European Assets Trust Share News (EAT)

LONDON (Alliance News) - Shares are flat to higher Thursday, as M&A activity in London takes attention away from a weak set of Asian economic data.

FTSE 250 set-top TV box maker Pace agreed to be acquired by US broadband media technology company Arris Group Inc for GBP1.4 billion in cash and shares. Under the terms of the deal, shareholders of the FTSE 250-listed company will receive GBP1.325 in cash and 0.1455 of a Arris share for each Pace share, making a total consideration of GBP4.265 per share, a 28% premium to Pace's closing price on Tuesday.

Shares in Pace closed at 322 pence on Wednesday. They are quoted up 35% at 447.40p at the open Thursday.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.1% at 7,035.01
FTSE 250: flat at 17,635.68
AIM ALL-SHARE: down 0.1% at 748.98
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Hang Seng: down 0.1% at 27,911.68
Nikkei 225: closed up 0.3% at 20,187.65
DJIA: closed up 0.5% at 18,038.27
S&P 500: closed up 0.5% at 2,107.96
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GBP: down at USD1.4991
EUR: down at USD1.0674

GOLD: down at USD1,186.09 per ounce
OIL (Brent): down at USD62.31 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Thursday's Key Economic Events still to come
(all times in BST)

08:30 Germany Markit Manufacturing, Services and Composite PMI Preliminary
09:00 EU Markit Manufacturing, Services and Composite PMI Preliminary
09:00 Italy Wage Inflation
09:30 UK Public Sector Net Borrowing
09:30 UK Retail Sales
10:00 Italy Trade Balance
13:30 US Jobless Claims
14:45 US Markit Manufacturing PMI Preliminary
15:00 US New Home Sales
15:30 US EIA Natural Gas Storage
16:00 US Kansas Fed manufacturing activity
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Labour swung back into the lead in the daily YouGov poll, having lost the lead to the Conservatives the day before, as various polls of polls have the two parties broadly level-pegging a fortnight before the UK General Election. The daily YouGov/The Sun poll has Labour in the lead on 34%, with the Tories losing two points to 33%. UKIP, whose leader Nigel Farage was the subject of a one-on-one interview on the BBC on Wednesday evening, gained a point to 13%, while the Liberal Democrats were flat at 7%. The Financial Times seat projections estimates, provided by Election Forecast, have the Tories still slightly in the lead with 283 projected wins to Labour's 271.
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China's factory activity moved further into negative zone in April, logging the weakest operating conditions in a year, flash estimate released by Markit Economics showed. The HSBC manufacturing Purchasing Managers' Index fell to 49.2 in April, a 12-month low, from 49.6 in March. It was expected to remain at 49.6. A score below 50 indicates contraction in the sector.
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The manufacturing sector in Japan slid to contraction in April, the latest survey from Markit Economics revealed, with a PMI score of 49.7. That missed forecasts for 50.8 and it's down from 50.3 in March.
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The US accused Russia of building up its forces along its border with Ukraine. The additional units being sent will give Russia its largest presence on the border since October 2014, State Department spokeswoman Marie Harf said in a statement. In addition pro-Russian separatists continue to violate the terms of the Minsk agreement signed in February, Harf said.
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The UN Office for the Coordination of Humanitarian Affairs (OCHA) said the halting of air strikes by the Saudi Arabia-led coalition has sparked violence in the city of Aden, with ground fighting involving tanks erupting throughout the city and militants are entering residential areas. OCHA said after the announcement of a halt in the month-long campaign of aerial strike by a coalition led by Saudi Arabia, most people in the Yemeni capital, Sana'a, are staying indoors and adopting a "wait-and-see" attitude.
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BROKER RATING CHANGES
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HSBC RAISES SHELL TO 'HOLD' ('REDUCE') - PRICE TARGET 1975 (1775) PENCE
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HSBC CUTS BG GROUP TO 'HOLD' ('BUY') - PRICE TARGET 1220 (1050) PENCE
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TRADERS: CREDIT SUISSE RAISES PREMIER FARNELL TO 'OUTPERFORM' ('NEUTRAL')
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TRADERS: INVESTEC CUTS BODYCOTE TO 'ADD' ('BUY')
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TRADERS: INVESTEC CUTS JOHN WOOD TO 'SELL' ('BUY')
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COMPANIES - FTSE 100
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Anglo American reported a rise in iron ore, platinum and diamond production in the first quarter as the company reiterated its full-year guidance across all of its segments. The FTSE 100 miner said iron ore production rose at both the Kumba and Minas-Rio mines, with thermal coal, diamond and platinum production also rising, whilst metallurgical coal and nickel production fell year-on-year in the first quarter.
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Media-buying giant WPP said it produced revenue growth of 8.3% in sterling in its first quarter, boosted by the stronger dollar, and it maintained its guidance for the full year, as the company said its performance for the quarter was ahead of budget. Revenue growth was boosted by the weakness of sterling against the US dollar, although this was partly offset by the strength of sterling against the euro, and at constant currency, revenue growth was 7.4%. On a like-for-like basis, meaning at constant exchange rates and excluding acquisitions and disposals, revenue was up 5.2%.
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Meggitt reiterated it expects its organic revenue to rise by low-to-mid-single digits in 2015, after organic revenue grew 4% in the first quarter, and it's also still expecting to get a revenue boost from the rise in the dollar against sterling as well as from its acquisition of Precision Engine Controls. In a trading update ahead of the company's annual general meeting, the aerospace engineer said some of the boost from the stronger dollar will be offset by the weakening of the euro against the pound.
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Housebuilder Taylor Wimpy signalled further growth in profit, saying private reservation rates and average selling prices are continuing to rise, and uncertainty about the outcome of UK election was failing to dent consumer confidence. In a trading update, the company said it has achieved an average private net reservation rate of 0.76 sales per outlet per week so far in 2015, up from 0.74 sales per outlet in the same period in 2014. Average selling prices of homes in its private order book are up 14% on the year to about GBP282,900, from GBP249,100.
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Hammerson said it has completed the sale of Drakehouse Retail Park in Sheffield to 90 North Real Estate Partners LLP for GBP61.7 million, ahead of the property's book value at the end of 2014 and representing a net initial yield of 6.4%.
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Cruise ship Carnival Spirit docked at Sydney Harbor with 2,500 passengers and 1,500 crew members after being stranded at sea for two night due to storms. Carnival Spirit pulled into the Overseas Passenger Terminal in Sydney shortly before 10 am local time. The Sydney Harbor officials had closed the port due to violent storms in the eastern Australian coast. The ship is operated by Carnival Cruise Lines, a subsidiary of Carnival.
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COMPANIES - FTSE 250
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Acacia Mining said an increase in production in the first quarter of 2015 was offset by weaker gold prices and higher costs, which kept revenue flat and caused its pretax profit to fall. The FTSE 250 miner based in Africa said revenue in the first quarter ended March 31 remained fairly flat from a year earlier at USD215 million as an increase in production was offset by gold prices falling by 7%. Profit before tax fell in the quarter to USD17.4 million from USD31.3 million a year earlier as its cost of sales increased, alongside administrative and finance expenses rising.
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William Hill reported a drop in operating profit in the first quarter of 2015 during what the company said has been a slow start to the year, following its largest-ever loss-making week in sports betting in January. The bookmaker reported a 19% decline in operating profit to GBP16 million in the quarter ended March 31, which it said was hit by a GBP20 million cost from the point of consumption tax and an increased rate of Machines Games Duty. William Hill also said that sports betting revenue was hit by its largest ever loss-making week in January. It said punter-friendly results in the third week of the 2015 led to a GBP14 million loss.
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Technology components and systems manufacturer Senior said trading in the year to date has been broadly in line with its expectations and said its full-year profit estimates are on track as some short-term challenges were offset by beneficial foreign exchange movements. The company said its Aerospace division was boosted by healthy demand in the large commercial aircraft sector in the year to date, with Boeing and Airbus having delivered a combined 318 aircraft in the first quarter, up 5% year-on-year.
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Computacenter said that 2015 should be "a year of progress", as it posted a decline in revenue of 2% in the first quarter mostly due to continued declines in its French business. Revenue fell to GBP715.9 million in the first quarter of 2015 from GBP733.7 million a year before, although at constant currency it rose 3%. Whilst the company saw strong growth in the UK and good performance in Germany, revenue continued to decline in France.
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Specialty chemicals company Bodycote reported a mixed revenue performance in the first quarter, with its aerospace, defence and energy business trading well but some drag caused by its automotive and general industrial division. Bodycote said group revenue in the three months to the end of March was GBP151.6 million, down 0.9%. It said revenue was up 1.9% at constant currencies.
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Aerospace and defence manufacturer Cobham maintained its full-year guidance, saying that the integration of US communications equipment maker Aeroflex is on track and adding that it anticipates a greater weighting of its earnings to the second half. Cobham said its trading in 2015 started slowly, with a pick-up seen in March, and added there has been a net modest adverse impact on its earnings from currency translation in the first quarter.
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COMPANIES - INTERNATIONAL
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Google introduced Project Fi, its much awaited US wireless service, in partnership with Sprint and T-mobile as part of efforts to enhance the efficiency and affordability of mobile service. Fi will be available on the Nexus 6 smartphone, and the service will be accessible in most US cities, Google said in a blog. Phones on the Fi service will switch between the two networks depending on which signal is stronger, and will be easier on subscribers' cellular bills.
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German luxury car maker Daimler's Mercedes-Benz has been fined CNY350 million or USD57 million, by a Chinese pricing regulator for violating anti-monopoly laws and price fixing of vehicles. It is the highest fine slapped on automakers that were probed last year for similar charges in China.
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A former Petrobras procurement director was sentenced to seven and a half years in jail for having embezzled funds earmarked for construction of a refinery belonging to Brazil's state-controlled energy giant. Paulo Roberto Costa and his five co-defendants, who were also convicted of money laundering and criminal conspiracy in the case, can appeal.
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Facebook took in USD3.54 billion in revenue for the first quarter of 2015, a 42% increase over the same period in 2014, the social media giant announced as its user base continued to grow. Facebook's first quarter just missed analyst expectations, however, and expenses took a toll on earnings, which were down 20%, year-on-year, to USD512 million.
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Swedish mobile network equipment maker Ericsson reported lower profit in its first quarter, despite a slight increase in net sales. For the quarter, net income declined 14% to SEK1.5 billion from last year's SEK1.7 billion. Sales, however, rose by 13% to SEK53.5 billion from SEK47.5 billion last year as significant currency movements impacted sales positively.
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Swiss pharmaceutical giant Novartis reported its first-quarter net income from continuing operations declined to USD2.306 billion from USD2.454 billion in the prior year. The outlook for full year 2015 remains unchanged.
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French tire maker Michelin said its net sales for the first quarter rose 5.6% to EUR5.02 billion from EUR4.76 billion in the same quarter last year, mainly due a 1.5% growth in volumes and favourable currency impact.
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Mobile chip maker Qualcomm reported a 46% drop in second-quarter profit, hurt by a monopoly-probe settlement with Chinese authorities. Nevertheless, both earnings and revenue for the quarter surpassed Wall Street estimates, reflecting record 3G/4G device shipments reported by its licensees. The company provided a weak outlook for the third quarter and lowered its full year expectations, citing the challenges in its chip making business.
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E-commerce giant eBay said it swung to first quarter profit from a loss last year when results were weighed down by a hefty tax charge. The company's quarterly earnings per share, excluding items, also came in above analysts' expectations as did its quarterly revenue.
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Texas Instruments reported net income for the first quarter of USD656 million or USD0.61 per share, compared to USD487 million or USD0.44 per share for the year-ago quarter. Revenue for the first quarter rose 6% to USD3.15 billion from USD2.98 billion a year ago.
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AT&T reported net income for the first quarter of USD3.2 billion or USD0.61 per share, compared to USD3.7 billion or USD0.70 per share for the year-ago quarter. Total operating revenue for the first quarter rose 0.3% to USD32.58 billion from USD32.48 billion a year ago. The telecom company still expects the acquisition of DIRECTV to close in the second quarter of this year.
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Thursday's Scheduled AGMs/EGMs

Aberdeen Smaller Companies High Income Trust
LSL Property Services
Promethean World
Bodycote
Meggitt
Phoenix Group
Taylor Wimpey
Anglo American
Barclays
Acacia Mining
TomCo Energy
Personal Group
Cobham
European Assets Trust
Essentra
New World Resources
Pace
Reed Elsevier
Sthree
AFH Financial
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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