ADN.L Share News (ADN)

LONDON (Alliance News) - Strong gains by Asian markets following the full return of China from holiday have given London shares a boost at the open Monday. Tokyo climbed 7%, while Hong Kong and Shanghai both added 3%, despite some negative economic data from both Japan and China.

Wall Street, which recorded 2% gains on Friday, will be closed Monday for the President's Day holiday.

HSBC Holdings said its board decided unanimously that its headquarters will remain in London, extending a stay stretching back to 1992, when it acquired the UK's Midland Bank and then moved its head office from Hong Kong, where it had been founded in 1865.

The banking giant's threat to leave its Canary Wharf headquarters came in April 2015, when a review was first confirmed at its annual meeting of shareholders. The later stages of the review pitted the group's home markets of the UK and Hong Kong against one another, the bank said, with London's victory confirming the capital's importance as an international financial hub.

"Having our headquarters in the UK and our significant business in Asia Pacific delivers the best of both worlds to our stakeholders," Chief Executive Stuart Gulliver said.

So much so that HSBC would rather not revisit the matter any time soon, barring a "material change" in circumstances. The board has decided that it is "not necessary" to continue with its previous practice of reviewing its domicile every three years.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 1.6% at 5,797.41
FTSE 250: up 1.7% at 15,695.55
AIM ALL-SHARE: up 0.6% at 668.58
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Hang Seng: closed up 3.3% at 18,918.14
Nikkei 225: closed up 7.2% at 16,022.58
DJIA: closed up 2.0% at 15,973.84
S&P 500: closed up 2.0% at 1,864.78
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GBP: firm at USD1.4494 (USD1.4455)
EUR: flat at USD1.1211 (USD1.1218)

GOLD: down at USD1,213,60 per ounce (USD1,234.70)
OIL (Brent): firm at USD33.18 a barrel (USD32.87)

(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
(all times in GMT)

holiday US President's Day
holiday Canada Family Day

10:00 EU Trade Balance
14:00 EU ECB President Draghi's Speech
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The Chinese yuan strengthened against the dollar, as most Asian markets advanced after the week-long Lunar New Year holidays. In an interview published over the weekend in Caixin, China's central bank governor, Zhou Xiaochuan, said that there is no foundation for the yuan to keep depreciating and that it is normal for foreign reserves to rise and fall as long as the fundamentals face no problems. The PBoC set Monday's central parity rate for yuan at CNY6.5118 per dollar, compared to February 5's reference rate of CNY6.5314. The central bank sets the reference rate every morning and allows the currency to move up to 2% from that level. The dollar was at CNY6.4889 on Monday before the London equities open.
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China's exports declined at a faster-than-expected pace in January, data published by the General Administration of Customs revealed. Exports plunged 11% year-over-year at the start of the year, much faster than the 2.0% fall expected by economists. Similarly, imports slumped 19% in January from a year ago. The expected decrease for the month was only 3.9%. The visible trade surplus of the country came in at USD63.29 billion in January, which was above a USD60.6 billion surplus forecast by economists.
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Japan's gross domestic product contracted an annualized 1.4% on year in the fourth quarter of 2015, the Cabinet Office said in a preliminary reading. That missed forecasts for a decline of 0.8% following the upwardly revised 1.3% increase in the third quarter (originally 1.0%). On a quarterly basis, GDP was down 0.4% - also shy of expectations for a decline of 0.2% following the 0.3% gain in the three months prior.
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Japan's industrial production declined more than initially estimated at the end of the year, final figures from the Ministry of Economy, Trade and Industry showed. Industrial production slid a seasonally adjusted 1.7% month-over-month in December instead of a 1.4% decrease reported earlier. It was the second consecutive monthly drop. In November, production had fallen 0.9%. Shipments fell 1.8% in December, revised from the 1.7% decline in the flash data.
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The average asking price for a house in the UK climbed 2.9% on month in February, the latest survey from Rightmove revealed. That follows the 0.5% increase in January. On a yearly basis, house prices spiked 7.2%, accelerating from the 6.5% increase in the previous month. Rightmove attributed the jump to a sharp increase in demand, while the supply remained fairly static.
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US Supreme Court Justice Antonin Scalia, the most senior member of the court and a key part of the court's conservative wing, has died. He was 79 years old. The cause of death was not immediately announced. Scalia had served on the court for three decades, having been appointed by President Ronald Reagan in 1986.
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The US President Barack Obama spoke by phone on Saturday with President Vladimir Putin of Russia to discuss the decisions and agreements made at the February 11 meeting of the International Syria Support Group and to stress the importance of rapidly implementing humanitarian access to besieged areas of Syria and initiating a nationwide cessation of hostilities. In particular, President Obama emphasised the importance now of Russia playing a constructive role by ceasing its air campaign against moderate opposition forces in Syria. The leaders agreed that the US and Russia will remain in communication on the important work of the ISSG.
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Switzerland will facilitate diplomatic contact between Iran and Saudi Arabia via its embassies, the country's Foreign Ministry said in Bern. The neutral European country will use its so-called protecting power mandate, a "go-between" function that allows Switzerland to take over some diplomatic duties of the politically-estranged countries.
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Australian Prime Minister Malcolm Turnbull announced the reshuffle of his ministerial cabinet on Saturday, just five months after taking office. Turnbull described the new line-up as a dynamic and young team, saying there were now six women in the cabinet, a historic for Australian politics. He also said he expected the new cabinet to continue until the election planned for later this year.
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France will not take in more than 30,000 refugees, French Prime Minister Manuel Valls said at the Munich Security Conference. "France committed itself to taking in 30,000 refugees. We're willing to take in that number, but no more," Valls said. The comments come as German Chancellor Angela Merkel seeks an international solution to the refugee crisis that would involve distributing refugees across the 28-member bloc. EU leaders are due to discuss the migration crisis at a summit in Brussels on Thursday and Friday.
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BROKER RATING CHANGES
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EXANE BNP RAISES BAE SYSTEMS TO 'OUTPERFORM' ('NEUTRAL') - TARGET 537 (490) PENCE
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Cantor Fitzgerald Initiates Aberdeen At Hold, 219p Price Target
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Cantor Fitzgerald Initiates Schroders At Hold, 2,575p Price Target
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HSBC RAISES HAYS TO 'BUY' ('HOLD') - TARGET 155 (140) PENCE
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COMPANIES - FTSE 100
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Reckitt Benckiser Group said its pretax profit increased in 2015 thanks to improved margins, as currency headwinds held its net revenue broadly flat. The consumer goods group, which makes products including cleaning brand Cillit Bang, Durex condoms and Finish dishwashing tablets, said pretax profit for the year to the end of December was GBP2.21 billion, up from GBP2.13 billion in 2014. Reckitt said it will pay a final dividend of 88.7 pence per share, up 12% year-on-year and leaving its total dividend for the year flat at 139.00p.
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BAE Systems confirmed the appointment of Charles Woodburn as its new chief operating officer, a hire flagged in reports at the weekend and which will be widely seen as a signal to the group's chief executive succession plans. The defence contractor said Woodburn, currently the chief executive of oilfield services company Expro, will join the company in the COO role in the second quarter of the year, reporting directly to Chief Executive Ian King.
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Property developer Hammerson said its pretax profit rose in 2015 as its rental income was boosted by ongoing strong demand for premium retail space in the UK. The group said its pretax profit for the year to the end of December was GBP731.6 million, up from GBP702.1 million a year earlier as its net gains from its property investments, including those with joint ventures and associates, increased. Hammerson will pay a final dividend of 12.8 pence per share, up 10% from 11.6p. Its total dividend for the year will be 22.3p, up 9.3% year-on-year.
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The creator of Big Brother is understood to have emerged as the frontrunner to replace Archie Norman as the next chairman of broadcaster ITV, Sky News reported. Peter Bazalgette, who joined ITV's board in 2013 as a non-executive director, is thought to be leading the pack to take over from Norman, with a statement potentially due as early as this week.
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BP said it and Oman Oil have signed a heads of agreement with the government of Oman committing to amend the Oman Block 61 exploration and production sharing agreement or EPSA, extending the licence area of the block and enabling a further development of the major Khazzan tight gas field. BP is the operator of Block 61 with a 60% interest and Oman Oil holds the other 40%. Under the amended EPSA, the extension will add a further over 1000 square kilometres to the south and west of the original block. The extension will allow a second phase of development, accessing additional resources in the area that have been identified by drilling activity within the original block.
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COMPANIES - FTSE 250
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Fidessa Group reassured investors about its ability to pay special dividends, amid investment in the range of asset classes it supports, expansion of its regional coverage, and the build out of its infrastructure. The dividend guidance came as the financial trading software company reported flat pretax profit in 2015, at GBP39.1 million, as revenue rose by 7.4% to GBP295.5 million and expenses before accounting for the effects of amortisation and acquired intangible assets increased by 8.7% to GBP256.4 million. Fidessa lifted its ordinary dividend for the year to 38.5 pence from 38.1p, and maintained a special payment of 45.0p.
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Katherine Garrett-Cox, the former chief executive of Alliance Trust, has been deemed surplus to requirements at the group's investments arm. Alliance Trust said Garrett-Cox will step down from her role as the chief executive of its investments arm on March 11, with her responsibilities to be reassigned. Her departure comes after she was forced to step down from the board and relinquish her leadership of the group in October 2015, following a bruising battle with activist shareholder Elliott Advisors.
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Acacia Mining said 2015 was "another year of transformation" as the gold and copper miner maintained its dividend despite swinging to a huge pretax loss thanks to a drop in revenue and some hefty impairment charges. The company swung to a USD124.2 million pretax loss in 2015 from a USD115.2 million profit in 2014, after it booked a substantial amount of impairments and saw revenue decline to USD868.1 million from USD930.2 million. Acacia declared a final dividend of 2.8 cents per share to take the full year dividend for 2015 to 4.2 cents, which is in line with 2014.
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Al Noor Hospitals Group will change its name to Mediclinic International following the takeover of the company by its larger South African rival, Al Noor said, after the merger of the two become unconditional. Shares in the merged entity will start trading in London on Monday under the Mediclinic International PLC name. It will have secondary listings in South Africa and Namibia. Al Noor agreed a reverse takeover of Mediclinic last year, following a bidding battle for the Abu Dhabi-based hospitals operator.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Model train sets and miniature cars retailer Hornby said Chief Executive Richard Ames has stepped down and left the company with immediate effect. Chairman Roger Canham will become executive chairman and will head the company for the "foreseeable future", the group said. The departure of Ames comes after the group last week said it would see a "substantially wider" trading loss than previously anticipated for the year to the end of March following weaker than expected sales both in the UK and internationally.
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COMPANIES - INTERNATIONAL
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Apple is currently on target to start selling its next iPhone and iPad models the same week that the new products are introduced in March. Apple is planning to introduce a new 4-inch iPhone dubbed the "iPhone 5se" and a new iPad Air at an event on Tuesday, March 15th, then put the products up for sale online and in retail stores as early as Friday, March 18th, technology blog 9to5Mac reported, quoting sources.
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Monday's Scheduled AGMs/EGMs

Redefine International (EGM re placing)
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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