BT Share News (BT.A)

LONDON (Alliance News) - Shares have opened higher in London Monday, following strong leads from markets in the US and Asia, and as protests in Hong Kong start to ebb.

The downtrodden shares of Tesco are leading FTSE 100 gainers, up 1.6%, after the supermarket chain moved to bolster its board, adding the chief executive of food services company Compass and a former CEO of furniture and household goods retailer IKEA Group as non-executive directors.

Petroceltic International and Iofina lead AIM risers, with the Dublin-based oil explorer the subject of a takeover bid by Dragon Oil, while the iodine producer reported a big jump in output in September and the granting of a state water permit.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.3% at 6,550.13
FTSE 250: up 0.4% at 15,283.77
AIM ALL-SHARE: up 0.4% at 742.80
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Hang Seng: up 1.1% at 23,328.37
Nikkei 225: closed up 1.2% at 15,890.95
DJIA: closed up 1.2% at 17,009.69
S&P 500: closed up 1.1% at 1,967.90
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GBP-USD: up at USD1.5972
EUR-USD: up at USD1.2532

GOLD: up at USD1,193.45 per ounce
OIL (Brent): up at USD92.30 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
(all times British Summer Time)

09:30 EU Sentix Investor Confidence
15:00 Canada Ivey Purchasing Managers Index
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Financial services firms in the UK recorded the fastest growth in business volume since 2007 in the three months to September, a survey by the Confederation of British Industry and PricewaterhouseCoopers showed. According to the 100th survey, 60% of the firms said that business volumes had increased while 11% said that business was down. This led to a balance of 49%, which was the highest since the 51% logged in 2007. Firms were also optimistic about the business volume growth in the upcoming quarter as the corresponding index came in at 55%. This was the highest since June 2010.
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Germany's factory orders declined more than expected in August, figures from the Federal Statistical Office showed. Factory orders fell 5.7% month-over-month in August following the 4.9% rise in July. This was more than the 2.5% drop expected by economists. Domestic orders slid 2% and foreign orders plunged 8.4% in August.
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The number of activists dwindled at protest sites in Hong Kong on Monday morning, as government employees were able to return to work unobstructed and middle schools reopened. Protestors agreed to allow access to the central government complex in the Admiralty district and avoid confrontation. The government promised to enter into negotiations if protesters lifted at least some of their blockades around government offices.
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The World Bank downgraded its growth estimates for developing East Asia citing moderation in China's economic expansion caused by structural reforms. Developing East Asia is forecast to expand 6.9% this year and the next, the Washington-based lender said in its East Asia Pacific Economic Update, released Monday. In April, the bank projected 7.1% growth each for 2014 and 2015.
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Brazilian President Dilma Rousseff led Sunday's presidential election but will have to face conservative candidate Aecio Neves in a runoff October 26, according to official preliminary results.
With more than 99% of the ballots counted, Rousseff had 41.6% of the votes to 33.6% for Senator Neves, of the Party of Brazilian Social Democracy (PSDB). Environmental activist Marina Silva, 56, of the Brazilian Socialist Party, was garnered 21.3% of the vote.
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Islamic State militants captured part of a strategic hill overlooking the southern entrance to the besieged Kurdish town of Kobane on Syria's border with Turkey, a monitoring group said Sunday. The jihadists managed to take the southern side of Mishte Nur hill in fierce overnight clashes with the Kurdish People's Protection Units (YPG) and Syrian rebels, who maintain control of the hill's northern side nearer the town, said the Syrian Observatory for Human Rights, which compiles information from a network of local activists across Syria. The Islamic State's reported advance came despite what appeared to be the most intense airstrikes yet on jihadist forces around the town by a US-led coalition that formed to fight the militants.
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Those who executed Alan Henning will be hunted down, Prime Minister David Cameron said Saturday after huddling with security chiefs to thrash out a response to the murder of the British aid worker. A video of Henning's beheading by Islamic State militants was posted on the internet Friday. Henning was held by the group for nine months after being captured while travelling on an aid convoy to Syria. A week ago Britain's parliament voted overwhelmingly to participate in airstrikes against the militants. The video of the beheading opened with footage from a news report on the vote.
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Twelve separatist rebels were killed trying to capture the airport in their stronghold of Donetsk, the Interfax Ukraine news agency reported citing the National Security Council in Kiev. Ukrainian troops fought off the assaults on the biggest airport in eastern Ukraine, council spokesman Andriy Lysenko said. He added that two government soldiers were killed in the fighting in the past 24 hours. The airport is a strategic prize that has been the subject of fighting for days, despite a ceasefire that took effect between the pro-Russian rebels and the government on September 5.
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The condition of an Ebola patient hospitalized in Texas has deteriorated and is now considered critical, officials from Texas Health Presbyterian Hospital in Dallas told dpa Saturday. Thomas Duncan, a Liberian who was the first person in the US to be diagnosed with the deadly disease, had previously been listed in serious condition. Meanwhile, two people who contracted the Ebola virus in West Africa and were flown to Germany and France for treatment have made a full recovery, officials said Saturday.
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BROKER RATING CHANGES
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SOCGEN CUTS BAE SYSTEMS TO 'HOLD' ('BUY') - TARGET 485 PENCE
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CITIGROUP CUTS DUNELM GROUP TO 'NEUTRAL' ('BUY') - TARGET 870 (930) PENCE
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Canaccord Raises Henderson Group To Buy From Hold, PT 240p
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COMPANIES - FTSE 100
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Tesco moved to bolster its board, adding the chief executive of food services company Compass and a former CEO of furniture and household goods retailer IKEA Group as non-executive directors. Compass CEO Richard Cousins and former IKEA CEO and President Mikael Ohlsson will join Tesco's board on November 1.
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Oil company BG Group said it has received a USD350 million payment from the Egyptian government, meaning its domestic receivables balance in the country has fallen to about USD1.2 billion. The Egyptian government has raised funds to help repay debts that it owes to the oil and gas sector in the wake of the disruption and turmoil caused by the so-called Arab Spring, when Egypt's previous rulers were thrown out.
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BT Group's return to the mobile market may be delayed into the next financial year due to technical problems which could undermine its plan to undercut rivals, The Daily Telegraph reported on Sunday. The newspaper said sources have suggested the company is struggling with technology designed to ensure as much voice call and data traffic as possible is carried over Wi-Fi networks rather than via a 4G mobile network. Having this technology working is an essential component of BT's plan to keep the cost of providing its mobile service low in order to undercut traditional mobile operators, the paper said.
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Lloyds Banking Group is set to cut thousands of jobs and close more branches as it shifts towards a "digitisation" strategy and automates its business, The Times reported. Jobs are expected to be cut in areas such as mortgage processing and new account opening, as work currently completed manually is moved to computer systems in order to cut costs and improve customer service, the newspaper said, citing City sources. The strategy is set to be unveiled by the bank as part of a three-year plan included in its third-quarter results announcement on October 28, The Times said.
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Mining giant BHP Billiton Ltd announced Sunday plans to cut unit costs at Western Australia Iron Ore or WAIO by at least 25% in a move which will make it the iron ore producer with the lowest cost in Australia. BHP expects to reduce unit cash costs by 25% to less than USD20 per tonne in the medium term to be achieved in the 2014 financial year.
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COMPANIES - FTSE 250
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BTG strengthened its expectations for its full year, saying it now expects its revenues to be around the top end of its guidance range of GBP330 million to GBP345 million, despite adverse foreign exchange movements, as a result of a strong first half. The specialist healthcare group said it had continued to see good growth in the products it acquired in July 2013, TheraSphere for the treatment of liver cancer and EKOS for blood clots.
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Bank of Georgia Holdings said its JSC Evex Medical Corp healthcare subsidiary has bought a 100% equity interest in a 60-bed hospital in Tbilisi in Georgia. The FTSE 250-listed group said the hospital offers in-patient and out-patient services with a focus on traumatology. Following the acquisition, the Evex subsidiary has 38 healthcare facilities and 2,140 beds in Georgia, the company said.
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Cranswick said trading in the first half of the year has been in line with its expectations, with revenue in line with the year-earlier period as growth across most of its product categories offset lower sales of fresh pork. In a trading update, the food and pet products producer said its markets remain competitive and operating margins in the six months to September 30 are expected to have been similar to the previous year as a whole.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Dragon Oil made a 230 pence per share offer for Petroceltic International. The offer would value the Dublin-based oil and gas explorer at GBP491.56 million and represents a 29% premium on Petroceltic's closing price Friday of 177.92p. Petroceltic said in a statement that Dragon has completed due diligence and has submitted the bid to its board. It said any takeover of the company would be subject to standard Irish takeover rules and to approval by authorities in Algeria in relation to the Algerian assets owned by Petroceltic. Petroceltic said it has told Dragon Oil that it would be willing to recommend a firm offer at the current bid price.
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Iofina said it saw an 18.6% month-on-month increase in production of crystallized iodine in September, and its US subsidiary was preliminarily granted a water permit in the state of Montana.
Iofina reiterated its year-end production forecast of 325 to 350 metric tonnes of crystallized iodine. The company produced 28.0 metric tonnes of crystallized iodine in September, compared to 23.6 metric tonnes in August, meeting its projected monthly target for the month.
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The oil companies behind the Horse Hill project in the Weald Basin in the UK said drilling has intersected the Portland Sandstone and encountered oil shows at the Horse Hill-1 well. The Horse Hill-1 well well is located on the northern side of the Weald Basin near Gatwick airport. There are six companies with a stake in Horse Hill Developments Ltd, a special purpose vehicle which owns a 65% participating interest in the Horse Hill licence. UK Oil & Gas Investments owns a 20% stake in the vehicle, with Doriemus, Stellar Resources and Solo Oil each holding 10% stakes and Regency Mines and Alba Mineral Resources owning 5% stakes. The oil shows, which are reservoirs with evidence of oil, were found between 2,100 feet to 2,140 feet measured depth, and drilling is continuing downward toward other primary and secondary targets.
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Aer Lingus Group said traffic rose in September, bolstered particularly by growth in its long-haul operations. In a statement, the Irish flag carrier said traffic measured in revenue passenger kilometres rose 13.7% in September compared with a year earlier, greater than the 11.5% increase in available seat kilometres, meaning its load factor - a measure of how full its planes are - rose to 83.3%, from 81.7%. It flew 922,000 passengers, up from 883,000 in September 2013, and has flown 7.7 million passengers in the first nine months of 2014, up from 7.5 million in the first nine months of 2013.
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Management Consulting Group downgraded its profit outlook for the full year as the group said trading conditions have deteriorated on the back of a weak performance from its Alexander Proudfoot consultancy business. The company said order input for Alexander Proudfoot has been weak since it published its interim results at the end of July and said its profits for the full year will take a hit, as the volume of these orders that will fall in this financial year will not be sufficient to offset the weak performance.
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Helical Bar said it has bought a Sainsbury's regional distribution centre in Bristol in a GBP11.5 million deal. The acquisition was made via the company's existing cash resources and the asset itself is let to Sainsbury's for 5.25 years, with an aggregate annual rental income of GBP1.3 million.
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Restore said it has struck a deal to buy Cintas Corp's UK records management and scanning division for GBP23.5 million, and will raise about GBP14.89 million in a placing to help fund the deal. Restore will issue nearly 7.1 million shares at 210 pence a share. It also has a new GBP15 million debt facility to fund the remainder of the purchase.
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COMPANIES - INTERNATIONAL
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Hewlett-Packard Co is planning to split into two separate companies, according to reports.
The Wall Street Journal Sunday reported, citing people familiar with the matter, that HP plans to split into personal-computer and printer businesses from its corporate hardware and services operations. The company plans to announce the move as early as Monday, the report said.
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Search giant Yahoo! Inc is close to making a USD20 million investment in messaging service start-up Snapchat, Inc, according to a Wall Street Journal report on Sunday. The investment will reportedly value Snapchat at about USD10 billion. Yahoo is currently in the process of investing the more than USD10 billion windfall in received from selling a part of its stake in Chinese e-commerce giant Alibaba Group Holding Ltd through the initial public offering.
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Becton, Dickinson and Co Sunday said it agreed to buy medical devices maker CareFusion Corp for USD12.2 billion in a cash-and-stock deal. Franklin Lakes, New Jersey-based Becton, Dickinson agreed to pay CareFusion shareholders USD49.00 in cash and 0.0777 of its share for each CareFusion share held, or a total of USD58.00 per CareFusion share. The deal has been unanimously approved by the boards of both companies.
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Monday's Scheduled AGMs/EGMs

Electra Private Equity
Fresnillo
British Sky Broadcasting Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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