Glaxosmithkline Share News (GSK)

LONDON (Alliance News) - UK share prices were mixed early Thursday, with the mid-cap FTSE 250 index rising and the large-cap FTSE 100 lower, after the Federal Reserve left interest rates unchanged and amid peak interim earnings season in London.

Among blue-chips, Rolls-Royce pleased the market the most on the absence of further bad news from the jet engine maker. The stock was up 7.0%, after the company reported a slight rise in revenue in the first half, though it swung to a loss and confirmed its previously announced dividend cut.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.3% at 6,730.66
FTSE 250: up 0.1% at 17,286.06
AIM ALL-SHARE: flat at 751.12
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Hang Seng: down 0.3% at 22,144.78
Nikkei 225: closed down 1.1% at 16,476.84
DJIA: closed flat at 18,472.17
S&P 500: closed down 0.1% at 2,166.58
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GBP: up at USD1.3191 (USD1.3126)
EUR: up at USD1.1088 (USD1.1005)

GOLD: up at USD1,339.60 per ounce (USD1,326.80)
OIL (Brent): soft at USD43.47 a barrel (USD43.90)

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

0855 Germany unemployment rate
0900 Italy wage inflation
1000 EU economic sentiment indicator, consumer confidence
1300 Germany consumer price index preliminary
1330 US initial and continuing jobless claims
1330 US goods trade balance
1530 US EIA natural gas storage
1600 US Kansas Fed manufacturing activity
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The Federal Reserve held steady on interest rates but opened the possibility of a rate hike in September, noting that "near-term risks to the economic outlook have diminished". After expressing some jitters about the pace of economic growth earlier in the year, policy makers were encouraged by recent data pointing to a resilient US jobs market and stronger housing. The vote to keep interest rates at 0.25% was 9-1, with Kansas City Fed President Esther George dissenting in favor of a 0.25% increase. "Information received since the Fed policy committee met in June indicates that the labor market strengthened and that economic activity has been expanding at a moderate rate," the Fed said.
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UK Prime Minister Theresa May's European Union tour moves to Poland and Slovakia on Thursday as she continues early talks on preparing for Brexit. The meetings following swift summits with the leaders of Ireland, Germany, France and Italy since becoming May became prime minister. But May's discussions with her Slovakian counterpart Robert Fico and Polish PM Beata Szydlo could prove more awkward given the desire of the two host countries to maintain free movement of labour.
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Energy giant EDF is set to make its long-awaited final investment decision on the planned nuclear power station at Hinkley Point, ending doubts over the massive GBP18 billion project. The French firm's board is meeting in Paris on Thursday and is expected to give the go-ahead for the first nuclear power station to be built in the UK for a generation.
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UK house prices increased more than expected in July after Britons voted to leave the EU, data from the Nationwide Building Society showed. Annual growth in house prices increased to a 4-month high of 5.2% in July from 5.1% in June, while it was expected to ease to 4.5%. On a monthly basis, house prices advanced 0.5% after rising 0.2% in June. Prices were expected to remain flat in July.
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UK car production reached a 16-year high, the Society of Motor Manufacturers and Traders said. However, the lobby cautioned that future growth remains uncertain as the survey highlighted industry concerns over trade and investment after Brexit vote. Car production advanced 10.4% from prior year to 158,641 units in June. This was the eleventh consecutive rise in output and the highest level for the month since 1998.
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Germany's unemployment rate held steady in June, after falling slightly in the previous month, preliminary figures from Destatis showed. The adjusted jobless rate came in at 4.2% in June, the same rate as in June. In the corresponding month last year, the unemployment rate was 4.7%.
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One night after former president Bill Clinton painted a human picture of his wife, the current man in the White House outlined the professional credentials of Hillary Clinton. Speaking on the third night of the Democratic National Convention in Philadelphia, Barack Obama sang the praises of his former secretary of state as she pursues the nation's highest office. Saying that no one has ever been more qualified for the job, Obama entreated voters not to sit on the sidelines - to make a difference. "The choice isn't even close," Obama said.
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Donald Trump denied any relationship with Russia, in response to claims that Moscow had hacked into the Democratic National Committee's email system and leaked emails that could benefit the Republican presidential candidate. The emails cast a shadow over the Democratic convention that started Monday by raising questions about the impartiality of the party in the primary process. Clinton has been involved in a separate controversy over her use of a private email server while secretary of state, and Trump also sought to involve Russian intelligence agencies in that matter. "Russia, if you're listening, I hope you find the 33,000 emails that are missing [from Clinton's server]. I think you'll be rewarded mightily by our press," he said. Clinton's campaign responded later Wednesday, saying Trump's calls for another country to hack into US servers amounted to a "national security issue".
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Turkish President Recep Tayyip Erdogan met with Prime Minister Binali Yildirim and military chief of staff Hulusi Akar ahead of a key session with the nation's armed forces commanders, broadcaster NTV reported, as more purges of the military and media were announced. Hours before the meeting, the government announced the discharge of 1,600 officers, including 149 generals. The Turkish armed forces have about 350 generals and admirals. Since the failed coup, 151 generals have been arrested - well over a third of all commanders at this rank - along with 1,600 other officers, according to Interior Minister Efkan Ala. In all, some 5,200 soldiers have been arrested.
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BROKER RATING CHANGES
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BERNSTEIN RAISES GLAXOSMITHKLINE PRICE TARGET TO 1755 (1506) PENCE - MARKET-PERFORM
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Liberum Downgrades Glencore To Sell, Ups Target To 140p From 125p
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COMPANIES - FTSE 100
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Royal Dutch Shell said earnings in the first half of 2016 plummeted by 87% compared to the previous year after revenue dropped and the oil and gas major booked a number of exceptional items. Shell said current cost of supply earnings in the first half of the year totalled USD1.05 billion compared to USD8.12 billion a year before. Excluding exceptional items, CCS earnings were down 65% year-on-year to USD2.59 billion from USD7.49 billion. Revenue in the half fell by 30% to USD110.00 billion from USD142.79 billion. The second quarter dividend remained flat from the first at USD0.94 per share.
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Diageo reported a fall in profit in its recently ended financial year as sales were hit by negative foreign exchange rates, but the brewer and distiller said it is well-positioned to deliver a stronger performance in the new financial year. Diageo said it made a pretax profit of GBP2.86 billion in the year ended June 30, down from GBP2.93 billion the year before, as revenue decreased to GBP15.64 billion from GBP16 billion and net sales declined to GBP10.49 billion from GBP10.81 billion. Diageo will pay a total dividend of 59.2 pence, after increasing its final dividend by 5% year-on-year.
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Pay-TV provider Sky reported a rise in earnings and revenue for its most recently ended financial year and upped its total dividend payout. Sky reported a fall in pretax profit to GBP752 million for the year to end-June from GBP1.52 billion the year before, on revenue of GBP11.97 billion, up from GBP9.99 billion, as a result of one-off gains from its sales of stakes in ITV and the National Geographic Channel the previous year. Sky proposed a final dividend of 20.95 pence, taking its total dividend for the year to 33.5 pence, up from 32.80p the year before.
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Lloyds Banking Group said its statutory pretax profit more than doubled in the first half as it affirmed its guidance for 2016 but said it will close branches and cut jobs in order to make more savings. The lender said its pretax profit for the six months to the end of June grew to GBP2.46 billion, up from GBP1.19 billion a year prior due to substantially lower regulatory provisions booked for the period. Underlying profit was down 5.0% year-on-year to GBP4.2 billion, with total income down 1.0% to GBP8.9 billion. The bank hiked its interim dividend 13% year-on-year to 0.85 pence per share and affirmed its guidance for 2016. Lloyds said it will close an additional 200 branches and a further 3,000 jobs by the end of 2017, on top of previously-announced cost savings plans.
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BT Group said it had made a "good start" to its current financial year, and it is on track to deliver its outlook, as pretax profit rose in its first quarter. For the first quarter to end-June, the telecommunications company reported a pretax profit of GBP717 million, up from GBP632 million the year before, on revenue of GBP5.78 billion, up from GBP4.36 billion the year before.
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Defence contractor BAE Systems posted higher pretax profit and revenue for the first half of 2016 and said demand has remained strong for its services. The blue-chip group said pretax profit in the six months to the end of June grew to GBP528.0 million from GBP508.0 million a year prior, as revenue increased to GBP8.28 billion from GBP8.00 billion. The group declared an interim dividend of 8.6 pence, up 2.0% year-on-year.
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Anglo American said it still expects to get net debt below USD10.00 billion by the end of this year after repaying substantial amounts in the first half as the multi-commodity miner reported a 23% fall in underlying earnings. The company lowered net debt to USD11.70 billion by the end of June from USD12.90 billion at the end of 2015. Anglo American still reported steep declines in underlying earnings in the recent half year, down 23% to USD698.0 million from USD904.0 million. Revenue fell 20% in the first half to USD10.61 billion from USD13.34 billion, and Anglo American remained loss making at the pretax line, posting a loss of USD364.0 million compared to the USD1.92 billion loss reported a year ago. As guided in December, Anglo American did not pay a dividend for the first half.
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British engineering group Rolls-Royce Holdings said it swung to a big loss in the first half even as revenue ticked up, but it confirmed its earlier announcement of a dividend cut. The aircraft engine and power turbine maker said it made a GBP2.15 billion pretax loss in the half to the end of June, compared to a GBP310.0 million profit a year prior. Revenue edged up to GBP6.46 billion from GBP6.37 billion in the half but declined 5.0% in constant currencies. Rolls-Royce confirmed the cut to its interim dividend announced earlier in the year to 4.60 pence from 9.27p a year prior.
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British American Tobacco increased its interim dividend despite its profit experiencing a slight dip in the first half of the year after a small lift in revenue was offset by higher costs. The tobacco company said pretax profit in the first half of 2016 amounted to GBP3.42 billion compared to the GBP3.49 billion profit reported a year earlier. Revenue in the half was more than 5.5% higher at GBP21.03 billion from GBP19.90 billion after sales volumes rose by 3.4%. The interim dividend for the first half was increased by 4.0% to 51.3 pence from 49.4 pence.
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AstraZeneca reiterated its full-year guidance and maintained its dividend, as it delivered a performance in line with its expectations for its first half, hit by generic competition to its core drug Crestor. Core earnings per share were USD1.78 in the half, down from USD2.29 in the previous year. The company reported a pretax profit of USD693 million, down from USD1.34 billion the year before, as revenue slipped to USD11.03 billion from USD11.58 billion. It proposed an unchanged interim dividend of USD0.90 for the half year.
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SABMiller has halted its integration work with Belgian brewer Anheuser-Busch InBev, as the London-based brewer's board consults with shareholders over whether the revised offer AB InBev broached on Tuesday is acceptable, according to reports. SABMiller's board is now consulting with its largest shareholders to assess whether they like the new offer and plans to meet to consider the revised bid before making a final recommendation on whether shareholders should accept the latest deal. A recommendation by SABMiller's board could come within days, the reports said.
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Anglo-Australian miner BHP Billiton and Brazil's Vale will book charges totalling more than USD2 billion after last year's tailings dam spill at their joint venture in Brazil that killed as many as 19 people. BHP noted that it will take a charge of USD1.1 billion to USD1.3 billion for the six months to June 30, along with direct costs of about USD100 million. Separately, Vale said it will book USD1.2 billion in its second-quarter results. BHP Billiton Chief Executive Officer, Andrew Mackenzie said: "The recognition of the provision demonstrates our support for the long-term recovery of the communities and environment affected by the Samarco tragedy and the belief we have that the agreement is the most appropriate mechanism to do this."
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COMPANIES - FTSE 250
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Pharmaceutical company Vectura Group last on Wednesday said it has filed a patent infringement lawsuit against GlaxoSmithKline relating to an option-to-licence patent agreement between the pair. Vectura said it received formal notification from Glaxo saying it does not wish to exercise the option to take a licence to any additional patents under the patent licence and option agreement signed with Vectura in 2010 for Glaxo's Ellipta respiratory products.
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COMPANIES - INTERNATIONAL
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Facebook reported a jump in profit for the second quarter, as the social networking giant's bottom line continues to be driven by soaring ad revenues. Both earnings and revenues trumped Wall Street expectations, sending shares up by 6% in the extended hours trading. Menlo Park, California-based Facebook's second-quarter profit surged to USD2.06 billion from USD719 million a year ago. Revenues for the quarter jumped to USD6.44 billion from USD4.04 billion a year before. Analysts had a consensus revenue estimate of USD6.02 billion for the quarter. Daily active users rose 17% to 1.13 billion on average for June, while monthly active users increased 15% to 1.71 billion.
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South Korean conglomerate Samsung Electronics reported that its operating profit for the second-quarter was 8.14 trillion won, an increase of 1.24 trillion won year-over-year. The second quarter saw significant earnings growth led by strong performance both in the set and component businesses. Overall earnings of the set business improved year-over-year due to the continuous sales increase of premium products. Samsung's revenue for the quarter was 50.94 trillion won, an increase of 2.40 trillion won from the prior year.
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French lender BNP Paribas reported that its net income attributable to equity holders for the second-quarter was EUR2.560 billion, up by 0.2% compared to the second quarter of 2015. Pretax income came to EUR3.525 billion compared to EUR3.685 billion a year ago. Revenue totalled EUR11.322 billion, up by 2.2% compared to the second quarter of 2015.
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Swiss banking giant Credit Suisse Group reported its second-quarter net income attributable to shareholders were CHF170 million. Net revenue for the quarter declined to CHF5.108 billion from CHF6.955 billion a year ago. Looking ahead, Tidjane Thiam, Chief Executive Officer of Credit Suisse, said, "We remain cautious in our outlook for the second half of 2016 in view of the uncertainty created by significant geopolitical and macro-economic concerns, reinforced a few weeks ago by the outcome of the UK referendum."
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German stock exchange operator Deutsche Boerse reported its second-quarter net profit from continuing operations rose to EUR189.8 million from the previous year's EUR179.8 million. Net income attributable to shareholders for the quarter significantly increased to EUR747.1 million from last year's EUR175.1 million in the prior year. Total revenue for the quarter grew to EUR671.7 million from EUR614.8 million in the previous year.
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Thursday's Shareholder Meetings

Bonmarche Holdings
Elektron Technology
Solo Oil
Vitesse Media
Record
SKIL Ports & Logistics
GoldStone Resources
Paypoint
F&C Global Smaller Companies
Montanaro European Smaller Companies Trust
DJI Holdings
Dods Group
Immunodiagnostic Systems Holdings
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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