Glaxosmithkline Share News (GSK)

LONDON (Alliance News) - Marks and Spencer is the best performing stock in the FTSE 100 Wednesday, after it trumped low expectations by reporting its first rise in underlying pretax profit for four years.

The food, fashion and home goods retailer had been expected to report a hit from the warm autumn weather after rivals like Next recently said shoppers had stayed away from stores rather than stocking up on items like hats, coats, gloves and scarves.

M&S did report a slight dip in its first-half pretax profit, after seeing a slowdown in food sales growth in the second quarter and citing a warm autumn in the UK as the reason for weaker clothing sales. However, the high-street retailer said its gross margin in the UK held up well, especially in its struggling general merchandise business, and it delivered its first rise in underlying pretax profit for four years.

"Our emphasis on quality and style is working. We are seeing strong demand for what we call higher quality and higher style, products like cashmere.... People are telling us that M&S has got its style back," Bolland told journalists.

"A large part of gross margin improvement is coming from better sourcing. Better discounting is also part of it," he added.

M&S remained cautious in its outlook for the remainder of the year, saying that although it has seen improvements in consumer confidence, market conditions continue to be challenging. It said it's confident it is "well set up" for the key Christmas trading period, despite the risk of a repeat of a promotional festive period from retailers like last year.

M&S also said it is accelerating its Simply Food store openings to 200 over the next three years, from the 150 it had previously planned.

In the FTSE 250, Stock Spirits Group has lost almost a quarter of its value after it warned that third-quarter revenue growth had fallen short of expectations after it was hit by aggressive pricing by competitors and heavy promotional activity in the trade market in the latter half of the quarter, and its full-year results could miss expectations as a result.

The branded spirits producer in central Europe said trading had become "very tough" in the latter half of the third quarter, particularly in Poland where it continued to see disruption in the supply chain resulting from a duty increase. It also warned the trends had continued into the start of the fourth quarter.

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Markets: The major UK stock indices are higher, with corporate updates providing a number of stand-out stock movers as markets in general enjoy a rebound from Tuesday's sell-off. Broad market positivity is being supported by the results of the US midterm elections, from which the Republicans gained control of the Senate. The Republicans already had control of the House of Representatives, which means the party seen as more pro-business now controls the whole of Congress for the first time in eight years.

The pound, meanwhile, has fallen to a three-week low against the dollar after the UK service sector PMI fell to a 17-month low in October.

Futures indicate a higher open on Wall Street. The DJIA and Nasdaq Composite are set to open 0.5% higher, while the S&P 500 is pointed up 0.6%.

FTSE 100: up 1.1% at 6,527.63
FTSE 250: up 0.7% at 15,506.49
AIM ALL-SHARE: flat at 715.35
GBP-USD: down at USD1.5909
EUR-USD: down at USD1.2478
GOLD: down at USD1,141.02 an ounce
OIL (Brent): down at USD82.33 a barrel
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Other Top UK Corporate News
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Meggitt said its organic revenue increased in the third quarter, buoyed in particular by growth in its civil aerospace markets, but its total revenue declined as it took a hit from currency movements and as sales declined in its energy business. The engineer of components for aerospace, defence and energy markets also cautioned that its organic growth rate is set to slow in the fourth quarter. However, its shares rose after it announced a new share buyback and analysts deemed the third quarter statement to be better than the low expectations reflected in the company's recent share price performance.
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GlaxoSmithKline has filed regulatory submissions in the US and Europe for mepolizumab as a maintenance treatment for severe eosinophilic asthma. The submissions include a biologics licence application to the US Food and Drug administration for the drug's use as an add-on maintenance treatment in patients ages 12 years and older with a history of exacerbations, and a marketing authorisation application to the European Medicines Agency as an add-on treatment for adult patients with a history of exacerbations or a dependency on systemic corticosteroids.
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Anglo-South African financial services group Old Mutual reported a rise in funds under management to the end of the third quarter, bolstered by growth within its wealth division. In a statement, the investment, savings, insurance and banking group said it had GBP307.6 billion of funds under management in its core operations at the end of September, an increase from the GBP300.5 billion reported at the beginning of the quarter.
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Shares in Centamin fell after the FTSE 250-listed gold miner downgraded its full-year production guidance for the Sukari gold mine in Egypt, its main project. Centamin said its forecast production for the full year in 2014 at Sukari is expected to be between 370,000 and 380,000 ounces at a cash operating cost of USD700 per ounce. Though the number is up on its 2013 production at the site of 356,943 ounces, it is a significant cut against the original forecast of 420,000 ounces, at the same cost, which Centamin had previously set out.
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Shares in Howden Joinery Group surged higher after the company said it expects pretax profit to beat market expectations in the full year amid a strong sales performance so far in its second half. The FTSE 250-listed kitchens and joinery products supplier said sales performed well in the second half of the year, including during October, and it noted that about 10% of annual revenue is typically generated in the last two months. On the back of the strong performance so far in the second half, it now expects pretax profit for the full year to be ahead of market expectations, which currently sit at GBP161 million to GBP172 million according to the company.
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Bus and train operator FirstGroup reported a rise in underlying earnings in the first half of the year, boosted by its UK bus and rail operations, and said its restructuring program is on track. Underlying pretax profit, which excludes certain exceptional items, was GBP33.3 million in the six months to September 30, up from GBP19.6 million a year earlier, even though revenue fell 11% to GBP2.94 billion due to structural changes in rail revenues, UK bus operations that have been sold or closed, and foreign exchange movements.
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Lancashire Holdings said it will pay a special dividend of USD1.20 a share for the current financial year due to its strong capital position, as it reported a rise in pretax profit in the third quarter. "With no meaningful change in our outlook for the coming renewal season, we don't need as much capital as we are currently carrying. The announcement of our special dividend and dividend equivalent payments of approximately USD250 million brings our total capital return since inception to just under USD2.2 billion, or 99.5% of total comprehensive income since inception," Chief Financial Officer Elaine Whelan said in a statement.
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British pub chain JD Wetherspoon said like-for-like sales rose 6.3% in the first quarter of its new financial year, but warned that growth in October decreased, and its operating margin declined year-on-year on the back of salary increases for its staff and higher supplier costs. JD Wetherspoon said total sales were up 11.3% in the 13 week quarter ended October 26, and up 6.3% on a like-for-like basis.
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Energy services company Hunting said it set to deliver a further year of growth, as its US business in particular continues to see strong demand and the recent fall in the oil price has yet to weigh on customer demand. In a statement, Chief Executive Dennis Proctor said activity in North America has remained strong since July 1, stayed positive in Asia Pacific and the Middle East, but that the operating environment in Europe had become more challenging because drilling activity has been slow.
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Esure Group warned it expects its combined operating ratio, a measure of underwriting profitability, for the full year to tick up towards 92%, assuming "normal" weather for the rest of the year. The insurer had previously said it was on track to deliver a full-year combined operating ratio "broadly similar" to the 90.9% reported for the first half of the year. A combined operating ratio of 100% represents a breakeven point, while anything above is a loss and anything below a profit.
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Irish packaging giant Smurfit Kappa Group said revenue inched up in the third quarter but its pretax profit declined, after booking bigger exceptional costs in the quarter, although profits for the first nine months as a whole are up. The company said revenue rose 1% in the three months ended September 30 to EUR2.03 billion, compared with EUR2.02 billion the prior year. However its pretax profit declined by 11% to EUR93 million, down from EUR104 million the prior year, having booked EUR52 million in exceptional costs during the period, compared with only EUR17 million last year. Smurfit Kappa also said it started the rationalisation or closure of four corrugated facilities and a recycled containerboard mill in Europe, as part of its plans to cut costs across the business.
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Aer Lingus Group raised its full-year guidance as it reported a rise in operating profit in the third quarter, boosted by a robust short-haul performance and an expansion of long-haul flights. The Irish airline said it expects full-year operating profit before exceptional items to be above the EUR61.1 million recorded in 2013, despite a larger expected loss in the final quarter of the year because of fleet costs. The raised guidance comes just two days after rival Irish airline Ryanair Holdings PLC, Europe's largest low-cost carrier, raised its guidance for the current financial year, after reporting strong growth in profit and revenue in the first half, driven by higher passenger numbers, average fares and lower fuel costs.
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AIM Movers
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Bezant Resources shares have jumped 59% after it said a financial and technical review of the historic conceptual study at its Mankayan project had improved the economic feasibility of the project, making its search for a potential buyer or partner for the project easier. Edenville Energy shares are up by a third after it successfully completed a GBP200,000 share placing which it will use for working capital to continue investing in its Rukwa coal project in western Tanzania. The company said it placed 500 million new shares on the market at a price of 0.04 pence each. Security Research Group is also doing well after it reported a rise in half-year earnings, boosted by an improved performance at its Specialist Electronics and Property Information Services divisions, and said its outlook for the full year is very positive. Ideagen is up after it won a contract to supply compliance and quality management systems to NuGen. Under the deal, Ideagen will implement an electronic document and quality management system using its Workbench software. Symphony Environmental Technologies is also up after its SANAFOR PO-5 anti-microbial product was registered with the US Environmental Protection Agency and it said it has launched a bag for life. Alba Mineral Resources, Stellar Resources, Solo Oil, and Regency Mines are all big fallers after the oil companies behind the Horse Hill project in the Weald Basin in the UK said they failed to find oil in the Triassic target at the Horse Hill-1 well. Mosman Oil And Gas is also down 21%, even though it said it has discovered a fault line and identified a potential new target from a seismic acquisition at its Petroleum Creek project in New Zealand, which will help determine the locations of the company's next exploration wells in the area. It delayed flow testing at a well while it conducting the seismic survey, and said it had encountered high pressure at another well which means it will have to consider its options before proceeding.
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Top Economics And General
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Kentucky Republican Mitch McConnell easily won a sixth term on Tuesday, becoming US Senate Majority Leader in the process, as the GOP rolled to victory in most of the state contests that were up for grabs. With most of the 100 seats decided, the GOP won a 52-45 advantage in the Senate. The GOP also held a 237-167 advantage in the House, with 31 seats yet to be decided. Heading into the day, there were 435 seats up for grabs in the House of Representatives, 36 seats in the Senate and 36 governorships. CNN called it the largest Republican majority in Congress since World War II, and a voter indictment of US President Barack Obama.
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The National Institute of Economic and Social Research raised its economic outlook for the UK and expects the Bank of England to keep its interest rates unchanged until June. The think tank forecasts the economy to grow 2.5% in 2015, up from the previous forecast of around 2.3%. In 2014, gross domestic product is expected to grow 3%. Although the jobless rate fell below 6% recently, it is forecast to stabilize at around 5.5%, it said.
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UK service sector growth slowed more than expected to a seventeen-month low in October, survey results from Markit Economics and the Chartered Institute of Purchasing and Supply showed. The Markit/CIPS services purchasing managers' index fell to 56.2 in October from 58.7 in September, less than the 58.5 score expected by economists.
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Shop prices in the UK were down 1.9% on year in October, the British Retail Consortium said. That missed forecasts for a decline of 1.7% and slid further below the 1.8% contraction in September. Among the individual components, food prices added 0.1% after gaining 0.3% in September - due in large part to heavy discounting from retailers. Overall CPI was at 1.2% in September.
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Eurozone retail sales declined more than expected in September on a notable decrease in non-food product sales, data revealed. Retail sales fell 1.3% in September from last month reversing a 0.9% rise in August, Eurostat said. Sales were expected to fall moderately by 0.8%.
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The Eurozone private sector expanded slightly less than initially estimated in October, final data from Markit Economics showed. The final Markit composite output index rose to 52.1 in October from 52 in September. The reading was slightly below the flash estimate of 52.2. The headline index has now remained in expansion territory for 16 successive months. Meanwhile, the services Purchasing Managers' Index fell to 52.3 from 52.4 in September. The index was estimated to remain unchanged at 52.4.
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China's services sector growth slowed from the previous month in October, results of a survey by Markit Economics and HSBC Bank showed. The HSBC services business activity index fell to 52.9 in October from 53.5 in September. This indicated slower growth but the expansion remained solid.
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The 2% target inflation will be achieved at the earliest possible time, Bank of Japan's Haruhiko Kuroda said in his speech following the bank's recent move to expand its massive quantitative easing. He said that the additional measures will influence mainly real interest rates and asset prices and induce an increase in private demand and an improvement in the output gap.
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Journalists and tribesmen reportedly fell victim to the Islamic State group on Tuesday as the extremist group continued to liquidate perceived enemies in territories it holds in Iraq. Local residents in the northern city of Mosul, which fell to the group in June, said the jihadists had executed four journalists. They handed over the bodies of the four people, who were among 12 journalists abducted last month, to medical authorities in the city, the residents said.
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Afternoon Watchlist (all times in GMT)

13:15 US ADP Employment Change
14:30 US Fed's Lacker speech
14:45 US Markit Services PMI
15:00 US Federal Reserve Bank of Boston President Rosengren Speech
15:00 US ISM Non-Manufacturing PMI
15:30 US EIA Crude Oil Stocks change
23:45 US Former Fed's Bernanke speech
23:50 Japan BoJ Monetary Policy Meeting Minutes
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Thursday's Key UK Corporate Events

Promethean World - Interim Management Statement
Tate & Lyle - Half Year Results
Shanks Group - Half Year Results
Dairy Crest - Half Year Results
Coca-Cola HBC AG - Q3 Results
AstraZeneca - Q3 Results
Avocet Mining - Interim Management Statement
STV Group - Interim Management Statement
Croda International - Interim Management Statement
DS Smith - Trading statement
Wilmington Group - Interim Management Statement
Intu Properties - Interim Management Statement
Experian - Half Year Results
Beazley - Interim Management Statement
Cable & Wireless Communications - Half Year Results
Halfords Group - Half Year Results
Inmarsat - Q3 Results
London Mining - Interim Management Statement
Randgold Resources - Q3 Results
Rightmove - Interim Management Statement
RSA Insurance Group - Interim Management Statement
Schroders - Interim Management Statement
Synthomer - Interim Management Statement
WM Morrison Supermarkets - Interim Management Statement
Hikma Pharmaceuticals - Interim Management Statement
Cobham - Interim Management Statement
SuperGroup - Trading statement
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Thursday's Key Economic Events (all times in GMT)

01:35 Japan Markit Services PMI
07:00 Germany Factory Orders
09:30 UK Industrial Production
12:00 UK BoE Interest Rate Decision
12:30 US Challenger Job Cuts
12:45 EU ECB Interest Rate Decision
13:30 EU ECB Monetary policy statement and press conference
13:30 US Jobless Claims
15:00 UK NIESR GDP Estimate
15:30 US EIA Natural Gas Storage change
15:40 US Fed's Evans Speech
23:50 Japan Foreign bond/stock investement
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