City news: Euro, Fuller’s, Npower & Melrose
THE pound hit a three-month high against the euro as European Central Bank president Mario Draghi signalled further action to kickstart the eurozone.
The euro dropped 0.5 per cent to 69.85p before recovering to about 70p as expectations rose for fresh stimulus measures.
Draghi pointed to an expansion of the bank’s quantitative easing programme to help prevent inflation from falling further below its target of just under two per cent.
Prices rose just 0.1 per cent in October.
He said: “We will do what we must to raise inflation as quickly as possible.”
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Rugby scores for Fuller’s
RUGBY fans cramming into its watering holes near Twickenham during the World Cup helped Fuller’s kick off the second half of its year with bumper sales.
The London Pride brewer’s West London pubs have led the charge in improving like-for-like growth in its pubs and hotels to 5.8 from 5.6 per cent at the half-year.
Interim revenue and pre-tax profit both rose 10 per cent to £177.7million and £21.6million.
Chief executive Simon Emeny said: “I look forward to the rest of the year with optimism.”
Shares rose 35p to 1178p.
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Doubt over npower future
We’re not ruling out adjusting our portfolio of countries
THE German owner of npower could pull the plug on its UK business as it battles to stem an exodus of customers.
RWE finance chief Bernhard Günther said it would take at least until 2017 for npower, one of Britain’s big six energy suppliers, to return to profit.
It has struggled with billing problems and about 200,000 customers have defected in the first nine months of the year.
It still has more than five million UK gas and electricity customers.
The npower LOL gig highlights
Günther said: “We’re not ruling out adjusting our portfolio of countries.”
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Melrose on alert
A GLOOMY outlook has put engineering turnaround specialist Melrose on the alert for another lucrative takeover deal.
Melrose said it is on course to complete the £3.3billion sale of metering business Elster to US giant Honeywell in the first quarter of next year.
It had bought Elster for £1.8billion in 2012. It said: “Recent results globally have been downbeat and this trend may continue for some time.
Melrose is optimistic a suitable acquisition will be identified, bringing another opportunity to create substantial value for shareholders.”
