Last checked at LONDON (Alliance News) - Shares have opened lower Wednesday amid continued concerns about the deteriorating situation in Ukraine and some disappointing data from China and Europe.
In his last annual results presentation as Sainsbury's chief executive, Justin King revealed higher profits and dividend payout, while saying he is confident the supermarket chain will outperform its peers in the year ahead. In early trade, Sainsbury's shares are up 1.6%.
Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.3% at 6,779.83
FTSE 250: down 0.4% at 15,872.16
AIM ALL-SHARE: down 0.2% at 818.64
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Hang Seng: down 1.1% at 21,737.79
Nikkei 225: closed down 2.9% at 14,033.45
DJIA: closed down 0.8% at 16,401.02
S&P 500: closed down 0.9% at 1,867.72
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GBP-USD: up at USD1.6983
EUR-USD: flat at USD1.3924
GOLD: up at USD1,310.65 per ounce
OIL (Brent): up at USD107.31 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
(all times British Summer Time)
n/a UK Halifax House Prices
12:00 US MBA Mortgage Applications
13:30 Canada Building Permits
13:30 US Nonfarm Productivity and Unit Labor Costs Preliminary
15:00 US Fed's Yellen Speech
15:30 US EIA Crude Oil Stocks
18:00 US 10-Year Note Auction
20:00 US Consumer Credit Change
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Overall shop prices in the UK were down 1.4% on year in April, the British Retail Consortium said. That missed forecasts for a decline of 0.8% following the 1.7% contraction in March. Overall, it was the 12th straight month that shop prices have declined. On a monthly basis, shop prices were down 0.5%. Clothing prices were down 0.8% on month in April after dipping 0.3% in March.
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The US and the EU on Tuesday condemned plans for an independence referendum called by separatist leaders in two eastern Ukraine regions - Donetsk and Luhansk. "We flatly reject this illegal effort to further divide Ukraine," US Secretary of State John Kerry said. "And its pursuit will create even more problems in the effort to try to de-escalate the situation." No civilized nation will recognize the results of "such a bogus effort," Kerry said. The Ukrainian leadership has admitted that it no longer controls the two regions and accuses Russia of aiding and arming the separatists, which Moscow denies.
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German factory orders declined unexpectedly in March due to a sharp decrease in foreign demand, official data revealed. Factory orders fell 2.8% month-on-month in March, reversing the revised 0.9% rise posted in February, Destatis reported. Economists were forecasting 0.3% rise for March.
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FRANCE MAR SA TRADE DEFICIT EUR4.973 BLN; FEB EUR3.771 BLN
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FRANCE MAR INDUSTRIAL PRODUCTION -0.7% ON MONTH VS. +0.1% IN FEB,CONSENSUS +0.3%
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Activity in China's services sectors continued to expand in April, albeit at a slower pace, the latest survey from HSBC and Markit Economics revealed. The services PMI came in with a score of 51.4 in April, slowing from 51.9 in March. A score above 50 signals expansion in a sector, while a reading below 50 means contraction.
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Members of the Bank of Japan's monetary policy board said the country's economic recovery appears to be continuing at a moderate pace, minutes from its meeting on April 7 and 8 revealed. The country may finally be winning its decade-old war against deflation, the board noted, as expectations continue to suggest an increase in prices. The members did caution, however, that the consumption tax hike that went into effect in April may result in a decline in demand.
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Free trade talks between Japan and the EU are due to dominate a summit Wednesday between Japanese Prime Minister Shinzo Abe and the bloc's top officials in Brussels, with attention expected to turn also to events in Ukraine. "An ambitious free trade agreement will unleash the full potential of the trade and economic relationship between the EU and Japan," said European Commission President Jose Manuel Barroso ahead of the talks.
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A White House report on climate change released Tuesday predicted increased heatwaves, more hurricanes and a dangerous rise in sea level affecting large areas of the US. "Climate change, once considered an issue for a distant future, has moved firmly into the present," the report says. The Obama administration called the report "the most comprehensive scientific assessment ever generated of climate change and its impacts" on the US and its economy.
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Rescue workers were searching for the remaining 34 missing people Wednesday in the wreck of a ferry that sank off South Korea in April, amid improving weather conditions, reports said. Recovery efforts were interrupted several times overnight due to strong tidal currents, but resumed in the morning. Currents, waves, poor underwater visibility and winds have hampered the operation. Coast guard, navy and civilian divers were working in shifts to reach the last of the 64 passenger cabins, Yonhap News Agency reported, citing unnamed officials.
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BROKER RATING CHANGES
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JPMORGAN CUTS INTU PROPERTIES TO 'UNDERWEIGHT' ('NEUTRAL') - TARGET 305 PENCE
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BERNSTEIN CUTS ASOS PRICE TARGET TO 6200 (7800) PENCE - 'OUTPERFORM'
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COMPANIES - FTSE 100
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J Sainsbury FY Underlying Pretax Profit GBP798M Vs GBP758M; FY Statutory Pretax Profit GBP898M Vs GBP772M; Full Year Dividend Of 17.3P, Up 3.6%; CEO: Remains Confident Of Outperforming Peers In The Year Ahead
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Rolls-Royce To Sell Energy Gas Turbine And Compressor Business To Siemens For GBP785.0M Cash; CEO: Sale Will Allow Concentration On Areas We Can Add Most Value
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Vodafone Renews Alliance With French Telecoms Firm SFR For Further Four Years
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G4S Says Q1 In Line With Expectations; Q1 Revenue Up 4.8%, Organic Growth Of 5.0%; Records "Positive Start" To The Year, With Contract Wins From Retail And Services Customers In US; CEO: Trading In Line WIth Plans, Continuing To Implement Group-Wide Transformation Programme
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Meggitt Says Trading In First Four Months Of 2014 Broadly In Line With Expectations; Continues To Expect Mid-Single-Digit Organic Revenue Growth For Year
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Standard Chartered PLC has come under fire from investors for its pay policies, The Financial Times reported. According to the FT, two leading shareholder groups have recommended voting against the resolution on pay policy at the emerging markets-focused bank. The FT said changes made to the bank's pay structure this year have meant "a significantly larger proportion" of variable pay is now based on single-year targets.
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ITV Acquires Controlling Stake Of Leftfield Entertainment Group; To Make Initial Cash Payment Of USD360M For 80% Of Leftfield; Expects Acquisition To Be Earnings Enhancing From "Day One"
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Legal & General Q1 Net Cash Generation Up To GBP301.0M Vs GBP249.0M; Expects Individual Annuity Market To Contract By 50% In 2014
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Imperial Tobacco H1 Pretax Profit GBP648M Vs GBP830M; Revenue GBP12.72Bn Vs GBP13.37Bn; Interim Dividend Up 10% To 38.8P Vs 35.2P; CEO: Stock Optimisation Programme Impacted Financial Figures In H1
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Experian FY Pretax Profit USD1.05B Vs USD434.0M; Revenue USD4.84B Vs USD4.73B; Increases FY Dividend By 8% To 37.50 US Cents; Appoints Kerry Williams As COO
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COMPANIES - FTSE 250
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John Wood Group Confirms Establishment Of Gas Turbine JV With Siemens
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Brian Souter, chairman of Stagecoach Group PLC, is expanding his own bus business across eastern Europe, according to the Financial Times late Tuesday. The founder of Stagecoach is planning to double the size of his intercity bus business in Poland, which currently stands at a fleet of 140, according to the FT, as Scouter looks to develop his own portfolio of private investments.
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BBA Aviation Says Trading In Line Between Jan And April; Says Revenue Between Jan And April Up 1% On 2013
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Esure Leaves Outlook Unchanged From FY Results In March
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Inmarsat Q1 Adjusted Total EBITDA Up 6.8% To USD164.7M Vs USD154.2M; Revenue Up 9.9% To USD344.7M Vs USD313.7M
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Rightmove Says Agency And New Homes Advertisers Has Increased; Says Page Impressions Up 14% In 2014; Says It Generated 14.8M Enquiries From Customers, Up 30% On 2013
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COMPANIES - ALL-SHARE AND AIM
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Numis H1 Pretax Profit GBP16.7M Vs GBP9.0M; Revenue GBP51.5M Vs GBP32.4M; Increases Interim Dividend By 25% To 5.00p; *Numis Says H2 Has Started Well; Says Deal Pipeline Remains Strong; Confirms Gerald Corbett As Non-Executive Chairman, Adds Robert Sutton To Board
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Aer Lingus April Passengers 862,000 Vs 785,000; April Load Factor 75.8% Vs 68.9%
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Devro Says USD100M Of Senior Unsecured Notes Placed At Average 4.5% For 7-12 Year Fixed Terms
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Conviviality Retail Like-For-Like Retail Sales In 6-Weeks To April 27 Up 2.2% For Bargain Booze, Up 6.5% For Wine Rack Stores; Says Andrew Humphreys To Join Board At Chief Financial Officer With Effect From June 16
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James Latham Says Chairman Peter Latham Is In Hospital Following a Serious Accident; Appoints Non-Executive Director Meryl Bushell To Replace Latham On Interim Basis
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ADVFN Launches Forex App For iPhone And iPad
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Costain Says It Has Won A Number Of Profitable Contracts In 2014; Says Forward Order Book Up To GBP3.2BN Vs GBP3.0BN In December
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Bushveld Minerals Says Flotation Test Work On P-Q Zone Deposit In Limpopo Shows Improved Phosphate Mineralisation
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Vertu Motors FY Pretax Profit Up To GBP15.8M Vs GBP4.4M; Like-For-Like Retail Volumes Up 20%, UK Retail Registrations Up 15%; Dividend Up 14% To 0.8P
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Wednesday's Scheduled AGMs/EGMs
Ladbrokes
Reckitt Benckiser Group
BAE Systems
Carillion
GlaxoSmithKline
JPMorgan American Investment Trust
Meggitt
Inmarsat
Costain Group
Mithras Investment Trust
Rightmove
Secure Trust Bank
BBA Aviation
Ocado Group
Amerisur Resources
Gresham Computing
Polar Capital Global Financials Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
Copyright 2014 Alliance News Limited. All Rights Reserved.
IN BRIEF: ADVFN interim loss narrows on lower costs; eyes improvement
ADVFN PLC - London-based operator of financial information websites for private investors - Pretax loss narrows 14% to GBP532,000 in the six months to December 31, from GBP622,000 a year prior. Revenue declines 25% to GBP2.3 million from GBP3.1 million. "The decrease in revenues was primarily attributable to continued adverse market conditions and the discontinuance of company units which no longer supported our business goals," Chief Executive Officer Amit Tauman says. Total administrative costs decrease 20% to GBP2.8 million from GBP3.5 million. Cost of sales decrease 44% to GBP109,000 from GBP196,000. Cash balance as at December 31 surged to GBP4.8 million from GBP647,000 a year prior. Looking ahead, CEO Tauman says the company is focused on continuing the current "improved trend".
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