Barclays Share News (BARC)

LONDON (Alliance News) - Shares have opened marginally higher in London Friday, cheered by long-anticipated return to dividend payments by Lloyds Banking Group.

The state-backed lender also reported strong profit growth at both a statutory and underlying level.

Lloyds shares are up 1.8% but the biggest FTSE 100 gainer at the open is International Consolidated Airlines Group, up 4.2%. The British Airways owner reported strong growth in 2014 operating profit as fuel costs fell and its Spanish airline Iberia swung to a profit, and said it expects further strong profit growth in 2015.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.1% at 6,956.86
FTSE 250: up 0.1% at 17,270.73
AIM ALL-SHARE: flat at 712.86
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Hang Seng: closed down 0.3% at 24,823.29
Nikkei 225: closed up 0.1% at 18,797.94
DJIA: closed down 0.1% at 18,214.42
S&P 500: closed down 0.2% at 2,110.74
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GBP-USD: up at USD1.5428
EUR-USD: down at USD1.1197

GOLD: down at USD1,204.61 per ounce
OIL (Brent): up at USD61.38 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
(all times in GMT)

10:00 Italy Consumer Price Index
13:00 Germany Consumer Price Index
13:30 US Gross Domestic Product Preliminary
13:30 US Personal Consumption Expenditures
14:45 US Chicago Purchasing Managers' Index
15:00 US Pending Home Sales
15:00 US Reuters/Michigan Consumer Sentiment Index
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An overwhelming majority of German lawmakers are expected Friday to back an extension of Greece's rescue package, despite plans by a group of members of Chancellor Angela Merkel's conservative political bloc to rebel against her government in the vote. A straw poll of the members of Merkel's Christian Democratic Union and its Bavarian-based allies, the Christian Social Union, taken on Thursday showed that 22 lawmakers will vote against the Greek plan and five will abstain in the Bundestag ballot. Still, Merkel's coalition commands a large majority in parliament with the CDU, CSU and their left-leaning Social Democratic Party (SPD) coalition partners holding about 80% of the seats in the 631-member Bundestag.
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Consumer confidence in the UK held fast in February, the latest survey from research firm GfK showed on Friday with an index score of +1. That was unchanged from the January reading, although it was shy of expectations for +2. The February score also matches the highest index reading since August.
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Consumer prices in Japan were up 2.4% on year in January, the Ministry of Internal Affairs and Communications said on Friday - in line with expectations and unchanged from the December reading. Core consumer prices were up 2.2% on year, below forecasts for 2.3% and down from 2.5%. On a monthly basis, overall CPI was down 0.2% and core CPI dropped 0.6%.
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The total value of retail sales in Japan was down 2.0% on year in January, the Ministry of Economy, Trade and Industry said - coming in at 11.485 trillion yen. That missed forecasts for a decline of 1.2% following the 0.1% gain in December.
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Industrial output in Japan was up 4.0% on month in January, the Ministry of Economy, Trade and Industry said. That beat forecasts for an increase of 2.7% following the 0.8% increase in December. On a yearly basis, industrial production dipped 2.0% - but that also beat forecasts for a decline of 3.1% following the 0.1% increase in the previous month.
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The jobless rate in Japan came in at a seasonally adjusted 3.6% in January, the Ministry of Internal Affairs and Communications said. That missed forecasts for 3.4%, which would have been unchanged from the December reading.
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Britain's net immigration soared by 42% to 298,000 in the year to September, the government said on Thursday, dealing a blow to Prime Minister David Cameron's pledge to reduce immigration ahead of elections in May. Estimated net long-term migration to Britain rose from 210,000 in the previous 12 months, a "statistically significant increase," the Office for National Statistics said. Net immigration remained below a peak of 320,000 in the year to June 2005, the office said in a quarterly report. The data mean Cameron's ruling coalition has failed to make good on a vow to cut annual net migration to below 100,000 before the May 7 general election.
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Intelligence officers have identified the Islamic State fighter nicknamed Jihadi John, who has appeared taunting and killing several hostages in Islamic State videos, according to reports Thursday. The BBC said it "understands he is Mohammed Emwazi, a British man believed to be from west London, who was known to British security services." Emwazi, a graduate in his mid-20s, had been questioned by British security services several times, complaining to a London-based rights group of alleged abuses by security agents, other reports said.
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In a victory for open internet advocates, the US Federal Communications Commission imposed sweeping new rules to preserve net neutrality, the principle that all users should have equal access to the internet. "Today, history is being made," FCC Chairman Tom Wheeler said, "as we vote for a fast, fair and open internet." The FCC voted 3-2 on party lines on new rules that will treat the internet as a public utility under Title II of the 1934 Communications Act. It will prevent internet providers from charging some websites for faster service or slowing or blocking others.
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Ukraine said it has begun withdrawing heavy weapons from the front line in the country's east, injecting new hope into the latest peace agreement. Military spokesman Anatoliy Stelmakh said that the armed forces were withdrawing 100-millimetre artillery cannons along the entire front line, the Interfax Ukraine news agency reported. The move comes ten days later than stipulated in the peace agreement signed on February 12 in Minsk. Ukraine initially refused to carry out the withdrawal, pointing to ceasefire violations by the Russia-backed separatists.
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BROKER RATING CHANGES
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EXANE BNP CUTS CAPITA GROUP TO 'NEUTRAL' ('OUTPERFORM') - TARGET 1200 PENCE
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SOCGEN CUTS RBS TO 'SELL' ('HOLD') - TARGET 360 (405) PENCE
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TRADERS: BARCLAYS INITIATES AB FOODS WITH 'OVERWEIGHT'
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Cantor Fitzgerald Cuts Meggitt To Hold From Buy, Retains Price Target At 530p
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COMPANIES - FTSE 100
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Lloyds Banking Group made a return to the dividend list for the first time since the financial crisis, as the state-backed lender reported strong profit growth at both a statutory and underlying level. Lloyds said it made a GBP1.8 billion pretax profit in 2014, compared with a GBP415 million pretax profit in the prior year, bolstered by stronger net interest income more than offsetting a decline in other income, lower underlying costs and a drop in impairments. Lloyds said it is paying a dividend of 0.75 pence per share for 2014, amounting to GBP535 million.
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The Royal Bank of Scotland Group's Coutts private banking business is being investigated by German authorities over allegations of aiding client tax evasion, Sky News reported. Sky said Coutts has confirmed the investigation is focusing on its Swiss operation and was concentrating on both the wealth business and on current and former employees.
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Barclays is set to more than double its provision to cover allegations of foreign exchange market manipulation when it reports annual results next week, Sky News reported. According to the report, Barclays' current GBP500 million provision over the forex rigging scandal will be increased as a settlement with a number of US authorities draws nearer. Citing insiders, the report said that a settlement involving the Department of Justice, the New York State Department of Financial Services could arrive as early as the end of March. Separately, a Financial Times report said that a probe by New York’s Department of Financial Services is holding up settlement of the manipulation allegations.
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Old Mutual said its closely-watched adjusted operating profit was hit by a further weakening of the rand against its sterling reporting currency over the course of 2014. In a statement, the investment, savings, insurance and banking group said it adjusted pretax operating profit before tax was flat at GBP1.6 billion in 2014, but would have shown a 16% increase if exchange rates had remained constant.
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Publisher Pearson raised its dividend for 2014 as it posted earnings per share slightly ahead of its previous guidance, and announced that it will appoint Coram Williams, currently chief financial officer of its book publishing joint venture Penguin Random House, as its new chief financial officer. The Financial Times owner proposed a final dividend of 34.0 pence, taking its total dividend for the year to 51.0 pence, up from 48.0 pence a year before. It posted adjusted earnings per share of 66.7 pence, down from the 70.1 pence it posted in 2013, but ahead of its previous guidance of 66.0 pence.
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International Consolidated Airlines Group reported strong growth in 2014 operating profit as fuel costs fell and its Spanish airline Iberia swung to a profit, and said it expects further strong profit growth in 2015. IAG reported a closely-watched operating profit excluding exceptional items of EUR1.39 billion for 2014, up from EUR770 million a year earlier, as revenue rose 8.0% to EUR20.17 billion. Its net profit rose to EUR1.00 billion, from just EUR147 million in 2013. IAG isn't currently paying a dividend. It didn't provide any further details about its bid to acquire Aer Lingus.
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The United Steelworkers Union and representatives for several US-based refineries are understood to have held discussions on Thursday over a possible resumption of face-to-face talks with Royal Dutch Shell in order to bring a 26-day strike to an end, Reuters reports. No date had been set as of Thursday for resuming direct meeting with Shell Oil Co, Reuters said, citing two people familiar with the discussions. Shell Oil is representing the refiners in the talks.
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Royal Dutch Shell said its Pearl gas-to-liquids plant in Qatar has now entered planned maintenance, with one of the two trains at the plant set to be down for about two months. The plant produces cleaner-burning diesel and aviation fuel, oils for advanced lubricants, naphtha used to make plastics and paraffin for detergents. It makes enough diesel to fill over 160,000 cars a day and enough synthetic oil each year to make lubricants for more than 225 million cars, according to Shell.
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Mining giant Rio Tinto said it is streamlining its organisational structure as part of its efficiency and cost drive, resulting in the departure of the head of its energy business. Rio Tinto said Harry Kenyon-Slaney will leave the business as it condenses its assets into four product groups: Aluminium, Copper and Coal, Diamonds and Minerals, and Iron Ore. Copper chief executive Jean-Sébastien Jacques will lead the newly combined copper and coal product group. Uranium will be added to the Diamonds and Minerals product group, under the leadership of product group chief executive Alan Davies.
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Intu Properties reported growth in property valuations and total returns for 2014, although its underlying earnings per share fell due to a drop in like-for-like net rental income. The shopping centre and retail space owner and operator, which has the Trafford Centre, Lakeside the Metrocentre in its portfolio, said the valuations of its property rose 8.2% to GBP648 million in 2014, outperforming the IPD monthly retail index which increased 7.3%. Its net asset value per share rose to 379 pence, a total financial return of 17% over its pro-forma net asset value of 335p at the start of the year.
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Kingfisher's B&Q DIY retail business is facing claims it threatened its suppliers by demanding they pay hundreds of thousands of pounds to remain on its books, The Times reported. B&Q is understood to have approached companies demanding contributions to an "investment-for-growth" programme, according to a Times investigation, with one supplier describing the practice as a "massively underhand cash grab".
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COMPANIES - FTSE 250
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Electrocomponents said Lindsley Ruth has been appointed as its new chief executive, with effect from April 1. Ruth moves from the role of executive vice-president of Future Electronics, the Canadian electrical components business. As the company has already announced, current CEO Ian Mason will step down on March 31.
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UK bookmaker William Hill posted a lower profit for 2014, as a number of exceptional costs associated with higher taxes and store closure costs more than offset growth in revenue. William Hill reported a pretax profit of GBP233.9 million for 2014, 9% lower than the GBP257.0 million profit it made in 2013, having booked a total of GBP83.4 million in exceptional costs, compared with only GBP22.8 million last year. William Hill said it will pay a final dividend of 8.2p per share, taking its full year dividend for 2014 to 12.2 pence, a 5% increase on its pay out for 2013.
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Rentokil Initial said its pretax profit increased in 2014 despite lower revenue as its cost-cutting measures improved its profit margins over the year. Pretax profit for the business services company rose to GBP163.2 million in 2014, compared to GBP112.2 million in 2013. Rentokil said it will pay a final dividend of 1.82 pence per share, bringing its total dividend to 2.59 pence, up 12% year-on-year.
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UBM posted a rise in pretax profit for 2014 as lower costs and exceptional gains helped offset a fall in revenue, and said it has made good progress with its so-called 'Events First' strategy in the first two months of 2015. The PR Newswire owner and events firm proposed a final dividend of 16.0 pence, taking its total dividend for the year to 21.3 pence, up from 21.1 pence a year before. UBM posted a pretax profit of GBP145.2 million, up from GBP109.5 million, despite seeing revenue fall 6% to GBP746.3 million from GBP793.9 million.
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Engineering company IMI reported a slight fall in pretax profit in 2014 amid lower revenue as the group was hit by the strength of sterling and by what it called challenging economic conditions in key markets. Pretax profit fell to GBP246 million from GBP249 million as revenue for the year fell to GBP1.69 billion from GBP1.74 billion in 2013. But IMI hiked its dividend for the year to 37.6 pence from 35.3 pence last year.
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Rightmove said its pretax profit was lifted in 2014 by higher revenue, driven by a growth in website traffic and an increase in its average revenue per advertiser. The online property portal said its pretax profit rose to GBP122 million from GBP97 million in the year to the end of December, boosted by an increase in revenue to GBP167 million from GBP139.9 million. The group hiked its final dividend to 22 pence per share from 17 pence, bringing its total dividend to 35 pence per share from 28 pence in 2013.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Bank Of Ireland Reports 2014 Underlying Profit Of EUR921M, Swinging From EUR564M Loss In 2013, With All Trading Units Profitable; Transitional CET1 Ratio Increased To 14.8%, Fully Loaded CET1 Ratio 9.3%
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Quindell Says Independent Review By PwC Ongoing, Taking Longer Than Anticipated; Says Advice In Relation To Revenue Recognition Of Professional Services Division Being Considered; Will Have Two Operating Divisions Going Forward: Professional Services And Technology
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COMPANIES - INTERNATIONAL
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Germany's BASF Group reported that its fourth-quarter net income increased to EUR1.42 billion from EUR1.13 billion the previous year. Sales decreased to EUR18.05 billion from EUR18.15 billion the prior year, though sales volumes increased by 1%.
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French aerospace giant Airbus Group reported that its fourth-quarter net income surged to EUR944 million from EUR270 million a year ago. The latest results included a positive one-off linked to foreign exchange of EUR149 million, while last year's results included a negative charge of EUR434 million on the A350 XWB programme. Revenues grew 9% to EUR20.22 billion from EUR18.62 billion a year ago, reflecting higher volume and favourable foreign exchange effects.
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Google has big plans for its headquarters in Silicon Valley, which may further increase tensions between the search engine giant and its neighbors, local media reported. Google is expected to present a proposal for a vast expansion of its corporate headquarters in Mountain View, California before a deadline expires Friday for special terms for business development in the city's North Bayshore district, the San Jose Mercury News and the New York Times reported. Town officials familiar with Google's plans told the newspapers Google hired a British and a Danish architecture firm to design as many as four new buildings and a giant metal and glass canopy to expand its office space.
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Friday's Scheduled AGMs/EGMs

Intelligent Energy Holdings
Shoe Zone
Target Healthcare REIT
Formation Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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