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Market Update

Barclay’s Executives Face Criminal Charges; Mediset, Telefonica Deal

Author: Sarla Buch
Last Update: 12:36 PM ET June 20 2017

4:00 PM Frankfurt – Barclay’s four executives face criminal charges from the U.K. regulator. FirstGroup and MTR signed an order worth £895 million for 90 new trains. Mediaset agreed to acquire 11% stake in its Premium unit from Telefonica. Wolseley sales surged 17%.

In London trading, FTSE 100 index fell 14.68 or 0.2% to 7,509.14 and in Frankfurt the DAX index edged down 0.72 to 12,888.38.

In Paris, CAC 40 index rose 9.41 or 0.2% to 5,320.13.

Barclays Plc slid 0.3% to 206.05 pence after the U.K.-based financial services provider’s former chief executive and three ex-senior executives are criminally charged by the Britain''s Serious Fraud Office for handling of Qatar Investment Authority sovereign wealth fund during the financial crisis of 2008.

The SFO charged conspiracy to commit fraud with the provision of unlawful financial assistance to Qatar Holding including former Prime Minister of Qatar Sheikh Hamad bin Jassim bin Jabr al-Thani who invested £5.3 billion in the bank.

Barclays said payment of £322 million in ""advisory services"" to Qatari investors was not properly disclosed.

SFO levied criminal charges for not disclosing payments related to £12 billion or $15 billion emergency fund raising in Qatar.

FirstGroup Plc fell 0.2% to 134.80 pence after the U.K.-based student transportation services provider and MTR signed a 90 new trains order with 750 new carriages, in five and 10 car formations worth about £895 million for South Western franchise.

The new trains will be placed in service between mid-2019 and December 2020 that will be manufactured by Bombardier Transportation in Derby. The network provides 46% increase in peak capacity on suburban routes into London Waterloo.

Mediaset SpA increased 1.6% to €3.50 after Italy-based broadcasting services provider agreed to acquire 11.1% stake in Mediaset Premium from Spain-based Telefonica for undisclosed financial terms.

N Brown Group Plc soared 8.3% to 308.50 pence after the U.K.-based clothing, footwear and home goods retailer said revenues in the first-quarter ending on June 3 jumped 5.6% and product revenue soared 10.2%.

Online revenue surged 16% while financial services revenues declined 4.9% from a year ago period.

The retailer said it will close up to five Simply Be and Jacamo dual-fascia stores. In fiscal 2017, stores contributed £5 million in revenue but accounted for £2 million operating loss after traffic fell due to price increases.

The specialist fashion retailer estimated one-time cost to close the stores between £10 million and £14 million of which approx 70% will be in cash.

Serco Group Plc advanced 1% to 119.20 pence after the U.K.-based outsourcing services provider signed contract and completed financial agreements to operate the Australia-based New Grafton Correctional Centre in New South Wales for 20-year worth about £1.5 billion or A$2.6 billion.

Wolseley Plc gained 0.3% to 4,899 pence after the Switzerland-focused plumbing, heating and building materials provider reported revenues in the third-quarter ending in April surged 16.7% from a year ago to £4.3 billion and comparable sales in plumbing and heating business in the U.S. soared 8.5%.

Operating profit in the quarter jumped 9.5% to £254 million from £232 million in the quarter a year ago.

Sources: Data collected by 123jump.com and Ticker.com from company press releases, filings and corporate websites. Market data: BATS Exchange. Inc