Character Share News (CCT)

LONDON (Alliance News) - UK shares have opened lower Friday, as market participants continue to mull the Swiss National Bank's surprise move on Thursday to remove the floor under the euro against the Swiss franc.

As the market awaits further economic stimulus measures from European Central Bank next week, German inflation was confirmed early Friday at its lowest level in five years in December. Inflation data from the EU and US are due at 1000 GMT and 1330 GMT, respectively.

Among UK shares, JD Sports Fashion leads FTSE 250 gainers, up 8.0%, after the retailer said it expects pretax profit for the year to the end of January to come in ahead of market expectations following a rise in sales over the Christmas period.

Spectris is just behind, up 5.5%, after the instrumentation and controls company said it expects its adjusted operating profit to be in line with previous guidance, as it saw sales up 5% in its fourth quarter.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.4% at 6,472.86
FTSE 250: down 0.1% at 15,893.97
AIM ALL-SHARE: flat at 697.58
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Hang Seng: closed down 1.0% at 24,103.52
Nikkei 225: closed down 1.4% at 16,864.16
DJIA: closed down 0.6% at 17,320.71
S&P 500: closed down 0.9% at 1,992.67
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GBP-USD: up at USD1.5196
EUR-USD: up at USD1.1638

GOLD: down at USD1,257.76 per ounce
OIL (Brent): marginally up at USD48.37 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)

10:00 EU Consumer Price Index
13:30 US Consumer Price Index
14:15 US Industrial Production and Capacity Utilization
14:55 US Reuters/Michigan Consumer Sentiment Index Preliminary
16:00 US FOMC Member Williams speech
21:00 US Net TIC Flows
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Global recovery faces strong headwinds despite lower oil prices and higher growth in the US, International Monetary Fund Managing Director Christine Lagarde said. The world growth is still too low, too brittle, and too lopsided, she told the Council on Foreign Relations in Washington. The IMF is set to publish its global growth forecasts next week. Lagarde said the year 2015 must be the "year of action" when policymakers redouble their efforts to tackle deep-seated economic weaknesses and show greater political leadership on infrastructure investment, trade agreements, and climate change.
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Germany's inflation eased to its lowest level in five years, dragged by lower energy costs amid the falling oil prices. The EU measure of inflation slowed in December as estimated in the flash estimate to reach its lowest level in more than five years, final figures from Destatis revealed. The harmonized index of consumer prices rose 0.1% year-on-year in December, confirming the preliminary estimate, following a 0.5% increase in the previous month. It was the lowest figure since October 2009, when prices fell 0.1%.
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European new car registrations grew in 2014, ending the declining trend seen in the past six years, led by strong sales growth in Spain, Portugal and Ireland, where economic activity is gaining momentum, as well as Greece. New car registrations grew 5.7% in 2014 to 11.88 million units, marking the first increase since 2007, the Brussels-based European Automobile Manufacturers Association, or ACEA, said.
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Japan's labour cash earnings rose by 0.1% from last year to JPY277,152 in November, final data from the Ministry of Health, Labour and Welfare showed. Earlier the ministry estimated a decline of 1.5% for November, the first annual fall in nine months. Real earnings declined 2.7% annually, instead of 4.3% fall estimated initially.
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US President Barack Obama received British Prime Minister David Cameron for a working dinner at the White House late Thursday against the backdrop of the newest terrorist attacks in Europe. They planned to continue meeting on Friday, with a press conference at 1720 GMT. The men were expected to discuss cooperation in the fight against terrorism, and in the coalition fighting to halt the onslaught of the Islamic State in Iraq.
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Ukraine launched a plan to mobilise more than 100,000 soldiers this year as government forces engaged in heavy fighting with Russia-backed separatists in the country's east. The parliament in Kiev voted 268-1 to back a decree by President Petro Poroshenko that stipulates three waves of mobilization. Poroshenko signed the decree Wednesday, saying it enables much-needed reinforcements.
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Palestinian President Mahmoud Abbas called on Arab countries for financial support, weeks after Israel suspended the transfer of tax revenues in a punitive measure after the Palestinians applied to join the International Criminal Court. Addressing an Arab League meeting in Cairo, Abbas requested Arab countries to expedite the delivery of USD100 million a month pledged in a safety net to the Palestinian Authority.
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A team of 81 Indonesian divers returned to the sea to try to examine the fuselage of the AirAsia plane that crashed last month, an official said. The team failed to reach the fuselage about 30 metres under the sea off Borneo island on Thursday because of the strong currents and low visibility, said Suryadi Supriyadi, the search operation director. "We are considering using inflated balloons to lift the fuselage," Supriyadi said by phone. Officials believe that many bodies are still trapped in the wreckage.
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BROKER RATING CHANGES
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BARCLAYS CUTS SHIRE TO 'EQUAL WEIGHT' ('OVERWEIGHT') - TARGET 5000 (4535) PENCE
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SOCGEN RAISES BT GROUP TO 'BUY' ('HOLD') - PRICE TARGET 480 (245) PENCE
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SOCGEN INITIATES TALK TALK TELECOM WITH 'HOLD' - TARGET 320 PENCE
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COMPANIES - FTSE 100
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BP said a US District Court ruled that 3.19 million barrels of oil were discharged into the Gulf of Mexico in 2010 Deepwater Horizon disaster, the worst offshore oil spill in the US history. However, the court has now found that BP was 'not grossly negligent' in its source control efforts. The ruling by the US District Court for the Eastern District of Louisiana in the phase 2 trial will see BP paying a minimum Clean Water Act penalty of USD3.5 billion and a maximum of USD13.7 billion. However, no penalty has yet been determined.
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J Sainsbury said it has switched its audit account to Ernst & Young LLP from PricewaterhouseCoopers LLP. Ernst & Young will take over the auditing of the supermarket's accounts for the 52 weeks to March 12, 2016, following Sainsbury's annual general meeting in March.
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COMPANIES - FTSE 250
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Moneysupermarket.com said it expects to report that full-year 2014 revenue grew by around 10%, while it also expects one measure of earnings to grow by 13%, helped by improved revenue figures for the fourth quarter. In a statement, the price comparison website, which aims to help customers save money on their household bills, said it expects 2014 revenue of GBP248 million, up 10%, while it expects adjusted earnings before interest, tax, depreciation and amortisation in the region of GBP95 million, up 13%.
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JD Sports Fashion said it expects its pretax profit for the year to the end of January to come in ahead of market expectations following a rise in sales over the Christmas period. The FTSE 250-listed retailer said like-for-like sales rose 12% in the five weeks to January 3, noting the rise comes against strong comparative figures in the year-earlier period. As a result, cumulative like-for-like sales growth in the 48 weeks to January 3 is now at 12%, JD Sports said.
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Acacia Mining reported a rise in fourth-quarter gold production and sales, with costs also falling, and said its full-year production has topped guidance. FTSE 250-listed Acacia, which changed its name earlier this year having previously been called African Barrick Gold, said its gold production for the fourth quarter to the end of December rose to 181,804 ounces, up from 165,374 last year. Gold sales for the quarter rose to 194,243 ounces from 168,177 in 2013. The group said its all-in sustaining costs estimate for the fourth quarter was USD1,088 per ounce sold, 6% lower than the USD1,171 for last year.
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Instrumentation and controls company Spectris said it expects its adjusted operating profit to be around GBP198 million for 2014, in line with previous guidance, as it saw sales up 5% in its fourth quarter on both a reported and constant currency basis. In October, the company had guided that it expected its full-year earnings before interest, tax, and amortisation to be modestly below company-compiled consensus of GBP200 million, due to weaker trading patterns from its second quarter continuing into its third.
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Chemicals company Synthomer said its full-year trading has been in line with its expectations, with demand in the last two months of 2014 falling in line with its forecasts. Synthomer said its trading and profitability for the year to December 31 was in line with its expectations. It expects full-year pre-tax profit to be in the middle of consensus estimates. According to the company, the consensus range is currently between GBP80.9 million and GBP87.3 million.
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COMPANIES - LONDON MAIN MARKET AND AIM
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John Menzies said trading has continued to be in line with its forecasts since early November, with the board remaining confident of meeting management expectations for its last financial year, and said it is set to provide further details of its plans going forward. On November 5, the support services business, which operates ground and cargo handling, cargo forwarding, and news distribution businesses, when issues at Heathrow Airport prompted it to warn that full-year results in its aviation division would be "materially" below its expectations.
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Currency manager Record said assets under management equivalents edged up over the course of the the final three months of last year, while it also expects a modest boost to earnings from various mandate changes that are expected to further increase the assets under its care in the coming months. In a statement, Record said it had USD52.7 billion of assets under management equivalents at the end of 2014, an increase from USD52.6 billion at the end of September that year, as overall net client inflows amounted to USD0.1 billion.
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Lighting services company Dialight said it expects to meet market expectations for 2014 on the back of strong constant currency growth across its divisions. Dialight said it expects to be in line with market expectations for the year to December 31 after lighting revenue rose 50% at constant currency over the year. The group also said Chief Executive Roy Burton is undergoing medical treatment, which it said will limit his ability to travel but not his ability to handle his executive responsibilities. Chairman Bill Ronald will be supporting Burton whilst he receives his treatment, the company said.
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The Character Group said it expects to "at least" meet market expectations for its current financial year to end-August, following encouraging trading in the run up to the 2014 Christmas season. Character Group said its sales in the current financial year to date are up around 28% compared to the previous year, with strong sales at the consumer level ahead of its expectations in the Christmas season.
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Learning Technologies Group said it expects its full-year 2014 results to be ahead of expectations on the back of the successful integration of acquisitions which drove a rise in sales. Learning Technologies said it expects its results for the year to December 31 will come in ahead of its expectations after fourth quarter sales were boosted by the integration of LINE Communications and Preloaded.
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Phorm Corp said it had seen revenue nearly double in the second half of 2014, driven by a jump in its number of daily unique users, and an increase in the number and size of publishers on its platform driving up its number of advertising requests. Phorm operates an opt-in online advertising platform that protects users' privacy whilst making content and advertising more relevant to them. The company said revenue for the second half of 2014 was USD1.05 million, nearly doubled from the USD528,800 it saw in the first half of 2014, and quadrupled from the USD251,300 it posted for the second half of 2013.
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COMPANIES - INTERNATIONAL
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Oilfield services provider Schlumberger is slashing 9,000 jobs in yet another clear sign the US energy sector is suffering from the dramatic recent plunge in oil prices. With WTI crude oil plummeting below USD50 from above USD100 in a matter of months, Schlumberger joined Halliburton, Shell and Suncor among energy sector giants compelled to downsize. Schlumberger also reported a profit for the fourth quarter that plunged from last year, despite revenue growth, hurt by hefty restructuring, impairment and currency devaluation charges.
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The US Securities and Exchange Commission charged a subsidiary of UBS with disclosure failures and other securities law violations related to the operation and marketing of its dark pool. UBS Securities LLC agreed to settle the charges by paying more than USD14.4 million, including a USD12 million penalty that is the SEC's largest against an alternative trading system or ATS.
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Intel said after the markets closed that its fourth quarter profit rose 39% from last year, helped by higher revenue, improved margins and a lower effective tax rate. The company's quarterly earnings per share also came in above analysts' expectations as did its quarterly revenue. However, the Santa Clara, California-based company gave a slightly downbeat revenue outlook for the current quarter.
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Four technology companies in the Silicon Valley agreed to pay 64,000 current and former employees USD415 million to settle a class-action suit related to violation of antitrust laws on poaching each other's employees. The lawsuit alleged that Apple and Google, Intel and Adobe Systems conspired not to hire each others employees, a move that will not provide the employees the bargaining power for an increase in wages. The class-action was bought up in 2011 by about 64,000 current and former employees. The trial was scheduled to begin on April 10.
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Depomed said it has agreed to buy the US rights to the Nucynta franchise from Janssen Pharmaceuticals, a unit of Johnson & Johnson, for USD1.05 billion. The Nucynta franchise includes Nucynta ER xtended release tablets indicated for the management of pain, including neuropathic pain associated with diabetic peripheral neuropathy, severe enough to require daily, around-the-clock, long-term opioid treatment, and Nucynta, an immediate release version of tapentadol, for management of moderate to severe acute pain in adults.
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RadioShack, which is preparing for a bankruptcy filing, is in talks with Sprint to sell leases on some of its stores to the wireless carrier, Bloomberg reported citing a person familiar with matter. The court restructuring would allow RadioShack to emerge with a leaner business after a migration of consumers to the Internet left it with 11 straight quarterly losses and depleted its cash.
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French retailer Carrefour reported fourth-quarter sales of EUR22.62 billion, an organic growth of 4.1% from last year. The currency effect on quarterly sales was -1.2% and the petrol prices impacted -1.2%, it said.
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Friday's Scheduled AGMs/EGMs

Character Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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