AMER.L Share News (AMER)

LONDON (Alliance News) - London shares saw a soft open Thursday, ahead of UK GDP data and despite a positive update from FTSE 100 travel operator TUI.

TUI led blue-chip gainers, up 3.0%, with cruise operator Carnival, up 1.0% also among leaders.

TUI said Thursday it will deliver growth in underlying earnings before interest, tax and amortisation in its financial year to the end of March. Despite concerns about terrorism hurt bookings for Tukey, TUI said Summer 2016 is looking good, with 47% of the programme sold so far.

On Wednesday afternoon, Carnival had said its cumulative bookings for 2016 are well ahead year-on-year as its net income and revenue grew in the first quarter of its financial year. Carnival said bookings for the rest of 2016 were higher than at the same point a year earlier and had been made at slightly higher prices.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.5% at 6,173.92
FTSE 250: down 0.2% at 16,934.42
AIM ALL-SHARE: flat at 709.74
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Hang Seng: down 0.4% at 20,727.13
Nikkei 225: closed down 0.7% at 16,758.67
DJIA: closed up 0.5% at 17,716.66
S&P 500: closed up 0.4% at 2,063.95
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GBP: down at USD1.4348 (USD1.4403)
EUR: flat at USD1.1331 (USD1.1335)

GOLD: up at USD1,229.10 per ounce (USD1,227.10)
OIL (Brent): flat at USD39.79 a barrel (USD39.76)

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

08:55 Germany Unemployment Rate
09:30 UK Gross Domestic Product
09:30 UK Consumer Credit, Mortgage Approvals, M4 Money Supply
09:30 UK Current Account
10:00 EU Consumer Price Index
10:00 Italy Consumer Price Index
11:00 Italy Producer Price Index
12:30 US Challenger Job Cuts
12:30 EU ECB Monetary Policy Meeting Accounts
13:30 US Initial and Continuing Jobless Claims
13:30 Canada Gross Domestic Product
14:45 US Chicago Purchasing Managers' Index
15:30 US EIA Natural Gas Storage
20:00 UK BOE Governor Carney speech
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UK Prime Minister David Cameron will chair a meeting in Downing Street to discuss the crisis gripping the steel industry amid growing fears of huge job losses. The government is facing criticism over its response to a shock move by Indian conglomerate Tata to sell its UK assets, including the country's biggest steel plant at Port Talbot in south Wales. Unions accused ministers of sending mixed messages after saying it was looking at all options to retain steelmaking before ruling out nationalisation. Labour leader Jeremy Corbyn said he was "shocked " that Business Secretary Sajid Javid did not believe nationalising the industry could be the solution.
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Consumer confidence in the UK was largely unchanged in March, the latest survey from GfK revealed with an index score of 0. That was unchanged from the February reading, and it beat forecasts for a score of -1. The March reading was steady at its lowest reading in more than a year, although it spent much of the previous eight years in the red. Joe Staton, head of market dynamics at GfK, said: "Looking at how consumers see the wider economy developing over the next 12 months, we are 18 points lower this month than in March 2015. So, despite good economic headlines about low inflation, interest rates and prices in the shops, concerns about Brexit and the ongoing Eurozone crisis appear to be hitting home."
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Germany's unemployment rate held steady in February, preliminary figures from Destatis showed. The jobless rate came in at an adjusted 4.3% in February, the same rate as in the previous month. In the corresponding month last year, the unemployment rate was 4.8%.
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World leaders will gather in Washington to discuss how to prevent terrorists getting hold of radioactive material, with the UK set to play a leading role in protecting nuclear facilities from cyber attack. The UK and US will take part in a joint exercise next year to prepare for any online attack against nuclear power plants and waste storage facilities. UK Prime Minister David Cameron will also offer British expertise to other countries to safeguard their own civil nuclear installations amid fears Islamic State jihadists could attempt to create a dirty bomb. The Nuclear Security Summit, hosted by US President Barack Obama, will see heads of government consider their response to the nightmare scenario.
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India and the EU agreed to step up the fight against terrorism, during a visit to Brussels by Indian Prime Minister Narendra Modi in the week after suicide bombings killed more than 30 people in the Belgian capital. Modi's meeting with EU President Donald Tusk and European Commission President Jean-Claude Juncker - for the first time since 2012 - aimed to boost relations and bring new momentum to stalled trade talks, with ties strained by a diplomatic row between Italy and India.
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The seizure of a weapons cache during the search of a home last week outside Paris thwarted what authorities believe was an "imminent terrorist action," prosecutor Francois Molins said. Police found five assault rifles and eight handguns, as well as 1.3 kilograms of industrial explosive, 105 grams of other explosives, components for possible bomb fuse devices and additional "chemical elements" during the March 24 raid. There were five stolen passports and seven mobile telephones in the premises in Argenteuil near Paris, Molins said. He said that the size of the arsenal suggest to authorities that a major attack was being planned by a terrorist network, though investigators have yet to identify a clear target of any plot.
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BROKER RATING CHANGES
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TRADERS: CREDIT SUISSE INITIATES INTU PROPERTIES WITH 'UNDERPERFORM' - TARGET 300 PENCE
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TRADERS: CANACCORD RAISES ANTOFAGASTA TO 'BUY' ('HOLD')
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TRADERS: CREDIT SUISSE RAISES KINGFISHER TO 'EUROPE FOCUS LIST'
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TRADERS: JEFFERIES CUTS WILLIAM HILL TO 'UNDERPERFORM' ('HOLD')
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TRADERS: MACQUARIE RAISES AMERISUR RESOURCES TO 'NEUTRAL' ('UNDERPERFORM')
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COMPANIES - FTSE 100
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TUI Group said it will deliver growth in underlying earnings before interest, tax and amortisation in its financial year to the end of March, as it makes progress with its summer 2016 programme. The travel operator said winter 2015/16 is closing as expected, with 95% of the source market programme sold and increased revenue of 3% driven by higher average selling prices across most major source markets. Summer 2016 trading is also doing well, with both revenue and bookings ahead of last year, TUI said. 47% of the programme is sold so far, with revenue up 3% and bookings up 2%. It said bookings for Turkey were subdued but this was being compensated for by bookings elsewhere.
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Private healthcare group Mediclinic International said it has seen strong patient growth across its operating platforms. The South African company joined the London market through the reverse takeover of Abu Dhabi-based hospitals operator Al Noor Hospitals and subsequently joined the FTSE 100 index. It also owns a 29.9% stake in UK healthcare company Spire Healthcare Group. For the 11 months to the end of February, Mediclinic said revenue from its African and Swiss businesses both grew, while revenue from its Middle East operations also increased. Al Noor is trading in line with expectations, the company added.
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Royal Bank of Scotland Group said it has completed the pricing of its 10-year, USD1.5 billion US senior notes. RBS said the proceeds from the offering will be used for general corporate purposes. The bank issued USD1.5 billion in 4.8% senior notes due 2026. The offering will close on April 5.
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COMPANIES - FTSE 250
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Home emergency cover provider Homeserve said it has entered a deal to acquire Utility Service Partners for USD75.0 million in cash, which it said was its biggest single step ever into the US market. Homeserve, which provides insurance cover and repairs for broken boilers and burst pipes, said USP is a leading home assistance service line repair contracts provider in the US and Canadian markets, holding partnerships with a number of municipalities and utility companies. Homeserve said it will continue to manage USP from its Pennsylvania headquarters and expects a USD15.0 million boost to earnings before interest, taxation, depreciation and amortisation in the financial year to March 2018.
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Booker Group reported growth in total sales in the fourth quarter of its financial year and in the year as a whole, and said profit remains in line with expectations, although like-for-like sales were hit by price deflation and weak consumer demand. The food wholesaler and convenience store operator said total sales, including the Budgens and Londis businesses it bought last year, grew by 11% year-on-year in the 12 weeks to March 25. Within this, tobacco sales were up by 7.7% and non-tobacco sales were up by 12%. In the full year to the same date, total sales increased by 5.0% to GBP5.0 billion. Excluding Budgens and Londis, like-for-like sales declined by 2.5% in the quarter, with tobacco like-for-likes down by 6.1% and non-tobacco down by 0.7%. In the full year, like-for-like sales decreased by 1.9%.
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AO World said its UK business performed ahead of expectations in the fourth quarter of its financial year, while the European segment also performed well. The online domestic appliances retailer said UK revenue and earnings before interest, tax, depreciation and amortisation in the fourth quarter ended March 31 grew ahead of expectations, and that it now expects full-year UK revenue to be up by 19% and UK adjusted Ebitda to reach GBP17 million. Expectations for the UK business in the next financial year remain unchanged.
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Serco Group said the review of its joint venture contract managing the operations of the Atomic Weapons Establishment on behalf of the UK government has been concluded. Serco said the updated contract provides a framework through to 2025, with regular pricing reviews put in place. The next pricing review will take place in 2019. Serco did not provide any financial details on the deal, but said the new structure of the contract will impose greater risk-sharing on the customer, the UK Ministry of Defence, with an opportunity to earn higher margins through outperforming against the terms of the deal.
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Plastic products company RPC Group said revenue and adjusted operating profit will be higher for its financial year to the end of March. FTSE 250-listed RPC said revenue will be significantly higher year-on-year, benefiting from good organic sales growth and acquisition contributions.
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Builders' merchant and DIY company Grafton Group said it has appointed the outgoing chief executive of distribution and outsourcing group Bunzl as its next chairman. Grafton said its incumbent non-executive chairman, Michael Chadwick, will step down from his role at the end of 2016. He will be succeeded by Michael Roney, who will join the board as non-executive director, deputy chairman and chairman-designate on May 1, before taking on the role on January 1, 2017.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Japanese noodle maker Nissin Foods Co has increased its stake in Premier Foods to just shy of 20%, according to a stock exchange filing late Wednesday. Nissin purchased a 17.3% stake in Premier last week from private equity firm Warbung Pincus, and according to the statement, this increased to 19.9% on Tuesday this week. Premier Foods was informed of the increase on Wednesday. Earlier Wednesday, Premier said it would enter talks with McCormick & Co Inc after the US spices and flavourings maker made a higher offer for the company.
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Spread betting firm CMC Markets said trading has been in line with its expectations, with recent volatility in markets helping drive growth for the business. CMC, which floated in London in February, said growth in the number of active clients for its financial year to the end of March has been around 13%, with a "modest" rise in revenue per client.
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Plastic piping systems manufacturer Polypipe Group said its pretax profit had more than doubled in 2015 on the back of boosted sales in its UK operations. Polypipe reported a pretax profit of GBP41.5 million for the year ended December 31, from GBP16.9 million the previous year, after revenue rose 8.0% to GBP352.9 million from GBP327.0 million, whilst finance and administration expenses fell. Polypipe recommended a final dividend of 5.50 pence per share, which takes the full year dividend to 7.80p, up from 4.50p for 2014.
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COMPANIES - INTERNATIONAL
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Pfizer and Allergan announced they have received a request for additional information from the US Federal Trade Commission with respect to their previously announced pending combination. The request for information from the FTC, often referred to as a "second request", was anticipated as part of the regulatory process under the Hart-Scott-Rodino antitrust act. Pfizer and Allergan continue to expect the transaction to close in the second half of 2016. In November 2015, Pfizer and Allergan announced a merger agreement by which Pfizer would combine with Allergan in a stock transaction then valued at USD363.63 per Allergan share, for a total enterprise value of about USD160 billion.
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BlackRock plans to cut about 400 jobs or about 3.0% of its staff, as it tries to streamline parts of its business and bolster areas it believes are poised for growth, according to reports citing people familiar with the matter. The company reportedly plans to implement the jobs cuts in the coming weeks, with head count reductions expected across a range of business areas, levels of seniority and offices world-wide.
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Thursday's Scheduled AGMs/EGMs

African Potash
Low & Bonar
WH Ireland
Northern Investors Company (re tender offer)
Keras Resources
Be Heard Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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