BBA Share News (BBA)

LONDON (Alliance News) - Positive trade data from China and Christmas sales numbers from UK retailers gave London equities a firm start Wednesday.

Shares in Sainsbury's were slightly lower at the open, despite it reporting growth in total retail sales excluding fuel in its third quarter as the number of customer transactions rose. However, like-for-like sales fell for the FTSE 100 supermarket.

Meanwhile, online financial trading provider CMC Markets confirmed its plan to float on the London Stock Exchange's Main Market, an announcement much anticipated in recent weeks. CMC said it intends to raise GBP17.0 million for the company through a share offering, which will be run by Goldman Sachs, Morgan Stanley and RBC Capital Markets. CMS said it expects to launch the offering in early February and said Peter Cruddas, the founder of the company, will remain majority shareholder.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 1.1% at 5,991.59
FTSE 250: up 0.4% at 16,756.40
AIM ALL-SHARE: up 0.2% at 722.31
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Hang Seng: closed up 1.1% at 19,934.88
Nikkei 225: closed up 2.9% at 17,715.63
DJIA: closed up 0.7% at 16,516.22
S&P 500: closed up 0.8% at 1,938.68
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GBP: up at USD1.4429 (USD1.4395)
EUR: soft at USD1.0816 (USD1.0837)

GOLD: down at USD1,080.65 per ounce (USD1,088.30)
OIL (Brent): up at USD31.35 a barrel (USD30.67)

(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
(all times in GMT)

10:00 EU Industrial Production
12:00 US MBA Mortgage Applications
13:00 US Fed Boston President Rosengren Speech
15:30 US EIA Crude Oil Stocks
17:30 US Fed Chicago President Evans Speech
19:00 US Monthly Budget Statement
19:00 US Fed's Beige Book
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China's trade surplus increased in December, as exports dropped at a slower-than-expected pace, raising hopes that the depreciation in yuan is unlikely to continue on its previous trajectory. Exports fell 1.4% on a yearly basis in December, data published by the General Administration of Customs showed. It was slower than an 8% decline expected by economists and a 6.8% decrease posted in November. At the same time, imports slid 7.6%, also slower than the expected decrease of 11%. The Chinese trade surplus rose to around USD60 billion, taking the full year surplus to USD594.5 billion. The December figure was well above a USD51.3 billion surplus forecast by economists. In yuan terms, exports advanced 2.3%, reversing a 3.7% drop in November. Imports slid at a slower pace of 4% after falling 5.6% a month ago.
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The UK economy expanded 0.6% in three months to December, according to a monthly report released by the National Institute of Economic and Social Research. It was followed by a 0.6% growth in three months to November. The quarterly growth implies that the economy expanded 2.2% in 2015. Although this was a moderation compared to the 2.9% growth in 2014, it remains consistent with the economy growing at close to its long-run potential rate, the think tank noted.
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German Chancellor Angela Merkel described Tuesday's suicide attack in Istanbul in which 10 people died, eight of them Germans, as a "murderous act." "The terrorists are enemies of all free people, indeed they are enemies of humanity," she said Tuesday evening in Berlin. The Turkish government blamed Islamic State for the suicide bombing Tuesday in the tourist heart of Istanbul.
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US President Barack Obama attempted to paint an optimistic vision of the future of the US as he heads into his final year in office and works to cement the legacy of his eight years in office. "I believe in change because I believe in you," he said, echoing themes from his 2008 election campaign in his final State of the Union address to Congress. "That's why I stand here as confident as I have ever been that the state of our union is strong." The speech was short on concrete policy proposals. Obama instead said lawmakers must address big questions regardless of who the next president is, including: how to provide economic opportunity, how to make technology work for people, how to keep the US safe and how to improve the political climate.
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BROKER RATING CHANGES
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JPMORGAN RAISES UNILEVER TO 'OVERWEIGHT' ('UNDERWEIGHT') - PRICE TARGET 3200 (2525) PENCE
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EXANE BNP CUTS LLOYDS TO 'UNDERPERFORM' ('NEUTRAL') - PRICE TARGET 74 (78) PENCE
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TRADERS: MERRILL LYNCH RAISES CAPITA GROUP TO 'EUROPE 1 LIST'
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BARCLAYS CUTS MITIE TO 'UNDERWEIGHT' ('EQUAL WEIGHT') - TARGET 275 (297) PENCE
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TRADERS: MERRILL LYNCH CUTS SPIRAX-SARCO TO 'NEUTRAL' ('BUY')
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BARCLAYS CUTS JIMMY CHOO TO 'EQUAL WEIGHT' ('OW') - TARGET 155 (190) PENCE
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TRADERS: MERRILL LYNCH RAISES G4S TO 'BUY' ('NEUTRAL')
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GOLDMAN CUTS BUNZL TO 'SELL' ('NEUTRAL')
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TRADERS: JPMORGAN CUTS CAPITAL & COUNTIES TO 'UNDERWEIGHT' ('NEUTRAL')
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TRADERS: CITIGROUP INITIATES BBA AVIATION WITH 'BUY'
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COMPANIES - FTSE 100
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J Sainsbury reported growth in total retail sales excluding fuel in its third quarter as the number of customer transactions rose, although like-for-like sales fell. The supermarket chain said total retail sales in the 15 weeks ended January 9 grew 0.8% excluding fuel, although they fell 0.7% including fuel. Like-for-like retail sales, meanwhile, declined 0.4% excluding fuel and 1.8% including fuel. Sainsbury's added that over 30 million customer transactions were made in the week before Christmas, which was up 2.6% year-on-year.
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A major shareholder in HSBC Holdings has predicted the lender will decide to keep its headquarters in the UK and not relocate it to Asia, the Financial Times reported. Martin Gilbert, the chief executive of Aberdeen Asset Management, which is HSBC's fifth-largest shareholder, said the logistics involved in the bank moving its headquarters would be "so vast" that the bank is more likely, on balance, to remain in the UK. HSBC is due to make a decision on whether it will re-domicile later this month.
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Housebuilder Barratt Developments continued the positive news flow from the housebuilding sector as it said it sold more homes at higher prices in the first half and was confident on its outlook for the rest of its financial year. The group said it sold a total of 7,626 homes in the six months to the end of December, up from 6,971 a year earlier, at an average selling price of GBP254,000, up 11% from the GBP229,200 average price in the first half of the prior financial year.
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Specialist lender Provident Financial said its results for 2015 should meet its expectations, with solid trading across the business. The company, which ascended to the FTSE 100 index earlier this year following a year of very strong growth, said its Vanquis Bank business has continued to deliver good growth and strong margins in the fourth quarter of 2015. UK customer numbers ended the year up 9.9% year-on-year, the group said.
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Sports Direct International said it holds an indirect interest representing 11.5% of the issued share capital of Iconix Brand Group and 2.3% of the issued share capital of Dick's Sporting Goods. The sporting goods retailer said the indirect interests are through contracts for difference. It holds CFDs for 5.6 million shares in Iconix and 2.1 million shares in Dick's. Iconix is a brand management company which owns a portfolio of consumer brands across fashion, sports, entertainment and home. Dick's is a sporting goods and sports clothing retailer.
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Budget airlines easyJet and Ryanair Holdings could soon be handling part of the journey for long-haul passengers in Europe amid a strategic shift by the two groups, the Financial Times reported. Ireland's Ryanair has signalled plans to target tie-ups with flag carriers under which it would provide them with passengers for their long-haul flights. easyJet is understood to be considering a similar move, the FT said.
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COMPANIES - FTSE 250
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Dunelm Group reported growth in sales in the first half of its financial year as it benefited from an extra six days in its winter sale, but warned the positive like-for-like trend would reverse in the current quarter. The homewares retailer said total sales in the 26 weeks ended January 2 grew 10% to GBP448.1 million year-on-year, growing 8.8% to GBP245.7 million in the 13 weeks to the same date. Like-for-like sales rose 4.6% to GBP404.9 million in the 26 weeks and 3.9% to GBP221.5 million in the 13-week period.
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Ted Baker reported a rise in retail sales in its eight-week Christmas period and said it expects full-year results to be in line with its expectations. The high-end fashion retailer said retail sales in the eight weeks to January 9 grew 10% year-on-year. Gross margins were in line with expectations, and there was no significant promotional activity before Christmas, Ted Baker said, adding that it expects to end the year with a clean stock position.
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Recruiter Hays said its net fee income grew in the second quarter, despite some weakness emerging in Asia Pacific as a result of the slowdown in the mining industry in Australia. Hays said its total net fee income for the quarter to the end of December grew 3.0%, with like-for-like constant currency growth of 7.0%. The strongest performance came in its Continental Europe and Rest of the World division, helped by a recovery in Germany and broad-based positive trading elsewhere in the region. Asia Pacific net fee income fell 8.0%, though, hit by the slowdown in the mining sector in Australia and general weakness across the region, caused by a weakening economy in China. UK & Ireland net fee income rose 1.0%, with growth slowing against tough comparators.
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Investment fund Woodford Patient Capital Trust said it has now deployed all the funds from its GBP800.0 million float in London in April last year. The fund, which focuses on investing in UK-based, early-stage technology companies and which is run by prominent fund manager Neil Woodford, said it may look at raising further capital and intends to consult with an gauge interest in such a move with its investors.
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COMPANIES - INTERNATIONAL
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The first Disney resort on mainland China will open in Shanghai on June 16, the company announced. Shanghai Disney Resort "will be a one-of-a-kind...destination that is authentically Disney and distinctly Chinese," said Robert Iger, chairman and CEO of The Walt Disney Co. The newest Disney park, a joint venture with Shanghai Shendi Group, will join other Disney destinations in Tokyo, Paris, Hong Kong and three US locations. Construction work began in 2011, according to Chinese news agency Xinhua, with an investment of CNY34 billion, about USD5.2 billion. Disneyland Hong Kong opened in 2005.
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Ford Motor Co said it expects to deliver record 2015 pre-tax profit and to continue its momentum in 2016 with results that are equal to or higher than 2015. "As we close out 2015, we are benefiting from six consecutive years of consistently strong results, and our performance is allowing us to reward our shareholders," said Mark Fields, Ford president and CEO. Ford declared a first quarter dividend of USD0.15 per share and a USD1 billion supplemental cash dividend that is equal to USD0.25 per share. The first quarter regular dividend maintains the same level as the dividends paid in 2015.
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Volkswagen's proposed US recall to correct excessive nitrogen emissions from its 2-litre diesel cars is inadequate, US environmental regulators said. The decision sends the German carmaker back to the drawing board for a US recall of nearly 500,000 2-litre diesel cars sold from 2009-15. "Volkswagen made a decision to cheat on emissions tests and then tried to cover it up," said Mary Nichols, chairwoman of the California Air Resources Board (CARB). "They continued and compounded the lie, and when they were caught they tried to deny it." The US Environmental Protection Agency said it "agrees with CARB that Volkswagen has not submitted an approvable recall plan to bring the vehicles into compliance and reduce pollution." The federal agency said it had previously informed VW.
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Alphabet's Google hopes to form partnerships with many automakers and suppliers as it develops self-driving cars to reduce traffic accidents and expand mobility for elderly and disabled people. The company wants to announce some of those joint efforts during 2016, it said.
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MetLife said it plans to pursue the separation of a substantial portion of its US retail segment. MetLife is currently evaluating structural alternatives for such a separation, including a public offering of shares in an independent, publicly traded company, a spin-off, or a sale.
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Wednesday's Scheduled AGMs/EGMs

GAME Digital
Fenner
Baring Emerging Europe
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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