Last checked at 
LONDON (Alliance News) - London Stock Exchange Group was the top blue-chip gainer again early Tuesday, after the US's Intercontinental Exchange confirmed a Bloomberg report it is considering a takeover bid for the UK exchange.
ICE would be breaking up an agreed all-share merger between the LSE and Deutsche Boerse, which was announced last week. LSE shares were up 8.8%.
Barclays and Ashtead were the biggest FTSE 100 losers, after Barclays confirmed it will sell down its interest in its African business and Ashtead noted some slowing in US revenue growth. The stocks were down 5.7% and 7.4%, respectively.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: flat at 6,097.61
FTSE 250: up 0.4% at 16,666.94
AIM ALL-SHARE: up 0.4% at 695.76
----------
Hang Seng: closed up 1.6% at 19,407.46
Nikkei 225: closed up 0.4% at 16,085.51
DJIA: closed down 0.7% at 16,516.50
S&P 500: closed down 0.8% at 1,932.23
----------
GBP: firm at USD1.3951 (USD1.3933)
EUR: firm at USD1.0872 (USD1.0860)
GOLD: up at USD1,241.00 per ounce (USD1,233.70)
OIL (Brent): firm at USD36.77 a barrel (USD36.48)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Tuesday's Key Economic Events still to come
(all times in GMT)
08:30 Switzerland SVME Purchasing Managers' Index
08:45 Italy Markit Manufacturing PMI
08:50 France Markit Manufacturing PMI
08:55 Germany Unemployment Rate
08:55 Germany Markit Manufacturing PMI
09:00 Italy Unemployment
09:00 EU Markit Manufacturing PMI
09:30 UK Markit Manufacturing PMI
10:00 EU Unemployment Rate
12:00 Ireland Consumer Confidence
13:30 Canada Gross Domestic Product
13:55 US Redbook index
14:30 Canada RBC Manufacturing PMI
14:45 US Markit Manufacturing PMI
15:00 US ISM Manufacturing PMI
15:00 US Construction Spending
18:30 US Vehicle Sales
21:30 US API Weekly Crude Oil Stock
----------
Manufacturing activity in China continued to contract in February, as output declined at the steepest pace since last September on a sharp decrease in new work. The Caixin manufacturing Purchasing Managers' Index fell unexpectedly to 48 in February from 48.4 in January, survey results from Markit showed Tuesday. This was the lowest reading in five months. Economists had forecast the index to have remained unchanged at 48.4.
----------
The manufacturing sector in Japan continued to expand in February, albeit barely, the latest revision from Nikkei showed with a PMI score of 50.1. That was down slightly from last month's preliminary reading of 50.2, and down sharply from 52.3, though still above the 50 line of expansion.
----------
The unemployment rate in Japan came in at a seasonally adjusted 3.2% in January, the Ministry of Internal Affairs and Communications said. That was beneath expectations for 3.3%, which would have been unchanged from the December reading.
----------
Germany's unemployment rate declined marginally in January, provisional data from Destatis showed. The jobless rate fell slightly to adjusted 4.3% in January from 4.4% in December. In the same period last year, the rate was 4.8%. Similarly, the unemployment rate, on an unadjusted basis, came in at 4.3%, down from 4.5% a month ago.
----------
Ireland's manufacturing activity expanded at the weakest pace in two years in February, survey results from Markit Economics showed. The Investec Purchasing Managers' Index dropped 52.9 in February from 54.3 in the previous month.
----------
The race to win the party nominations to run for US president will reach an apex on Tuesday as voting takes place across 11 separate states, with the victor effectively assured victory and a spot on the ballot to run for the White House. On the Democrat side, Hillary Clinton is expected to secure the nomination following a tougher-than-expected campaign against Bernie Sanders, the veteran left-leaning senator. For the Republicans, Donald Trump remains the front-runner going into Super Tuesday, but concerns have been raised over a split in the GOP, with rival candidates raising the possibility they will back a third-party candidate should the businessman win the nomination. Voting will take place on Tuesday in Alabama, Arkansas, Colorado, Georgia, Massachusetts, Minnesota, Oklahoma, Tennessee, Texas, Vermont and Virginia.
----------
At least 30 people were killed and over 63 others injured in a suicide attack carried out Monday in Muqdadiyah city in Diyala province, north-east of the Iraqi capital Baghdad, medical and security sources said. A suicide bomber wearing an explosive belt blew himself up inside a funeral where members of the Popular Mobilization Forces, a paramilitary group known for fighting Islamic State, were present, the sources added.
----------
German Foreign Minister Frank-Walter Steinmeier and US Secretary of State John Kerry said that a pause in the fighting in Syria that began Saturday and has mostly held is a hopeful sign. The two diplomats spoke Monday with reporters at the State Department after their face-to-face meeting. Kerry and Steinmeier were cautiously optimistic about the cessation of hostilities holding despite reports of violations. Kerry said each violation would be investigated, and the parties involved would also work on a "construct" to guarantee that attacks are indeed against terrorist groups that are not part of the ceasefire.
----------
The Brazilian justice minister resigned in the midst of an investigation into a corruption scandal involving the state-controlled oil company Petrobras. Jose Eduardo Cardozo stepped down, the president's office in Brasilia announced. According to media reports, Cardozo was under pressure from the ruling Workers Party because he did not put a stop to a corruption investigation by federal police who work in his department.
----------
Argentina reached an agreement with a group of US hedge funds that sued the nation in connection with the country's 2001 debt default. "The 15-year pitched battle between the Republic of Argentina and Elliott Management, led by Paul E Singer, is now well on its way to being resolved," Daniel Pollack, the mediator in the case, said. The agreement, which still must be approved by Argentina's parliament, calls for a total payment of USD4.7 billion to NML Capital, the fund managed by Elliott, and the funds Aurelius, Davidson Kempner and Bracebridge Capital, who had sued alongside NML. The payment sum amounts to about 75% of the original investments of all parties, including principal and interest, plus a payment to settle other claims and certain legal expenses during the last 15 years.
----------
BROKER RATING CHANGES
----------
RBC CAPITAL RAISES RIO TINTO TO 'SECTOR PERFORM' ('UP') - TARGET 1,800 (1,500)P
----------
TRADERS: MERRILL LYNCH CUTS RANDGOLD TO 'NEUTRAL' ('BUY'); RAISES TARGET TO 6,700 (6,600) PENCE
----------
TRADERS: MACQUARIE CUTS GENEL ENERGY TO 'NEUTRAL' ('OUTPERFORM')
----------
COMPANIES - FTSE 100
----------
Intercontinental Exchange, the owner of the New York Stock Exchange and Euronext, said it is considering a takeover offer for London Stock Exchange Group. While no approach has been made to the target's board, an offer from ICE could threaten talks between LSE Group and Germany's Deutsche Boerse to create a European challenger to US and Asian rivals. "No approach has been made to the board of LSEG, and no decision has yet been made as to whether to pursue such an offer. There can be no certainty that any offer will be made, nor as to the terms on which any offer will be made. A further announcement will be made as appropriate," ICE said.
----------
Barclays confirmed it will sell down its 62.3% stake in its African subsidiary, amid a broader strategic update that will see the bank pay a reduced dividend in 2016 and 2017 to help boost its financial strength. Jes Staley, the bank's new chief executive, said there is more work to do to restructure the bank in 2016. He set out plans to focus the group on two "sibling" divisions, which he identified as Barclays UK and Barclays Corporate & International. The update came as Barclays said its pretax profit fell to GBP2.07 billion in 2015, from GBP2.26 billion the prior year. Its net loss widened to GBP394.0 million from GBP174.0 million. Barclays maintained its dividend for 2015 at 6.5 pence per share, but said it will cut the payment to 3.0p in 2016 and 2017.
----------
Glencore accelerated its debt reduction plans once again, aiming to sell more assets than previously thought, as the miner and commodities trader reported results that either met or beat expectations in 2015 despite substantial declines in earnings. Glencore reported net income before exceptional items of USD1.34 billion in 2015, a 69% drop from USD4.28 billion in 2014, but slightly higher than analysts expectations of only USD1.16 billion. Glencore accelerated its net debt target, saying it hopes to have net debt down to USD17.00 to USD18.00 billion by the end of 2016, compared to its previous target of USD18.00 to USD19.00 billion.
----------
Equipment rental company Ashtead Group said pretax profit and revenue grew significantly in the third quarter as it continues to benefit from a strong US market, albeit with the pace of growth slowing slightly. Ashtead said its pretax profit for the three months to the end of December was GBP139.1 million, up 17% year-on-year from the GBP113.9 million it posted in 2014. For the first nine months of the financial year, pretax profit grew 20% to GBP481.8 million from GBP379.4 million.
----------
Severn Trent and United Utilities Group outlined plans to combine their non-household water and wastewater retail businesses through a joint venture. The pair of utility firms said the joint venture will primarily comprise of billing and customer service activities and will be centrally located in Stoke-on-Trent. Severn Trent will pay GBP3.5 million in order to create the 50/50 joint venture and will share the cost of systems development necessary for the provision of non-household retail services. United Utilities did not state whether it would contribute to the costs of setting up the venture. The pair need to get approval from the UK Competition & Markets Authority, which they hope will be secured in Spring.
----------
Direct Line Insurance Group lifted its total annual dividend and reported higher pretax profit in 2015, helped by higher than expected reserve releases. Pretax profit rose to GBP507.5 million in 2015, up from GBP456.8 million the prior year, ahead of analyst expectations of a GBP451.0 million pretax profit. The motor and home insurer lifted its total dividend for 2015 to 50.1 pence per share, which included a previously declared 27.5p special payment following the sale of its international operations, up from 27.2p the prior year. Analysts had expected a 48.4p dividend.
----------
Taylor Wimpey said its net cash almost doubled in 2015 and pretax profit surged, as its total home sales rose and average selling price increased. The FTSE 100 housebuilder said it sold 13,219 homes over the course of 2015, up 7.5% from the 12,294 it sold a year earlier. It sold those homes at an average price of GBP230,000 apiece, up from GBP213,000, which drove revenue up 17% to GBP3.14 billion from GBP2.69 billion. The company posted a pretax profit of GBP603.8 million, up 34% from GBP450.1 million. Taylor Wimpey lifted its dividend by 7.1% to 1.67 pence per share from 1.56p the previous year, and it confirmed it will return 9.20p per share of surplus cash to shareholders in July this year, as previously announced.
----------
COMPANIES - FTSE 250
----------
Price comparison service Moneysupermarket Group posted higher pretax profit and revenue as good money and home services performances offset a weaker performance in insurance, a trend which has continued into 2016. The company said its pretax profit for the year to the end of December was GBP63.4 million, up 20% from the GBP52.8 million in 2014, as revenue rose 14% to GBP281.7 million from GBP248.1 million. Moneysupermarket will pay a final dividend of 6.6 pence per share, taking its total dividend up to 9.15p from 8.0p in 2014.
----------
Just Eat reported a fall in profit in 2015 as an exceptional gain in the prior year was not repeated, but revenue grew on a rise in active users and order volumes. The online takeaway delivery service said its pretax profit in 2015 fell to GBP34.6 million from GBP57.4 million in 2014, even though revenue grew by more than half to GBP247.6 million from GBP157.0 million.
----------
Rotork expressed confidence in its medium-term outlook and its cost-cutting measures, as it delivered an expected fall in pretax profit and revenue for 2015, hit by its exposure to the struggling oil and gas industry. The actuators manufacturer said its pretax profit for the year to the end of December fell 28% to GBP101.9 million from GBP141.2 million in 2014, while revenue dropped to GBP546.5 million from GBP157.2 million, a 21% fall. Rotork will pay a final dividend of 3.1 pence per share, taking its total dividend to 5.05p, a 0.8% rise on the 5.01p paid a year earlier.
----------
Energy services company John Wood Group said it has won a USD120.0 million industrial services contract with defence support services firm Babcock International Group. Under the contract, Wood Group PSN's industrial services unit will provide industrial services to a number of UK sites, employing 400 people and building on an existing relationship in place with Babcock.
----------
Outsourcer Mitie Group has come under fire over its management of the Harmondsworth immigration detention centre after the UK prison inspector said the facilities were "dirty", "rundown" and "insanitary". HM Inspectorate of Prisons said many of the concerns it had identified at the centre when it last inspected it back in 2013 have not been rectified and, in some cases, have deteriorated.
----------
COMPANIES - INTERNATIONAL
----------
An autonomous vehicle being tested by Google hit a bus earlier this month, the first time the company said its self-driving technology is partly to blame for an accident. The car, a Lexus sports utility vehicle, hit the left side of a public transit bus as it was attempting to avoid some sand bags on a road in Mountain View, California. The company acknowledged that the technology still needs work. The incident with the bus happened because the car's software also predicted the bus behind it would yield so it could merge back into traffic. No injuries were reported, and the Google car's left front fender, front wheel and a sensor were damaged. The car was traveling at 2 miles per hour and the bus was moving at 15 mph.
----------
A New York judge ruling that Apple doesn't have to help unlock a drug dealer's iPhone, according to media reports. For months, Apple has rebuffed US requests that it assist investigators seeking to crack into encrypted iPhones. The battle burst into public after a California judge this month ordered the company to aid prosecutors seeking access a terrorist's phone. On Monday, Magistrate Judge James Orenstein said the government's demands on Apple were impractical and excessive. Apple Chief Executive Officer Tim Cook said this month that US demands for iPhone access are a chilling attack on privacy.
----------
News Corp announced the settlement of a class action lawsuit alleging various antitrust claims arising out of past operations at its News America Marketing division. Under the terms of the settlement with the plaintiffs, who consist of consumer packaged goods companies, the company will pay approximately USD250 million, and the pending litigation will be dismissed, subject to court approval. Additionally the company will pay approximately USD30 million to resolve related claims.
----------
Tuesday's Scheduled AGMs/EGMs
Sage Group
Caretech Holdings
Aberforth Smaller Companies Trust
----------
By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
Copyright 2016 Alliance News Limited. All Rights Reserved.
