Barclays Share News (BARC)

LONDON (Alliance News) - A strong close on Wall Street has led to opening gains in London Friday, ahead of some key economic data, including readings of eurozone inflation and US GDP.

The early gains are being led by resources shares, including Fresnillo, Anglo American and Vedanta Resources.

Vedanta said Friday its earnings fell in the third quarter from a year earlier, despite revenue rising, due to lower oil and commodity prices, but said production increased quarter on quarter across the board.

International Consolidated Airlines Group shares are up 0.5%, after the British Airways owner said Qatar Airways has acquired a 9.99% stake in the company. IAG is in the midst of bidding for Irish flag carrier Aer Lingus.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.4% at 6,838.50
FTSE 250: up 0.4% at 16,415.52
AIM ALL-SHARE: up 0.3% at 688.22
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Hang Seng: closed down 0.4% at 24,507.05
Nikkei 225: closed up 0.4% at 17,674.39
DJIA: closed up 1.3% at 17,416.85
S&P 500: closed up 1.0% at 2,021.25
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GBP-USD: flat at USD1.5066
EUR-USD: up at USD1.1333

GOLD: up at USD1,262.85 per ounce
OIL (Brent): up at USD49.13 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)

09:00 Italy Unemployment
09:30 UK Consumer Credit/Mortgage Approvals
10:00 EU Consumer Price Index
10:00 Italy Producer Price Index
10:00 EU Unemployment Rate
13:30 US Employment cost index
13:30 US Gross Domestic Product
14:45 US Chicago Purchasing Managers' Index
15:00 US Reuters/Michigan Consumer Sentiment Index
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An index measuring consumer confidence in the UK increased more than expected, turning positive in January, the latest survey from polling company GfK revealed. The consumer confidence index came in at 1 in January, turning positive unexpectedly as economists forecast the index to come in at -2. This follows the nine-month low score of -4 in December.
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Germany's retail sales rose at a slower than expected rate in December, preliminary data from Destatis showed. Sales grew a calendar and seasonally-adjusted 0.1% month-on-month in December following the 0.5% gain in November. Economists had expected sales to increase 0.3%.
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The unemployment rate in Japan was a seasonally adjusted 3.4% in December, the Ministry of Internal Affairs and Communications said. That beat forecasts for 3.5%, which would have been unchanged from the November reading.
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Consumer prices in Japan were up 2.4% on year in December, the Ministry of Internal Affairs and Communications said - topping expectations for 2.3% and unchanged from November. Core CPI, which excludes the volatile costs of food, added 2.5%. That was below forecasts for 2.6% and down from 2.7% in the previous month.
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EU foreign ministers laid the groundwork for a new round of sanctions over the crisis in Ukraine, amid renewed fighting in the east of the country. "We hope that this can help putting pressure in particular on Russia to make positive steps and prevent negative steps that we have seen in the recent days," EU foreign policy chief Federica Mogherini said. The bloc's 28 ministers said in a joint statement that they were "shocked by the high number of casualties" in the fresh fighting and condemned the use of "indiscriminate shelling" in residential areas.
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The US Senate approved a controversial cross-country oil pipeline, putting the new all-Republican-majority Congress on course for its first veto. The Senate voted 62-36 to authorize construction of the Keystone XL Pipeline from the Canadian border to Texas that has been a political hot-button issue for more than five years. The lower house passed similar legislation earlier this month, meaning the bill will soon go to the White House for President Barack Obama's signature into law. Obama has vowed to veto the bill, and White House spokesman Josh Earnest Thursday repeated the threat.
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Saudi Arabia's King Salman reshuffled the monarchy's government less than a week after ascending to the throne of the oil-rich Western ally. Prince Bandar, the former ambassador to the US, was removed from his post as the head of the National Security Council and the body was dissolved. Also, Prince Khaled bin Bander was replaced as the head of intelligence by Khaled al-Humaidan, an interior ministry official. The monarch also replaced the governor of Riyadh, according to the decree which was reported by Saudi television. Khaled al-Faysal was named as governor of Mecca, the city holy to Muslims, replacing a son of recently deceased King Abdullah.
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BROKER RATING CHANGES
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EXANE BNP CUTS KINGFISHER TO 'NEUTRAL' ('OUTPERFORM') - TARGET 390 (350) PENCE
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TRADERS: INVESTEC CUTS BG GROUP TO 'SELL' ('HOLD')
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TRADERS: BERNSTEIN CUTS DIAGEO TO 'MARKET-PERFORM' ('OUTPERFORM')
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TRADERS: CITIGROUP CUTS 3I GROUP TO 'NEUTRAL' ('BUY')
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UBS RAISES CENTRICA TO 'NEUTRAL' ('SELL') - TARGET 275 (280) PENCE
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BARCLAYS CUTS INTERTEK TO 'EQUAL WEIGHT' ('OW') - TARGET 2400 (2900) PENCE
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TRADERS: JPMORGAN CUTS WOLSELEY TO 'NEUTRAL' ('OW') - TARGET 4100 (3800) PENCE
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TRADERS: HSBC CUTS SHELL A TO 'NEUTRAL' ('OW') - PRICE TARGET 2200 (2300) PENCE
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TRADERS: HSBC CUTS SHELL B TO 'NEUTRAL' ('OW') - TARGET 2300 (2360) PENCE
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TRADERS: HSBC RAISES EASYJET TO 'NEUTRAL' ('UW') - TARGET 1900 (1500) PENCE
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COMPANIES - FTSE 100
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BT Group reaffirmed its outlook for the full year as it posted pretax profit ahead of analyst expectations in its third quarter, and said that it is making "good progress" on its due diligence in relation to the potential acquisition of UK mobile operator EE. The company also announced that it has agreed a 16 year recovery plan with the trustee of the BT Pension Scheme. BT said that its plans to launch a consumer mobile offering "remain on track", although it did not provide a timetable for the launch of this offering. BT posted a pretax profit of GBP694 million for quarter to end-December 2014, up from GBP617 million a year before, and ahead of consensus analyst expectations of GBP658 million, although revenue came in lower at GBP4.48 billion, down from GBP4.60 billion, just missing analyst expectations of GBP4.49 billion.
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International Consolidated Airlines Group said Qatar Airways has acquired a 9.99% stake in the company. Qatar Airways said the acquisition of the stake was a push to strengthen the existing commercial ties between the two carriers. Qatar said it may consider increasing its stake in IAG over time, but does not currently intend it to exceed the 9.99% level.
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UK Business Secretary Vince Cable tabled measures in Parliament which will give the Groceries Code Adjudicator powers to fine supermarkets in the UK that breach the Groceries Code in their relationships with their suppliers. Under the plans, the adjudicator will be able to imposed penalties on the UK's biggest supermarkets, including listed supermarkets Tesco, J Sainsbury and Wm Morrison Supermarkets, of up to 1% of their annual UK turnover.
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Diageo has emerged among a group of blue-chip companies interested in taking over the headline sponsorship of the English Premier League at the end of next season, Sky News reported. The FTSE 100-listed drinks group has emerged as a potential bidder for the sponsorship deal, thought to be worth more than GBP150 million, alongside incumbent sponsor Barclays, Sky said. Barclays had been expected to withdraw from the deal when it expires at the end of the 2015-16 season, but is now understood to have signalled to league administrators it may bid again.
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COMPANIES - FTSE 250
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Vedanta Resources said earnings fell in the third quarter from a year earlier, despite revenue rising, due to lower oil and commodity prices and said production increased quarter on quarter across the board. For the third quarter ended December 31, the company reported earnings before interest, tax, depreciation and amortisation of USD1.02 billion, down 11% from a year earlier when it reported an EBITDA of USD1.14 billion. Revenue during the quarter totalled USD3.35 billion, compared to USD3.33 billion a year earlier. Gross daily production averaged 218,900 barrels of oil equivalent per day during the quarter from its oil and gas production following production at Rajasthan resuming normal levels after a planned maintenance shut-down carried out in the second quarter. This is a 13% increase quarter on quarter.
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Carbon and ceramic products manufacturer Morgan Advanced Materials said Pete Raby has been appointed as its new chief executive, with effect from August 1. Raby joins the company from his position as the president of the communications and connectivity division of FTSE 250-listed defence company Cobham.
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Automotive retail and services company Inchcape said it has appointed Stefan Bomhard as its new chief executive. Bomhard replaces André Lacroix, who left the company in September to become the chief executive of FTSE 100 testing company Intertek. Bomhard moves from his role as the president of the European operations of spirits company Bacardi.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Qatar Investment Authority and Brookfield Property Partners said they have extended the closing date for their bid for Songbird Estates to allow shareholders in the Canary Wharf owner more time to accept the GBP2.6 billion offer, even as they said they have now secured acceptances representing 93.4% of the company's issued share capital.
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Commercial flooring manufacturer and distributor James Halstead maintained its expectations for the full year on the back of solid first half trading. The company said revenue in the first half to December 30 was around 6% up year-on-year, in line with the forecasts given in its trading update in December. The group said it is confident on meeting full-year expectations.
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Kenmare Resources FY Ore Mined up 42% To 34.1M Tonnes; Heavy Mineral Concentrate Up 13% To 1.3M Tonnes; Ilmenite Production Up 19%, Zircon Production Up 62%; Says Project Lender Budget Deadline Extended
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COMPANIES - INTERNATIONAL
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Google reported a higher fourth-quarter profit, driven by a 15% increase in revenues and one-time gains from the sale of Motorola Mobile business, somewhat offset by stock-based compensation expense and other costs. Nevertheless, Google's earnings and revenues fell short of Wall Street estimates, hurt by lower online ad prices and unfavorable foreign exchange rates. Google has been grappling with falling ad prices, even as paid clicks gain momentum. During the quarter, Google's aggregate paid clicks increased about 14% from a year ago and about 11% sequentially.
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Online retailer Amazon.com said its fourth quarter profit fell 10.5% from last year, as higher expenses more than offset a 15% increase in sales. However, the company's quarterly earnings per share came in well above analysts' expectation, but its quarterly sales fell short of analysts' forecast. At the same time, the company forecast current quarter sales below analysts' current consensus estimate.
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Australia's largest investment bank Macquarie Group is in talks to acquire Jefferies Group's commodities trading unit, according to reports citing people familiar with the matter. The reports noted that the Australian firm is one of several companies interested in the unit and the talks are at an early stage. Jefferies Group LLC, a subsidiary of Leucadia National, said last month it was pursuing strategic alternatives for Jefferies Bache, a broker and trader in commodities futures.
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Japanese automaker Honda Motor said third-quarter net income decreased to JPY136.5 billion from JPY160.7 billion in the previous year. Net sales increased to JPY3.29 trillion from JPY3.02 trillion in the previous year, mainly due to a rise in motorcycle unit sales as well as the positive impact of foreign exchange effects.
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Visa reported an 11% increase in profit for the first quarter, as customers spent more using its cards during the holiday quarter, amid a better job climate and lower gasoline prices. Both earnings and revenues for the quarter trumped Wall Street expectations. The payment card processor maintained its outlook for fiscal year 2015 and authorized a four-for-one stock split.
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Friday's Scheduled AGMs/EGMs

Henderson European Focus Trust
Schroder UK Mid Cap Fund
Scottish Investment Trust
Treatt
Caledonian Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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