Glaxosmithkline Share News (GSK)

LONDON (Alliance News) - GlaxoSmithKline Wednesday reiterated its expectations that full year earnings per share will be broadly similar to 2013 at constant currencies, but it launched a restructuring of its global pharmaceuticals business with the aim of saving about GBP1 billion a year and said it would return GBP4 billion to shareholders in 2015 on top of its usual dividend payouts.

The pharmaceuticals giant said it will return GBP4 billion to shareholders via a b-share scheme following the completion of its three part deal with Novartis International AG. That deal is on track to complete in the first half of 2015.

The company is also planning to explore an initial public offering of a minority shareholding in its joint venture specialist HIV company ViiV Healthcare, in order to "enhance future strategic flexibility and visibility within the group."

Glaxo posted a pretax profit of GBP548 million for the third quarter of 2014, down from GBP1.40 billion a year before, as revenue fell to GBP5.65 billion from GBP6.51 billion. The company said that the impact of formulary and contract changes to its key product, asthma and chronic obstructive pulmonary disease Advair, has been greater than it anticipated and hit its US sales performance in the quarter.

This offset growth in Emerging Markets, Japan, and from ViiV. As a result, it has focused on cutting selling, general and administrative costs and research and development expenses.

It is therefore focusing on cost-cutting, and thinks it can achieve about GBP1 billion in annual savings over the next three years by restructuring its global pharmaceuticals business, with half of that coming in 2016.

Bank of England policymakers decided to maintain the key rate at a record low 0.50% in a split vote for the third straight time at the meeting held early this month.

As seen in the previous two meetings, Ian McCafferty and Martin Weale sought a quarter point hike in the bank rate, to 0.75%, while all other seven members of the Monetary Policy Committee voted to keep the rate unchanged at 0.50%.

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Markets: UK stocks are a touch higher, with company earnings driving the main stock movers. The pound has fallen heavily against other major major currencies after the minutes of the Bank of England's latest monetary policy meeting showed increasing concern amongst rate setters over a slowdown in global growth, particularly in the eurozone.

US stock futures are pointing to a mixed open on Wall Street. The DJIA is pointed fractionally higher, the S&P 500 fractionally higher, and the Nasdaq Composite up 0.1%. AT&T and Boeing are among the US companies reporting Wednesday.

FTSE 100: up 0.05% at 6,375.80
FTSE 250: up 0.8% at 15,141.97
AIM ALL-SHARE: up 0.4% at 708.02
GBP-USD: down at 1.6054
EUR-USD: flat at 1.2708
GOLD: down at USD1,247.36 an ounce
OIL (Brent): up at USD86.70 a barrel
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Other Top UK Corporate News
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British American Tobacco said revenue in the first nine months of its financial year grew by 2.4% at constant foreign-exchange rates, as it raised its tobacco prices, but said that it's still being hit hard by the strength of the pound. The company, the world's second-biggest tobacco company, said revenue grew at constant exchange rates on the back of a slightly better price mix, but said growth was held back by weaker trading in Western Europe and, to a lesser extent, the Americas. It also cited competitive pricing in markets such as Australia and Malaysia as a drag. However, at reported currency rates, it said revenue declined 9.6% for the nine months to September 30.
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Mining giant BHP Billiton reported a 17% year-over-year increase in iron ore production for the first quarter, and a 1% increase from the fourth quarter. Production of metallurgical coal grew 25%. "Robust operating performance across our diversified portfolio in the September 2014 quarter delivered a nine percent increase in production with records achieved for eight operations and four commodities," Chief Executive Andrew Mackenzie said. Mackenzie said the company remains on track to generate production growth of 16% over the two years to the end of the 2015 financial year.
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BP scored a rare win this week in its legal battle over compensation payments from the Gulf of Mexico oil spill, The Daily Telegraph reported on Tuesday. The FTSE 100 oil company was boosted after the US Supreme Court ruled a group of parishes in Louisiana would not be able to sue the company for damaging wildlife in the area, the paper said.
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Home Retail Group outlined a three-year strategic plan for its Homebase business, which it said will improve, but shrink, its store estate and strengthen its offering both in-store and online to improve profitability. Home Retail said the move to shrink Homebase was partly driven by "the rise of a generation less skilled in DIY projects", but also cited the growth of digital and multi-channel competitors. Home Retail said it will reduce Homebase's store estate by 25% by the end of the 2018 financial year, from 323 at the end of the 2014 financial year, through scheduled lease expirations and a series of property exit transactions. It said it will close 80 Homebase stores in total - 30 by the end of this year, and 50 over the next couple of years.
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International Personal Finance said pretax profit rose 5% in the third quarter, driven by higher customer numbers, although profit was pulled back by currency movements, investments it made in new markets, and weakness in the Czech and Slovak markets. The home credit business, with operations across Eastern Europe, reported pretax profit of GBP34.0 million in the three months to end-September, up from GBP32.5 million a year earlier, as revenue rose to GBP245.5 million, from GBP264.4 million, helped by a 4.8% increase in customer numbers to 2.6 million.
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Fashion retailer SuperGroup said it has appointed Non-Executive Director Euan Sutherland as its new chief executive, with founder Julian Dunkerton moving to the newly created role of founder and product and brand director, a move they said would assist an accelerated expansion overseas. The company said the change will allow Dunkerton, along with designer James Holder, to focus on developing its product ranges and "enhancing and protecting the brand" as it expands round the world. "Really it's about the complexity of the business, where we are moving to, and the growth ambitions of the business," Dunkerton told Alliance News, adding that the new role will leave him focused entirely on driving the business in terms of product, retail and on a creative basis.
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Senior said its adjusted pretax profit in the period since July 1 has been in line with its expectations and said it expects its full-year results to meet forecasts, as it reported solid results from across its business units. The group said its performance in the first nine months of the year and the current level of activity meant it expects adjusted pretax profit to meet expectations. It added it is in a strong position for 2015, though cautioned its results could be impacted by any further currency volatility or any exacerbation of global uncertainty in markets.
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UBM said it is on track to meet its guidance for the full year as it performed in line with expectations in its third quarter to end-September, although it warned that the strength of sterling will continue to hit its reported results. The events marketing and communications services business said its constant currency performance remains on track, with all three of its business segments expected to deliver in line with the guidance it gave at its interim results in August.
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Playtech said revenue rose by more than a quarter in the third quarter of the year, and it's confident of exceeding current market expectations for the full year, as its casino product sales in particular powered ahead. The gaming software developer said revenue was EUR116.5 million in the three months to end-September, up from EUR90.6 million a year earlier, as casino software sales rose by a third to EUR62.4 million.
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AIM Movers
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Fitbug Holdings has surged after it said US retail chain Target Corp and UK supermarket J Sainsbury PLC will stock Fitbug products in their wearables ranges from November 9, marking the company's largest retail sales agreements to date. Eurasia Mining is doing well after it was given a discovery certificate for a 21.5 kilometre squared area of alluvial platinum reserves on its West Kytlim exploration licence. Photonstar LED Group is another gainer after it said it had started shipping its new professional version of the Halcyon intelligent wireless lighting system, HalcyonPro, a product aimed at tapping into the growing Internet of Things, smart devices and energy savings market. Zoo Digital Group is also up after it said first-half revenue will be no less that USD8.6 million, a 40% rise on the USD4.7 million in revenue it posted in its last financial year, driven by growth in its subtitling services business. Bacanora Minerals is up after it appointed Hatch Pty Ltd as its engineering consultant for both its Sonora Lithium Project and Magdalena Borate Project, both in northern Mexico. Surgical Innovations has lost a third of its value after it reiterated it expected to posting a "significant" pretax loss for its full year, and warned it will post a further exceptional charge of GBP1.6 million following a further review of its balance sheet. Blue Star Capital is down 10% after it raised GBP175,000 in a discounted share subscription, money it will use to provide working capital and support its current investment portfolio. Premier Gold Resources is down after Non-Executive Chairman and MP Bob Stewart resigned with immediate effect to focus on on his parliamentary duties. Non-Executive Director Christian Schaffalitzky will become interim non-executive chairman until a suitable replacement is found.
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Top Economics And General
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Japan posted a merchandise trade deficit of JPY958.3 billion in September, the Ministry of Finance said - remaining in the red for the 27th consecutive month. The headline figure missed forecasts for a shortfall of JPY780.0 billion, following the JPY949.7 billion deficit in August. Exports were up 6.9% on year to JPY6.383 trillion , beating estimates for a gain of 6.5% following the 1.3% decline in the previous month.
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A deal between Russia and Ukraine on gas supplies for the upcoming winter should be finalized and signed next week if all sides keep up their "good will," EU Energy Commissioner Guenther Oettinger says. The agreement, which would be valid through the end of March, would see Ukraine pay USD385 per 1,000 cubic metres of Russian gas. It would have to pay for gas in advance, Oettinger says. In exchange, Ukraine will start settling its gas debts.
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Iran has assured neighbouring Iraq of help "until the end" in the fight against Islamic State militants, Iranian President Hassan Rouhani said Tuesday in Tehran. "As we supported Iraq from the beginning against those terrorists, we will be there until the very end," Rouhani told visiting Iraqi Prime Minister Haider al-Abadi, the Iranian presidency said. Al-Abadi is on his first trip to Iran since taking office last month. His office said the visit was aimed at "unifying regional and international efforts" to help Iraq in the fight against Islamic State militants.
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Ebola drug trials and collection of survivors' blood for treating patients are expected to get underway in West Africa within weeks, a senior World Health Organization official said Tuesday in Geneva. The WHO and partner organizations are currently selecting treatment centres in Guinea, Liberia and Sierra Leone in order to conduct trials of experimental Ebola drugs, said Marie Paule Kieny, head of health information at WHO. Drug companies have been working to fast-track Ebola drugs and vaccines by testing them directly in West Africa, as advised by the WHO and international experts.
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Hong Kong's government and student leaders met on Tuesday in their first round of talks after three weeks of pro-democracy protests. The activists are calling for open elections for the Chinese territory's next chief executive in 2017, rejecting Beijing's decision to have a closed election committee nominate two to three candidates for the public vote.
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Egypt has invited Israel and the Palestinians to resume indirect negotiations next week on a long-term Gaza truce, Palestinian delegation member Qais Abdul Karim said Tuesday. The indirect negotiations had began on September 23, days before the expiry of a one-month truce that temporarily ended 50 days of fighting between Israel and the Hamas movement that runs Gaza. Israel and Egypt have since eased restrictions on the movement of people and goods through their border crossings with Gaza.
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The Pentagon said it is possible that weapons delivered by the US military and meant for Kurdish fighters in Kobane may have inadvertently fallen into the hands of Islamic State militants. At least one of 28 bundles of weapons did not reach its intended destination, spokesman Admiral John Kirby said, but noted he cannot confirm video that appears to show that Islamic State instead acquired the weapons. "The short answer is ... we don't know," he said.
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British EU lawmaker Nigel Farage has managed to reconstitute his eurosceptic group in the European Parliament after a member's resignation had briefly prompted its collapse. "The new group is up and running," parliament spokesman Jaume Duch confirmed on Tuesday. Having a political group in the parliament gives EU lawmakers more influence, but they require at least 25 parliamentarians from seven EU member states to join forces.
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Afternoon Watchlist (all times British Summer Time)

13:30 US Consumer Price Index
15:30 US EIA Crude Oil Stocks change
20:00 UK MPC Member Weale Speech
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Thursday's Key UK Corporate Events

Phoenix Group Holdings - Interim Management Statement
Volution Group - Full Year Results
Mountview Estates - Full Year Results
Tesco - Half Year Results
Ladbrokes - Interim Management Statement
Mecom Group - Interim Management Statement
Britivic - Interim Management Statement
Anglo American - Q3 Production Report
Anglo Platinum - Q3 Production Report
Foreign & Colonial Investment Trust - Interim Management Statement
Bloomsbury Publishing - Half Year Results
Inchcape - Interim Management Statement
Segro - Interim Management Statement
St James's Place - Interim Management Statement
Stobart Group - Half Year Results
Unilever - Trading Statement
SVG Capital - Interim Management Statement
African Barrick Gold - Q3 Results
Colt Group - Interim Management Statement
National Express Group - Interim Management Statement
Premier Foods - Interim Management Statement
Reed Elsevier - Interim Management Statement
Photo-Me International - Trading Statement
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Thursday's Key Economic Events (all times British Summer Time)

00:50 Japan Foreign bond/stock investment
02:35 Japan Nomura/ JMMA Manufacturing Purchasing Manager Index Preliminary
02:45 China HSBC Manufacturing PMI Preliminary
07:45 France Business Climate
08:00 France Markit Manufacturing PMI Preliminary
08:00 France Markit Services PMI Preliminary
08:30 Germany Markit Manufacturing PMI Preliminary
08:30 Germany Markit Services PMI Preliminary
09:00 EU Markit Manufacturing PMI Preliminary
09:00 EU Markit Services PMI Preliminary
09:00 Italy Trade Balance non-EU
09:30 UK BBA Mortgage Approvals
09:30 UK Retail Sales
11:00 UK CBI Industrial Trends Survey - Orders
13:30 US Chicago Fed National Activity Index
13:30 US Jobless Claims
14:00 US Housing Price Index
14:45 US Markit Manufacturing PMI Preliminary
15:00 US CB Leading Indicator
15:00 EU Consumer Confidence Preliminary
15:30 US EIA Natural Gas Storage change
16:00 US Kansas Fed manufacturing activity
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