AGK.L Share News (AGK)

LONDON (Alliance News) - London got underway Tuesday in a buoyant mood, with housebuilder Taylor Wimpey promising higher cash returns, DCC smashing market consensus for its annual results, and Vodafone promising earnings growth in the year ahead.

The three FTSE 100 stocks were up by between 2% and 4% in early trading, joined by Anglo American after its De Beers subsidiary said late Monday it signed a 10-year sales agreement with the Namibian government. ITV shares were up after being upgraded to Buy by Goldman Sachs.

Still ahead in a business news-heavy day are inflation readings from both the UK and US.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.6% at 6,186.94
FTSE 250: up 0.5% at 16,778.19
AIM ALL-SHARE: up 0.2% at 725.84
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Hang Seng: up 0.7% at 20,020.62
Nikkei 225: closed up 1.1% at 16,652.80
DJIA: closed up 1.0% at 17,710.71
S&P 500: closed up 1.0% at 2,066.66
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GBP: up at USD1.4509 (USD1.4399)
EUR: flat at USD1.1326 (USD1.1329)

GOLD: flat at USD1,274.44 per ounce (USD1,274.99)
OIL (Brent): flat at USD49.31 a barrel (USD49.03)

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

0900 Italy trade balance
0930 UK consumer, retail and producer price indices
0930 UK DCLG house price index
1000 EU trade balance
1330 US consumer price index
1330 US building permits and housing starts
1330 Canada manufacturing shipments
1415 US industrial production and capacity utilization
1700 US FOMC member Williams speech
1700 US Fed's Lockhart speech
2130 US API weekly crude oil stocks
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Japan's industrial production grew more than estimated in March, final data published by the Ministry of Economy, Trade and Industry showed. Industrial production expanded 3.8% in March from February instead of 3.6% estimated initially. Likewise, growth in shipment was revised to 1.8% from 1.4% and that for stock was raised to 2.9% from 2.8%. Year-on-year, industrial production climbed 0.2% compared to a 0.1% rise previously reported.
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With the US Supreme Court still short-handed following the death of Justice Antonin Scalia, the court avoided making a ruling on a case challenging Obamacare's contraceptive mandate. In a unanimous decision, the eight remaining Supreme Court Justices sent the case back to several courts of appeal. A number of religious organizations had challenged Obamacare's requirement to provide contraceptive coverage to their employees. The law allows religious groups to opt out of providing contraceptive coverage, but they are required to send a letter to the government informing of their objection and who provides their insurance coverage. The groups argued that the letter represents an undue burden on their religious freedom and makes them complicit in providing access to birth control and abortion.
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BROKER RATING CHANGES
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GOLDMAN RAISES ITV TO 'BUY' ('NEUTRAL') - TARGET 258 (281) PENCE
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UBS CUTS HALMA TO 'SELL' ('NEUTRAL') - TARGET 785 (775) PENCE
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Liberum Cuts John Wood Group To Sell From Hold, Target To 564p From 612p
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TRADERS: MERRILL LYNCH RAISES AGGREKO TO 'BUY' ('NEUTRAL')
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TRADERS: EXANE BNP CUTS ICAP TO 'NEUTRAL' ('OUTPERFORM')
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COMPANIES - FTSE 100
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Mobile operator Vodafone Group reported annual results that fell just shy of market expectations, and guided for earnings growth in the year ahead. Vodafone reported earnings before interest, tax, depreciation and amortisation of GBP11.61 billion for its full financial year that ended in March, below the range of GBP11.7 billion to GBP12.0 billion that the company had guided and down from the GBP11.9 billion it reported the year before. This was on revenue of GBP40.97 billion, down from GBP42.23 billion in the previous year. Consensus expectations compiled by the company were for Ebitda of GBP11.64 billion, on revenue of GBP40.99 billion, down from GBP42.23 billion the previous year. Vodafone proposed a final dividend of 7.77 pence per share, taking its total dividend for the year to 11.45p, up from the 11.22p it paid in the previous year.
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DCC said it expects to delver another year of profitable growth ahead as it reported a 47% rise in profit in its last financial year, beating market expectations and prompting a large increase in its full-year dividend. The sales, marketing, distribution and business support company said its adjusted earnings per share rose by over 27% to 257.1 pence in the year to the end of March from 202.2p in the previous year. This easily beat analysts expectations of 251.0p. Revenue in the year, however, remained flat at GBP10.60 billion in the year. DCC increased its dividend for the year by 15% to 97.22 pence per share from 84.54p.
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AstraZeneca said it saw positive results from two phase III trials of benralizumab in severe asthma. The company said that the drug was well tolerated and achieved its primary endpoint in the two trials, showing "significant reductions in the annual asthma exacerbation rate" compare to placebo. Regulatory submissions for benralizumab are anticipated in the second half of the year in the US and EU.
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Land Securities Group saw its pretax profit almost halve due to a reduction in the valuation surplus, but raised its dividend on continued leasing momentum in its development programme and longer-lease terms. The real estate development trust reported a total business return of 13.4% for the year to March 31, with basic net asset value per share rising to 1,482.00 pence from 1,343.00p a year earlier and adjusted diluted NAV rising to 1,434.00p from 1,293.00p. Pretax profit fell to GBP1.34 billion from GBP2.42 billion a year earlier, despite a 10% increase in revenue profit to GBP362.1 million coming from strong net rental income, after the valuation surplus fell to GBP907.4 million, from GBP2.04 billion a year earlier. However, Land Securities raised its dividend for the year to 35.00p pence, from 31.85p a year earlier.
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Taylor Wimpey said the UK new-build housing market remains "very positive", as it upgraded its dividend policy to pay at least GBP150.0 million in ordinary dividends per year, and increased its medium-term financial targets, resulting in a plan to pay out GBP1.30 billion in dividends between 2016 and 2018. The housebuilder said it has a strong order book position, with over 70% sold for 2016 private completions as at the end of April 2016, and said this positions it well for the remainder of the year.
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HSBC Holdings is axing 840 technology jobs in the UK as part of restructuring and cost-cutting measures, the first major round of job losses under an overhaul that will cut 8,000 roles in the UK by the end of next year, the Financial Times reported. HSBC is planning to establish similar IT jobs offshore in India, China and Poland, as it looks to cut costs. Nearly 600 IT jobs will be cut in Sheffield, as well as in London, according to people familiar with the situation.
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The De Beers Group of Cos said late Monday it signed a 10-year sales agreement with the Namibian government for the sorting, valuing and sales of Namdeb Holdings' diamonds. Namibia will see a significant increase in rough diamonds made available for beneficiation as a result of the agreement, with USD430 million of rough diamonds being offered annually to Namibia Diamond Trading Co customers, De Beers said in a statement. Miner Anglo American has an 85% stake in De Beers.
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British Gas-owner Centrica said late Monday it has agreed to buy ENER-G Cogen International from ENER-G Holdings for GBP145 million. ENER-G Cogen is a supplier and operator of combined heat and power products. It has around 1,400 units totalling over 500 megawatts under contract with a growing customer book, Centrica said. ENER-G Cogen operates predominantly in the UK, but also has operations in the US, Hungary, Italy, the Netherlands and Romania. It also has sales partnerships with local entities in Australia, Ireland, Japan, Canada and Turkey.
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COMPANIES - FTSE 250
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BTG said its profit more than doubled in the recently ended financial year following a large rise in revenue and said its cash balance also doubled in size over the course of the year. The FTSE 250 specialist healthcare company said its pretax profit more than doubled in the year to the end of March to GBP57.5 million from GBP26.7 million as revenue increased to GBP447.5 million from GBP367.8 million a year earlier.
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Greencore Group reported a fall in profit in the first half of its financial year due to various exceptional costs it booked, but revenue grew as it performed well in both the UK and US food-to-go sectors. The Irish convenience food producer said pretax profit in the six months ended March 25 fell to GBP20.8 million from GBP26.3 million in the first half of the prior year, despite revenue growing to GBP691.6 million from GBP639.8 million. Greencore will pay an interim dividend of 2.55 pence, which is up 6.3% on the first half of the prior year.
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The UK Competition and Markets Authority said late Monday it is considering whether or not UBM's sale of its PR Newswire business raises competition concerns, and whether or not the sale of the Agility business of PR Newswire to Innodata Inc prevents a substantial lessening of competition in the UK. Last week UBM said New Jersey-based Innodata agreed to buy the assets and rights of PR Newswire's Agility business from the entity that Cision AB set up to buy PR Newswire. Agility is PR Newswire's media-industry database.
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Vectura Group and Skyepharma on Monday said the UK Competition & Markets Authority confirmed their proposed merger does not qualify for investigation. Vectura and Skyepharma, which are both focused on treatments for asthma and other respiratory illnesses, agreed to an all-share merger in March.
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COMPANIES - INTERNATIONAL
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Fast-food chain McDonald's is testing the use of fresh beef in its hamburgers instead of frozen patties, the company confirmed to dpa. The test area consists of 14 restaurants near Dallas in the US state of Texas. McDonald's doesn't say if it plans similar initiatives in Europe. It is common among fast food chains to use processed beef that is formed into patties and then frozen.
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Tuesday's Scheduled AGMs/EGMs

Standard Life
Cenkos Securities
Aldermore Group
Metminco
Sportech
Rockhopper Exploration
Journey Group
Assetco
Burford Capital
Fishing Republic
Hill & Smith Holdimgs
S&U
Toumaz
Charles Taylor
Impax Environmental Markets
Polymetal International
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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