LONDON (Alliance News) - Shares are broadly higher Wednesday ahead of UK employment data and a Bank of England policy statement at 0930 GMT.
Prior to the open FTSE 100 software developer Sage Group and FTSE 250 pub chain JD Wetherspoon both have provided positive trading statements. Sage is up 1.5% at the open, while JD Wetherspoon is up 3.6%
UBS has cut Royal Bank of Scotland to Sell from Neutral. Goldman Sachs has cut Smith & Nephew to Sell from Neutral.
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Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 27.26 at 6,861.52
FTSE 250: up 68.07 at 16,212.27
AIM ALL-SHARE: up 1.17 at 882.76
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DJIA: closed down 44.12 at 16,414.44
S&P 500: closed up 5.10 at 1,843.80
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GBP-USD: down at USD1.6465
EUR-USD: down at USD1.3545
GOLD: down at USD1,239.40 per ounce
OIL (Brent): up at USD107.25 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
09:30 UK Bank of England Minutes
09:30 UK ILO Unemployment Rate
09:30 UK Public Sector Net Borrowing
12:00 US MBA Mortgage Applications
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The number of business executives who think the global economy will improve in the next 12 months has doubled since last year, the consultancy group PricewaterhouseCoopers said in a poll Tuesday. Of the 1,344 managers around the world who were surveyed, 44% were optimistic about the global economy. The annual survey was published on the eve of the World Economic Forum, the meeting of business and political leaders in the Swiss mountain resort of Davos.
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The Bank of Japan decided to keep its monetary easing plan unchanged and retained its inflation forecasts for the next two years, strengthening expectations that the central bank may keep the policy steady at least for now, with consumer prices evolving in line with its forecasts. At the end of a two-day meeting of the nine-member Policy Board, led by Governor Haruhiko Kuroda, the central bank said it will keep the target of the monetary base expansion at an annual pace of JPY60-70 trillion.
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Japan's leading economic index increased for the third successive month in November, and exceeded the initial estimates, revised data released by the Cabinet Office revealed. The leading economic index rose to 111.1 in November from 109.8 in October and 109.1 in September. The preliminary estimates were for a reading of 110.8.
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New EU proposals are expected to drop binding national targets on renewable energy, according to the BBC. The EU will outline its new 2030 framework for EU climate change and energy policies Wednesday, setting out EU renewable energy and emission targets for the next two decades, expected to be 35 to 40% lower than 1990 levels. A source within the European Commission told the BBC that going forward, there would be an EU-wide target on renewable energy for 2030, but there are unlikely to be binding national targets. The Commission will also outline its policy on shale gas to provide minimum principles aimed at supporting member states who wish to carry out hydrocarbon exploration and production by means of fracking.
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Two protesters have died during violent clashes with police in Kiev, Ukrainian opposition activists said. The police have confirmed only one death so far. Forensic experts are examining the body of a dead man who was lying at a first aid location set up by the protesters, the Ukrainian Interior Ministry said. The Interfax Ukraine news agency quoted an unnamed law enforcement source as saying that two gunshot wounds had been found on the man's body. The ministry also said that it was checking reports that a protester had died after falling off a column next to Kiev's Dynamo stadium. Opposition activists said that the man had been chased by police when he fell to death.
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The International Olympic Committee is pleased with Brazil's "major progress" in preparations for the 2016 Olympics in Rio de Janeiro. "Of course, time is crucial, and we have no time to waste," IOC president Thomas Bach said Tuesday, after meeting with Brazilian President Dilma Rousseff in Brasilia. "After this meeting, I can say that my confidence is even greater."
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BROKER RATING CHANGES
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JPMORGAN RAISES PROMETHEAN PLC TO 'OVERWEIGHT' ('NEUTRAL') - TARGET 30 (21) P
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HSBC CUTS SERCO TO 'NEUTRAL' ('OVERWEIGHT') - TARGET 520 PENCE
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HSBC RAISES MITIE GROUP TO 'NEUTRAL' ('UNDERWEIGHT') - TARGET 325 (275) PENCE
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JPMORGAN RAISES APR ENERGY TO 'OVERWEIGHT' ('NEUTRAL')
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GOLDMAN CUTS SMITH & NEPHEW TO 'SELL' ('NEUTRAL') - TARGET 720 (780) PENCE
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TRADERS: HSBC CUTS BHP BILLITON TO 'NEUTRAL' ('OVERWEIGHT')
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UBS CUTS RBS TO 'SELL' ('NEUTRAL') - TARGET 300 (350) PENCE
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BERENBERG INITIATES KELLER GROUP WITH 'BUY' - TARGET 1400 PENCE
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TRADERS: BARCLAYS RAISES WHITBREAD PRICE TARGET TO 4235 (3920) PENCE
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TRADERS: MORGAN STANLEY RAISES EVRAZ TO 'EQUAL-WEIGHT' ('UNDERWEIGHT')
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TRADERS: MORGAN STANLEY CUTS POLYMETAL TO 'UNDERWEIGHT'
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TRADERS: MORGAN STANLEY RAISES EUROPEAN TELECOMS TO 'ATTRACTIVE' ('NEUTRAL')
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COMPANIES - FTSE 100
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Mining giant BHP Billiton Ltd. reported that global iron ore production for the second quarter grew 16% year-over-year, but remained flat sequentially. Production of metallurgical coal grew 30%. Total iron ore production for the first half of 2014 increased 19%. The company also maintained its full-year production guidance for petroleum, copper, iron ore and coal businesses.
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AstraZeneca PLC said the Xigduo treatment it developed with Bristol-Myers Squibb as part of their diabetes collaboration, has been approved in the European Union as a treatment for Type 2 Diabetes. Xigduo is indicated for adults aged 18 and older with type 2 diabetes mellitus as an adjunct to diet and exercise to improve glycaemic control. It is indicated in patients inadequately controlled on their current metformin-based treatment regimen or who are currently being treated with the combination of dapagliflozin and metformin as separate tablets, the drugs company said.
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Sage Group PLC said it is on course to deliver its target of 6% organic revenue growth in 2015, as it saw trading in line with expectations in the first quarter. In the period from October 1 to date, the business-management software company said it had seen trading in line with expectations across all regions it operates in.
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Hotels and coffee shops operator Whitbread PLC Wednesday said Chairman Anthony Habgood will step down later this year. Habgood has been Chairman of the company since mid-2005. The process to find his successor will be led by Ian Cheshire, the company's senior independent director.
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Property company Land Securities Group PLC reported improved occupancy rates in its retail properties, as it said it had secured GBP7.3 million of development lettings and GBP5.4 million of investment lettings since October 1, 2013. In a trading update, Land Securities said it has a further GBP7.9 million of development lettings with solicitors, meaning they're close to being signed, and a further GBP0.5 million of investment lettings.
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COMPANIES - FTSE 250
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British pub chain JD Wetherspoon PLC said total sales and like-for-like sales are both up in its most recent trading quarter, and in the year to date. The UK-based pub owner and operator still says its targeting a reasonable outcome for the current financial year ending July 27, despite tax and cost pressure, and assuming reasonable sales growth. JD Wetherspoon said that total sales were up 10.6%, for the 12-week period to January 19, with like-for-like sales up 6.7%. In the year to date, which is the 25 weeks to January 19, JD Wetherspoon said that total sales increased by 9%, and like-for-like sales increased by 5.2%. However, the company confirmed its margins would be held back by planned investments.
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British retailer WH Smith PLC said it delivered a good profit performance in the 20 week period to January 18, as margins improved and costs were well managed across the business, but said that total sales continue on a downward trend. The stationer and bookseller said it is still keeping a tight lid on costs, which is helping improve its gross margin. Total sales for the 20 week period were down 4%, as well as on a like-for-like basis.
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Residential property company Grainger PLC said the Royal Borough of Kensington and Chelsea in London has granted detailed planning permission for 84 new homes across two sites in the borough. Grainger, which was selected in September 2012 by the borough council to develop and manage mixed tenure housing on the council's land, said it will deliver a variety of tenure types across the two developments, including private rental properties and affordable housing. It will comprise 53 new homes on the former car park site at Young Street and 31 new homes at Hortensia Road.
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COMPANIES - ALL-SHARE AND AIM
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blur Group Expects FY Revenues To Meet Market Expectations; Sees Further Move Towards Longer Duration Projects
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Carclo Says Sales Of Its Conductive Inkjet Technology Lower Than Expected In H2; Says As Result Of Lower CIT Sales, Forecast Profits Of CIT And Group Reduced
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London Mining FY Production Up 108%, 3.4Mwmt Vs 1.6Mwmt
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Faroe Petroleum Says 10 New Exploration Licences Awarded In Norway; Says 2 Norway Licences Are As Operator
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VPhase Raises GBP150K Via Placing Of 5 Billion New Shares; Placement Was To Henderson Global Investors, Now 83.9% Owner
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EMIS Says Full Year Trading In Line With Expectations
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Probability Says Discussions With US Casino Operator Proceeding Well; Q3 5.1% Growth In Total Net Gaming Revenue To GBP2.0M Vs GBP2.3M
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W Resources Says La Parrilla Final Concentrate Grades Exceed Expectations
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Networkers International Expects Pretax Profit, EPS In Line With Board Expectations
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Leni Gas & Oil Expects To Drill 30 New Wells At Goudron Field
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Hydrodec Group Says FY Rev To Be Up Around 52% To USD39.7M Vs USD26.1M
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Great Western Mining Raises Further GBP1.5M Through Share Placing
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Cello Group Says FY Revenue, Headline Pretax Profit Ahead Of Consensus Expectations
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Beowulf Mining Says Encouraging Assay Results Received On 14 Drillholes At Kallak
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Escher Says 2013 Reported Revenue To Be USD24.7M, Up 8% From USD23.0M In 2012; 2013 Adjusted EBITDA To Be USD4.0M, Down From USD6.4M
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London Capital Expects Adjusted Pretax Profit Of About GBP2.4M Vs GBP0.2M Loss
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Sweett Group Receives GBP900,000 From Transfer Of Interest In Scottish Hub North Territory Project
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Ultrasis PLC said it has launched the latest version of its Beating the Blues anxiety and depression platform in the US, a move it hopes will pull in new clients. In a statement, the company said the new 2.0 version follows a complete updating of the technology platform, including the way the content is delivered. It will be available on a wide range of tablets and mobile devices.
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Paragon Entertainment Ltd said the Olympic Museum in Lausanne has been successfully reopened after it refitted the site. In a statement, the attractions design, production, fit-out and operations business said it had delivered the GBP7 million project on time and within budget.
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Wednesday's Scheduled AGMs/EGMs
WH Smith
Lowland Investment Co
Personal Assets Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
Copyright 2014 Alliance News Limited. All Rights Reserved.
5 May 2015 15:16
