BP Share News (BP.)

LONDON (Alliance News) - Travel stocks were leading declines in London early Tuesday, after tour operator Thomas Cook said summer holiday bookings are lower than this time last year as they continue to be disrupted by a "volatile geopolitical backdrop".

Thomas Cook was biggest loser in the mid-cap FTSE 250 index, down 5.1%. But a read-across also appeared to be hurting its blue-chip peers, with airlines easyJet and IAG, hotelier IHG, tour operator TUI and cruise line Carnival among the worst FTSE 100 performers.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.6% at 6,149.12
FTSE 250: down 0.2% at 16,834.05
AIM ALL-SHARE: up 0.2% at 707.21
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Hang Seng: closed down 0.1% at 20,666.75
Nikkei 225: closed up 1.9% at 17,048.55
DJIA: closed up 0.1% at 17,623.87
S&P 500: closed up 0.1% at 2,051.60
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GBP: down at USD1.4338 (USD1.4393)
EUR: flat at USD1.1245 (USD1.1250)

GOLD: up at USD1,258.84 per ounce (USD1,245.30)
OIL (Brent): firm at USD41.45 a barrel (USD41.27)

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

08:30 Germany Markit services, manufacturing and composite PMI preliminary
09:00 EU Markit services, manufacturing and composite PMI preliminary
09:30 UK consumer, retail and producer price indices
09:30 UK DCLG house price index
09:30 UK public sector net borrowing
10:00 Germany ZEW Survey
10:00 EU ZEW Survey
12:55 US Redbook index
13:00 US housing price index
13:45 US Markit manufacturing PMI preliminary
14:00 US Richmond Fed manufacturing index
17:30 US Fed's Evans Speech
20:30 US API weekly crude oil stocks
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UK Chancellor George Osborne will insist he delivered a "compassionate" Budget despite the abandonment of cuts to disability benefits that have left his plans in disarray. The Chancellor dismissed former-work and pensions secretary Iain Duncan Smith's claim that he was putting the better-off before the most vulnerable as he prepared to face MPs over how he will fill a "huge hole" in his calculations. Reforms to Personal Independence Payments had been due to save a total GBP4.4 billion from the welfare budget by 2020 as part of Osborne's commitment to reducing benefits spending by GBP12 billion a year. But in his first act as Duncan Smith's replacement as Work and Pensions Secretary, Stephen Crabb confirmed they had been dropped and that there would be no further raid on welfare spending to plug the gap. Now, Osborne is taking the unusual step of opening the final day of debate on the Budget.
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Atlanta Federal Reserve President Dennis Lockhart expects the Federal Reserve to hike interest rates as early as April. "In my opinion, there is sufficient momentum evidenced by the economic data to justify a further step at one of the coming meetings, possibly as early as the meeting scheduled for end of April," Lockhart said in a speech to a business group in Savannah, Georgia.
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Japan's manufacturing activity deteriorated for the first time in eleven months in March, the latest flash survey from Markit Economics showed. The Markit/ Nikkei Manufacturing Purchasing Managers' Index, or PMI, fell to 49.1 in March from 50.1 in the previous month. Economists had expected the index to rise to 50.5.
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Japan's all industry activity increased at a faster-than-expected pace in January, after falling in the previous two months, figures from the Ministry of Economy, Trade and Industry showed. The all industry activity index rose 2.0% month-over-month in January, reversing a 0.9% drop in December. Economists had expected a 1.9% climb for the month.
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US President Barack Obama declared a "new day" between the US and Cuba following talks with Cuban President Raul Castro at which the Cuban leader repeated his call for the end to the decades-long US trade embargo against the communist island nation. "Much more could be done if the US blockade were lifted," Castro told reporters after the meeting, using the terminology Cuba prefers for the US policy that has prevented most trade between the neighbours for more than half a century. Castro called recent moves by Obama's administration to improve relations "positive but insufficient" and again demanded an end to the embargo, which requires an act of Congress. He also called for the return of the US naval base at Guantanamo Bay, Cuba.
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BROKER RATING CHANGES
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HSBC CUTS BARCLAYS TO 'HOLD' ('BUY') - PRICE TARGET 190 (230) PENCE
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GOLDMAN CUTS BARCLAYS PRICE TARGET TO 265 (310) PENCE - 'CONVICTION BUY LIST'
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BARCLAYS: BP NEW 'TOP PICK' - KEEPS 'OVERWEIGHT'
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GOLDMAN RAISES INTERNATIONAL AIRLINES GROUP PRICE TARGET TO 810 (775) PENCE - 'BUY'
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COMPANIES - FTSE 100
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Royal Bank of Scotland Group said it has made its final dividend access share payment to HM Treasury, clearing the way for the lender to resume dividend payments to shareholders. The dividend access shares were issued by RBS in 2009 when HM Treasury pumped GBP25.5 billion of equity into RBS as part of its government bailout at the height of the financial crisis. RBS said it has made a GBP1.19 billion payment to HM Treasury which will be reflected in its financial statements for the first quarter of 2016. On retirement, the dividend access share will be re-designated as a single B shares which will then be cancelled, RBS said.
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UK media and communications regulator Ofcom set out new rules designed to push BT Group to improve its business lines performance. Ofcom said the new rules, part of its Connectivity Market Review, will seek to improve BT's performance in installing high-speed lines for businesses and cut the wholesale prices BT charges for the lines. The regulator said Openreach, BT's network infrastructure arm, is taking too long to install leased lines and is "not providing adequate certainty that the services will be provided by the date first given to the customer." As a result, Ofcom has proposed Openreach must complete 80% of leased-line orders on time by March 2017, with this requirement rising to 90% by April 2018.
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Wolseley said pretax profit more than tripled in the first half of its financial year on the back of strong commercial and residential markets for its US business, as it said it expects full-year results in line with analyst expectations. The building materials company reported a pretax profit of GBP367.0 million in the six months to January 31, up from GBP103.0 million a year earlier. Revenue was at GBP6.80 billion, up from GBP6.42 billion a year earlier. Wolseley raised its interim dividend by 10% to 33.28 pence per share from 30.25p.
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United Utilities Group said trading for its financial year to the end of March is in line with its expectations. The water and sewage utility covering North West England said revenue for the full year will be marginally higher, with increased assumed volumes and more sales in its non-regulated business offsetting lower allowed regulated revenue. Underlying operating profit for the year is in line with the group's expectations, albeit lower year-on-year, due to new regulated price controls. Reported operating profit will fall due to additional costs and impairment charges related to the flooding which hit the UK in December 2015, though United Utilities said much of this will be offset by insurance payments.
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Carnival, the cruise liner company, announced that Cuba has granted approval for the company to begin travel to Cuba starting on May 1, 2016. Following US authorisation granted in July 2015, Carnival is now cleared to operate the 704-passenger MV Adonia to Cuba through its newest brand Fathom. This marks the first time in over 50 years a cruise ship is approved to sail from the US to Cuba.
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COMPANIES - FTSE 250
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Software company Micro Focus International said it has struck a deal to acquire US-based Spartacus Acquisition Holding Corp, the owner of Serena Software, for USD540.0 million in cash. Serena is an enterprise software based in California focused on application lifecycle management products. It has operations in 12 countries, with its main offices in the US and UK, and serves a range of typically highly regulated large companies, including banks, insurance companies and telecommunications providers. Micro Focus will back the deal through existing cash resources and financing facilities, plus a new GBP150.0 million share placing, conducted through an accelerated bookbuild run by Numis Securities.
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Thomas Cook Group said the winter 2015/16 holiday season is closing as expected, but summer bookings so far are lower than this time last year as they continue to be disrupted by a "volatile geopolitical backdrop". The travel company said 90% of the winter season is sold, as expected, with higher pricing in most source markets. Summer 2016 is 40% sold, with bookings below last year.
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Bellway said pretax profit surged in the first half of its financial year, after it saw a rise in both the number of houses the company sold and the price at which these houses were sold at, prompting a hike to its dividend payout. The housebuilder said pretax profit was GBP226.6 million in the six months to January 31, up 43% from GBP158.9 million a year earlier, coming from the 12% increase in homes sold, to 4,188 from 3,754, as well as the 17% boost to average selling price of the properties, at GBP257,280 from GBP219,343. Bellway raised its interim dividend payout 36% to 27.90 pence per share from 25.00 pence a year earlier.
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Jimmy Choo said it swung to a profit in 2015 as it booked lower exceptional and financial costs than in 2014, and as revenue grew on strong sales of its shoe lines. The luxury fashion retailer said it made a pretax profit in 2015 of GBP22.1 million, having suffered an GBP8.3 million pretax loss in 2014, as it booked considerably lower financial expenses and exceptional costs, and as revenue rose to GBP317.9 million from GBP299.8 million. Jimmy Choo said the main driver of revenue growth was shoes, which represent over three quarters of sales.
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Online financial trading firm IG Group Holdings said revenue grew in the third quarter as it benefited from volatile markets. IG said revenue for the three months to the end of February hit GBP122.0 million, 18% higher year-on-year and a 9.0% increase on the second quarter. IG said the constant flow of macroeconomic news through the quarter created "reasonable" volatility levels in financial markets, creating a range of trading opportunities for IG clients.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Cairn Homes announced late Monday a firm placing, placing and open offer of shares to raise around EUR175.0 million, to fund the acquisitions of pipeline sites, as well as developments of sites in Dublin. Cairn Homes said the firm placing and placing of the open offer shares are being conducted through an accelerated bookbuild. It said this process is expected to close on Tuesday. Cairn Homes said it expects EUR52.5 million from the firm placing and EUR122.5 million to be raised through the placing and open offer. Bank of America Merrill Lynch and Goodbody Stockbrokers will act as joint bookrunners, and Davy will act as co-bookrunner in relation to the capital raise.
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COMPANIES - INTERNATIONAL
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Brazil's state-run oil firm Petrobras made a loss of BRL34.8 billion, about GBP6.70 billion, in 2015 as it struggled to cope with a corruption scandal that has reached the highest levels of government. The firm said its net loss in the fourth quarter alone was a record BRL36.9 billion. The firm put the losses down to falling oil prices, downgrades by credit rating agencies and the devaluation of the local currency. Various firms including Brazil's largest construction companies are believed to have paid billions of dollars in bribes to obtain lucrative contracts with the oil monopoly. A former president, Luiz Inacio Lula da Silva, is also under investigation in connection with the allegations.
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Apple debuted new, smaller versions of the iPhone and iPad Pro and a price cut for the Apple Watch at a subdued spring product eventy. The iPhone SE combines the 4-inch size and design of the iPhone 5 with the features of the iPhone 6, at a US price of USD399 that sets it at the low end of Apple's iPhone lineup. The company also introduced a smaller iPad Pro - its top-end tablet - with a lightweight, 9.7-inch screen, starting at USD599.
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The US government may not need Apple's help in unlocking a terrorist's iPhone after all, according to reports. A court hearing set for Tuesday over a magistrate judge's order requiring Apple to help the FBI unlock a phone was cancelled at the Justice Department's request. The government reportedly said in a court filing Monday that it wanted to test a possible method for accessing data on the phone, which was used by one of the attackers who killed 14 and wounded 22 at a holiday party in San Bernardino, California, in December.
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Tuesday's Scheduled AGMs/EGMs

Wynnstay Group
Electronic Data Processing
Ediston Property Investment Co
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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