LONDON (Alliance News) - UK shares have opened marginally higher Tuesday despite growing tensions in Ukraine but following a modestly positive lead from Wall Street on Monday.
Several major UK companies have provided quarterly updates early Tuesday.
Barclays reported a decline in first-quarter adjusted pretax profit as it was hurt by a slump in the performance of its investment bank, just two days before Chief Executive Antony Jenkins is due to present a strategic update revamping the underperforming division.
Glencore Xstrata said it raised production across a range of metals during its first quarter compared to the previous year but suffered a fall in zinc production year-on-year and in copper, zinc and gold production sequentially from the quarter just prior.
Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: flat to higher at 6,824.23
FTSE 250: up 0.3% at 15,980.56
AIM ALL-SHARE: up 0.1% at 826.04
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Hang Seng: closed Tuesday; closed Monday down 1.3% at 21,976.33
Nikkei 225: closed for Greenery Day (Observed)
DJIA: closed up 0.1% at 16,530.55
S&P 500: closed up 0.2% at 1,884.66
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GBP-USD: up at USD1.6929
EUR-USD: up at USD1.3912
GOLD: up at USD1,312.50 per ounce
OIL (Brent): up at USD107.69 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
(all times British Summer Time)
08:45 Italy Markit Services PMI
08:50 France Markit Services PMI
08:55 Germany Markit Services PMI
09:00 EU Markit Services and Composite PMI
09:30 UK Markit Services PMI
10:00 EU Retail Sales
10:00 EU Retail Sales
13:30 US and Canada Trade Balance
13:55 US Redbook index
15:00 US IBD/TIPP Economic Optimism
15:00 Canada Ivey Purchasing Managers Index
16:30 US 4-Week Bill Auction
18:00 US 3-Year Note Auction
22:30 US FOMC Member Stein Speech
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At least four Ukrainian government troops and two pro-Russian militants were killed in fighting Monday in and around the eastern city of Sloviansk. The Interior Ministry said that four of its men were killed and some 30 were injured during fighting in the city. It added that the insurgents were using civilians as human shields and that there are victims among the local population.
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The crisis in Ukraine poses a significant risk to Europe's slowly recovering economy, a top EU official said Monday, unveiling a new forecast that also found challenges within the bloc. While the eurozone pulled out of recession last year, there are worries that the economic recovery could yet be upended. Low inflation and high debt have been of concern, but EU Commissioner Siim Kallas singled out the escalating tensions in Ukraine. "When we consider what are the main risks for the European economy at this stage, the one main risk is clearly the external tensions and uncertainty which surrounds us, especially related to the crisis in Ukraine," Kallas said.
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The Eurozone is experiencing a more lasting recovery and any risk of deflation remains very low, the European Commission said Monday, while its latest projections showed that inflation will take more time than estimated earlier to return to the European Central Bank's target. In its Spring 2014 forecast, the executive-arm of the EU projected 1.7% GDP growth for 2015, which was lower than the 1.8% predicted in February. The growth forecast for this year was retained at 1.2%.
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A group of EU countries seeking to introduce a common levy on financial transactions have taken a "decisive step" toward implementing the tax on shares and certain derivatives traded from 2016, ministers said Monday. "We have made important progress towards a system of taxation that will include shares and derivatives," Italian Economy Minister Pier Carlo Padoan said, after the 11 countries held talks in Brussels.
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A White House climate report due to be released Tuesday will be the most comprehensive source of scientific information ever produced about how climate change would impact all regions of the US.
It is the third national climate assessment, John Podesta, senior adviser to the president, said Monday at the White House. Podesta previewed the report Monday, saying it will show the US is now the largest producer of natural gas in the world and the largest producer of gas and oil in the world.
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The South Sudanese government and rebels on Monday agreed a one-month ceasefire in order to allow farmers to plant in the country where about one million people face famine. A humanitarian corridor will also be formed to allow the free movement of aid supplies along the river Nile, by air and road, negotiators representing President Salva Kiir and rebel leader Riek Machar said in Addis Ababa.
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The United Nations World Health Organization said Monday that the spread of polio in countries where it was once eradicated is an "extraordinary event," warning that the preventable disease will resurge unless an international coordinated response is urgently put in place. Members of WHO's Emergency Committee agreed unanimously at a meeting in Geneva that the over-riding priority for all polio-infected countries must be to interrupt wild poliovirus transmission within their borders "as rapidly as possible".
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BROKER RATING CHANGES
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JEFFERIES RAISES AGGREKO TO 'BUY' ('HOLD') - TARGET 1,800 (1,500) PENCE
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JEFFERIES RAISES BUNZL TO 'HOLD' ('UNDERPERFORM') - NEW TARGET 1,600 PENCE
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JEFFERIES RAISES EXPERIAN TO 'BUY' ('HOLD') - TARGET 1,340 (1,090) PENCE
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UBS CUTS INTERCONTINENTAL HOTELS TO 'NEUTRAL' ('BUY')
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TRADERS: NUMIS RAISES MELROSE INDUSTRIES TO 'HOLD' ('REDUCE')
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HSBC RAISES CAPITAL & COUNTIES TO 'OVERWEIGHT' ('N') - TARGET 388 (371) PENCE
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BARCLAYS RAISES BELLWAY TO 'EQUAL WEIGHT' ('UNDERW') - TARGET 1750 (1696) PENCE
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DEUTSCHE BANK CUTS CRODA TO 'HOLD' ('BUY') - TARGET 2,700 (2,850) PENCE
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TRADERS: PEEL HUNT RAISES HOWDEN JOINERY GROUP TO 'BUY' ('HOLD')
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COMPANIES - FTSE 100
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AstraZeneca PLC, which rejected Pfizer Inc’s informal GBP50-per-share proposal last week as a “substantial” undervaluation, will on Tuesday issue details of its strengthening pipeline of new drugs, including some promising cancer therapies, in an effort to persuade investors to keep faith with it as an independent company, the Financial Times reports. AstraZeneca's chairman has also urged British Prime Minister David Cameron not to give ammunition to Pfizer’s GBP63 billion takeover approach as the UK group prepares to step up its defence against the bid by trumpeting new drugs under development, the paper says.
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Meanwhile, AstraZeneca also said the US Food and Drug Administration had approved its Epanova drug as a treatment for reducing high levels of blood fat. In a statement, the company said the FDA had approved the omega-3-carboxylic acids treatment as an adjunct to diet to reduce triglyceride levels in adults with severe hypertriglyceridaemia.
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Barclays PLC reported a decline in first-quarter adjusted pretax profit as it was hurt by a slump in the performance of its investment bank, just two days before Chief Executive Antony Jenkins is due to present a strategic update revamping the underperforming division. In a statement, the bank said it made a GBP1.69 billion adjusted pretax profit in the first three months of the year, 5.6% lower than the GBP1.79 billion reported for the corresponding quarter a year earlier.
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Aberdeen Asset Management H1 Pretax Profit GBP168.7M Vs GBP188.2M; Reports GBP8.8B Net Outflows In H1
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Glencore Xstrata PLC said it raised production across a range of metals during its first quarter compared to the previous year but suffered a fall in zinc production year-on-year and in copper, zinc and gold production sequentially from the quarter just prior. The mining giant said its own-source copper production increased 24% to 382,000 tonnes in the three months ended March 31, compared to the previous year, due to expansions at its Mutanda operations in the Democratic Republic of Congo and Ernest Henry site in Australia, along with improved production at its Collahuasi mine in Chile and Antamina site in Peru.
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COMPANIES - FTSE 250
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Construction giant Balfour Beatty PLC said its construction business has continued to struggle which will result in "significantly" lower group pretax profit for 2014 than previously expected. The infrastructure group also said Chief Executive Andrew McNaughton has stepped down with immediate effect, and Non-Executive Chairman Steve Marshall will take over as executive chairman until a successor has been appointed. During the period, Balfour said it underwent a strategic review to explore ways to simplify its structure and create a more focused group. The review has led to the decision to assess options for the possible sale of its engineering and design business Parsons Brinckerhoff, Balfour said.
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Ultra Electronics Holdings PLC said it had bought aerospace products manufacturer ICE Corporation Inc for up to USD11.6 million, an acquisition that will add to Ultra's earnings and further boost its presence in the US market. In a statement, Ultra said it will pay an initial USD8.6 million in cash, using the company's existing financing facilities, and will pay up to USD3.0 million more as long as the WheelTug electric taxi system gets certification. ICE provides essential parts for the system.
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Workspace Group To Sell Deptford Development For GBP9.5M Cash
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Countrywide Says Q1 2014 Revenue And EBITDA Up 20% And 50% On 2013
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Hiscox Q1 Gross Written Premiums Up 2.3% In Local Currency, Down In Sterling To GBP501.6M From GBP506.1M; Chief Executive Says Market Is Softening But Conditions In Many Lines Are Good
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Lancashire Holdings Appoints Paul Gregory As CEO, Hayley Johnston As Chief Underwriting Officer
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COMPANIES - ALL-SHARE AND AIM
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Pentagon Protection Shares Suspended On AIM Pending Clarification Of Financial Position; In Advanced Discussion With Shareholder Regarding Offer For SDS; Says Actively Pursuing Financing Solutions, Discussing Asset Sales With Several Potentially Interested Parties Subsidiary; Says Financial Condition And Prospects Not Improved Since Apr 14 Update
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First Quantum Minerals Announces USD650.0M Senior Note Offering
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Fastnet Oil & Gas Says FA-1 Well In Morrocco Fails To Find Commercial Hydrocarbons
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Earthport Wins Multi-year Global Contract With HSBC
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Blinkx FY Adjusted Pretax Profit USD31.9M Vs USD24.6M; Revenue USD247.2M Vs USD198.0M; Buys Lyfe Mobile In Cash Transaction; Says Lyfe Mobile Is Loss Making, Won't Have Material Impact On Revenue
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Conviviality Retail Acquires 26 Rhythm & Booze Stores For GBP1.7M
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Just East Says Trading In 2014 Slightly Ahead Of Expectations; Says Order In 3 Months To March 31 Up 51% On 2013; Mobile Orders Make Up 50% Of All Total UK Orders In Q1
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Tuesday's Scheduled AGMs/EGMs
4imprint Group
Macfarlane Group
Salamander Energy
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
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