CWD.L Share News (CWD)

LONDON (Alliance News) - London shares were narrowly mixed but the pound remained firm early Wednesday, ahead of an eventful day in UK politics, as Theresa May prepared to replace David Cameron as prime minister.

Away from government and all things Brexit, discount store chain Poundland accepted a GBP597 million all-cash takeover offer from South Africa's Steinhoff. The stock duly jumped 13% at the open.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.1% at 6,676.02
FTSE 250: up 0.1% at 16,829.41
AIM ALL-SHARE: down 0.1% at 720.71
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Hang Seng: up 0.5% at 21,337.00
Nikkei 225: closed up 0.8% at 16,231.43
DJIA: closed up 0.7% at 18,347.67
S&P 500: closed up 0.7% at 2,152.14
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GBP: firm at USD1.3268 (USD1.3226)
EUR: flat at USD1.1048 (USD1.1062)

GOLD: flat at USD1,340.66 per ounce (USD1,337.86)
OIL (Brent): flat at USD47.69 a barrel (USD47.83)

(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
(all times in BST)

0900 Italy consumer price index
0930 UK BOE credit conditions survey
1000 EU industrial production
1100 US FOMC member Harker speech
1200 US MBA mortgage applications
1330 US export and import price index
1500 Canada BoC interest rate decision, rate statement and monetary policy report
1530 US EIA crude oil stocks
1615 Canada BoC press conference
1900 US monthly budget statement
1900 US Fed's Beige Book
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Theresa May will make appointing a cabinet minister to take charge of Brexit one of her first tasks as she takes the keys to No 10. Britain's new prime minister will swiftly begin drawing up her new top team and is expected to increase the number of women in government. David Cameron will take to the Despatch Box in the House of Commons for his last session of questions as PM in the House of Commons before the historic shift of power takes place. Although a Remain supporter, May has repeatedly stressed that "Brexit means Brexit" and the hunt for a building to house the department that will steer Britain out of the European Union is already under way. George Osborne looks unlikely to stay on as chancellor after the PM-to-be trashed parts of his economic legacy in a campaign speech on Monday, with Philip Hammond, who has long coveted the role at the Treasury, among those who could take over.
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Japan's industrial production decreased more than initially estimated in May, final data published by the Ministry of Economy, Trade and Industry showed. Industrial production fell a seasonally adjusted 2.6% monthly in May instead of a 2.3% drop reported earlier. It was the first decline in three months. In April, production had risen 0.5%.
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Taiwan sent a frigate to disputed waters in the South China Sea on Wednesday, a day after an international tribunal ruled that formations in the area were reefs, not islands. "The mission today aims to show Taiwan's determination to defend its national interests," President Tai Ing-wen told the crew, adding that Tuesday's ruling severely damaged Taiwan's rights. The mission was bound for Taiping Island, the largest of the natural formations in the Spratly Islands, around 300 kilometres west of the Philippines, and 1,500 kilometres south-east of Taiwan. The area is subject to competing claims by China, Taiwan and the Philippines.
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The death toll from a train crash in southern Italy has risen to 27, a media report said. Fifty people were also injured, the ANSA news agency reported. The collision between two trains happened on a single-track line between Corato and Andria, north of the port city of Bari. Broadcast footage showed the front carriages of both trains destroyed by the collision.
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US President Barack Obama called for the nation to come together in the wake of the slaying of five Dallas police officers along with separate killings of black citizens by police that have heightened racial tensions. Obama insisted that though the killing of the police officers by a black gunman seemed to expose deep divisions, and the White House has characterized as a hate crime, America should not be divided. Obama cut short a trip to Europe in order to attend the service for the five officers, who were killed by a sniper at a protest against police shootings of black men.
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After a prolonged holdout, Vermont Senator Bernie Sanders finally announced his endorsement of presumptive Democratic presidential nominee Hillary Clinton in a speech on Tuesday. In an appearance with Clinton in Portsmouth, New Hampshire, Sanders said he intends to do everything he can to make certain the former Secretary of State will be the next president.
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BROKER RATING CHANGES
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TRADERS: CITIGROUP RAISES STANDARD CHARTERED TO 'BUY' (NEUTRAL)
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HSBC CUTS ASOS TO 'HOLD' ('BUY') - TARGET 4550 (3950) PENCE
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UBS RAISES WILLIAM HILL TO 'NEUTRAL' ('SELL') - PRICE TARGET 280 (290) PENCE
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UBS INITIATES COUNTRYWIDE WITH 'NEUTRAL' - TARGET 260 PENCE
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COMPANIES - FTSE 100
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Housebuilder Barratt Developments said it expects to post a 20% increase in pretax profit for its recently ended financial year, on rises in both sales volume and the prices of those houses sold, as it said it was "too early" to assess the impact of the UK's vote to leave the European Union. Barratt said it expects to post a pretax profit of GBP680.0 million for the year ended June 30, a 20% increase from the GBP565.5 million reported a year earlier.
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Burberry Group reported growth in revenue in the first quarter of its financial year, benefiting from the weak pound, and upped its guidance for full-year profit, but the company warned about revenue measured at constant currencies. The luxury fashion designer said retail revenue in the three months ended June 30 grew by 4% year-on-year to GBP423 million, but within this, comparable sales declined by 3% in what Burberry described as a "challenging external environment". Burberry said all three global regions of Asia, the UK and US experienced a low single-digit percentage comparable sales decline, due to persisting underlying cost-inflation pressures.
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AstraZeneca said it has agreed a deal to resolve a patent litigation in the US with Sandoz Inc and affiliates, relating to Sandoz's generic fulvestrant product, for which Sandoz is seeking US approval. AstraZeneca's US patents in question are due to expire in January 2021, with paediatric exclusivity continuing until July 2021. On Tuesday, the US District Court for New Jersey entered a consent judgement filed by AstraZeneca and Sandoz, including an injunction preventing Sandoz from launching a generic fulvestrant product until March 25, 2019, or earlier in some circumstances.
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Two of Britain's biggest manufacturers, Airbus Group and Rolls-Royce Holding, warned that the UK government needs to quickly secure favourable terms in trade negotiations with Europe to avoid jeopardising investment in the country, the Guardian reported. Rolls-Royce has held "high-level" talks with ministers about the areas it is keen to resolve after the UK's vote to leave the European Union. Meanwhile, Tom Williams, chief operating officer of Airbus's commercial planes unit, said at the Farnborough air show on Tuesday that nothing had changed in the short term, but the company would have to make "big decisions" in three years about investing in Britain. Airbus employs 15,000 people in Britain.
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Qatar's state-owned Qatar Airways late Tuesday clarified it currently holds a 15.67% stake in International Consolidated Airlines Group, and reiterated it would consider increasing its stake further "within the allowable limits". Qatar Airways noted that as a non-EU shareholder of IAG, it is subject to an overall cap on non-EU ownership, as a result of a requirement for EU airlines to be majority owned by EU shareholders.
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Marks & Spencer Group announced at its annual general meeting that it would create a shareholder panel to help shape its turnaround strategy, the Telegraph reported. In his first annual meeting as Chief Executive Steve Rowe told shareholders on Monday that the retailer will face more "tough decisions" as it "entered a new era that would be committed to our customers". M&S said it already had held a lunch with a small group of all-female retail investors to gather their views.
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COMPANIES - FTSE 250
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Gambling software and services provider Playtech said it has bought Best Gaming Technology GmbH for EUR138 million. Headquartered in Vienna, Best Gaming provides sports betting software for gaming and sports betting operators, with customers including Ladbrokes, Paddy Power Betfair and William Hill.
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ICAP said it has made a good start to its financial year, and it remains "cautiously confident" despite the more uncertain outlook for the UK since the vote to leave the European Union. In a statement ahead of its annual general meeting the interdealer broker said revenue in its first quarter to end-June rose 7% on the previous year, excluding the primarily voice broking businesses it is selling as part of its transaction with Tullet Prebon. At constant currency revenue was up 2% in the quarter.
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JD Wetherspoon reported growth in sales in the 11 weeks to July 10 and in the 50 weeks to the same date, as it prepares to close its current financial year. The pub company said total sales in the 11 weeks grew by 3.8% year-on-year, while rising by 5.5% in the 50 weeks. Like-for-like sales increased by 4% in the 11 weeks and by 3.4% in the 50 weeks. Full-year operating margin before exceptional items and before a GBP3.8 million property gain is expected to be around 6.8%, compared with 7.4% last year.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Discount retailer Poundland Group said it has reached an agreement with South African furniture retailer Steinhoff International Holdings for Steinhoff to buy Poundland. Under the terms of the offer, Poundland shareholders will receive 222 pence in cash for each Poundland share, comprising 220 pence in cash per share and Poundland's final dividend of 2p per share for its financial year ended March 27. This values Poundland at approximately GBP597 million, a premium of 13% to Poundland's 196p closing price on Tuesday. The stock was up 13% at 220.75p following the announcement Wednesday. Steinhoff currently owns 24% of Poundland.
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COMPANIES - INTERNATIONAL
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Alstom reported that its sales for the first quarter 2016/17 grew 9% to EUR1.75 billion from last year, while it was up 7% organically. Sales deliveries were mainly driven by regional, high-speed and suburban trains in France, regional trains in Italy, Germany and Sweden, progressive ramp-up of the PRASA project in South Africa, maintenance of high speed trains in the UK as well as a signalling project in Canada.
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Airbus Group said it will cut production of its flagship A380 superjumbo, acknowledging that demand has fallen far short of original projections. Airbus said it will build just 12 A380 planes a year starting in 2018, down from the 27 it built last year. The company also indicated the program might soon plunge back into the red, after breaking even only last year.
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Google, a unit of Alphabet, got extra time from EU regulators to defend itself from EU antitrust allegations that it wields its power over smartphone software to crush competition for mobile applications. Google now has until September 7 to respond to a statement of objections sent in April. The company sought additional time to review evidence held by regulators.
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Tesla Motors Chief Executive Elon Musk has no plans to disable the company's Autopilot function in the wake of a May crash of a Model S electric car using the technology, and the auto maker instead plans to redouble efforts to educate customers on how the system works, the Wall Street Journal reported. The safety of Tesla's Autopilot is under scrutiny in the wake of a May 7 crash in Florida that killed 40-year-old Joshua Brown, a Model S owner who was using the self-driving system at the time of the accident.
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Pfizer announced that its pneumonia vaccine Prevnar 13 has received US Food and Drug Administration approval for an expanded age indication to include adults 18 through 49 years of age. Prevnar 13 is the only pneumococcal vaccine approved across the lifespan.
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Merck & Co has announced plans to cut about 360 R&D workers from three East Coast sites and to close one R&D facility. According to WSJ, Merck's latest effort to reorganize its R&D section would result in job cuts and some employee transfers that would affect less than 10% of employees in Kenilworth, New Jersey; Rahway, New Jersey; and North Wales, Pennsylvania.
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Wednesday's Shareholder Meetings

BT Group
MyCelx Technologies
Arricano Real Estate
Speedy Hire
Wynnstay Properties
RPC Group
ICAP
Aurora Investment Trust
e2v technologies
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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