Glaxosmithkline Share News (GSK)

LONDON (Alliance News) - The following is a summary of top news stories Tuesday.
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COMPANIES
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AstraZeneca PLC announced positive results from its late-stage study of combination treatment saxagliptin and dapagliflozin for the treatment of type 2 diabetes, for patients whose condition was no adequately controlled by the generic diabetes drug metformin. AstraZeneca will begin a Phase III trial for type 1 diabetes treatment dapagliflozin during 2014. The positive results come ahead of AstraZeneca's hearing with the House of Commons' Business, Innovations and Skills Committee over the potential takeover of AstraZeneca by US drugmaker Pfizer Inc. Both AstraZeneca Chief Executive Pascal Soriot and Pfizer Chief Executive will be called upon to give evidence about the potential takeover, alongside evidence from trade unions.
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GlaxoSmithKline PLC said its Phase III study for drug darapladib in the treatment of acute coronary syndrome failed to meet its primary endpoint of reducing major coronary events compared to a placebo when added to standard care. The company said that the overall safety profile of the drug showed no major safety concerns. Glaxo said that it would further analyse the data from the study to better understand its findings.
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London Stock Exchange Group PLC said it is "evaluating the merits" of a potential acquisition of Frank Russell Co. In a statement, the stock exchange said it is in discussions with Frank Russell's parent, The Northwestern Mutual Life Insurance Company, over a potential transaction. London Stock Exchange Group said it would intend to raise equity to part-fund a transaction if it were to proceed. Russell was founded in 1936 and is the creator of the Russell Global Indexes, including the Russell 2000.
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Rexam PLC said that it is set to return approximately GBP450 million to shareholders, following completion of the sale of its Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare packaging business. The beverage can maker said shareholders are to receive 57 pence per existing ordinary share, equating to an aggregate return of approximately GBP450 million.
The firm said the shareholder returns will be implemented by way of a B/C Share Scheme which is intended to provide shareholders with a choice to receive the cash either as capital or as income, or as a combination of the two. If the capital option is selected, shareholders will also have a choice as to the timing of the return, said Rexam.
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Old Mutual PLC's majority-owned South African banking subsidiary, Nedbank Group Ltd, reported first-quarter growth in net interest income and non-interest revenue. Net interest income rose to ZAR5.57 billion in the three months ended March 31, compared with ZAR5.12 billion for the corresponding period a year earlier, as average interest-earning banking assets grew. Nedbank said its credit loss ratio improved "more than expected" stating that the improvement reflects the "quality" of the advances portfolio and more conservative credit-lending policies implemented in the second half of 2012. There were no large wholesale defaults, while retail impairments improved during the period, Nedbank said.
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Taylor Wimpey PLC saw its shares rise in early trading after it said it expects to deliver an operating margin increase of at least 300 basis points in 2014 and a return on net operating assets of at least 20% in the year, as it looks to exceed its key financial targets by the end of 2015. Taylor Wimpey said it is operating in a much improved housing market and the strength and quality of its landbank and strategic pipelines, gives it the confidence to set additional challenging medium-term targets across each of its key financial objectives. It has now set targets for the period 2015 to 2017, which include achieving an average operating margin of 20% over the three year period, a return on net operating assets of at least 20% a year, and an average increase in net assets of 15% a year over the three year period.
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Melrose Industries PLC expressed confidence in meeting full-year expectations, as it saw order intake up 3% in the year to date, compared to the previous year. The industrial investment company said that its two largest businesses, Elster Gas and Brush, both had good visibility with their current order books supporting full year expectations.
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Low-cost airline easyJet PLC said that its pretax loss narrowed in the six months to the end of March as total revenue rose as the mild winter reduced the need for costly de-icing of its planes and reduced disruption. In its half-year report for the six months to March 31, 2014, easyJet said its pretax loss narrowed by 13.6% to GBP53 million from GBP61 million last year. Total revenue rose 6.3% to GBP1.7 billion from GBP1.6 billion for the comparable six months. During the period, total revenue per seat increased by 1.5% year-on-year on a constant currency basis, and by 2.6% per seat on a reported basis, to GBP54.80 driven, in part said easyJet, by a number of digital and revenue management initiatives, increased average sector length and allocated seating.
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Holiday operator TUI Travel PLC said it narrowed its pretax loss in the first half of its financial year, despite the later timing of the key Easter trading period, boosted by strong trading in the UK and Germany and demand for its all-inclusive packages, as well as cost reductions as it reined in losses from its French business. TUI Travel, the owner of Thomson and First Choice, reported a statutory pretax loss of GBP386 million for the six months ended March 31, compared with a GBP410 million loss the prior year.
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MARKETS
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The UK's main stock indices are higher, with the FTSE 100 having reached its highest level in fourteen years, as markets continue to leave geopolitical concerns on the back-burner and focus instead on the potential for further central bank stimulus from both China and Europe.
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FTSE 100: down 0.1% at 1847.99
FTSE 250: up 0.7% at 16026.15
AIM ALL-SHARE: up 0.1% at 808.9
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The euro declined to a multi-week low against the dollar as German economic expectations worsened by more than expected in May, suggesting that Europe's largest economy may not maintain its strong pace of growth.
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GBP-USD: down at USD1.6854
EUR-USD: down at USD1.3750

GOLD: down at USD1293.84 per ounce
OIL (Brent): up at USD108.81 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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UK retail sales surged in April from the prior year on Easter spending, data from British Retail Consortium showed. Retail sales advanced 4.2% on a like-for-like basis in April from a year ago, when they had decreased 2.2%. Growth was positively distorted by the timing of Easter. On a total basis, sales were up 5.7%, compared to a 0.6% fall in April 2013. According to BRC, furniture and flooring was the best performing category, reporting its highest growth since Easter 2006.
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Germany's economic expectations worsened more-than-expected in May, a closely watched survey showed. The economic sentiment index fell to 33.1 in May from 43.2 in April, the Mannheim-based Centre for European Economic Research said. The score was forecast to fall to 40. "Already, there are indications that Germany will not be able to maintain this fast pace of growth," ZEW President Clemens Fuest said. "Nevertheless, one can assume a positive underlying trend for the economic development for the year 2014."
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Germany's wholesale prices declined at a slower pace in April, figures from Destatis showed. Wholesale prices were down 1.3% in April from last year, following a 1.7% drop in March. This was the tenth consecutive fall in wholesale prices. Month-on-month, wholesale prices gained 0.2% after staying flat in March.
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China's industrial production growth eased unexpectedly in April, data showed. Retail sales also expanded at a slower pace in April. Industrial production grew 8.7% year-on-year in April, which was slightly slower than the 8.8% rise seen in March, the National Bureau of Statistics said. Production was forecast to rise by 8.9%. Retail sales advanced 11.9% in April from a year ago, while the growth was forecast to remain unchanged at 12.2%.
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The self-declared People's Republic of Donetsk on Monday asked to leave Ukraine and join the Russian Federation, a day after a hastily arranged secession referendum that has been declared illegal by Western governments. Denis Pushilin, a leader of the separatist movement in eastern Ukraine, declared the region's independence. His movement said that an overwhelming majority in the country's east voted in favour of secession.
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UN Secretary General Ban Ki-moon called for a special tribunal "with international involvement" to investigate atrocities committed in South Sudan after a UN report last week found that violence by all sides may constitute crimes against humanity. "I have requested the Security Council to consider to establish a hybrid or international tribunal," Ban said. "We have found crimes against humanity by both sides...Those perpetrators have to be held accountable, this is a fundamental principle of international human rights law."
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US Secretary of State John Kerry is to meet Palestinian President Mahmoud Abbas Thursday in London on the sidelines of the Syrian support group gathering. "While the door remains open to the peace process, the purpose of the meeting is to discuss our ongoing relationship with the Palestinians," State Department spokeswoman Jen Psaki said Monday. Earlier in the day, EU foreign ministers pledged they would support a new Palestinian government on condition it is committed to peace talks with Israel. Fatah, which controls the West Bank, and the radical Islamist Hamas movement, which dominates the Gaza Strip, agreed late last month to form a transitional unity government and hold elections by November.
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The European Court of Human Rights has ordered the Turkish government to pay EUR90 million in damages for human rights abuses over its occupation of northern Cyprus. The decision marks the largest sum ever awarded by the European Court of Human Rights in a case concerning Cypriot refugees and the 1974 invasion of the island.
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Syria has condemned what it said are moves by France and Germany to block its citizens from voting in upcoming presidential elections, the crisis-stricken country's foreign ministry said on Monday. Accusing the two countries of supporting terrorism, the ministry said in statements carried by the official SANA news agency that they "must know that Syria is an independent, sovereign state and its decisions emanate from the will of its people."
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Islamist extremist sect Boko Haram said it is willing to negotiate with Nigeria's government over the release of more than 200 schoolgirls it abducted four weeks ago. The group released a video Monday demanding the release of all imprisoned insurgents in Nigeria in exchange for the teenagers.
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