   3.8273  +2.64 
USD/RUB Russia          62.517-87      62.706-76  -0.30   62.759   62.523  -9.66 
USD/SEK Sweden         9.3599-689     9.3888-978  -0.31   9.3972   9.3272  +5.78 
USD/ZAR S. Africa     14.4485-785   14.4823-5123  -0.23  14.5059  14.4157  +0.71 
 
USD/CNY China          6.9892-912     7.0196-216  -0.43   7.0206   6.9611  +1.62 
USD/HKD Hong Kong       7.8036-41      7.8033-38  +0.00   7.8074   7.8025  -0.35 
USD/MYR Malaysia       4.1390-440     4.1575-625  -0.44   4.1601   4.1376  +0.22 
USD/INR India           70.720-30      70.547-67  +0.24   70.755   70.485  +1.66 
USD/IDR Indonesia        13983-97       14018-32  -0.25    14025    13955  -2.71 
USD/PHP Philippines     50.615-30      50.541-61  +0.14   50.638   50.450  -3.58 
USD/SGD Singapore       1.3524-34      1.3536-46  -0.09   1.3546   1.3513  -0.73 
USD/KRW S. Korea     1172.78-4.78   1171.89-3.89  +0.08  1174.88  1168.55  +5.34 
USD/TWD Taiwan          30.247-77      30.222-52  +0.08   30.316   30.155  -1.04 
USD/THB Thailand        30.200-20     30.180-200  +0.07   30.240   30.130  -6.53 
USD/VND Vietnam         23139-209      23140-210   0.00    23200    23168  -0.09 
 
USD/BRL Brazil         4.0892-922     4.0894-924   0.00   4.0919   4.0880  +5.39 
USD/MXN Mexico        19.0319-619    19.0400-700  -0.04  19.0598  18.9955  -3.06 
USD/ARS Argentina    59.7936-8358    59.7047-468  +0.15  59.8224  59.5081 +58.89 
 
Source: Tullett Prebon 
 

(END) Dow Jones Newswires

December 13, 2019 02:50 ET (07:50 GMT)

DJ USD/SGD Falls After U.S.-China Trade Deal, U.K. Election -- Market Talk

0748 GMT - USD/SGD falls after the U.S.-China trade deal and the U.K. election outcome boost investor sentiment. "All this market positivity is likely to weaken USD, adding to global liquidity, which is positive for emerging markets," Nomura analysts write in a note. "We believe there is still some space for markets to rally further in the near term," they add. USD/SGD is last at 1.3529 versus 1.3545 late Thursday in New York. (Ronnie.Harui@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 02:48 ET (07:48 GMT)

DJ FTSE Seen Boosted by Johnson Victory; Pound Jumps
Market News: 
 
FTSE 100           7273.47 +57.22 +0.79% 
FTSE 250          20793.03 +31.56 +0.71% 
FTSE AIM All-Share  899.33  +4.33 +0.48%

Top News:

Companies News:

Market Talk:

London Stocks to Open Higher After UK Election, US-China Deal: CMC Markets

0723 GMT - The FTSE 100 is expected to open 20 points higher at 7,293, according to CMC Markets, as the U.K. Conservative Party are on course for a comfortable majority after Thursday's general election, giving greater certainty over Brexit. News that U.S. President Donald Trump has agreed to a limited trade agreement with China will also be a major boost for European equities, with Asian indexes rising sharply. Significant gains for the pound following the Conservative victory will temper gains for the U.K. blue-chip index, where many of the stocks are internationally-focused. This means U.K. stocks are likely to underperform their European counterparts, with CMC expecting Germany's DAX to open 147 points higher at 13,368 and France's CAC 40 to be up 59 points at 5,943.

Boris Johnson Secures a Comfortable U.K. Election Win

British Prime Minister Boris Johnson won a decisive majority in Thursday's general election, a stunning victory for the Brexit cheerleader that paves the way for the U.K. Parliament to trigger a long-delayed split with the European Union.

Hollywood Bowl FY 2019 Pretax Profit Rose 15%; FY 2020 Solid

Hollywood Bowl Group PLC (BOWL.LN) on Friday reported a 15% rise in pretax profit for fiscal 2019 and said that it has made a solid start to the current financial year with trading in line with management expectations.

Nakama Group Warns About Restructuring Options After Weak 1H 2020

Nakama Group PLC (NAK.LN) on Friday warned about considering restructuring options after reporting a significantly reduced pretax profit for the first half of fiscal 2020 as well as a tight cash position.

Proactis Holdings Considering a Number of Offer Proposals

Proactis Holdings PLC (PHD.LN) said Friday that it is considering a number of proposals that could potentially lead to final due diligence over a possible bid for the company.

Turbulence Awaits Gilt Traders After Conservative Majority

0717 GMT - No reaction so far in U.K. gilts from the big majority win by the Conservative party at Thursday's U.K. general election as the U.K. sovereign bond market hasn't started trading yet. However, the 10-year gilt yield, which closed Thursday at 0.820%, according to FactSet, is expected to rise 5-10 basis points on the election outcome, according to projections by Bank of America Merrill Lynch's rates strategists.

Uncertainty Over UK-EU Trade Talks May Limit Sterling Gains: Monex Europe

0705 GMT - Sterling rallies as the Conservative party commands a strong majority in the U.K. general election, yet uncertainty over trade negotiations between the U.K. and the EU may limit further gains. "The trajectory of trade talks remains a major unknown factor for sterling at the moment," says Ranko Berich, head of market analysis at foreign exchange provider Monex Europe. "A strong majority could prove a double edged sword for sterling as the new Government could decide its majority means it has a strong hand for hardball tactics with the EU." GBP/USD is last up 0.6% at 1.3469, having earlier hit 1.3515, according to FactSet, its highest since May 2018. EUR/GBP is last down 0.5% at 0.8295, having hit 0.8277, its lowest in two and a half years.

British Businesses Want Clarity Over Brexit: IoD

0647 GMT - British companies are eager for some clarity over Brexit and need a framework to plan for the future now the election is over, Director General of the Institute of Directors Jonathan Geldart says. "After years of parliamentary chaos, directors want to see a Government that is clear-sighted about the challenges facing businesses, and ambitious, but realistic, in its response," Geldart says. The shape of any deal with the EU is more important than the speed at which it is achieved, he says.

Contact: London NewsPlus, Dow Jones Newswires; +44-20-7842-9319

(END) Dow Jones Newswires

December 13, 2019 02:39 ET (07:39 GMT)

DJ Gold Slips as Trade Deal, U.K. Election Ease Uncertainty for World Economy -- Market Talk

0735 GMT - Gold prices slip as the U.S.-China trade deal and the decisive U.K. election result clear two sources of uncertainty that were hanging over the world economy. The U.S. agreed to a limited agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levies that were set to kick in on Sunday. Meanwhile the Conservative Party won a majority, making it all but certain that the U.K. will leave the European Union at the end of January. Trade tensions and political stalemate in the U.K. had boosted gold for much of the year. Still, the precious metal is down only 0.1% at $1,471.50 a troy ounce, supported by a big fall in the dollar. (joe.wallace@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 02:35 ET (07:35 GMT)

DJ Sterling 1-Month Implied Volatility Plunges on Conservative Big Win -- Market Talk

0729 GMT - Implied volatility in GBP/USD maturing in one month slides to 7.05%, from levels above 11% on Thursday, after Prime Minister Boris Johnson's Conservative party commanded a big majority in Thursday's general elections, according to Refinitiv data. Implied volatility is an indicator of the cost of buying protection against wild currency swings. "It's now clear the U.K. will leave the EU," says Daniel Vernazza, chief international economist at UniCredit. "With a comfortable majority of seats in the House of Commons, Mr Johnson will have the flexibility to face down the hardliners in his party and avoid a cliff-edge at end-2020".(lorena.ruibal@wsj.com; @lorena_rbal)

(END) Dow Jones Newswires

December 13, 2019 02:29 ET (07:29 GMT)

DJ Metals Rise on Trade Deal, But Capped by Producer Hedging -- Market Talk

0729 GMT - Industrial metals rise across the board, as President Trump's trade deal with China boosts the outlook for commodity demand in 2020. The U.S. agreed to a limited agreement with Beijing that will roll back existing tariff rates on Chinese goods and cancel new levels that were set to kick in on Sunday. The deal eases tensions between the world's two largest economies, which have weighed on base-metal prices for much of the year. Copper is up 0.2% at $6,176 a metric ton, aluminum up 0.3% at $1,778 a ton and zinc up 0.7% at $2,275 a ton. The advance isn't larger because the recent rise in metal prices has encouraged miners to sell their material in the futures market, says Catherine Birch at ANZ. (joe.wallace@wsj.com)

(END) Dow Jones Newswires

December 13, 2019 02:29 ET (07:29 GMT)

DJ Henkel Seen Opening Weak After Gloomy FY 2020 Outlook: Jefferies -- Market Talk

0727 GMT - Henkel shares are seen opening weak by Jefferies analysts, who say the company's new margin outlook for fiscal 2020 reverses seven years of margin progress and should lead to a big drop in consensus expectations. The company late on Thursday preannounced FY 2019 results and reset its FY 2020 margin outlook. The German consumer products company's expected FY 2019 results are in line with consensus expectations, but its new FY 2020 outlook of adjusted EBIT margin declining by 120 basis points and EPS falling by mid to high single digits will take the company's profitability lower than in 2013, Jefferies says. (cristina.roca@dowjones.com)

(END) Dow Jones Newswires

December 13, 2019 02:27 ET (07:27 GMT)

DJ Altice Europe to Create Fiber Wholesale Business in Portugal With Morgan Stanley Infrastructure Partners
By Cristina Roca

Altice Europe NV (ATC.AE) said Friday that it has agreed to separate its fiber activities in Portugal into a dedicated wholesaler and sell a 49.99% stake in the business.

The Amsterdam-listed telecoms company said its subsidiary MEO has signed an agreement with Morgan Stanley Infrastructure Partners.

The deal gives Altice Portugal FTTH, which comprises all of MEO's fiber assets in Portugal, an enterprise value of 4.63 billion euros ($5.16 billion).

As part of the deal, Altice will receive EUR1.6 million of cash in 2020, plus, based on some performance ratchets, a further EUR375 million in December 2021 and EUR375 million in December 2026.

The deal will help Altice in its efforts to reduce its debt, the company said.

The transaction with Morgan Stanley Infrastructure Partners should close during the first half of 2020, Altice said.

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

(END) Dow Jones Newswires

December 13, 2019 02:06 ET (07:06 GMT)

DJ Uncertainty Over UK-EU Trade Talks May Limit Sterling Gains: Monex Europe -- Market Talk

0705 GMT - Sterling rallies as the Conservative party commands a strong majority in the U.K. general election, yet uncertainty over trade negotiations between the U.K. and the EU may limit further gains. "The trajectory of trade talks remains a major unknown factor for sterling at the moment," says Ranko Berich, head of market analysis at foreign exchange provider Monex Europe. "A strong majority could prove a double edged sword for sterling as the new Government could decide its majority means it has a strong hand for hardball tactics with the EU." GBP/USD is last up 0.6% at 1.3469, having earlier hit 1.3515, according to FactSet, its highest since May 2018. EUR/GBP is last down 0.5% at 0.8295, having hit 0.8277, its lowest in two and a half years.(lorena.ruibal@wsj.com; @lorena_rbal)

(END) Dow Jones Newswires

December 13, 2019 02:05 ET (07:05 GMT)

DJ Interbank Foreign Exchange Rates At 01:50 EST / 0650 GMT
 
                           Latest       Previous   %Chg    Daily    Daily   %Chg 
Dollar Rates                               Close            High      Low  12/31 
 
USD/JPY Japan           109.59-60      109.30-31  +0.27   109.63   108.91  +0.01 
EUR/USD Euro            1.1167-70      1.1130-33  +0.33   1.1201   1.1125  -2.62 
GBP/USD U.K.            1.3467-69      1.3163-65  +2.31   1.3515   1.3149  +5.56 
USD/CHF Switzerland     0.9856-60      0.9845-49  +0.11   0.9867   0.9776  +0.43 
USD/CAD Canada          1.3165-70      1.3182-87  -0.13   1.3187   1.3151  -3.47 
AUD/USD Australia       0.6923-27      0.6908-12  +0.22   0.6939   0.6907  -1.80 
NZD/USD New Zealand     0.6621-27     0.6595-601  +0.39   0.6636   0.6595  -1.43 
 
Euro Rates 
 
EUR/JPY Japan           122.38-43      121.66-70  +0.59   122.60   121.17  -2.62 
EUR/GBP U.K.            0.8292-95      0.8451-54  -1.88   0.8459   0.8240  -7.75 
EUR/CHF Switzerland     1.1009-12      1.0960-63  +0.45   1.1035   1.0947  -2.19 
EUR/CAD Canada          1.4700-10      1.4666-76  +0.23   1.4747   1.4656  -5.98 
EUR/AUD Australia       1.6122-32      1.6104-14  +0.11   1.6165   1.6046  -0.84 
EUR/DKK Denmark         7.4723-30      7.4726-33   0.00   7.4808   7.4623  +0.08 
EUR/NOK Norway         10.0937-87     10.1035-85  -0.10  10.1413  10.0861  +1.89 
EUR/SEK Sweden        10.4338-438    10.4505-605  -0.16  10.4765  10.4370  +2.82 
EUR/CZK Czech Rep.      25.510-40      25.508-38  +0.01   25.531   25.507  -0.72 
EUR/HUF Hungary         329.19-59      329.39-79  -0.06   329.92   329.29  +2.60 
EUR/PLN Poland          4.2863-81      4.2840-58  +0.05   4.2949   4.2755  -0.05 
 
Yen Rates 
 
AUD/JPY Australia        75.87-91       75.51-55  +0.48    75.99    75.39  -1.81 
GBP/JPY U.K.            147.56-62      143.86-92  +2.57   147.96   142.00  +5.50 
CAD/JPY Canada           83.21-25       82.88-92  +0.40    83.32    82.62  +3.58 
NZD/JPY New Zealand      72.56-63       72.08-15  +0.67    72.67    71.89  -1.42 
 
Other Dollar Rates 
 
USD/CZK Czech Rep.      22.831-81      22.905-55  -0.32   22.931   22.789  +1.95 
USD/HUF Hungary       294.72-5.12    295.95-6.35  -0.42   296.28   294.31  +5.33 
USD/DKK Denmark         6.6904-14      6.7130-40  -0.34   6.7137   6.6724  +2.76 
USD/NOK Norway         9.0371-431     9.0761-821  -0.43   9.0791   9.0162  +4.61 
USD/PLN Poland          3.8381-86      3.8500-05  -0.31   3.8505   3.8273  +2.61 
USD/RUB Russia         62.660-730      62.706-76  -0.07   62.759   62.676  -9.46 
USD/SEK Sweden         9.3423-513     9.3888-978  -0.50   9.3972   9.3272  +5.58 
USD/ZAR S. Africa    14.4771-5071   14.4823-5123  -0.04  14.5042  14.4157  +0.91 
 
USD/CNY China           6.9762-82     7.0196-216  -0.62   7.0206   6.9611  +1.43 
USD/HKD Hong Kong       7.8039-44      7.8033-38  +0.01   7.8074   7.8025  -0.35 
USD/MYR Malaysia       4.1390-440     4.1575-625  -0.44   4.1601   4.1376  +0.22 
USD/INR India           70.718-28      70.547-67  +0.24   70.755   70.485  +1.66 
USD/IDR Indonesia        13978-92       14018-32  -0.29    14025    13955  -2.75 
USD/PHP Philippines     50.615-30      50.541-61  +0.14   50.638   50.450  -3.58 
USD/SGD Singapore       1.3515-25      1.3536-46  -0.16   1.3546   1.3513  -0.80 
USD/KRW S. Korea     1170.53-2.53   1171.89-3.89  -0.12  1174.80  1168.55  +5.14 
USD/TWD Taiwan          30.258-88      30.222-52  +0.12   30.312   30.155  -1.01 
USD/THB Thailand        30.170-90     30.180-200  -0.03   30.200   30.130  -6.62 
USD/VND Vietnam         23139-209      23140-210   0.00    23200    23168  -0.09 
 
USD/BRL Brazil         4.0894-924     4.0894-924   0.00   4.0919   4.0880  +5.40 
USD/MXN Mexico        19.0252-552    19.0400-700  -0.08  19.0598  18.9955  -3.10 
USD/ARS Argentina    59.7722-8144    59.7047-468  +0.11  59.8224  59.5081 +58.83 
 
Source: Tullett Prebon 
 

(END) Dow Jones Newswires

December 13, 2019 01:50 ET (06:50 GMT)

DJ Statoil: Equinor ASA: Share buy-back

(MORE TO FOLLOW) Dow Jones Newswires

December 13, 2019 01:50 ET (06:50 GMT)

DJ British Pound Surges as Johnson's Conservatives Win U.K. Election -- 4th Update
By Caitlin Ostroff and Anna Isaac

The British pound rallied as Prime Minister Boris Johnson's Conservative Party secured a solid election victory, setting the stage for a January Brexit.

The pound surged to its highest since May 2018, hitting $1.3515. By early morning London time on Friday it stood at $1.3475.

The euro also strengthened slightly against the dollar, buying $1.1168, as Mr. Johnson's victory was seen as likely to bring some near-term certainty to the U.K.'s exit from the European Union. The Brexit process has dogged the region with uncertainty for more than three years.

"It's not just that he's got a majority it's that he's got a sizable majority," said Peter Kinsella, global head of foreign exchange strategy at Swiss private bank UBP. "That indicates we're going to get a swift ratification of the Brexit agreement."

The pound is often seen as a barometer for the U.K.'s political fortunes and the effect the U.K's exit from the EU will have on the economy. Mr. Johnson's Brexit plan is set to take the U.K. out of the EU by Jan. 31.

The EU-U.K. trading relationship will remain unchanged at least through the end of 2020 under the plan as Brussels and London hash out a long-term agreement over immigration, tariffs, and financial flows.

Mansoor Mohi-uddin, senior macro strategist at NatWest Markets, said an orderly Brexit and certainty in U.K.-EU relations would draw central banks and other longer-term money managers back into British assets, helping sterling rally to $1.40 to $1.45 in the next few months.

That is broadly in line with earlier predictions from market observers, who before the election expected a Johnson victory to boost the pound and U.K. stocks. ING Bank had said the pound could hit $1.35 with a Conservative majority, versus $1.26 or $1.24 against the dollar if there is a hung Parliament or Labour Party majority, respectively. Citigroup predicted that sterling would reach $1.40 against the dollar in 2020, bolstered by a Conservative majority bringing certainty to the market.

Others caution against too much optimism. Eli Lee, head of investment strategy at Bank of Singapore, said sterling's rise could be capped next year, given the challenges of reaching a trade pact with the EU and the economic impact of a potential "bare bones" free-trade agreement.

Still, the signs of a clear Conservative victory add to a sense that major overhangs on global markets could be lifting. The exit polls came hours after indications that President Trump would sign off on a limited agreement aimed at ending the trade war with China. The move would prevent new tariffs planned for Sunday and roll back some existing tariffs.

"Things are pretty rosy right now," said Richard Falkenhäll, senior foreign exchange strategist at SEB Group

U.K. markets have been under a cloud of Brexit uncertainty since the June 2016 referendum. The pound fell sharply after that vote and remains well below where it traded before the referendum.

Stocks have broadly underperformed the rest of the world. This year, U.K. stocks have lagged behind rivals in the U.S., France and Germany. Some investors were betting that a Conservative victory could change that narrative.

Banking on a Conservative victory, Phil Harris, a fund manager for EdenTree Investment Management's U.K. equity growth fund, bought shares in British telecommunications company BT Group PLC ahead of the election. He increased his holdings from 1% to just under 2% of the fund, figuring Labour candidate Jeremy Corbyn's calls to nationalize part of the company if elected prime minister were weighing on the shares.

Paul Flood, portfolio manager at Newton Investment Management, added to his fund's position on U.K. domestic banks in recent months.

"U.K. banks are attractive," he said. "They have strong balance sheets built up of conservative mortgage lending."

Joanne Chiu in Hong Kong contributed to this article.

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com and Anna Isaac at anna.isaac@wsj.com

(END) Dow Jones Newswires

December 13, 2019 01:48 ET (06:48 GMT)

DJ Pound Soars and U.K. Stocks Set to Rally as Boris Johnson Wins Election -- Barrons.com
By Callum Keown

The pound has held onto strong gains and U.K. stocks are set to soar after Boris Johnson swept to a convincing victory in the U.K. election on Friday.

Sterling surged 2.7% to $1.348 after the exit polls predicted an 86-seat majority on Thursday night and held firm as the election results filtered through on Friday morning and confirmed Johnson was on course for a landslide victory. The jump was the largest one-day gain since January 2017.

The FTSE 100 is set to open slightly higher but could experience greater gains as London wakes up to Johnson's victory.

Johnson secured a majority shortly after 5am GMT with a number of results still to come. The strong majority gives Johnson the ammunition to get a Brexit deal through Parliament, avoiding investors' fears of a no-deal Brexit or a Jeremy Corbyn-led Labour government and providing much-needed certainty.

UBS Wealth Management economist Dean Turner said: "Just as Boris Johnson was desperately seeking his majority, this result would give the markets their ultimate wish: clarity. We've long said that sterling looks a very cheap currency. If Brexit is indeed completed by the end of January, we see the pound trading as high as 1.35 against the US dollar."

ING's global head of strategy Chris Turner said the pound may not have much further to rise but predicted a "sizable rally" for U.K. equities when markets open on Friday.

He said: "A large Tory majority at least increases the chances of some transparency returning to the business sector and certainly avoids the Labour threat of a large rise in corporation tax and the nationalization of the utility sector. Again a big move for UK equities typically falls into the 2.5-3.0% area and would see the FTSE reclaim some of the ground lost against European equities this year."

Edward Park, deputy chief investment officer at investment manager Brooks MacDonald said "Brexit sensitive" stocks would rally on Friday. However, he predicted "continued support rather than an exuberant rally" as a Conservative victory has already been priced in.

He said: "The gains seen amongst Brexit sensitive sectors, such as housebuilders and retailers, in the last 3 months should be extended as trading opens on Friday. In turn those multinational UK sectors that have predominantly US dollar or Euro revenues, such as resource companies, are likely to underperform as the sterling rally reduces the value of foreign earnings."

The pound has had a volatile few days - and indeed weeks - leading up to the election as investors react to polls with two fears in mind: a Labour government under Jeremy Corbyn, who has pledged to nationalize major industries and raise taxes on higher earners, and a no-deal Brexit.

When it looked like the Conservatives will win a substantial majority -- allowing Johnson to get a Brexit deal approved by MPs -- the currency has strengthened, while polls hinting at a Labour fightback had the opposite effect. The pound was trading at $1.317 before the exit poll as investors remained cautious before surging as the poll predicted Johnson's eventual victory.

(END) Dow Jones Newswires

December 13, 2019 01:48 ET (06:48 GMT)