BHP suffers legal setback in Brazil
London open
Britaoin´s top flight index was seen starting the session higher by 35 points from Thursday´s closing mark of 6,504.33.
Legal setback in Brazil for BHP
BHP Billiton's to settle claims over the 2015 Samarco mine disaster suffered a major blow on Friday when a Brazilian court reinstated a AUD$8bn public civil claim. BHP and joint-venture partner Vale agreed a $3bn settlement in March, however Brazil's Superior Court issued an interim order suspending the ratification and reinstated the public civil claim for clean-up costs and damages against Samarco, Vale and BHP. "BHP Billiton Brasil intends to appeal the decision of the Superior Court of Justice," BHP said in a statement.
Pharmaceutical giant AstraZeneca announced on Friday it has entered into agreements to support its strategic focus on three main therapy areas - respiratory, inflammation and autoimmunity; cardiovascular and metabolic disease; and oncology. The FTSE 100 firm said the agreements include two of AstraZeneca’s potential new medicines for dermatitis and psoriasis, allowing the company to further simplify and sharpen focus on new medicines in the main therapy areas.
Synthomer completed the acquisition of rival Hexion Performance Adhesives & Coatings for a total cash consideration of $226m, funded via existing cash resources and the utilisation of additional credit facilities. Hexion´s China business, which accounts for about 1.0% of the parent company´s sales, would be subject to a deferred completion, which was expected for the third quarter of 2016. Ahead of its full-year numbers the polymer manufacturer said its outlook, in constant currency, remained unchanged and in-line with the Board´s expectations.
In the press
The governor of the Bank of England sent bond yields to fresh record lows and the pound sliding after he signalled more quantitative easing and indicated interest rates would be cut to cushion the economy from the impact of Brexit. The prospect of lower interest rates, already at historical lows, and a return of the Bank of England’s bond-buying programme to stimulate the economy sparked a sell-off of sterling but lifted shares. In London yesterday the pound dropped 1.5 per cent against the dollar to $1.324, a cent above the 31-year low that it hit in the immediate aftermath of the referendum. - The Times
The administrators of BHS have agreed to sell its international and online operations to a Qatari buyer in the first disposal of the failed retailer’s assets. Al Mana, a group based in Doha that operates some of BHS’s overseas stores under a franchise deal, has bought more than 70 shops and the website. - The Times
The Government has come under fierce attack from leading business figures after it delayed a decision on airport expansion amid the Brexit turmoil, dealing a blow to Heathrow’s chances of building its long sought-after £17.6bn third runway. Adam Marshall, the acting director general of the British Chambers of Commerce, accused ministers of “a cop out” after Patrick McLoughlin, the transport secretary, said it would be “at least October” before an announcement is made about where to build more runway capacity in the south east.
US close
Wall Street closed higher on Thursday - the final day of the quarter - as the post-Brexit recovery completed its third straight day.
The Dow Jones Industrial Average notched up gains of 1.33% to 17,929.99, with General Electric leading and Visa the only loser.
A rise of 1.36% to 2,098.86 was recorded on the S&P 500, while the Nasdaq closed up 1.33% at 4,842.67. Energy managed a leap of 10% for the quarter as the best-performing sector, with the only negative sectors being information technology and consumer discretionary.