Barclays Share News (BARC)

LONDON (Alliance News) - The following is a summary of top news stories Wednesday.
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COMPANIES
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Barclays PLC reported a 6.7% fall in first-half adjusted pretax profit as adverse currency movements and a fall in the profitability of its investment bank were only partially offset by improvements in personal and corporate banking, Barclaycard and its 'non-core' division. In a statement, Barclays said it made a GBP3.35 billion adjusted pretax profit in the first six months of 2014, down from a GBP3.59 billion adjusted pretax profit in the corresponding period last year, though the result still beat the GBP2.96 billion analyst consensus forecast provided by the bank. Chief Executive Antony Jenkins said Barclays is making "encouraging progress" in executing the plan he unveiled in May to restructure the bank into four core businesses as well as a 'non-core' entity that doesn't fit with Barclays' strategy.
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AstraZeneca PLC said that it has entered into an agreement to acquire Spanish pharmaceutical company Almirall SA's respiratory franchise for an initial USD875 million. The deal could be worth up to USD1.22 billion including development-, launch- and sales-related milestones, AstraZeneca said, and it also has agreed to make sales-related payments to Almirall. It will fund the transaction from existing cash resources and short term credit facilities. AstraZeneca will acquire the rights to develop and commercialise the respiratory franchise, including rights to revenues from Almirall's existing partnerships and its pipeline of investigational therapies.
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ITV PLC pledged to grow its full-year ordinary dividend by at least 20% per year over the next three years, starting from this year, as it saw pretax profit rise in the half year to end-June. The broadcaster proposed an interim dividend of 1.4 pence, up from 1.1 pence, which it said would be roughly a third of its full year dividend. ITV posted a pretax profit of GBP250 million, up from GBP179 million, as revenue rose to GBP1.23 billion from GBP1.14 billion.
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Tullow Oil PLC said it swung to a pretax loss in its first half as revenues fell, hit by exploration write-off charges it had warned about earlier this month. The company said its revenue for the half fell 6% to USD1.27 billion compared to the previous year, and its gross profit fell 12% to USD673 million, a slightly smaller fall than expected. It posted a pretax loss of USD29 million compared with a pretax profit of USD486 million previously.As expected, the company said that after mixed exploration results during the period, along with the relinquishments of certain licences as the company focused on its high-grade assets, it booked a USD402 million net exploration write off charge during the period.
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SSE PLC said it is 'disappointed with a number of elements' in the UK energy market regulator's decision to force its subsidiary Scottish and Southern Energy Power Distribution to significantly reduce prices for customers and upgrade the UK's electricity network. The UK energy regulator Ofgem on Wednesday set out its proposed price control settlements for five of the six companies that run Britain's local electricity network, forcing the companies to spend GBP17 billion to upgrade and maintain the network.
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Severn Trent PLC outlined a number of changes to its Executive Committee responsibilities, attributed by the company to plans to prepare the business for the next regulatory period. Executive Director Andy Smith will move over from the Water Services division to take the new role of managing director of Business Services. This will include Severn Trent Services, a Retail for Non-Households Water Services unit and the newly-created renewable energy business. Martin Kane, executive director and the current chief executive of Severn Trent Services, will become chief engineer. Simon Cocks, currently responsible for Waste Water Services and a member of the Severn Trent Executive Committee, will become managing director of Wholesale Operations, a merger of its Water and Waste Water teams.
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Building merchants Travis Perkins PLC reported an increase in pretax profit for the first half, boosted by a combination of improving market conditions, increasing customer confidence and the successful introduction of a number of self-help initiatives. FTSE100-listed Travis Perkins posted pretax profit of GBP153.7 million for the six months ended June 30, up 14% from GBP134.7 million a year earlier, as revenue rose to GBP2.73 billion from GBP2.45 billion.
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Taylor Wimpey PLC reported an increase in profit for the first half, buoyed by a strong housing market in London and the South East. The company posted pretax of GBP210.2 million for the half year ended June 29, up 26% from GBP166.5 million a year earlier. Pretax profit before exceptional items rose to GBP178.4 million from GBP109.0 million a year earlier. During the period 5,959 homes were built compared with 5,159 homes a year earlier. FTSE 250-listed Taylor Wimpey said Help to Buy equity loans continue to be very popular with its customers and during the first half, it completed around 42% of private homes through the scheme.
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British American Tobacco PLC reported lower profit and revenue for the first half of the year as it was hit hard by the comparative strength of sterling, although sales and profit rose at constant rates as volume declines moderated and it raised tobacco prices and further cut operating costs. The company, one of the world's biggest tobacco companies, reported a pretax profit of GBP2.61 billion for the six months to June 30, down from GBP2.99 billion a year earlier, as revenue declined to GBP6.80 billion, from GBP7.57 billion.
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3i Group PLC said that it received GBP164.0 million of private equity realisation proceeds in the first-quarter, helped by market conditions creating opportunities for realisation and refinancings, with an additional GBP245.0 million expected from exits signed but not yet completed. 3i said that the mid-market private equity market remains fully-priced, which has provided it with opportunities for realisations, but continued to result in a "cautious approach" to new investment. 3i also said that the strength of sterling resulted in a GBP68.0 million foreign exchange hit in the quarter to June 30.
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Moneysupermarket.com Group PLC said its first-half pretax profit increased by a third, boosted by revenue increases across its brands, and a gain on the sale of a stake in HD Decisions Ltd. In a statement, the price comparison website said it made a GBP26.4 million pretax profit in the six months ended June 30, compared with GBP19.8 million in the corresponding period a year earlier. Revenue increased to GBP122.4 million from GBP112.3 million. "It's been a good first half of 2014, with good revenue growth in our MoneySuperMarket, MoneySavingExpert and TravelSupermarket brands. Group revenue and profits were 9% higher than the first half of 2013," Chief Executive Peter Plumb said in a statement.
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Compass Group PLC said its outlook for the current financial year remains unchanged and positive after it booked 4.0% comparable organic revenue growth in its fiscal third quarter and 3.9% for the first nine months of the year. Its growth was driven by North America, while its emerging and fast growing markets suffered from the weakening economy in Australia. However, it also warned of the hit it is taking from the strength of sterling on its results, which are denominated in the currency. In a trading update, the company said it had continued to drive efficiencies across its business, reinvesting them in growth opportunities and in helping to manage volume declines in parts of Europe.
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Vedanta Resources PLC said its total revenues and earnings before interest, taxation, depreciation and amortisation increased in its first quarter due particularly to stronger sales at its oil and gas operations and copper division. The company said sales from its oil and gas division increased 3% to USD748.0 million due to higher volumes and positive oil prices, and sales from its copper division jumped 36% to USD1.02 billion with particular improvements in both India and Australia where the company achieved significantly higher copper cathode production.
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Polymetal International PLC said its revenues fell slightly in its second quarter as lower gold and copper sales volumes hit the company, but it now expects to beat its gold equivalent production guidance for the full year.The company said its first half revenues were down 2.2% to USD724 million from USD740 million, as the company also saw a sales decrease in the first quarter compared to the previous year. Polymetal said its gold equivalent production was up 4% to 335,000 ounces during the second quarter as higher gold and silver production due to strong performance at the company's Amursk POX site, as well as as improved grades and throughput at Dukat and Omolon mines, offset planned grade erosion at Varvara and Khakanja and a 45% fall in copper production.
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Antofagasta PLC said its copper production rates increased in its second quarter compared to the first but were down on the previous year, while cash costs increased after it agreed bonuses with labour unions at its Esperanza mine in Chile. Antofagasta said it remains on track to meet its full year production guidance of 700,000 tonnes of copper, 270,000 tonnes of gold and 7,500 tonnes of molybdenum, and net cash costs of USD1.45 per pound.
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Irish airline Aer Lingus Group PLC reported higher profit and revenue for the second quarter of the year, as more passengers and higher fares more than offset a hit from industrial action by its cabin crew, and raised its guidance for the full-year as it made progress in winning back customers put off by the threat of further strikes. The Irish flag carrier, like industry peers, has been trying to drive down costs and this has put it into dispute with its cabin crew. The sides have also been arguing about how much the airline will pay to bring down the deficit on a pension scheme. The airline had issued a profit warning on June 12, saying the threat of strikes had caused "significant" damage to forward bookings and trading. As a result, it lowered its expectations for 2014 operating profit to be 10% to 20% lower than the previous year.
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Lonmin PLC said it has entered into binding agreements with the Bapo ba Mogale Traditional Community in South Africa which will enable it to meet requirements under the country's Black Economic Empowerment targets. The FTSE 250-listed platinum mining company said that the community will waive its current statutory right to receive royalties from Lonmin's operating companies Eastern Platinum Ltd and Western Platinum Ltd in exchange for a lump cash royalty payment which will be used by the community to subscribe for Lonmin shares and a deferred royalty payment of ZAR20 million in each of the five years following the deal.
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MARKETS
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Stock indices across the UK are drifting between positive and negative territory without any clear direction, as investors weigh up the consequences of a new round of sanctions imposed on Russia by the US and EU and await some all-important economic data to come later in the session.
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FTSE 100: down 0.04% at 6805.23
FTSE 250: down 0.1% at 15677.3
AIM ALL-SHARE: down 0.1% at 770.6
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The eurozone economic sentiment indicator came in fractionally higher in July which did little to halt the single currency's recent slow decline against the dollar.
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GBP-USD: down at USD1.6936
EUR-USD: down at USD1.3402

GOLD: down at USD1298.89 per ounce
OIL (Brent): flat at USD107.44 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Eurozone economic confidence rose unexpectedly in July driven by an improvement in industrial sentiment, survey data revealed. The economic confidence index rose to 102.2 in July from revised 102.1 in June, figures from European Commission showed. Economists had forecast the score to fall to 101.9 from June's originally estimated value of 102. Meanwhile, confidence in services fell to 3.6 from 4.4 a month ago. The decline in services confidence was caused by managers' significantly lower demand expectations and more muted assessments of the past business situation which more than outweighed a more positive stance on past demand.
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The EU and US ratcheted up pressure on Russia Tuesday with the toughest round yet of sanctions against Moscow for its involvement in Ukraine. EU ambassadors agreed to impose economic sanctions on Russia over its involvement in Ukraine - the toughest restrictive measures pursued by the bloc so far. Details of the EU sanctions are to be finalized by Thursday and should enter into force by the end of that day, diplomats said. Shortly after the EU announcement, the US upped its own sanctions against Bank of Moscow, Russian Agricultural Bank, and VTB Bank OAO, a ship builder and the energy sector.
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Industrial output in Japan was down 3.3% on month in June, the Ministry of Economy, Trade and Industry said on Wednesday. That was well shy of forecasts for a decline of 1.2% following the 0.7% increase in May. On a yearly basis, industrial production added 3.2% - also missing expectations for 5.2% but up from 1.0% in the previous month. Upon the release of the data, the METI downgraded its assessment of output, saying that industrial production has weakened. The METI had previous held that output had been flat.
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At least 20 people were killed and more than 50 injured when Israeli tanks shelled a school used as an emergency shelter by refugees in Gaza, the Health Ministry said. Ministry spokesman Ashraf al-Qedra said tanks shelled the school run by the United Nations Relief and Works Agency in the northern Gaza refugee camp of Jabalia early Wednesday. Witnesses told Gaza radio stations that several tanks hit the al-Hussein school where scores of civilians had taken refuge after fleeing their homes during Israeli airstrikes.
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By Arvind Bhunjun; arvindbhunjun@alliancenews.com; @ArvindBhunjun

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