GOG.L Share News (GOG)

LONDON (Alliance News) - Third quarter earnings season is in full flow Tuesday, with strong results from ARM Holdings and GKN sending their shares higher at the open, while Reckitt Benckiser, Intercontinental Hotels Group and Whitbread are the worst performing stocks so far.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.5% at 6,237.17
FTSE 250: down 0.1% at 14,742.25
AIM ALL-SHARE: up 0.5% at 696.05
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Hang Seng: down 0.4% at 22,988.65
Nikkei 225: closed down 2.0% at 14,804.28
DJIA: closed up 0.1% at 16,399.67
S&P 500: closed up 0.9% at 1,904.01
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GBP-USD: up at USD1.6166
EUR-USD: up at USD1.2829

GOLD: up at USD1,251.46 per ounce
OIL (Brent): up at USD85.72 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)

09:30 UK Public Sector Net Borrowing
13:55 US Redbook index
15:00 US Existing Home Sales
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The Chinese economy logged its weakest expansion since early 2009 in the third quarter as slowdown in investment, particularly in the property sector, continued to drag the recovery. Gross domestic product grew 7.3% in the third quarter from a year ago, slower than the 7.5% expansion seen a quarter ago, the National Bureau of Statistics reported Tuesday. This was the weakest growth since the first quarter of 2009. Nonetheless, the increase was stronger than the 7.2% rise forecast by economists. For the first three quarters, economic growth came in at 7.4%, in line with expectations. The government targets about 7.5% expansion, which is likely to be missed this year.
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Pro-democracy protesters and police continued their stand-off on the streets of Hong Kong Tuesday ahead of key talks between government officials and protest leaders. No clashes were reported in the business and residential district of Mong Kok, on the Kowloon peninsular, one of three main protest sites. Late Monday, Hong Kong's High Court ordered protesters to leave the in Mong Kok area.
Activists and government representatives were due to meet for televised talks later Tuesday on Hong Kong's electoral process.
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Nigeria was declared Ebola-free Monday by the World Health Organization after recording no new confirmed cases for 42 days, twice the incubation period for the deadly virus. "This is a spectacular success story that shows that Ebola can be contained," WHO said. "The story of how Nigeria ended what many believed to be potentially the most explosive Ebola outbreak imaginable is worth telling in detail." WHO on Friday declared Senegal free of Ebola. In the US, where two nurses were infected after caring for a Liberian patient who died of Ebola, the CDC late Monday upgraded its guidelines on protective gear for hospital workers.
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The EU on Monday called on Russia to ensure the swift implementation of the Minsk peace deal over eastern Ukraine, where fighting between pro-Russian separatists and government forces continued unabated depite a six-week-old official ceasefire. In a declaration published after an EU foreign ministers' meeting in Luxembourg, the bloc called for the withdrawal of "illegal armed groups" as well as for the securing of the Ukrainian-Russian border by widening monitoring missions by the Organization for Security and Co-operation in Europe. During the day on Monday, the rebel stronghold of Donetsk was rocked by a massive explosion that broke windows over wide areas of the city.
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BROKER RATING CHANGES
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TRADERS: MORGAN STANLEY CUTS APR ENERGY TO 'EQUAL-WEIGHT' ('OVERWEIGHT')
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TRADERS: JEFFERIES CUTS BHP BILLITON TO 'HOLD' ('BUY')
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CREDIT SUISSE CUTS N BROWN TO 'NEUTRAL' ('OUTPERFORM') - TARGET 330 (518) PENCE
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TRADERS: JPMORGAN RESUMES STANDARD LIFE WITH 'OVERWEIGHT' - TARGET 460 PENCE
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TRADERS: UBS INITIATES HELLERMANNTYTON WITH 'NEUTRAL' - TARGET 300 PENCE
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COMPANIES - FTSE 100
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US drug maker AbbVie Inc agreed late Monday to terminate its proposed merger with Irish drug company Shire after its board withdrew support and recommendation for the deal. The move comes amid the proposed changes in tax rules in the US. AbbVie also announced a new USD5 billion stock repurchase program and Increased quarterly cash dividend by nearly 17%.
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Shire said it is "disappointed" that the takeover offer from AbbVie Inc will not go ahead, but said it has maintained momentum throughout the offer period and it reiterated its target of USD10 billion product sales by 2020. The pharmaceutical giant is now owed a break fee of USD1.635 billion from AbbVie, which is due before 1700 BST Tuesday.
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Intercontinental Hotels Group said global comparable revenue per available room rose 7.0% in the third quarter, its best quarterly performance in over two years and marking an acceleration from the first half of the year, helped by strong growth in the US in particular. The hotels company said RevPAR grew in every region, but its performance in the US was particularly strong with RevPAR up 8.7%. Elsewhere, the figure was up 6.1% in Europe, 4.4% in Asia, Middle East and Africa, and 0.8% in Greater China.
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Aerospace components supplier Meggitt has won a multi-million dollar deal to supply an advanced wheel and braking system for Gulfstream Aerospace's new G500 and G600 business jets. It didn't give an exact figure for the size of the contract. "This is one of Meggitt's largest ever braking systems contracts in the business aviation marketplace, promising a strong revenue stream in spares and repairs over the life of the programme," Chief Executive Stephen Young said.
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British consumer goods giant Reckitt Benckiser Group said like-for-like sales, excluding its pharmaceuticals unit, were up 3% in the third quarter, and it reiterated its full year targets for both revenue and margin growth and said it now expects to demerge the pharmaceuticals business before the year end. The maker of products including Strepsils cold remedy, Nurofen pain relief and Durex condoms, reported net revenue of GBP2.37 million for the third quarter, up 2% at constant exchange rates, but down 7% at actual rates. In the year-to date, revenue of GBP7.04 billion is down 7% at actual exchange rates, but up 3% at constant currency.
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Engineering group GKN reported higher pretax profit for the third quarter, as higher trading margins in its aerospace business offset a decline in sales that was caused by the strength of sterling. The company reported a pretax profit of GBP139 million for the three months to end-September, up from GBP131 million a year earlier, even though revenue declined to GBP1.79 billion, from GBP1.87 billion, due to the strength of sterling. Its overall trading margin improved to 8.9%, from 8.2%.
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Premier Inn hotels and Costa coffee chain operator Whitbread reported higher pretax profit and revenue for the first-half of its financial year, as both businesses continued to grow and take market share. Whitbread declared a 15.6% increase in its interim dividend to 25.50 pence, as group return on capital increased to 15.8%. The company reported a pretax profit of GBP241.8 million for the six months to August 28, up from GBP200.7 million the year before, as revenue rose 13% to GBP1.29 billion, from GBP1.14 billion.
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BAE Systems has struck a deal to buy Perimeter Internetworking Corp for USD232.5 million, a deal that will bolster its commercial cyber security business and help it offset the decline in its main defence markets.
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ARM Holdings said it expects to meet market expectations of around USD350 million in revenue for its fourth quarter, as it saw pretax profit rise on higher revenue in its third quarter to end-September. The chip maker posted a pretax profit of GBP79.2 million for the quarter to end-September, up from GBP68.3 million a year before, as revenue rose to GBP195.5 million from GBP184.0 million. This brings its total pretax profit for the first nine months to GBP225.1 million, up from GBP150.4 million, as revenue rose to GBP569.3 million from GBP525.5 million, and exceptional costs of GBP41.8 million did not recur.
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COMPANIES - FTSE 250
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William Hill reported a jump in operating profit and revenue for the third quarter as its online and mobile gaming operating profit more than doubled, and it said it now expects its operating profit for the full year to come in at the top end of expectations. The FTSE 250-listed bookmaker said group net revenue in the third quarter to September 30 was up 23%, boosted by a 55% rise in online revenue and a 9% increase in retail revenue. Australia revenue also increased in the period, up 17%.
The rise in revenue across the board pushed up its group operating profit by 89%. Publishing firm Informa said the company's current trading is on track, and its expectations for the full year remain the same.
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Go-Ahead Group said trading in the first quarter was robust and said it has maintained its full-year expectations for its bus and rail operations.
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Hochschild Mining has repaid its final outstanding convertible bond, reducing its overall debt. The FTSE 250-listed group said it has repaid the outstanding USD114.9 million in full, using existing cash resources.
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Galliford Try said its chairman would step down and be replaced by its chief executive, and said it has now started a search to replace the latter. The FTSE 250-listed construction company said Ian Coull will step down from his role as non-executive chairman of the company with immediate effect, owing to other business and personal commitments. Greg Fitzgerald, the Chief Executive of Galliford, will become the executive chairman of the company no later than December 2015, the company said. Fitzgerald is to help the company in the recruitment of his replacement.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Online fashion retailer ASOS reported a drop in pretax profit in its last financial year, as expected, due to heavy investments and sterling strength, and said it has started looking for a new chief financial officer after current CFO Nick Beighton moved to becomes chief operating officer with immediate effect. The retailer, which has been hit by a growth slowdown after several years of rapid growth and expansion, said Beighton will add retail and international to his responsibilities in his new role, on top of his existing responsibilities for finance, IT, supply chain and logistics. The retailer reported a pretax profit of GBP46.9 million for the financial year ended August 31, down 14% on its GBP54.7 million pretax profit it reported a year earlier.
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Northern Petroleum has seen its shares rise early after it said it will turn cash positive early next year, once newly completed wells in Canada are tied in to its existing operations. The company has finished three wells targeting the Keg River edge reef, with the first well producing a constrained rate of 1,300 barrels of oil per day. The well has been restricted to producing between 80 and 100 barrels of oil per day until it is tied in with the rest of its operations, expected before January 2015, it said in a statement. The second well encountered a resevoir of oil, but the resevoir is of poor quality. The company is expecting moderate production from the well. The third well found a resevoir of water and will not be developed into production. It has been suspended and Northern are considering using the well for the disposal of water, it added.
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Quindell Seals 5 Year Contract With Major Canadian Insurer; Quindell Contract For Supply Of Telematics Technology To Insurance Customers; Quindell Contract Is With 3rd Largest Canadian Insurer With 3M Customers
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COMPANIES - INTERNATIONAL
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French oil and gas giant Total SA confirmed that its Chairman and Chief Executive, Christophe de Margerie, died just after 10pm (Paris time) on October 20 in a private plane crash at Vnukovo Airport in Moscow, after the aircraft hit a snowplow on take-off. Four people were found dead at the scene of the accident, including three crew members and Christophe de Margerie.
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IBM reported net income of USD3.5 billion in the third quarter, a 17% decrease from USD4.1 billion in the year-ago period, the technology services giant said. Sales decreased by 4% to USD22.4 billion in the quarter. "We are disappointed in our performance," said Ginni Rometty, IBM chairman, president and chief executive.
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Computer giant Apple reported a net income of USD8.5 billion, or USD1.42 per share, in the fourth quarter, up 12.7% from USD7.5 billion a year earlier, the Cupertino, California-based company said Monday. Revenue rose by 12.4% to USD42.1 billion, driven by record iPhone sales. "Our fiscal 2014 was one for the record books, including the biggest iPhone launch ever with iPhone 6 and iPhone 6 Plus," Apple's chief executive Tim Cook said. The company sold about 39.3 million iPhones in the quarter, including the new iPhone 6 and iPhone 6 Plus introduced in the beginning of September, compared to 33.8 million iPhones sold a year earlier. Computer sales rose from 4.57 million a year ago to 5.52 million. IPad sales fell by 12.5% to 12.3 million.
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Texas Instruments Inc, the world's largest analog chip maker, reported a 31% jump in third-quarter profit, led by growth in revenues and margins, with results topping Wall Street estimates. The company detailed a strong outlook for the fourth quarter, sending its shares up 2.5% in after-hours trade on the Nasdaq. CEO Rich Templeton said, "Revenue for the quarter was solidly in the upper half of our expected range and earnings were at the top of the range, marking another quarter of strong progress and execution."
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Online retailer Amazon.com Inc has signed a multi-year deal with CBS Corp's Simon & Schuster, the second major Big Five book publisher it has been negotiating with about the price of e-books, Business Insider reported Monday, citing a source with knowledge of the situation. Negotiations with Simon & Schuster took only took three weeks and closed two months before Amazon's contract expired, accoridng to Business Insider. Amazon has been involved in a dispute with Lagardère SCA's Hachett for a long time over e-book pricing.
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Akzo Nobel NV said third-quarter net income attributable to shareholders increased to EUR205 million from EUR155 million, due to higher operating income and lower finance expenses. Adjusted earnings per share increased 24% to EUR0.92 from EUR0.74. Revenue declined 2% to EUR3.69 billion from EUR3.78 billion last year, with volume growth being offset by negative currency effects and divestments.
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Japanese car maker Toyota Motor Corp announced recalls of 247,000 SUVs, sedans and pickup trucks in the US to fix a potentially faulty front passenger airbag inflator supplied by Japan's Takata Corp.
The recall is an expansion of an earlier recall from Toyota that affected other models. It is possible that the passenger front airbag inflators in affected vehicles may deploy with too much pressure, which may cause the inflator casing to rupture and could result in injury.
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Specialty pharmaceutical company Actavis PLC is said to be among the bidders for Belgian consumer health-care company Omega Pharma NV as it continues to look for more acquisition, according to a Bloomberg report. A sale of Omega would likely fetch in excess of EUR4 billion or USD5.1 billion. The other bidders in the fray are Dublin, Ireland-based drug maker Perrigo Co, French drug maker Sanofi SA and private German drug maker Boehringer Ingelheim GmbH.
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Tuesday's Scheduled AGMs/EGMs

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