Astrazeneca Share News (AZN)

LONDON (Alliance News) - Shares are lower at the open Tuesday following a particularly bad trading session on Wall Street and amid some negative UK company updates.

Fashion retailer Burberry Group said sales slowed in the second quarter hit by slower demand in some of its key markets. Its shares lead FTSE 100 decliners, down 5.6%.

Investment manager Hargreaves Lansdown said its net new business was hit by uncertainty over the recent Scottish independence referendum. Shares are down 4.1%.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.4% at 6,341.99
FTSE 250: down 0.4% at 14,485.46
AIM ALL-SHARE: marginally lower at 697.05
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Hang Seng: marginally lower at 23,136.83
Nikkei 225: closed down 2.4% at 14,936.51
DJIA: closed down 1.4% at 16,321.07
S&P 500: closed down 1.7% at 1,874.74
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GBP-USD: down at USD1.6044
EUR-USD: down at USD1.2691

GOLD: down at USD1,233.10 per ounce
OIL (Brent): up at USD88.47 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
(all times British Summer Time)

09:00 Italy Consumer Price Index
09:30 UK Consumer, Retail and Producer Price indices
09:30 UK DCLG House Price Index
10:00 EU Industrial Production
10:00 Germany ZEW Survey
10:00 EU ZEW Survey
12:30 US NFIB Business Optimism Index
13:55 US Redbook index
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Like-for-like retail sales in the UK were down 2.1% on year in September, the British Retail Consortium said. That was well shy of forecasts for an increase of 1.0% following the 1.3% gain in August. Overall, total sales fell an annual 0.8%.
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The British parliament backed statehood for Palestine in a vote Monday that the government said would not force a change in its support for a two-state solution. Parliament voted to "recognize the state of Palestine alongside the state of Israel" as part of a "contribution to securing a negotiated two-state solution." The vote to recognize Palestine is not binding on Prime Minister David Cameron's coalition government.
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FRANCE SEP CPI -0.4% M/M, +0.3% Y/Y; HICP -0.4% M/M; +0.4% Y/Y; HICP BELOW MNI SURVEY MEDIAN -0.3% M/M, +0.4% Y/Y
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France faced increasing pressure Monday to live up to its European economic commitments with just days left before the country has to submit its draft 2015 budget to Brussels. France has struggled to rev up its economy, the second largest in the EU. There are concerns that its economic woes could complicate the recovery in the EU's euro currency bloc. The country is facing "peer pressure" to stick to its budget promises, Dutch Finance Minister Jeroen Dijsselbloem acknowledged after chairing a meeting of eurozone finance ministers.
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Eurogroup chief Jeroen Dijsselbloem warned Monday that Greece needs to find a "credible" way out of its international bailout, amid efforts by the country to secure an early exit from international oversight. Greece has received EUR240 billion since 2010 in bailouts from the European Commission, the European Central Bank and the International Monetary Fund (IMF). But the money has come with strict requirements that have led to unpopular tax hikes, salary reductions and pension cuts.
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The Ukrainian government confirmed that Russian troops were withdrawing from areas close to the border, but cautioned that Russia continues to allow fighters to cross into Ukraine. The Kremlin said over the weekend that President Vladimir Putin had ordered more than 17,000 Russian troops to pull back from the border with Ukraine, where they had been participating in exercises. It was unclear how many Russian troops remain in the region close to eastern Ukraine, where bloody skirmishes between pro-Russian separatists and Ukrainian government troops continued despite a ceasefire.
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An index measuring producer prices in Japan was down 0.1% on month in September, the Bank of Japan said, coming in at 106.3. That was in line with forecasts following the 0.2% decline in August.
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A powerful typhoon swept through Japan before heading out to the Pacific early Tuesday, leaving two people dead and one missing, local media said. More than 90 people were injured as Vongfong, the second typhoon in a week, brought heavy rains and strong winds to many parts of the country, local media reported. Hundreds of residents were advised to evacuate their homes in north-eastern Japan and airlines cancelled about 80 flights scheduled for Tuesday, NHK reported, as the Meteorological Agency warned of strong winds, mudslides and swollen rivers.
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Police cut down bamboo barricades with chainsaws in Hong Kong's business district Tuesday to clear a route for traffic, as hundreds of pro-democracy demonstrators continued a third week of protests in the Chinese territory. Hundreds of protesters remained at three main sites in the city after sleeping in tents overnight, but did not resist the police action.
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Islamic State jihadists seized an army base Monday in the Iraqi town of Hit as they continued their advance in the western province of al-Anbar, local media reported. Al-Mada Press reported the base fell after hours of clashes. The jihadist advance threatens to cut off remaining Iraqi security forces in the Sunni-dominated province, which stretches from the western outskirts of Baghdad to the Syrian border.
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The US government was carrying out a "surge" of staff and resources against Ebola in Dallas after the Texas city was the scene of the first transmission inside the US of the often deadly haemorrhagic fever. Meanwhile, health workers were on strike in Liberia, one of the countries worst hit by the Ebola epidemic, Health Minister Walter Gwenigale said in Monrovia. Nearly 100 health workers have died from Ebola in Liberia.
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The regional president of Spain's Catalonia late Monday called off a referendum on independence set for November 9, in line with a court ruling suspending the move. Artur Mas said there would be no legal support for the ballot, speaking at a meeting with pro-referendum parties in Barcelona, the capital of the region, which has the status of autonomous community.
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BROKER RATING CHANGES
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DEUTSCHE BANK STARTS BT GROUP WITH 'HOLD' - PRICE TARGET 410 PENCE
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DEUTSCHE BANK STARTS VODAFONE WITH 'BUY' - PRICE TARGET 230 PENCE
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HSBC RAISES IAG TO 'OVERWEIGHT' ('NEUTRAL') - PRICE TARGET 400 (380) PENCE
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TRADERS: MERRILL LYNCH RAISES ASTRAZENECA TO 'BUY' ('NEUTRAL')
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COMPANIES - FTSE 100
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South African beer and soft drinks giant SABMiller said sales in the second quarter were hit by lower lager volumes and weaker trading in Australia and China, although it said total beverage volumes inched up in the first half as a whole, balanced by stronger growth in soft drinks in Latin America and Africa. The brewer of brands including Peroni, Pilsner Urquell and Grolsch said total beverage volumes were down 1% in the second quarter, hit by weakness in Australia, softer demand in China, and poor summer peak weather in Europe, following some growth in the first quarter.
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Hargreaves Lansdown reported a GBP100.0 million increase in assets under administration over the course of the traditionally quiet first quarter, but said levels of net new business were lower than in the corresponding period last year amid uncertainty over the Scottish independence referendum, concern over Middle East and Ukrainian conflicts and unfavourable Eurozone economic data. In a statement, Hargreaves Lansdown reported GBP970.0 million of net new business inflows in the quarter ended September 30, compared with GBP1.26 billion in the corresponding quarter last year.
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British luxury fashion retailer Burberry Group said sales slowed in the second quarter hit by slower demand in some of its key markets, but it said revenue rose 14% on an underlying basis in the whole of the first half of the year and it now expects a smaller profit hit from currency moves than previously expected for the full financial year. Burberry said demand in the second quarter and the first half overall, continued to be driven by double-digit sales growth in Asia Pacific and the Americas, with travelling "luxury customers", particularly from Asia, driving that growth.
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Ten UK companies including WH Smith, Royal Bank of Scotland Group and Rolls-Royce Holdings issued financial statements in the year to March 2014 that failed to meet the Financial Reporting Council's standard for clear reporting, the Financial Times reported. The accountancy watchdog said in a report on Tuesday that it examined the accounts of 271 companies and approached 37% of them for further information and explanation, the FT said. Typically, correspondence from the FRC results in companies agreeing to make some change to their next reports and accounts.
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COMPANIES - FTSE 250
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Ashmore Group reported a USD3.7 billion fall in assets under management over the course of the first quarter, citing negative investment performance of USD3.4 billion and net outflows of USD300 million. In a statement, the emerging markets asset manager said assets under management fell to USD71.3 billion at the end of September from USD75.0 billion at the end of June.
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Michael Page International became the latest name to be hit by the strength of sterling, taking a 7 percentage point hit to its gross profit and saying currency headwinds will contribute to the group's operating profit growth coming in below market expectations. The FTSE 250 recruitment company said its gross profit grew 11.6% on a constant currency basis in the quarter to September 30, with positive results coming from all four of its operating regions. On an actual currency basis, however, gross profit for the group increased only 4.7% as it was hit by the strength of sterling.
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Just Retirement Group said it has completed its largest defined benefit de-risking transaction, a buy-in deal for GBP75 million which was contracted in September. In a statement, the specialist insurer said it can't disclose the full details of the deal until all the scheme's members have been told the particulars, but it will provide a bulk annuity contract to the scheme trustees to cover all pensioner members and the deal marks it first completed transaction with the employee benefit consultant advising on the scheme.
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Afren confirmed it has terminated the employment of Chief Executive Osman Shahenshah and Chief Operating Officer Shahid Ullah with immediate effect, firing them for gross misconduct based on evidence found by a review that unearthed irregular payments and starting legal proceedings to recover money from them. It also fired Associate Directors Iain Wright and Galib Virani with immediate effect for the same reasons, and started disciplinary action against seven more employees who it said also received payments.
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UK housebuilder Bellway reported a jump in full-year profit as higher sales volumes at higher average prices lifted revenue by a third, and the company predicted further volume growth in the current year, albeit at a slower rate. The company reported a pretax profit of GBP245.9 million for the year to end-July, up from GBP140.9 million a year earlier, as revenue rose to GBP1.49 billion, from GBP1.11 billion. It raised its total dividend to 52.0 pence, from 30.0 pence, on the back of the strong results.
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Publishing company Informa said it has appointed Andrew Mullins as chief executive of its Knowledge & Networking division as it created a new operating structure due to the retirement of Euroforum Managing Director Alfred Moellenbeck. Moellenbeck's responsibilities for the Euroforum business in Germany have now transferred to Ann-Marie Brems, who reports directly to Mullins, Informa said in a statement.
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Balfour Beatty has issued a last-ditch warning to investors that failure to sell its American arm could result in the troubled engineering and construction giant defaulting on its debts, The Daily Telegraph reported. In a circular posted to shareholders, the company revealed that it could breach its banking covenants in the coming months if the sell-off of Parsons Brinckerhoff is not approved, the newspaper said. Its banking covenants will next be examined at the end of December. The shareholder vote on the sale will be held on October 28.
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COMPANIES - LONDON MAIN MARKET AND AIM
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The board of Allocate Software said it has recommended a takeover offer from Acorn Bidco Ltd that would value the company at around GBP109.6 million. Bidco is a recently incorporated company formed to make acquisitions on behalf of the HgCapital Funds, part of HgCapital Group. Bidco has made an offer at 153.55 pence per share, which it said is a 35.3% increase on Allocate's closing price of 113.5 pence Monday.
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Carpetright reported higher UK sales in recent weeks, driven by what it called "effective" promotions, and it managed to stem the rate of sales decline in its operations in the rest of Europe, meaning its full-year profit expectations are unchanged. In a statement, the carpets and floorings retailer said UK sales rose 5.7% in the 11 weeks to October 11, while sales from stores open more than a year rose 7.0%. It kept its full-year guidance for a decline in gross profit percentage of between 50 and 100 points in its UK operations.
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Immunodiagnostic Systems Holdings said it expects its revenue for the first half to be down on the previous year, as the near-term trading environment for its business "remains challenging." As it has previously flagged up in August and September, the company has seen a low level of placements, meaning instruments sold or leased to customers, and a faster decline in manual revenues, driven by lower 250H Vitamin D sales. This means it now expects revenues to GBP22 million in the first half to end-September, compared to GBP27 million a year before.
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Luxury shoemaker Jimmy Choo has narrowed downwards the price range for its initial public offering after the poor performance of several high-profile listings in Europe this year soured investor appetite for flotations, the Financial Times reported. The FT said bankers on the deal are now indicating that Jimmy Choo will price at roughly 140 pence to 160p a share, down from an earlier guidance of 140p-180p, but said that the IPO is fully covered at the new, lower range.
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COMPANIES - INTERNATIONAL
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Internet search giant Google Inc, along with other investors, is planning to make an investment of about USD500 million in hardware and software developer Magic Leap, technology website Re/Code reported Monday, citing sources. According to Re/Code, Google is leading the consortium for a USD500 million funding round for Magic Leap, with venture capital firm Andreessen Horowitz likely to be one of the other investors in the consortium. Magic Leap is a developer of human computing interfaces and software.
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Tuesday's Scheduled AGMs/EGMs

Brack Capital Real Estate Investments
Frontier Developments
Scancell Holdings
Xplorer
Investors in Global Real Estate
Assura Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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