Diploma Plc FY19 Pretax Profit Rises; Underlying Revenue Up 5% – Quick Facts

Diploma plc (DPLM.L) reported a double-digit growth in adjusted earnings per share and dividends for the year ended 30 September 2019. Reported revenue growth was 12 percent, comprising 5 percent underlying revenue growth, 5 percent contribution from acquisitions and a 2 percent currency benefit.

For the fiscal year, pretax profit increased to 83.5 million pounds from 72.7 million pounds, last year. Earnings per share was 54.7 pence compared to 47.5 pence. Adjusted pretax profit was 96.5 million pounds compared to 84.8 million pounds. Adjusted earnings per share increased to 64.3 pence from 56.4 pence.

For the fiscal year, Group revenues increased by 12 percent to 544.7 million pounds from 485.1 million pounds, previous year. Group revenues increased by 5 percent on an underlying basis.

The Board recommended an increase in the final dividend of 15 percent to 20.5 pence per share. The dividend will be paid on 22 January 2020 to shareholders on the register at 29 November 2019. The total dividend per share for the year will be 29.0 pence, which represents a 14 percent increase on 2018.

China’s PBOC cuts reverse repo rate to 2.5%

China’s central bank on Monday lowered the interest rate on its regular reverse repurchase open market operations for the first time since October 2015, aiming to boost market confidence and prop up slowing growth.

The People’s Bank of China said on its website that it cut the seven-day reverse repurchase rate to 2.5% from 2.55%.

The central bank also injected a net 180 billion yuan ($25.68 billion) of cash into the monetary system via open market operations.

China’s October economic and financial data fell across the board, while food prices continued to rise even as core inflation remained weak. Analysts said that with the downward pressure on the economy, the need to cut interest rates is rising.

The PBOC unexpectedly cut the interest rate on the one-year medium-term lending facility by 5 basis points to 3.25% earlier in November.

The central bank said in its quarterly monetary policy issued Nov. 16 that to prevent "a divergence of inflation expectations," it may slightly adjust monetary policy based on changes in economic growth and price levels.

–Bingyan Wang

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No one should underestimate China's will to safeguard sovereignty: foreign ministry spokesman

BEIJING (Reuters) – No one should underestimate China’s will to safeguard its sovereignty and Hong Kong’s stability, foreign ministry spokesman Geng Shuang told a daily news briefing on Monday.

The Asian financial hub is witnessing a violent standoff between police and protesters barricaded in at one of its universities.

US futures point to mixed open

• Market players remain focused on U.S.-China trade talks.
• Investors are also monitoring developments in Hong Kong as civil unrest continues.
• There are no major earnings to note.

U.S. stock index futures were mixed Monday morning.

At around 01:20 a.m. ET, Dow futures rose 9 points, indicating a negative open of more than 13 points. Futures on the S&P and Nasdaq were also pointing to a slightly lower open.

Market players remain focused on U.S.-China trade talks. Chinese Vice Premier Liu He spoke with the U.S. Treasury Secretary and Trade Representative over the phone on Saturday. According to the Chinese Ministry of Commerce, both sides had "constructive" talks regarding each other's trade concerns.

Furthermore, investors are also monitoring developments in Hong Kong as civil unrest continues.

Meanwhile, Chinese officials have surprised markets with the announcement of a cut to its key interest rates for the first time since 2015. The move has sparked speculation of further stimulus measures in China.

On the data front, there will be business leaders survey figures out at 08:30 a.m. ET, the NAHB survey is due at 10:00 a.m. and TIC data is set to be released at 04:00 p.m. ET.

There are no major earnings to note.

In Pictures: Hong Kong police enter university campus held by protesters

WeWork to drop the job axe this week

WeWork CEO Adam Neumann steps down

FOX Business’ Susan Li discusses WeWork’s change in executive management.

Job cuts have been taking place at WeWork over recent weeks as the company tries to stabilize its financial ship.

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This week could bring the biggest chunk of cuts, according to the New York Times.

The shared workspace company could reportedly cut at least 4,000 jobs as soon as Tuesday, after heavy losses took the company to the brink of bankruptcy.

The company could cut 2,000 from a staff of 2,500 in its core business and another 1,000 from non-core businesses as they get sold or shutdown, according to the Times.

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Building maintenance workers totaling another 1,000 could be moved to an outside contractor.

In all a third of the firm's 12,500 workers, but sources tell the Times there could be more.

HERE'S WHAT WEWORK IS GIVING SOME LAID-OFF EMPLOYEES

WeWork shelved plans for an initial public offering in late September after investors were put off by the company’s losses and had questions about its corporate governance.

Co-founder and former chief executive, Adam Neumann, stepped down in September.

WeWork's largest outside shareholder, Softbank has announced a plan to bail out the company and reorganize the business.

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WeWork announced last week that it lost $1.25 billion in the last three months.