LONDON (Alliance News) - UK shares have opened mostly higher Friday, with the FTSE 100 index slightly outperforming.
Intertek, Royal Mail and Experian lead blue-chip gainers, with all three benefiting from positive ratings from analysts at investment bank Goldman Sachs.
Admiral Group leads FTSE 100 fallers, down 2.6%, after reporting a decline in third-quarter turnover.
Here is what you need to know at the UK market open:
----------
MARKETS
----------
FTSE 100: up 0.4% at 6,577.12
FTSE 250: up 0.2% at 15,539.36
AIM ALL-SHARE: flat at 721.61
----------
Hang Seng: closed down 0.4% at 23,550.24
Nikkei 225: closed up 0.5% at 16,880.38
DJIA: closed up 0.4% at 17,554.47
S&P 500: closed up 0.4% at 2,031.21
----------
GBP-USD: up at USD1.5840
EUR-USD: up at USD1.2394
GOLD: up at USD1,144.22 per ounce
OIL (Brent): down at USD82.25 a barrel
(changes since end of previous GMT day)
----------
ECONOMICS AND GENERAL
----------
Friday's Key Economic Events still to come
(all times in GMT)
n/a EU EcoFin Meeting
09:30 UK Trade Balance
13:30 Canada Unemployment Rate
13:30 US Nonfarm Payrolls and Unemployment Rate
15:15 US Fed's Yellen Speech
18:00 US Fed's Evans Speech
19:30 US Fed's Tarullo speech
20:00 US Consumer Credit Change
----------
Permanent placements continued to grow in the UK for the twenty fifth consecutive month in October, though at a slower rate, results of a survey by Markit Economics on behalf of the Recruitment & Employment Confederation, or REC, and KPMG showed.
----------
Germany's exports and imports recovered in September, figures from Destatis showed. Exports climbed 5.5% month-on-month in September, partially offsetting the 5.8% decrease seen in August. The growth rate also exceeded a 2.7% rise forecast by economists. Likewise, imports grew 5.4% reversing the 1.3% decrease a month ago. Economists had expected only 1.1% rise for September. As a result, the trade surplus rose to a seasonally adjusted EUR18.5 billion from EUR17.5 billion in the previous month.
----------
Germany's industrial production grew less than expected in September, but it recovered from a decline seen in the prior month, data from Destatis revealed. Industrial production expanded 1.4% in September from August, when it fell by 3.1%. Economists had forecast a 2% rise for September.
----------
EU finance ministers were preparing Friday to hunt for a compromise in a row between Britain and Brussels over budget contributions, with billions of euros at stake. Britain was asked last month to contribute an additional EUR2 billion to the EU's budget by December, under a yearly recalculation that took into consideration the country's better-than-expected economic performance. But British Prime Minister David Cameron publicly rebuked the request two weeks ago, taking issue with the unprecedented size of the bill and short deadline.
----------
Eurozone finance ministers supported the plan to provide the financial support for Greece to help the nation to exit its bailout at the end of the year, Eurogroup President Jeroen Dijsselbloem said at the press conference following the Eurogroup meeting on Thursday.
----------
Ukraine on Thursday accused Russia of continuing the latest military build-up along the border of the two countries. Some 60 armoured vehicles, including 50 T-64 tanks, were moved by train to a town close to the border in Russia's southern Rostov region, the Security Council in Kiev said. The vehicles were not marked with national symbols, council spokesman Andriy Lysenko added. NATO Secretary General Jens Stoltenberg said earlier this week that Russian troops were again moving closer to the Ukraine border.
----------
US House Speaker John Boehner called Thursday for President Barack Obama to work with Congress and refrain from executive actions that bypass the legislative branch. "Finding common grounds can be hard work, but it'll be even harder if the president isn't willing to work with us," Boehner said on the eve of a post-election meeting at the White House. Boehner spoke on Capitol Hill two days after the conservative opposition party won control of the Senate and widened its majority in the House of Representatives.
----------
US-led coalition warplanes struck the base of a hardline Islamist group in northern Syria on Thursday, a monitoring group said, in what appears to be the first raid on rebels not directly linked to either the jihadist Islamic State or al-Qaeda. The base struck belonged to the Ahrar al-Sham rebel group in Basiqa, near the key Bab al-Hawa border crossing with Turkey, the Syrian Observatory for Human Rights said. There was no confirmation from the US of the strike on Ahrar al-Sham, which is one of the key forces fighting the regime of President Bashar al-Assad around Aleppo in northern Syria.
----------
Time is running out for the US Congress to prolong emergency funding to fight the Ebola epidemic, and top Obama administration officials Thursday asked for approval of USD6.2 billion by December 11. That's the date that a temporary round of emergency funding expires. The money would go toward training healthcare workers and improving emergency preparedness systems in US hospitals, providing more resources on the ground in West Africa and researching vaccine and therapeutic treatments.
----------
BROKER RATING CHANGES
---------
GOLDMAN RESUMES ROYAL MAIL WITH 'BUY' - TARGET 575 PENCE
----------
GOLDMAN RAISES INTERTEK TO 'BUY' ('NEUTRAL') - TARGET 3440 (3240) PENCE
----------
GOLDMAN RAISES EXPERIAN TO 'NEUTRAL' ('SELL') - TARGET 1078 (985) PENCE
----------
TRADERS: GOLDMAN REMOVES HAYS FROM 'CONVICTION BUY LIST' - STILL 'BUY'
----------
GOLDMAN CUTS MICHAEL PAGE TO 'NEUTRAL' ('BUY') - TARGET 467 (570) PENCE
----------
GOLDMAN CUTS HIKMA PHARMA TO 'NEUTRAL' ('BUY') - TARGET 2120 (2250) PENCE
----------
TRADERS: CITIGROUP INITIATES POUNDLAND GROUP WITH 'BUY' - TARGET 350 PENCE
----------
CHARLES STANLEY RAISES COBHAM TO 'HOLD' ('REDUCE')
----------
COMPANIES - FTSE 100
----------
International Consolidated Airlines Group said it expects to meet its financial targets in 2015 and is considering introducing a long-term dividend plan for shareholders, as it reported a rise in October traffic. "The company has made significant progress during 2014 and we remain confident in meeting our 2015 financial targets which we see as the trigger to introducing a dividend," the company said in a statement ahead of its Capital Markets Day later Friday. The company, owner of British Airways and Spainish airlines Iberia and Vueling, said the initial dividend would be based on a payout ratio of 25% of underlying profit after tax.
----------
Admiral Group reported a 3% fall in third-quarter turnover, hit by a drop in its UK car insurance business, though its expectations for that main profit driver remain on track for the current financial year, thanks to positive claims development on its back years. However, Admiral Chief Executive Henry Engelhardt reiterated previous warnings that future earnings will be hit by the decline in car insurance premiums across the market in recent years, coupled with a return to higher claims inflation.
----------
National Grid said its pretax profit rose in the first half of its financial year and said it's on track to deliver "sustainable" dividend growth at least in line with Retail price Index inflation for the foreseeable future. The electricity and gas grid operator, with operations in both the UK and US, reported a pretax profit of GBP1.18 billion for the six months to end September, up from GBP1.05 billion a year earlier, as a drop in operating costs more than offset a decline in revenue to GBP6.36 billion, from GBP6.72 billion. It raised its interim dividend to 14.71 pence, up 0.22 pence on the previous year, in line with its target of paying out 35% of the total dividend for the last financial year at the halfway stage of this year.
----------
National Grid also announced a property joint venture with Berkeley Group Holdings in an attempt to get value out of its London property portfolio. The venture will be called St William Homes LLP and will create residential and mixed-use developments across London and the South East. The companies will have an equal share of the venture, and the equity investment for each shareholder will be initially capped at GBP175 million, meaning the vehicle will have available funding of up to GBP700 million including bank debt.
----------
COMPANIES - FTSE 250
----------
Tullett Prebon reported a drop in revenue over the four months to the end of October year-on-year but said that the fall in the final month and in September was less marked in comparison, as the interdealer broker saw improved levels of activity in financial activity due to the recent pick-up in market volatility. The interdealer broker said revenue in the four months July to October of GBP233 million was 4% lower than in the same period last year at constant exchange rates and 8% lower as reported.
----------
Spirax-Sarco Engineering added itself to the ever-growing list of companies hit hard by the strength of sterling, saying its operating profit and revenue for the year are expected to take a hit from currency translation, even as organic sales growth in the four months to the end of October increased. The engineering company said operating profit for the four months to October 31 was in line year-on-year on a constant currency basis, and said its operating profit margin for the year to the end of October was ahead on both a constant currency and reported basis, despite the headwinds coming from the strength of sterling.
----------
Capital & Counties Properties said it has had a positive start to the second half of the year, with demand strong for its Covent Garden properties and progress made on the Earls Court Plan, and its Covent Garden holdings company launched a GBP150 million debt placing in the US to refinance. In a statement, Capital & Counties said the Covent Garden holdings company was privately placing GBP150 million worth of 10 and 12 years senior unsecured notes with five US institutional investors.
----------
Mobile satellite communications services provider Inmarsat said it has agreed to sell its 19% holding in SkyWave Mobile Communications Inc to ORBCOMM Inc for USD32.2 million. As part of the deal, Inmarsat will buy SkyWave's satellite network assets, which it hosts on three of its Satellite Access Stations, for USD7.5 million.
----------
Bovis Homes Group said it is on course to report higher full-year earnings, with increased volumes on last year and robust sales prices so far in the second half. "We are anticipating a strong increase in profit for 2014 and at the same time expecting to deliver a stronger forward order book for the start of 2015," Chief Executive David Ritchie said.
----------
Rentokil Initial said the strength of sterling was having a major impact on its reported results, with pretax profit and revenue for the group held back by the effect of currency translation in the third quarter. Rentokil said pretax profit in in the three months to the end of September was GBP48.8 million, up 16.7% on a reported basis but up 27% in constant currencies. Revenue for the group in the period was down 3.4% on actual rates, but rose 3.3% on a constant currency basis.
----------
Cable & Wireless Communications said it raised GBP113.8 million in a placing of 252.8 million shares at a price of 45 pence, equivalent to around 10% of its issued share capital. The placing was announced Thursday, with the pricing set subsequently, and the funds raised will be used for its USD1.85 billion acquisition of Barbados based telecommunications and technology services group Columbus International Inc.
----------
Croda International said its pretax profit and revenue in the third quarter was hit hard by the strength of sterling, despite a rise in underlying sales for the business. The Fspecialty chemicals company said its pretax profit for the period was broadly flat on a constant currency basis, but was down to GBP55.1 million from GBP58.7 million on a reported basis.
----------
Galliford Try said both its housebuilding and construction businesses have grown in recent months, with the order book at the construction business rising significantly and its pipeline of further opportunities improving. In a statement, the company said the sales rate for its housebuilding business improved during the autumn after a seasonally quieter summer, although not at the same rate as last year. It said the unit had GBP509 million worth of sales, reserved, contracted or completed business on November 6, down from GBP560 million a year earlier
----------
COMPANIES - LONDON MAIN MARKET AND AIM
----------
Fitbug Holdings saw its shares rise again Friday, after it launched a digital health coaching platform for wearable technology called 'KiQplan.' The platform will launch in the US stores of retailer Target Corp, and the first four KiQplans will include weight loss programmes for men and women, as well as a pre-natal regime, titled 'Healthy Baby Bump TM' and a post-natal plan, 'Goodbye Baby Bump TM.'
----------
Staffline Group said it has been awarded preferred bidder status by the UK Ministry Of Justice to provide probation and rehabilitation services in Warwickshire and West Mercia. The contract is part of the Transforming Rehabilitation programme run by the MoJ. Under the deal, Staffline's EOS business will manage the delivery of all probation and rehabilitation services to low and medium risk offenders in the region.
----------
Faroe Petroleum and Enegi Oil both said they were awarded new exploration licences in the UK in the 28th Offshore Licensing Round. Faroe has been awarded exploration licences in the Fynn and Perth Field prospects. Enegi Oil has been awarded an exploration licence for Block 21/28b in the Fyne prospect in the North Sea, covering the Crinan and Dandy discoveries.
----------
Advent International said it was bowing out of talks to buy Italian restaurant chain Prezzo, saying it has no current intention to make an offer. Prezzo had confirmed in October that it had been approached by two private equity houses over a possible bid, Advent International and TPG Capital LLP. At that time it cautioned that any offer would likely not be at a premium to its 135 pence per share price at the time of the offer on October 1.
----------
Filtronic said it plans to raise GBP2.1 million in a share placement, providing the company with additional working capital to support an expected increased in business in the second half of the year and beyond. The company said it will place 9.7 million new shares representing 9.99% of the existing share capital at a placing price of 22 pence.
----------
COMPANIES - INTERNATIONAL
----------
Steel maker ArcelorMittal reported a profit for the third quarter, compared with loss last year, helped by growth in steel shipments and improvement in operating margin. ArcelorMittal CEO Lakshmi Mittal said the company is well placed to achieve annual EBITDA of over USD7 billion. Net earnings were USD22 million, compared with a loss of USD193 million a year earlier.
----------
Reinsurer Swiss Re Ltd reported that its third-quarter net income increased to USD1.227 billion from last year's USD1.072 billion. Premiums earned and fee income grew to USD8.312 billion from USD7.475 billion in the prior year. Swiss Re reported that all business units contributed to the result, as well as a 13.3% return on equity during the first nine months.
----------
Diversified media and entertainment conglomerate Walt Disney Co said Thursday after the markets closed that its fourth quarter profit rose 8% from last year, driven by strong performance of its movie, park and media network businesses. The company's quarterly earnings per share, excluding items, narrowly beat analysts' estimate as did its quarterly revenue.
----------
Bank of America Corp Thursday announced an adjustment to its financial results for the third quarter ended September 2014 to include additional litigation expense related to its foreign exchange business. Subsequent to the company's third-quarter earnings announcement on October 15, and prior to the filing of the relevant quarterly report on Form 10-Q, the company has been engaged in separate advanced discussions with certain US banking regulatory agencies to resolve matters related to its foreign exchange business. As a result of the discussions, the Charlotte, North Carolina-based company recorded a USD400 million non-deductible charge and adjusted its third-quarter 2014 financial results to a net loss of USD232 million.
----------
Friday's Scheduled AGMs/EGMs
Thorntons
Galliford Try
----------
By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
Copyright 2014 Alliance News Limited. All Rights Reserved.
