ETI.L Share News (ETI)

LONDON (Alliance News) - Shares have opened lower in London on 'Super Thursday', which will see the Bank of England release its monetary policy decision, minutes and inflation report on the same day for the first time. The releases are due at noon London time, followed by a press conference by Governor Mark Carney at 1245 pm.

Old Mutual leads FTSE 100 gainers, up 2.6%, on a day full of insurance company news. Old Mutual reported a 19% increase in adjusted operating profit for the first half of 2015, while RSA Insurance, Aviva and Phoenix Group also issued statements.

Shares in in troubled insurance technology company Quindell are down 28% as they resume trading on AIM Thursday after being suspended for over a month. The company on Wednesday said its pretax loss for 2014 widened significantly due to impairment charges the group booked following a change to its accounting policies. Additionally, Quindell said the UK Serious Fraud Office that it has opened an investigation into its past business and accounting practices.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.4% at 6,728.30
FTSE 250: down 0.1% at 17,756.04
AIM ALL-SHARE: down 0.4% at 753.42
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Hang Seng: down 0.5% at 24,385.64
Nikkei 225: closed up 0.2% at 20,664.44
DJIA: closed down 0.1% at 17,540.47
S&P 500: closed up 0.3% at 2,099.84
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GBP: up at USD1.5628
EUR: up at USD1.0906

GOLD: up at USD1,086.00 per ounce
OIL (Brent): down at USD49.51 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)

09:30 UK Industrial and Manufacturing Production
12:00 UK BoE Interest Rate Decision, Minutes and Quarterly Inflation Report
12:30 US Challenger Job Cuts
12:45 UK BOE Governor Carney press conference
13:30 US Initial and Continuing Jobless Claims
15:00 UK NIESR GDP Estimate
15:30 US EIA Natural Gas Storage
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Ireland's services sector expanded further in July on improving economic conditions, and at the fastest pace since September 2006, survey figures from Markit Economics and Investec showed. The Investec services Purchasing Managers' Index rose to 63.4 in July from 63.3 in the previous month. A reading above 50 indicates expansion in the sector. The services activity increased at the strongest pace since September 2006 and now risen on a monthly basis throughout the past three years.
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Germany's factory orders increased at a faster-than-expected pace in June, after falling in the previous month, preliminary figures from Destatis showed. Factory orders climbed a seasonally and working-day-adjusted 2.0% month-on-month in June, reversing a 0.3% drop in May, which was revised from a 0.2% fall. Economists had expected only a 0.3% increase for the month. In April, orders grew 2.2%. Export orders rose 4.8% monthly in June, while orders in the domestic market went down by 2.0%.
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Swiss consumer sentiment weakened sharply in July as strong franc weigh on future economic and financial expectations, survey results from the State Secretariat for Economic Affairs showed. The consumer confidence index dropped to -19 in July from -6 in April. It was forecast to drop marginally to -7 in July.
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The leading index for Japan, which measures the future economic activity, rose more-than-expected to the highest level in sixteen months in June, preliminary figures from the Cabinet Office showed. The leading index climbed to 107.2 in June from 106.0 in the previous month, revised down from 106.2. Economists had expected the index to rise to 106.9. The latest reading was the highest since February 2014, when it marked 108.1.
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The flaperon found on the French Reunion Island a week ago was a part of the missing Malaysia Airlines flight MH370, Malaysian Prime Minister Najib Razak has announced. "Today 515 days since the plane disappeared it is with a very heavy heart that an international team of experts have conclusively confirmed that the aircraft debris found on Reunion Island is indeed from MH370," Razak said in a press briefing in the Malaysian capital. The Beijing-bound MH370, with 239 people aboard, disappeared without a trace about an hour after it left Kuala Lumpur International Airport, making it one of the greatest aviation mysteries in recent times.
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US President Barack Obama continued his strenuous defence of the international agreement on Iran's nuclear program. Speaking at American University in Washington, DC, Obama argued that many of the critics of the deal with Iran are the same people that pushed for the US invasion of Iraq. "The same mind-set, in many cases offered by the same people who seem to have no compunction with being repeatedly wrong, led to a war that did more to strengthen Iran, more to isolate the US, than anything we have done in the decades before or since," Obama said.
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BROKER RATING CHANGES
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UBS INITIATES SOPHOS WITH 'BUY' - TARGET 300 PENCE
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COMPANIES - FTSE 100
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RSA Insurance Group was tight-lipped about the prospect of a takeover offer from Swiss insurer Zurich Insurance Group, as it reported a strong set of interim results. Zurich has been mulling a cash bid for the UK insurer. Speaking to journalists on a conference call, RSA Chief Executive Stephen Hester said the ball is in Zurich's court. "Our very, very strong focus is making sure that RSA is on a path to becoming the most valuable company we can make it. We believe that path is one we can tread. We believe the value of RSA standalone can be strong," Hester told journalists. RSA was reporting results for the first half of 2015, which showed that operating profit on a management basis increased to GBP259 million in the six months to the end of June, compared with GBP141 million in the corresponding half of the prior year. RSA reinstated its interim dividend at 3.5 pence per share.
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Zurich Insurance, which itself reported lower second-quarter net profit, said Thursday that RSA looks a good fit. “We have informed the market that we are evaluating a potential offer for RSA Insurance Group PLC. We believe that a transaction could bring significant benefits to us and to our investors in terms of the complementary fit of RSA’s business with our own operations and in financial terms. But any capital deployment would need to meet the same hurdles that we apply to any other investment," Chief Executive Martin Senn said in a statement.
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Earlier the Daily Telegraph reported that Zurich Insurance is considering a lower-than-expected bid for RSA. The newspaper said advisers to Zurich are said to be basing their preparations for a bid of around 525 pence per share, lower than the 550p to 600p per share it was reported to be considering.
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Old Mutual reported a 19% increase in adjusted operating profit for the first half of 2015, and increased its interim dividend by 8%. The Anglo-South African financial services company said its adjusted operating profit amounted to GBP904 million in the six months to the end of June, a 20% increase at constant currency. It increased its interim dividend to 2.65 pence from 2.45p. Funds under management increased to GBP335.7 billion, up 5% on a reported basis and by 7% at constant currency.
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Aviva said the integration of Friends Life, the rival insurer it bought for GBP5.6 billion, is ahead of schedule. The insurer said that GBP63 million of run-rate synergies have been generated so far through the acquisition and integration of Friends Life, and said it's confident of meeting the overall GBP225 million synergy target. UK Life value of new business increased to GBP253 million in the six months to the end of June, against GBP177 million in the corresponding half of 2014, including the acquisition of Friends Life. Aviva increased its interim dividend to 6.75 pence from 5.85p.
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Rio Tinto said the fall in world commodity prices caused its earnings to drop by around USD3.60 billion in the first half of 2015, but the miner still reported results that beat analyst expectations. The miner reported a pretax profit of USD1.74 billion in the first half of 2015, less than a third of the USD6.09 billion profit made a year earlier, as revenue fell to USD17.98 billion from USD24.33 billion. Despite the dramatic fall in earnings, Rio Tinto stuck with its progressive dividend policy, increasing the interim dividend by 12% to 107.5 cents per share from 96.0 cents per share. Rio Tinto also said it will progress with its share buy-back programme, and said it will purchase USD1.0 billion of shares in the second half of 2015.
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Randgold Resources said its pretax profit fell in the first half of 2015 due to lower gold prices and higher costs. The gold miner reported a pretax profit of USD72.0 million in the second quarter of 2015, falling from a USD92.1 million profit a year earlier, as revenue dropped to USD285.0 million from USD294.9 million.
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Satellite communications company Inmarsat said its pretax profit declined in the first half of 2015 following a sluggish second quarter, which was hit by delays to the launch of its third Global Xpress satellite and to the launch of its GX global commercial service. The company said its pretax profit was USD165.9 million in the first half, down from USD168.3 million a year before, as revenue fell to USD616.2 million from USD652.3 million. Inmarsat did, however, hike its interim dividend by 5% to 19.61 US cents from 18.68 cents a year earlier.
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Anglo-South African paper and packaging company Mondi posted a rise in pretax profit and revenue for the first half and said all the capital projects it is currently enacting are progressing on track. The company said its pretax profit in the first half to the end of June rose to EUR392.0 million, up from EUR312.0 million a year earlier, as revenue increased to EUR3.46 billion from EUR3.15 billion. It said it will pay an interim dividend of 14.38 euro cents, up from 13.23 cents.
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The Royal Bank of Scotland Group said it has priced USD3.15 billion in Additional Tier 1 Capital Notes. The bond issue is split between USD2 billion in 7.50% perpetual subordinated contingent convertible notes, known as "CoCos", callable in August 2020, and USD1.15 billion in 8.0% perpetual subordinated contingent convertible notes, callable in August 2025.
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Low-cost airline easyJet said it carried more passengers in July up from a year earlier and increased its load factor year-on-year. The FTSE 100-listed budget carrier said it carried 7.0 million passengers in July, up from 6.4 million a year earlier, for a 9.4% rise. On a rolling 12-month basis, passenger numbers are up 6.1% to 67.7 million, it said. It also said its load factor for the month improved, up by 1.4 percentage points to 94.3% from 92.9% a year earlier.
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COMPANIES - FTSE 250
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Pub company Enterprise Inns said its trading performance remains encouraging and said it remains on track with its substantial restructuring plan. The FTSE 250-listed company said its like-for-like net income growth from its leased and tenanted estate in the 44 weeks to August 1 was 0.6%. It said it was particularly encouraged by the growth it saw in the third quarter to June 27, when like-for-like net income was up by 0.4% despite the tough comparative caused by the FIFA World Cup falling the year earlier.
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Life insurer Phoenix Group Holdings said its two principal operating subsidiaries have been assigned insurer financial strength ratings of 'A' by Fitch Ratings, the ratings agency. Phoenix said the 'A' rating given to its Phoenix Life Ltd and Phoenix Life Assurance Ltd business will result in a 50 basis point reduction in the interest margin on its bank debt to 262.5 basis points, effective from August 28. This will relate to bank debt obligations of GBP780 million.
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Defence manufacturer Cobham said its reported pretax profit was dragged lower by the acquisition of telecommunications equipment maker Aeroflex in the first half, though the same acquisition meant its revenue jumped higher and sent its underlying pretax profit up. Cobham said its pretax profit for the six months to the end of June was down to GBP4.0 million from GBP54.0 million a year earlier, entirely due to a surge in administrative expenses and financing costs in the half related to the Aeroflex deal. Stripping out the effects of the Aeroflex acquisition, and other exceptional costs, pretax profit for the group rose to GBP135.0 million from GBP118.0 million. Cobham said it will pay an interim dividend of 3.05 pence per share, up from 2.904p a year earlier.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Majestic Wine said Chief Financial Officer Nigel Alldritt will step down from the board at Thursday's annual general meeting and will leave the business on November 5. The London-listed wine specialist, which also trades in the USA, Australia and France, said Alldritt will be replaced from Friday by James Crawford, currently finance director of Naked Wines International Ltd, the online international wine specialist recently acquired by Majestic Wine.
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Chinese seed planting and exporting company Shuxing Seed Industry said late Wednesday it plans to launch an initial public offering on the London Stock Exchange by June 2016. It plans to do so through its holding company Shuxing PLC. The company said it intends to launch the IPO to raise capital for its growth, "especially in the further processing of rice". The company is located in the Sichuan province of China.
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COMPANIES - INTERNATIONAL
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Zurich Insurance Group said its first-half attributable net income fell 3% to USD2.059 billion from USD2.123 billion in the previous year. Business operating profit declined 15% to USD2.238 billion euros from USD2.621 billion in the prior year. Chief Executive Officer Martin Senn said: "While the positive trend in Global Life and Farmers has continued, with these businesses delivering good results, the profitability of our General Insurance business was adversely affected by large losses, particularly within Global Corporate and the UK, and a higher expense ratio."
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German drug maker Merck said its net income in the second quarter of 2015 increased to EUR343.4 million from EUR303.3 million in the previous year. Group net sales increased 14% to EUR3.2 billion from EUR2.8 billion in the prior year. Sales grew 2.2% organically. According to the company, the Asia-Pacific, Latin America, and Middle East and Africa regions fuelled organic sales growth.
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Deutsche Telekom reported that second-quarter net profit edged up 0.1% to EUR712 million from EUR711 million in the prior-year quarter. Excluding items, adjusted net profit for the quarter surged 70% to EUR1.08 billion from last year's EUR636 million. Revenue for the quarter grew 15% to EUR17.43 billion from EUR15.11 billion in the same quarter last year. Organic revenue growth was 5.7%. Deutsche Telekom confirmed its guidance for the full year.
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JP Morgan Chase & Co will move 2,150 jobs from Manhattan to Jersey City, taking advantage of a USD19 million incentive package offered by the state of New Jersey, the Wall Street Journal reported. The company has leased 400,000 square feet of a building at 545 Washington Boulevard, the Journal reported, citing Harrison LeFrak, vice chairman of the family controlled business that owns the building. The groups being moved to the building are primarily involved in technology and operations. JP Morgan last year bought the building next door, 575 Washington Boulevard, where it consolidated its New Jersey operations.
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Thursday's Scheduled AGMs/EGMs

Investec
Majestic Wine
Sirius Petroleum
Catlin
Aurum Mining
Zamano
INVESCO Asia Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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