BP Share News (BP.)

LONDON (Alliance News) - Blue-chip stocks in the FTSE 100 are leading a rebound in London share prices early Thursday, after the index suffered its biggest daily loss in a month on Wednesday.

Resource shares are leading gains, as world crude oil prices have stabilised somewhat. Tullow Oil is up 3.3%, despite saying Thursday it is set to write off around USD1.6 billion of value on exploration activities and unsuccessful drilling and said impairment charges for the year will reach around USD600 million.

BHP Billiton is another big resources winner, up 2.8%. Goldman Sachs added the miner to its Conviction Buy List, after being rated Neutral before.

Outside resources, Associated British Foods shares are up 3.0%, after reporting sales at its discount clothing chain Primark rose 12% in the 16 weeks to January 3. Experian is up 3.5% after saying it is confident of returning to a position of revenue growth.

Here is what you need to know at the UK market open:
----------
MARKETS
----------
FTSE 100: up 1.2% at 6,463.27
FTSE 250: up 0.5% at 15,952.22
AIM ALL-SHARE: up 0.2% at 699.04
----------
Hang Seng: closed down 1.0% at 24,350.91
Nikkei 225: closed up 1.9% at 17,108.70
DJIA: closed down 1.1% at 17,427.09
S&P 500: closed down 0.6% at 2,011.27
----------
GBP-USD: down at USD1.5217
EUR-USD: down at USD1.1772

GOLD: down at USD1,227.59 per ounce
OIL (Brent): down at USD49.12 a barrel

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

10:00 EU Trade Balance
11:00 Ireland Consumer Price Index
13:30 US Jobless Claims
13:30 US NY Empire State Manufacturing Index
13:30 US Producer Price Index
15:00 US Philadelphia Fed Manufacturing Survey
15:30 US EIA Natural Gas Storage change
16:15 Germany Buba President Weidmann speech
----------
An index measuring house prices in the UK was up 11% in December, the Royal Institution of Chartered Surveyors said. That beat forecasts for an increase of 10%, although it was down from 13% in November. Many property surveyors expect prices to rise again in the near term, the survey showed, with a net 15% expected house price rises over the next three months.
----------
Online retail spending in the UK surpassed GBP100 billion for the first time in 2014, according to the IMRG Capgemini e-Retail Sales Index published. The report showed GBP104 billion in total was spent online by UK shoppers over the year, up 14% on 2013. IMRG Capgemini has forecast this will rise a further 12% in 2015 to push total online sales up to GBP116 billion.
----------
US crude oil rallied towards the close to end over 5% higher on Wednesday, on bargain hunting with the dollar trending lower against some major currencies. The late surge comes even as the official weekly oil report from the US Energy Information Administration showed crude stockpiles in the US to have jumped more than expected last week. This is crude oil's largest one-day gain since June 2012. A weekly report from the US Energy Information Administration showed US crude oil inventories to have jumped 5.4 million barrels in the week ended January 9, while analysts expected a decline of 0.5 million barrels.
----------
In an unscheduled review, the Reserve Bank of India cut its key rate unexpectedly by a quarter point as a fall in inflation created scope for policy manoeuvre. The central bank lowered the repo rate to 7.75% from 8.00%, with immediate effect. The reverse repo rate was adjusted to 6.75% from 7.00%. The repo rate is the rate at which the central bank lends to commercial banks and the reverse repo rate is the rate at which the central bank accepts deposits from banks. This was the first reduction in nearly two years. Although RBI chief Raghuram Rajan signalled policy loosening early this year, Thursday's decision ahead of the bank's scheduled meeting on February 3 and the government's annual budget announcement in late February, was highly unexpected.
----------
Chinese bank lending and foreign exchange reserves declined at the end of 2014, data from the People's Bank of China revealed. Bank lending fell to CNY697.3 billion in December from CNY852.7 billion in November. It was also below the expected lending of CNY890 billion.
----------
An index measuring producer prices in Japan was down 0.4% on month in December, the Bank of Japan said on Thursday, showing a score of 104.8. That missed forecasts for a decline of 0.3%, which would have been unchanged from the November reading following a downward revision from -0.2%. On a yearly basis, prices added 1.9% - also missing expectations for 2.1% and down from the downwardly revised 2.6% gain in the previous month.
----------
The US economy continued to expand at a "modest" or "moderate" pace in the final weeks of 2014, according to the Federal Reserve's latest Beige Book. The Beige Book, a collection of anecdotal information from around the Fed's 12 districts, said most respondents expect somewhat faster growth over the coming months. Consumer spending increased in most districts, with generally modest year-over-year gains in retail sales. Auto sales showed moderate to strong growth, and manufacturing grew.
----------
The Organization for Security and Co-operation in Europe said some of its observers have been pulled out of eastern Ukraine, where violence has surged this week despite a ceasefire. Some member states have temporarily withdrawn their monitors from the Luhansk and Donetsk regions," OSCE spokesman Michael Bociurkiw said by telephone. He added in emailed comments that the observers were moved "quite some time ago" and remain with the mission and in Ukraine.
----------
Indonesian divers were sent to examine the fuselage of the crashed AirAsia plane after it was located by a Singapore search vessel, an official said. "We will try to estimate its weight so that we can decide how to lift it," Air Commodore Suryadi Supriyadi, the search operation director, said by phone. Divers were also tasked with finding more bodies, which are believed to be trapped in the fuselage, he said. So far, 48 bodies have been recovered since the aircraft crashed on December 28 on its way from Surabaya, Indonesia, to Singapore with 162 people on board.
----------
The US House of Representatives approved amendments to legislation that would roll back key efforts by President Barack Obama to prevent some immigrants who entered the US illegally from being deported. The lower chamber of Congress passed a measure funding the Department of Homeland Security that would end a programme put in place by Obama to halt the deportation of immigrants brought to the US as children. Also affected would be a separate effort to shield an estimated 5 million immigrants from deportation. The bill stands little chance of becoming law because majority Republicans in the upper Senate do not hold enough seats to push through the measure and Obama would veto the bill if it reached his desk.
----------
BROKER RATING CHANGES
---------
EXANE BNP CUTS SKY TO 'NEUTRAL' ('OUTPERFORM') - PRICE TARGET 1000 (985) PENCE
----------
GOLDMAN SACHS RAISES BHP BILLITON TO 'CONVICTION BUY LIST' ('NEUTRAL') - PRICE TARGET 1575 (1870) PENCE
----------
TRADERS: CREDIT SUISSE CUTS COMPASS GROUP TO 'NEUTRAL' ('OUTPERFORM')
----------
TRADERS: NUMIS CUTS ANTOFAGASTA TO 'REDUCE' ('HOLD')
----------
COMPANIES - FTSE 100
----------
Experian said it is confident of returning to a position of revenue growth as it approaches the end of its financial year, and for its full-year results to demonstrate stable margins and good progress in benchmark earnings, both at constant currency, and to exceed 95% cash flow conversion. In a trading update for the last three months of 2014, the information services company, which provides data and analytical tools to clients, said that revenue from continuing activities was down 1%. At constant exchange rates, growth was 2%, and organic revenue was unchanged.
----------
Associated British Foods said it now expects a marginal fall in its adjusted earnings per share in the current financial year, as strong growth at its Primark retailer is more than offset by further profit declines in its sugar business and due to the strength of sterling. The company warned that the pound is still stronger than last year in most of its major trading currencies, the dollar being a major exception, and it expects sterling's strength to knock about GBP15 million off its adjusted operating profit. AB Foods said its revenue was up 1% in the 16 weeks to January 3, its fiscal first quarter, or 3% at constant exchange rates, driven by a 12% increase, or 15% at constant rates, at Primark.
----------
Tullow Oil said it is set to write off around USD1.6 billion of value on exploration activities and unsuccessful drilling and said impairment charges for the year will reach around USD600 million alongside an additional USD500 million loss on a disposal charge on two gas fields in the UK. For 2014, the company is expecting revenue to reach USD2.2 billion, resulting in a gross profit of USD600 million and pre-tax operating cashflow of USD1.5 billion. In November, Tullow said it expected its pretax operating cashflow for 2014 to reach USD1.7 billion.
----------
BP is set to brief workers in its North Sea operation later on Thursday about plans to make significant job cuts in the division, the BBC reported. The FTSE 100-listed oil major announced a restructuring in December in response to the fall in the oil price andThursday's briefing is also expected to see it fall in line with rival operators and cut pay for contractors, the BBC said. BP employs nearly 4,000 people in its North Sea operation, with a further 11,000 across the UK.
----------
A decision must be made early in the next Parliament about the timing of selling down the state's stake in Royal Bank of Scotland Group, according to the UK's Chancellor of the Exchequer, George Osborne. Although the government has been able to cut down its holding in Lloyds Banking Group, another of the UK's banks that required state aid during the financial crisis, to less than 25% of its shares, it still retains about 80% of RBS. Osborne's comments demonstrate that policy on the banking system and its members remains a key area ahead of the UK's General Election in May.
----------
COMPANIES - FTSE 250
----------
Great Portland Estates said it secured 116,300 square foot of lettings in its financial third quarter to the end of December. The FTSE 250-listed property company said it secured 20 lettings in the quarter with a combined rent of GBP6.3 million in total, with GBP5.4 million attributable to Great Portland. Investment lettings in the quarter were 4.9% ahead of its March 2014 rental values, the company added.
----------
Food wholesaler Booker Group posted a rise in sales in the 16 weeks to January 2 and said the turnaround plan for its Makro cash-and-carry business is on track. Booker said total sales in the 16 weeks, including Makro, rose 1.4%, with tobacco sales up 2.2% and non-tobacco sales up 1%. Like-for-like sales, excluding Makro, rose 2.5% for Booker, with tobacco sales increasing 2.4% and non-tobacco sales up 2.6%.
----------
Bovis Homes Group became the latest UK housebuilder to report further growth in profitability, as it built and sold more houses at a higher average price, while real estate advisor Savills PLC said it expects its 2014 underlying results to be well ahead of its previous expectations after a very strong December. Bovis echoed peers in saying it expects to sell even more houses in 2015, although the rate of growth will stabilise after the exceptional recovery seen in 2014. It expects "2015 will be another successful year of growth in revenue and profit giving rise to further improvement in returns".
----------
Centamin said it has appointed Andrew Pardy as the new chief executive of the company. Pardy has been the company's chief operating officer since 2012 and has over 25 years experience in the mining and exploration industry, the gold miner said. He has held senior positions in Africa, Australia and around the globe with the likes of AngloGold Ashanti, Guinior Gold Corp and Kalgoorlie Consolidated Gold Mines.
----------
Rexam said it has completed a joint investment in Envases Del Istmo SA, a single-line beverage can plant based in Colón in Panama. Rexam has invested in the company alongside Envases Universales de Mexico. Rexam said long-term supply agreements for the plant have been agreed with SABMiller and Florida Ice & Farm Co.
----------
Home Retail Group said it expects to report benchmark pretax profit for the current financial year that's in line with market expectations, after its Argos unit traded "cautiously" over the key Christmas period, meaning sales rose only slightly but gross margins were also higher. The company also reported a decline in total sales and gross margins at its Homebase DIY chain, as expected, as it closed stores and sold off the stock at discount. In a trading statement, the retailer said total sales rose 0.8% to GBP1.82 billion in the 18 weeks to January 3 at Argos, driven by a 0.7% increase in net new space. Like-for-like sales grew a modest 0.1%, driven by sales of products like video games, televisions and tablets that was partially offset by weak jewellery sales.
----------
Saga said it expects its dividend for the current financial year to be at the top end of its targeted 40-50% pay-out range, as the company reported that trading is in line with market expectations. Saga, which provides products and services including insurance and holidays to people aged over 50, said it will seeks to maximise returns for investors by optimising its balance of investment, dividends and debt reduction. Saga's trading update was made as part a Capital Markets Day to update investors and financial analysts on its strategy, which revealed a number of planned changes.
----------
Shares in Spire Healthcare Group were down in early trade on Thursday after private equity firm Cinven sold a 10% stake in the company at a discount. Cinvent sold 40.1 million shares in Spire at 315 pence per share, raising a total of GBP126.3 million. Spire shares were down 5.8% to 320.85 pence in early trade, one of the biggest fallers in the FTSE 250. Following the sale of the shares, Cinven has a remaining 48.3% stake in the company.
----------
COMPANIES - LONDON MAIN MARKET AND AIM
----------
Oilfield services company Enteq Upstream issued a warning on its full-year sales on Thursday on the back of the impact of the falling oil price on its North American customer base. The company said it expects its sales for the year to March 31 to be substantially lower than current expectations and against the year before, owing to a slump in capital equipment purchases and budget cuts in its North American customer base.
----------
COMPANIES - INTERNATIONAL
----------
Shares of RadioShack Corp plummeted nearly 32% in extended trading on Wednesday after a Wall Street Journal report revealed that the beleaguered consumer electronics retailer is priming to file for bankruptcy protection as early as the beginning of February after its efforts to improve its cash position failed. RadioShack has already begun talks with a private-equity firm that could buy its assets out of bankruptcy. It may also try to stitch together a deal whereby the company could reduce debt and restructure its operation in the bankruptcy court.
----------
Responding to some press reports, Canadian smartphone maker BlackBerry said it has not engaged in discussions with South Korea's Samsung Electronics Co. Ltd. with respect to any possible offer to buy BlackBerry. "BlackBerry's policy is not to comment on rumours or speculation, and accordingly it does not intend to comment further," BlackBerry said in a statement. Earlier, BlackBerry shares surged in intra-day trading Wednesday on rumours of a takeover offer from Samsung. According to a Reuters report, which cited a person familiar with the matter, Samsung recently approached BlackBerry about buying the Canadian company for as much as USD7.5 billion.
----------
General Motors sold a record number of cars in 2014, reaching 9.9 million automobiles and trucks worldwide, the US car giant said. But Volkswagen maintained its edge after breaking 10 million last year. The jury was still out for world leader Toyota, which is to release its 2014 numbers next week. GM boosted sales by 2% in 2014, with increases in China and North America but drooping sales in Europe.
----------
Thursday's Scheduled AGMs/EGMs

ASOS
GAME Digital
Cambria Automobiles
Capital Lease Aviation
Baring Emerging Europe
----------
By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

Copyright 2015 Alliance News Limited. All Rights Reserved.