Barclays Share News (BARC)

LONDON (Alliance News) - UK media and telecoms regulator Ofcom confirmed Tuesday it will proceed with requiring the legal separation of BT Group from its Openreach network infrastructure arm, after BT failed to offer acceptable remedies to the watchdog's competition concerns.

Ofcom stopped short of calling for a structural separation of Openreach from BT and opted instead for a legal separation, meaning a separate board of directors will be formed. Ofcom said it was "disappointed" BT "has not yet come forward with proposals that meet our competition concerns", adding that while "some progress" had been made on this front, "this has not been enough".

Ofcom's statement came after BT announced on Monday evening that Mike McTighe, who spent eight years on the board of Ofcom, will become chairman of Openreach from January.

BT shares were down 0.5% early Tuesday.

Here is what you need to know at a mixed London market open:
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MARKETS
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FTSE 100: down 0.3% at 6,780.05
FTSE 250: up 0.1% at 17,531.83
AIM ALL-SHARE: flat at 821.48
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Hang Seng: down 0.4% at 22,737.07
Nikkei 225: closed down 0.3% at 18,307.04
DJIA: closed down 0.3% at 19,097.90
S&P 500: closed down 0.5% at 2,201.72
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GBP: flat at USD1.2411 (USD1.2423)
EUR: firm at USD1.0605 (USD1.0589)

GOLD: firm at USD1,191.19 per ounce (USD1,190.07)
OIL (Brent): down at USD47.74 a barrel (USD48.30)

(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 GMT)

0930 UK mortgage approvals, consumer credit and M4 money supply
1300 Germany consumer price index preliminary
1330 US gross domestic product preliminary
1330 US GDP price index preliminary and personal consumption expenditures prices
1330 Canada current account
1355 US Redbook index
1400 US S&P/Case-Shiller home price indices
1415 US Fed's William Dudley speech
1500 US consumer confidence
2130 US API weekly crude oil stocks
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The UK government has sought to play down suggestions Britain will be unable to remain in the single market after it leaves the EU after a memorandum carried by a senior Conservative Party aide suggested it was "unlikely". Ministers faced fresh accusations that they had no strategy for Brexit after a long-lens camera in Downing Street caught the handwritten note which read: "What's the model? Have your cake and eat it." The memo - which refers to some of the likely difficulties to arise during the negotiations - was being carried under the arm of an aide to Tory vice-chairman Mark Field as they emerged from a meeting with the Department for Exiting the EU at 9 Downing Street. A government spokesman said: "These individual notes do not belong to a government official or a special adviser. They do not reflect the government's position in relation to Brexit negotiations."
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England and Wales could shiver through the coldest evening of the autumn so far on Tuesday night as frosty yet dry conditions herald the start of winter, forecasters have predicted. Meteorologist Mark Wilson told the Press Association temperatures would struggle to get higher than 6C amid a sunny and cold day in England and Wales, with Scotland expected to experience milder conditions of up to 9C. While it is unlikely overnight temperatures for the entire UK will drop lower than the coldest of the season so far - which was -12C in parts of Scotland last week - Britain could get its coldest night of autumn on Tuesday night with temperatures in some areas forecast to get as low as -8.
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Large, privately-owned companies could be required to comply with the same standards of corporate governance as those listed on the stock exchange, under UK government plans for tackling boardroom abuses to be unveiled on Tuesday. UK Prime Minister Theresa May indicated ministers were determined to curb the "irresponsible minority" of private firms whose "careless" behaviour left employees, pensioners and customers to suffer when they ran into trouble. The move follows widespread public anger over department store chain BHS, which collapsed after being sold by high street tycoon Sir Philip Green for GBP1, with the loss of thousands of jobs and leaving company pensioners facing an uncertain future.
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Retail sales in Japan fell 0.1% on year in October, the Ministry of Economy, Trade and Industry said. That beat forecasts for a decline of 1.6% following the fall of 1.7% in September. On a seasonally adjusted monthly basis, retail sales climbed 2.5% - also exceeding expectations for 1.1% and up from 0.3% in the previous month.
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The jobless rate in Japan was a seasonally adjusted 3.0% in October, the Ministry of Internal Affairs and Communications said - in line with forecasts and unchanged from the previous month. The job-to-applicant ratio came in at 1.40, beating forecasts for 1.39 and up from 1.38 in the previous month. The participation rate was 60.4%, easing from 60.5% a month earlier.
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Embattled South Korean President Park Geun Hye was to make a public statement later Tuesday, her office said, days after hundreds of thousands of people took to the streets to demand her impeachment. No further details were given about what the announcement would involve. Park, whose approval rating dropped last week to 4%, is accused of having allowed close friend Choi Soon Sil to meddle in state affairs and of giving her access to official state documents.
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Thailand's parliament formally invited Crown Prince Maha Vajiralongkorn to become the country's next king, the parliament's president said in a live televised broadcast. The National Legislative Assembly passed a motion to invite the crown prince to ascend the throne at a special session, NLA president Pornpetch Wichitcholchai said. Varijalongkorn still needs to accept the invitation before being proclaimed King Rama X. Vajiralongkorn, 64, is the only son of late king Bhumibol Adulyadej, who died on October 13 after reigning for more than 70 years.
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The global coalition to counter the Islamic State movement has made "significant progress" against the terrorist group, but the 68 member governments know the effort is "a long-term fight," the US said. Ambassadors and senior diplomatic representatives from the member countries - newly including Libya, where Islamic State militants are active - met Monday at the State Department in Washington and discussed the progress of the effort.
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Following the death of former Cuban dictator Fidel Castro, US president-elect Donald Trump has suggested he will reverse the steps President Barack Obama has taken to normalize relations with Cuba. In a post on Twitter, Trump claimed he would eliminate the concessions Obama has granted Cuba unless the communist island nation agrees to a "better deal". "If Cuba is unwilling to make a better deal for the Cuban people, the Cuban/American people and the US as a whole, I will terminate deal," Trump said.
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Left-wing parliamentarians in Brazil filed a request for the impeachment of President Michel Temer over alleged corruption. Members of the Socialism and Liberty Party called for the impeachment after he allegedly pressured a former culture minister to approve a property development. Marcelo Calero, who resigned as culture minister 10 days ago, told police Temer pressured him to ease construction restrictions in a historical part of the city of Salvador de Bahia.
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BROKER RATING CHANGES
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GOLDMAN INITIATES NATIONAL GRID WITH 'SELL' - TARGET 854 PENCE
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TRADERS: CREDIT SUISSE INITIATES STANDARD CHARTERED WITH 'UNDERPERFORM'
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TRADERS: CREDIT SUISSE STARTS BARCLAYS WITH 'OUTPERFORM'
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TRADERS: CREDIT SUISSE STARTS LLOYDS WITH 'NEUTRAL'
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TRADERS: CREDIT SUISSE STARTS HSBC WITH 'NEUTRAL'
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TRADERS: CREDIT SUISSE INITIATES RBS WITH 'UNDERPERFORM'
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TRADERS: MORGAN STANLEY CUTS HAYS TO 'UNDERWEIGHT' ('EQUAL-WEIGHT')
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TRADERS: MORGAN STANLEY CUTS PAGEGROUP TO 'EQUAL-WEIGHT' ('OVERWEIGHT')
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COMPANIES - FTSE 100
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Merlin Entertainments said it anticipates reporting "good profit growth" in 2016, after achieving a positive performance across the company in the first 47 weeks of the year. In a brief trading update, the theme park and attractions operator said underlying trading in the Midway Attractions group in the 47 weeks ended November 19 was consistent with that reported in September, while the Resort Theme Parks group enjoyed a strong Halloween period, helped by favourable weather. LEGOLAND Parks showed "continued positive momentum" following two years of "exceptional growth", although Merlin did note that trading in Florida remains soft due to challenging market conditions.
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COMPANIES - FTSE 250
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SSP Group reported growth in profit in its recently-ended financial year thanks to good growth in air passenger travel and said its current financial year has started in line with expectations. SSP, which operates food and drink outlets at airports and train stations, said pretax profit in the year ended September 30 grew to GBP105.6 million from GBP76.8 million the year before, as revenue rose to GBP1.99 billion from GBP1.83 billion and like-for-like sales increased by 3.0%. SSP will pay a final dividend of 2.90 pence, taking its total dividend up 26% year-on-year to 5.40p.
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Cranswick reported 38% growth in profit in the first half of its financial year, thanks to higher revenue from both its pork and poultry products, and said it is well-positioned to meet expectations for the full year. The pork and poultry producer said pretax profit in the six months to the end of September grew to GBP40.4 million from GBP29.2 million the year before, as revenue rose 16% to GBP580.8 million from GBP501.0 million. The company said adjusted pretax profit rose by 24%, while underlying revenue was up 8.0%. Cranswick will pay an interim dividend of 13.1 pence, up from 11.6p the year before.
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Shaftesbury said pretax profit came in at less than a quarter of the figure recorded the prior year, but said both footfall and trading in its portfolio was buoyant. The real estate investment trust, which owns retail, restaurant and leisure assets across London's West End, posted revenue of GBP106.2 million for the year ended September 30, up from GBP98.7 million the prior year. However, pretax profit shrank to GBP99.1 million from GBP467.3 million a year earlier, after the surplus on the revaluation of Shaftesbury's investment properties came in much lower. Shaftesbury declared a total dividend for the year of 14.70p per share, up 6.9% from the 13.75p per share offered the prior year.
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Housebuilder and regeneration company Countryside Properties said the UK housing market had been more challenging at the higher price points, but said its pretax profit still almost tripled in its financial year. Countryside, which listed in London in February, said its current trading was robust, with both sales rates and values above year-end figures at September 30. The group said the markets in which it operates have recovered following the European Union referendum in June, and reservations remain robust. In its financial year, Countrywide said its revenue grew 23% to GBP671.3 million from GBP547.5 million the prior year. Pretax profit rose to GBP78.6 million from GBP28.0 million. Countryside declared a maiden full year dividend of 3.40 pence per share.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Independent News & Media confirmed a media report that an issue had arisen between its chairman and its chief executive over a possible acquisition by the newspaper publisher. The Irish Times reported last week that Robert Pitt, Independent News & Media's chief executive, and some directors, including Chairman Leslie Buckley, had clashed over group strategy, including over the time it is taking for the business to make acquisitions. On Tuesday, the company confirmed an issue had arisen over the terms of a possible acquisition, discussions on which ended at a preliminary stage and which was never considered by the board.
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COMPANIES - INTERNATIONAL
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Samsung Electronics said it will further enhance its shareholder returns policy, add at least one outside director, and review its corporate structure. Samsung noted that it will spend at least six months looking at the possibility of creating a holding company structure and feasibility of listing the company's shares on additional international exchanges.
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German airline group Deutsche Lufthansa announced it would cancel more than 1700 flights on Tuesday and Wednesday as its main pilots union Vereinigung Cockpit extended their strike into the second week. The pilots of Germany's flagship carrier were on strike since last Wednesday over a long-running pay hike demand and other employment terms. On Sunday, the union called on its members to strike again on Tuesday and Wednesday. The company noted that this further strike action will affect all short-haul services from Germany on Tuesday and short-, medium- and long-haul services from Germany on Wednesday.
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Tuesday's Shareholder Meetings

MySale Group
Surface Transforms
Wolf Minerals
Wolseley
Blancco Technology Group
JPMorgan Smaller Companies Investment Trust
Sabien Technology Group
Cap-XX
City Natural Resources High Yield Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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