Br.amer.inv.tst Share News (BAF)

LONDON (Alliance News) - UK shares have opened higher Wednesday, following a firm close on Wall Street and ahead of central bank announcements in the UK and US.

There was further IPO activity Wednesday, as property website Zoopla Property Group said it will price its initial public offering price at 220 pence per share, valuing the business at GBP918.8 million, while ventilation products supplier Volution Group PLC set its initial public offering price at 150 pence per share, giving it a total market capitalisation of GBP300.0 million.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.2% at 6,782.23
FTSE 250: up 0.2% at 15,609.07
AIM ALL-SHARE: up 0.2% at 786.96
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Hang Seng: up 0.1% at 23,214.55
Nikkei 225: closed up 0.9% at 15,115.80
DJIA: closed up 0.2% at 16,808.49
S&P 500: closed up 0.2% at 1,941.99
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GBP-USD: up at USD1.6984
EUR-USD: up at USD1.3552

GOLD: down at USD1,269.32 per ounce
OIL (Brent): up at USD113.69 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)

09:30 UK Bank of England MPC Minutes
10:00 EU Construction Output
10:00 Switzerland ZEW Survey - Expectations
n/a Germany 10-y Bond Auction
12:00 US MBA Mortgage Applications
13:30 US Current Account
13:30 Canada Wholesale Sales (MoM)
15:30 US EIA Crude Oil Stocks
18:45 US Former Fed Chairman Bernanke speech
19:00 US Fed Interest Rate Decision and Pace of Treasury and MBS Purchase Program
19:00 US FOMC Economic Projections
19:30 US Fed's Monetary Policy Statement and press conference
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House prices in China rose at a slower rate in May, figures from Reuters based on a National Bureau of Statistics report showed. New house prices in the major cities of China increased 5.6% year-over-year in May compared with a 6.7% rise in April. The growth in house prices has been slow since late 2013 due to the effect of a sustained campaign to keep a check on speculative investment and easy credit, the bureau said.
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Members of the Bank of Japan's monetary policy board said that the nation's economy is likely to continue its moderate recovery, minutes from the central bank's meeting on May 20 and 21 revealed. The board also cautioned that there remained some downside risks to recovery, including developments in emerging markets and commodity-exporting countries. The monetary easing that is in place appears to be having the intended results, the board said, as inflation expectations appear to be rising.
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The Bank of Japan became the biggest creditor to the government for the first time ever, data from the central bank revealed. The BoJ held JPY201 trillion Japan government bonds in March, accounting for 20.1% of the total JGBs. Insurance companies, the second biggest holder of bonds had a share of around 19.3%. The aggressive monetary easing of the BoJ to achieve 2% inflation has increased its bond holdings.
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Japan's year-on-year exports declined in May for the first time in 15 months, due mainly to slow demand from the US and Asian countries, the government said Wednesday, as figures showed nearly two years of trade deficit. The value of exported goods fell 2.7% in May compared to a year earlier, to JPY5.61 trillion. Shipments to the US, one of Japan's largest markets, fell 2.8% from a year earlier to JPY1.01 trillion for the first drop in 17 months, the Finance Ministry said. Exports to other Asian countries, including China, declined 3.4% for the first decrease in 15 months, the ministry said. Japan's shipments to Asia accounted for 55% of its total exports in May.
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Two Russian journalists were feared dead amid heavy fighting Tuesday in eastern Ukraine, as hopes for a ceasefire were fading quickly. Igor Kornelyuk, a correspondent for Russian state television, died in a hospital in Luhansk after being wounded by a rocket-propelled grenade, the Vesti news programme confirmed. Anton Voloshin, a video producer in Kornelyuk's crew, was missing after the attack, Vesti said. The journalists were reporting from an insurgent-manned checkpoint north of Luhansk, when they were hit by a grenade presumed to be fired by Ukrainian government forces.
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The arrest of a key suspect in the deadly 2012 attack on a US consulate in Benghazi, Libya, shows US resolve to "do whatever it takes to see that justice is done when people harm Americans," President Barack Obama said Tuesday. Ahmed Abu Khatallah, believed to be one of the key ringleaders of the attack in which four Americans including the US ambassador were killed, was captured Sunday near Benghazi by US special forces and agents of the Federal Bureau of Investigation, US authorities announced. "He is in US custody in a secure location outside of Libya," said Rear Admiral John Kirby, Pentagon spokesman. "There were no civilian casualties related to this operation, and all US personnel involved in the operation have safely departed Libya."
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US drones killed six militants Wednesday in Pakistan's tribal region where the country's army was engaged in a ground offensive against groups linked with al-Qaeda, officials said. Unmanned aircraft fired missiles targeting two militant hideouts in the Darga Mandi area of the North Waziristan tribal district near the Afghan border, security officials said. "At least six militants were killed in both attacks," the official said, requesting anonymity. "Their identities are not known yet."
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South African President Jacob Zuma on Tuesday pledged "far-reaching intervention" to galvanize the economy amid concern the country could be edging towards recession. "Change will not come about without some far-reaching intervention," Zuma said in his State of the Nation address. Zuma acknowledged growth had lagged behind targets and many South Africans were facing economic hardship. He announced the government was considering the introduction of a minimum wage to reduce economic inequalities that persist 20 years after the end of apartheid.
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BROKER RATING CHANGES
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TRADERS: JEFFERIES INITIATES ROYAL MAIL WITH 'UNDERPERFORM' - TARGET 420 PENCE
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COMPANIES - FTSE 100
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A BP PLC contract worth GBP12 billion to supply China with liquefied natural gas was among a raft of deals signed Tuesday during a visit to London by Chinese Prime Minister Li Keqiang. The deal will see the British energy giant supply the state-owned China National Offshore Oil Corp for the next 20 years. Altogether, contracts worth GBP14 billion were signed between British and Chinese companies, Prime Minister David Cameron said at a joint press conference with Li.
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COMPANIES - FTSE 250
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Serco Group PLC's new chief executive, Rupert Soames, made his first move to stamp his strategy on the struggling company by taking closer control of the company's operations in the Middle East and Asia-Pacific, and saying it won't be bidding for a UK rail franchise with its current partner on that franchise. In a statement, Serco said it would be restructuring its Africa, Middle East, Asia and Australasia operations as the current chief executive of the division, David Campbell, retires. Campbell had already extended his service beyond his planned retirement date, but will now retire at the end of 2014 after more than 20 years at Serco.
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Housebuilding company Berkeley Group Holdings PLC reported a 40% increase in profit for its recent full year, boosted by its residential business which completed 30% more homes than at the peak of the market in 2007. The FTSE 250 company - which is made up of four autonomous companies: St George, St James, Berkeley and St Edward - posted pretax profit of GBP380.0 million for the year ended April 30, up from GBP270.7 million a year earlier, as revenue rose 18% to GBP1.62 billion from GBP1.37 billion. On the back of its performance Berkeley said it will pay a further interim dividend of 90 pence per share compared with an interim dividend of 59 pence per share a year earlier. At the half year to October 31, 2013 the firm paid an interim dividend of 90 pence, up from 15 pence in the previous year.
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Balfour Beatty PLC said it has been awarded a USD156.0 million design-and-build contract to construct a new headquarters for the National Science Foundation in the US state of Virginia, which the construction contractor says is evidence of a recovering market in the US. In a statement, Balfour Beatty said the office and retail building has been commissioned by Lowes Enterprises Real Estate Group on behalf of the foundation. It will consist of two adjoined towers of 14 and 19 storeys and will include ground-floor retail space with three levels of below-ground parking. Construction is scheduled to complete in 2017.
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Speciality chemicals company Croda International PLC said Finance Director Sean Christie will step down after eight years with the company. To allow time for this successor to be found and for an orderly transition, Christie will remain in his position until April 2015, it said. Croda will begin an "extensive international search" for Christie's successor, it said.
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N Brown Group PLC said it was on track for its plans for the year as it saw revenues rise 2.6% in the 15 weeks to June 14, boosted by growth at its Simply Be and Jacamo brands. Revenues for Simply Be rose 6%, and revenues at Jacamo rose 10% compared to the same period in the previous year. The home shopping company said its online penetration remained strong at 58%, boosted by its introduction of Sunday deliveries. Its brick-and-mortar stores continues to trade well, up 20% on a like for like basis, N Brown said.
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COMPANIES - ALL-SHARE AND AIM
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Premier Foods PLC warned that sales of its so-called power brands are expected to have fallen in the second quarter of the year, and will no longer meet the growth expectations set for the full year, but the company said it is retaining its overall profit expectations for 2014 because it will offset the shortfall with cost control. In a statement, the owner of brands including Ambrosia custard, Bisto gravy granules, Sharwood's sauces and Mr Kipling cakes said it no longer expects sales of its power brands to grow 2% to 3% in 2014 due to "subdued" grocery markets. It didn't give a new forecast. It also said it will create a joint venture called Knighton Foods with Specialty Powders Holdings Ltd, to manufacture powdered beverages and desserts.
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Rame Energy PLC said it has acquired a UK solar energy company in a GBP150,000 deal, in a bid to strengthen its international energy consultancy business. In a statement, the energy consultant, engineer and power generator said that it has acquired Beco Ltd, which designs and installs solar energy systems. Rame Energy said the deal is expected to boost earnings in the six months months ended December 31 2014.
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Spirit Pub Sells Black Lion Pub On Bayswater Road, London For GBP27.0M Cash; Pub Had Book Value Of GBP7.6M; Will Continue To Run It For Agreed Period
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Mentum To Buy Kyrgyz Republic Mining Assets of Robust Resources Ltd For GBP27M
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St Ives Revenue Up 7.5% In 17 Weeks To End-May; Buoyed By Organic Growth, Acquisitions In Marketing Services
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Wynnstay H1 Pretax Profit GBP4.7M Vs GBP5.2M; Revenue GBP222.49M Vs GBP216.09M; Interim Dividend 3.40p Vs 3.10p
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Fastjet Signs Pan-African Hotel Partnership Agreement With Expedia's Venere.com
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Card Factory Says It Continues To Trade In Line With Board Expectations; Says Has Continued To Grow Like-for-like Sales
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ReNeuron Group FY Pretax Loss GBP7.8M Vs GBP7.1M Loss; Revenue GBP22,000 Vs GBP17,000
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Randall & Quilter Expects FY Results To Meet Market Expectations
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GW Pharmaceuticals Proposes Public Offering of 1.7M ADSs
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Wednesday's Scheduled AGMs/EGMs

Martin Currie Global Portfolio Trust
British & American Investment Trust
Impellam Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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