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LONDON (Alliance News) - Share prices in London were firm Monday, but the pound shed a US cent, as UK Prime Minister Theresa May put Britain on track for a 'hard Brexit' by the spring of 2019, as she insisted she will not accept any limits on the UK's ability to control its own borders.

May said Article 50 would be invoked "soon", and no later than the end of March next year.

In UK company news, Henderson Group led the FTSE 250, up 16%, after the asset manager and New-York listed Janus Capital Group said the two companies have agreed to an all-stock merger of equals to form a combined company with more than USD320.00 billion in assets under management and a market capitalisation of approximately USD6.00 billion.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.4% at 6,929.55
FTSE 250: up 0.3% at 17,928.73
AIM ALL-SHARE: up 0.4% at 822.56
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Hang Seng: up 1.1% at 23,541.38
Nikkei 225: closed up 0.9% at 16,598.67
DJIA: closed up 0.9% at 18,308.15
S&P 500: closed up 0.8% at 2,168.27
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GBP: down at USD1.2912 (USD1.3013)
EUR: flat at USD1.1229 (USD1.1237)

GOLD: down at USD1,315.32 per ounce (USD1,320.80)
OIL (Brent): firm at USD50.20 a barrel (USD49.81)

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

holiday China National Day
holiday Germany Day of German Unity

0830 Switzerland SVME PMI
0845 Italy Markit manufacturing PMI
0850 France Markit manufacturing PMI
0855 Germany Markit manufacturing PMI
0900 Italy public deficit/GDP
0900 EU Markit manufacturing PMI
0930 UK Markit manufacturing PMI
1430 Canada RBC manufacturing PMI
1445 US Markit manufacturing PMI
1500 US ISM manufacturing PMI
1500 US ISM prices paid
1500 US construction spending
1530 Bank of Canada business outlook survey
2000 US vehicle sales
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UK Prime Minister Theresa May has put Britain on track for a 'hard Brexit' by the spring of 2019, as she insisted she will not accept any limits on the UK's ability to control its own borders. The prime minister's declaration that the UK will "make our own decisions" on immigration put her on collision course with the Brussels institutions and the 27 remaining member states, ahead of two-year withdrawal talks due to be triggered by the end of March 2017. European Council President Donald Tusk said other EU states would act to safeguard their own interests, while Maltese Prime Minister Joseph Muscat - who will be president of the Council when Mrs May kicks off talks by invoking Article 50 of the EU treaties - said the single market's four freedoms of goods, services, capital and people "cannot be decoupled". Taking the unusual step for a Tory leader of addressing the annual Conservative conference on its opening day, Mrs May confirmed plans for a Great Repeal Bill to overturn the 1972 Act which took the UK into what was then the European Economic Community. She said Article 50 would be invoked "soon", and no later than the end of March next year.
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UK Chancellor of the Exchequer Philip Hammond has confirmed he will "reset" the government's fiscal policies in next month's Autumn Statement, with a new "pragmatic" plan which allows greater scope for investment to boost the economy. Since May became prime minister in July, both she and Hammond have made clear that they will ditch George Osborne's target to get the UK's finances into surplus by 2020 - a goal which the former chancellor himself acknowledged was unlikely to be attainable following the referendum vote for Brexit. But Hammond will use a high-profile speech to the Conservative annual conference in Birmingham to signal that this does not mean an end to the age of austerity inaugurated by Osborne in 2010.
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UK private sector activity growth slowed in the three months to September as optimism among companies remain tempered by the Brexit vote, the Confederation of British Industry said. In its survey of 778 respondents, the CBI said private sector output volumes increased by 3% in the three months to September, slowing from the 8% rise in the three months to August. The survey showed sector performance was mixed, with solid output growth in manufacturing, but broadly flat sales in retail and a fall in volumes in business and professional services.
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Ireland's business conditions improved at the end of the third quarter, though the rate of growth eased since last month, survey figures from Markit Economics showed. The seasonally adjusted Investec Purchasing Managers' Index, or PMI, dropped to 51.3 in September from 51.7 in August.
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Chinese factory activity expanded again in September, according to the country's official purchasing managers' index released on Saturday, contrasting with data published a day earlier. The PMI stood at 50.4 last month, the same reading as August, according to the data released by the National Bureau of Statistics. A figure above 50 indicates growth. The index was upbeat compared to a private manufacturing PMI published Friday and which indicated only marginal gains. The Markit/Caixin manufacturing PMI had came in at 50.1 in September, up from a reading of 50.0 in August.
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Japan's factory activity expanded for the first time in seven months in September, though marginally, survey figures from Markit Economics showed. The Nikkei Manufacturing Purchasing Managers' Index rose to 50.4 in September from 49.5 in August. Any reading above 50 indicates expansion in the sector, while a score below 50 suggests contraction.
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Japanese big manufacturers' confidence held steady in September, a closely watched quarterly survey from the Bank of Japan showed. The Tankan index for large manufacturers' sentiment came in at 6 in the third quarter, the same score as seen in the second quarter. This was the weakest level in more than three years. The score was expected to rise to +7. The sentiment index is forecast to remain at 6 in the fourth quarter. A reading above zero indicates optimists outnumber pessimists.
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Hungarian Prime Minister Victor Orban's crusade against the EU's migration policy fumbled on a technicality Sunday when a referendum on the EU refugee resettlement quota for the country failed to achieve the required 50% turnout. Only 39.9% of the electorate cast votes in the referendum, election officials said with 99.8% of ballots counted. But the outcome was nevertheless pleasing to Orban because of those who cast their ballots, 98.3% - 3.2 million voters - rejected the EU quota.
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Hurricane Matthew, a powerful storm swirling in the Caribbean Sea, was moving slowly Sunday toward Jamaica and Haiti, and weather forecasters said it could deliver a major strike to the two countries. Warnings and watches were in effect across parts of the Caribbean as the Category 4 storm, made its way toward land. Hurricane Matthew was moving north-west toward Haiti and Jamaica, where hurricane warnings were in effect and residents were told to board up their homes and leave costal areas. The storm's centre was forecast to approach the two countries early Monday, the US National Hurricane Centre said.
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Colombian President Juan Manuel Santos and FARC leader Rodrigo Londono vowed to keep working for peace, after Colombian voters narrowly rejected the peace accord the leaders signed just days ago. "I won't give up. I will fight for peace until my last day in office," Santos said in Bogota, flanked by the government team who hammered out the now-defunct deal over nearly four years of talks in Havana. Santos said negotiators would return to Havana Tuesday to meet with FARC representatives, while he himself would meet with political factions including 'no' supporters at home to seek a way forward in the vote's aftermath.
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Donald Trump could have avoided paying federal income taxes for as along as 18 years, according to a leaked tax document obtained by the New York Times. The Republican presidential candidate's tax forms have been a major issue in the campaign because, unlike other modern-day nominees for the White House, he has refused to make them public. The New York Times reported it had received Trump's 1995 income tax returns, in which he declared a USD916 million loss due to failed business ventures. Tax experts hired by the paper concluded that "rules especially advantageous to wealthy filers would have allowed Mr Trump to use his USD916 million loss to cancel out an equivalent amount of taxable income over an 18-year period."
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BROKER RATING CHANGES
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RBC CAPITAL CUTS CENTRICA TO 'SECTOR PERFORM' ('OP') - TARGET 240 (250) PENCE
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LIBERUM INITIATES DIAGEO WITH 'HOLD' - TARGET 2182 PENCE
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TRADERS: JEFFERIES INITIATES VIRGIN MONEY WITH 'BUY'
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COMPANIES - FTSE 100
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Drugmaker AstraZeneca said its MedImmune biologics and research and development arm has entered a licensing deal with US drug firm Allergan PLC for its MEDI2070 drug. MEDI2070 it a monoclonal antibody currently in phase 2b trials for moderate-to-severe Crohn's disease, a chronic inflammatory disease of the intestines, and is ready to enter phase 2 trials for treating ulcerative colitis. Under the terms of the agreement, Allergan will pay AstraZeneca USD250.0 million upfront for the exclusive, global licence to develop and commercialise MEDI2070. Allergan will then pay up to USD1.27 billion in additional payments to AstraZeneca dependent on the drug meeting certain development and sales-related milestones.
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National Grid said authorities have responded to its application to raise distribution rates for one of its US subsidiaries, allowing the company to increase annual revenue by raising customer bills. National Grid said the Massachusetts Department of Public Utilities has issued new distribution rates for its subsidiary, the Massachusetts Electric Co, which will allow the first increase since 2010. The subsidiary serves around 1.3 million customers, who will see their bills go up by around 7.0%. The changes come into effect as of the start of October, and annual revenue from the subsidiary will rise by USD101.0 million, lower than the USD130.0 million annual rise that National Grid had requested.
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Testing, inspection and certification services firm Intertek Group said it has acquired cyber-security assurance firm EWA Canada from Electronic Warfare Associates, a Canadian security company, for an undisclosed amount.
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European financial centres will not enjoy easy pickings after Brexit should businesses decide to leave, the chief executive of London Stock Exchange Group said. Xavier Rolet, chief executive of the exchange operator, hailed London as unparalleled in its provision of services and raising capital, whether for projects in China, India or European small and medium-sized business. However the next port of call for businesses seeking to leave post-Brexit would not be Paris, Frankfurt and Amsterdam, but New York, as it is the only other global financial centre that could centrally and efficiently clear all 17 major currencies, he said. Writing in the Daily Telegraph, Rolet warned that leaving the UK could cost firms tens of billions of dollars and that would also take money from the European real economy.
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COMPANIES - FTSE 250
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Asset manager Henderson Group and New-York listed Janus Capital Group said the two companies have agreed to an all-stock merger of equals to form Janus Henderson Global Investors PLC, in a move which will take Henderson off the London Stock Exchange. The merger will be completed via a share exchange with each share of Janus common stock exchanged for 4.719 newly issued shares in Henderson. The companies said Henderson shareholders will hold approximately 57% of the resulting merged company and Janus shareholders 43%. Janus and Henderson said the combined company would have more than USD320.00 billion in assets under management and a market capitalisation of approximately USD6.00 billion.
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SVG Capital confirmed a Sky News report that two groups of investors are preparing rival takeover offers for the London-listed private equity investor to trump the hostile bid made by rival private equity group HarbourVest. The two consortia include US investment bank Goldman Sachs and the Canada Pension Plan Investment Board.
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Primary care property investor Assura said it has appointed Finance Director Jonathan Murphy as its interim chief executive officer, while also saying it grew its rental income in its first half. The company said Murphy will continue to serve as finance director and will hold the interim chief executive officer position until a permanent replacement can be found. Simon Laffin, who has been executive chairman since March, will revert to his non-executive role.
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Pumps and valves maker Weir Group said it has appointed John Heasley as its new chief financial officer with immediate effect. Heasley moves from his role as managing director of Weir's Flow Control unit. He had joined the company in 2008 as financial controller, having previously worked for ScottishPower. Heasley takes over from Jon Stanton, who became Weir's chief executive last week.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Medical products group ConvaTec confirmed its plan to float in London in late October or early November, in what will be one of the largest listings in the UK since the country voted in June to leave the European Union. ConvaTec focuses on products for managing chronic conditions, including acute wound care, ostomy care and continence products, and infusion devices used in treating diabetes. ConvaTec will seek to raise around USD1.8 billion from its float, which will be primarily used to pay down debt and part of which will go to its selling shareholders, private equity firms Nordic Capital and Avista Capital Partners. ConvaTec did not provide details on its anticipated market capitalisation upon admission, but Sky News, reporting the company's plans to float earlier, indicated it may be valued at up to GBP5.0 billion.
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Retail investors are to be given the opportunity to take part in the proposed GBP10.00 billion float of O2 UK, the mobile operator being spun off by Spain's Telefonica, The Times reported. The move would mark the first big initial public offering in London with a retail component since the UK government floated postal service operator Royal Mail PLC in 2013. Dependent on market conditions, the IPO of O2 UK is set to take place in late 2016 or early 2017, the newspaper said.
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Stockbroker and investment bank Numis Corp said that despite a slowdown in stock market activity around the UK's referendum on the EU, its revenue grew by 14% year on year for the year ended September 30. Numis said corporate activity continued into the second-half of the year and its current deal pipeline is "encouraging", having acted in 46 equity deals in the year, 19 in the second-half, and raised funds just below GBP1.90 billion.
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COMPANIES - INTERNATIONAL
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Deutsche Bank may reach an agreement with labour representatives this week that will pave the way for the German lender to eliminate about 1,000 jobs in its home market as part of Chief Executive Officer John Cryan's cost cuts announced last year, Bloomberg reported citing people with knowledge of the matter. The report noted that the planned job cuts, which need to be signed off by the works council, will mostly affect back-office staff such as in information technology services. The Frankfurt-based lender in June struck an agreement with its works council to eliminate about 3,000 full-time positions, including 2,500 jobs at its private and commercial clients business, in a first round of talks.
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European Commission antitrust regulators are likely to fine Alphabet-owned Google as they plan to stop the search engine from anti-competitive Android practices, Reuters reported Saturday, citing an EU document. The company was accused of using its dominant Android mobile operating system to shut out rivals. It was reported that Google could face a large fine because of these ongoing practices that started from January 2011.
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Volkswagen confirmed late Friday in a federal court filing that it has agreed to pay up to USD1.21 billion to settle claims of its 652 US dealerships related the emissions scandal. The settlement, which reflects an average payout of USD1.85 million to dealers, must still be approved by a judge in San Francisco.
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The number of accounts stolen in a hack of Yahoo's data systems may top 1 billion, more than double the number acknowledged by the company, Business Insider reported. The report cited an unnamed former Yahoo executive who said all of Yahoo's products rely on a single user database for authentication. The database held personal details of between 700 million and 1 billion active users at the the time of the hack in 2014, according to the report.
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Monday's Shareholder Meetings

no events scheduled
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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