3i Group Share News (III)

LONDON (Alliance News) - Shares have opened higher in London Wednesday, shrugging off a weak Chinese GDP report that was as expected and ahead of an ECB interest rate decision and press conference.

Next leads FTSE 100 gainers, up 2.0%, after being raised to Overweight from Neutral by JP Morgan. Fellow fashion retailer Burberry is up 1.7%, after reporting "strong demand" for its heritage trench coats and scarves in the second half of its financial year.

Miner Fresnillo is up 1.8%, after reporting a recovery in gold and silver production.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.2% at 7,092.22
FTSE 250: up 0.1% at 17,868.35
AIM ALL-SHARE: up 0.2% at 743.43
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Hang Seng: down 0.3% at 27,487.53
Nikkei 225: closed down 0.2% at 19,869.76
DJIA: closed up 0.3% at 18,036.70
S&P 500: closed up 0.2% at 2,095.84
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GBP: down at USD1.4768
EUR: down at USD1.0639

GOLD: down at USD1,191.86 per ounce
OIL (Brent): up at USD60.77 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
(all times in BST)

10:00 EU Trade Balance
12:00 US MBA Mortgage Applications
12:45 EU ECB interest rate decision
13:30 EU ECB monetary policy statement and press conference
13:30 Canada Manufacturing Shipments
13:30 US NY Empire State Manufacturing Index
14:00 US Fed's Bullard speech
14:15 US Industrial Production and Capacity Utilization
14:30 UK CB Leading Economic Index
15:00 Canada BoC Interest Rate Decision and Statement
15:00 US NAHB Housing Market Index
15:30 US EIA Crude Oil Stocks change
16:00 Canada BoC Monetary Policy Report
17:15 Canada BoC Press Conference
19:00 US Fed's Beige Book
21:00 US Net TIC Flows
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China's gross domestic product expanded 7.0% on year in the first quarter of 2015, the National Bureau of Statistics said. The headline figure was in line with expectations while slowing from 7.3% in the previous three months. On an annualized quarterly basis, GDP gained 1.3% - below expectations for 1.4% and down from 1.5% in the fourth quarter.
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Germany's consumer prices increased for the second straight month in March as initially estimated, final data from the statistical office Destatis showed. Consumer prices rose 0.3% in March from last year, following a 0.1% increase in February. The annual increase matched the preliminary estimate published on March 30. In January, consumer prices slid 0.4%, which was the first fall since September 2009.
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Japan's industrial production declined BY less than estimated in February, final data from the Ministry of Economy, Trade and Industry showed. Industrial output dropped 3.1% month-on-month in February instead of a 3.4% fall estimated initially. On a yearly basis, production was down 2%.
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The European Central Bank is likely to be in a self-congratulatory mood when it meets Wednesday with signs that its new monetary stimulus plan is helping to spur economic growth and ease the threat of deflation in the eurozone. But looming large over the ECB's 25-head governing council meeting is the risk of a period of political and financial turmoil taking hold in the 19-member currency bloc as a result of the standoff between Greece and its eurozone partners over Athens' bid to renegotiate its bailout deal. Analysts are not expecting ECB to make any major announcements on Wednesday with the bank forecast to leave its benchmark refinancing rate on hold at its historic low of 0.05%.
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Japan's economy needs drastic structural reforms, the Organisation for Economic Co-operation and Development said. The reforms are necessary to reinvigorate the world's third-largest economy and help ensure long-term fiscal sustainability, the latest OECD Economic Survey of Japan said. It focused on Prime Minister Shinzo Abe's economic policies - so-called Abenomics - which are based on the "three arrows" of fiscal stimulus, monetary easing and structural reforms. "The unprecedented use of monetary expansion and flexible fiscal policies must be supplemented by rigorous implementation of Abenomics' crucial third arrow - structural reforms," OECD Secretary-General Angel Gurría said in Tokyo. The OECD expects the Japanese economy to grow 1% in 2015 and 1.4% in 2016.
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A measure that would allow the US Congress to weigh in on a deal over Iran's nuclear programme cleared its first legislative hurdle after lawmakers reached a compromise that the White House finds acceptable. The Senate Foreign Relations Committee unanimously approved an amended version of the Iran Nuclear Agreement Review Act of 2015 that would allow Congress to review a deal before any US sanctions on Iran are lifted. The measure would require Obama to submit the text of the agreement to Congress and prohibit the suspension of sanctions while legislators weigh the deal. The bill now advances to consideration by the full Senate.
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The Islamic State extremist group made major advances inside one of Iraq's largest oil refinery complexes and killed the commander of its garrison. The jihadists seized petrol and crude oil tanks, a security official, speaking on condition of anonymity, told dpa. The Baiji refinery, about 200 kilometres north of Baghdad, accounts for almost a third of Iraq's refinery capacity. It has been out of action since last year, when it was the scene of intense fighting.
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BROKER RATING CHANGES
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TRADERS: JPMORGAN RAISES NEXT TO 'OVERWEIGHT' ('NEUTRAL')
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TRADERS: LIBERUM CUTS SENIOR PLC TO 'HOLD' ('BUY')
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TRADERS: JPMORGAN CUTS VESUVIUS TO 'NEUTRAL' ('OVERWEIGHT')
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GOLDMAN RAISES TULLOW OIL TO 'BUY' ('NEUTRAL') - TARGET 411 (416) PENCE
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TRADERS: NUMIS RAISES SPIRE HEALTHCARE TO 'ADD' ('HOLD')
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COMPANIES - FTSE 100
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Old Mutual said Chief Executive Julian Roberts is to stand down from the role after seven years in the role, with the head of Standard Bank Group's wealth, insurance and non-bank financial services to take over in the fourth quarter of 2015. Roberts was appointed as chief executive in September 2008 after leading the group's Skandia business. He is being replaced by Bruce Hemphill, who took up his role at Standard Bank in February 2014 after joining the Johannesburg-based bank in 2013.
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Fresnillo said gold and silver production increased sharply in the first quarter, putting it on track to achieve its 2015 production guidance. The Mexico-based precious metal miner said silver production in the three months to end-March was 12.4 million ounces, up 18.9% on the year as increased processed ore volume and higher ore grade at the Saucito mine more than offset lower production at the Fresnillo mine. Gold production in the quarter was 182,000 ounces, up 62.4% on the year as the Herradura mine, which had been hit by a temporary explosives permit suspension a year earlier, was fully operational.
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AstraZeneca said the US Food and Drug Administration has granted Orphan Drug Designation for tremelimumab for the treatment of malignant mesothelioma, while the vast majority of an FDA committee had decided that a study into saxagliptin in patients with type 2 diabetes showed an acceptable cardiovascular risk profile. The US Orphan Drug Act provides for granting special status to a drug or biological product to treat a rare disease or condition, meaning the drug developer qualifies for development incentives such as tax credits for clinical testing.
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Burberry Group reported growth in revenue for the second half of its financial year and said it is facing "strong demand" for its core heritage trench coats and scarves. The fashion retailer said underlying revenue for the six months to March 31 was up 9% on the same period last year at GBP1.42 billion from GBP1.30 billion. Underlying retail revenue was up 13% at GBP1.06 billion from GBP928 million on the previous year. It said there was double-digit sales growth in the Americas and Europe, Middle East, India and Africa, with strong performance in the UK, France and Italy from both domestic and travelling luxury customers.
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Bunzl said revenue rose 6% in the first quarter of 2015 from a year earlier, buoyed mainly by acquisitions as it also said it has bought a personal protection equipment company in Turkey. The acquisitive distribution and outsourcing company said underlying revenue was up 2% in the three months to end-March, with the remainder of the revenue growth coming from acquisitions.
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German telecom firm Drillisch announced it has signed sale and purchase agreement with Dixons Carphone on the acquisition of The Phone House Deutschland. The transaction is anticipated to take place by the end of May at the latest. Drillisch specified that the purchase price has two components. The first component, which is due at closing, is foreseen to be paid in the form of new Drillisch shares and is expected to represent about 3% of the outstanding shares of Drillisch AG at closing. The second component consists of future excess cash flows of The Phone House.
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Private equity company 3i Group is understood to be considering plans to sell its stake in independent building materials company MKM Building Supplies amid pledges in both the Conservative and Labour manifestos to boost housebuilding, Sky News reported. Sources told Sky that 3i is planning to sell its 40% stake in MKM, with a number of advisers already sounded out to handle the sale, which one source speculated could raise around GBP200 million.
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COMPANIES - FTSE 250
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JD Sports Fashion reported growth in profit in its recent financial year, boosted by strong sales in sports fashion, and despite a difficult second half following a "very mild autumn and winter". The sportswear retailer reported an 18% rise in pretax profit for the year ended January 31 to GBP90.5 million from GBP76.8 million the year before. Revenue increased 25% to GBP1.5 billion from GBP1.2 billion, while like-for-like sports fashion sales grew 13% on the prior year. It will pay a total dividend of 7.050 pence per share, up 4.1% from 6.775p a year earlier.
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Pets at Home Group said it has signed a five-year, GBP260 million revolving credit facility to refinance its current debt pile. The FTSE 250-listed pet products and services company said the new facility replaces its existing GBP325 million of drawn facilities which carried a rate of Libor +1.9%. The new facility carries a rate of LIBOR +1.5%.
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Energy services company Hunting said the tough oil and gas industry market conditions in the first quarter will result in a sharp drop in operating profit for the company, with its headcount reduced in the quarter and the outlook for both the rest of 2015 and 2016 unclear.
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Jupiter Fund Management reported an increase in assets under management during the first quarter, bolstered by positive market movements and net inflows to its mutual funds. The asset manager said that assets under management increased to GBP34.76 billion from GBP31.90 billion during the first three months of 2015. Net inflows of GBP872 million and a positive market movement of GBP1.99 billion were largely due to the showing of its mutual funds.
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Funds run by US investor Wilbur Ross and Stanhope Investments are looking to sell off a big stake in Virgin Money, the Financial Times reported. According to the report, which cited people familiar with the situation, Ross and Stanhope Investments had been seeking to sell 45 million shares but the size of the offer increased to 60 million shares. The report said that the sale is likely to be priced at 400 pence per share.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Charles Stanley Group revealed plans to raise GBP15.8 million in a share placing designed to strengthen its capital reserves. Charles Stanley said it will issue up to 4.6 million new shares with existing investors in a placing priced at 355 pence per share, with the aim of strengthening its balance sheet and solvency levels so that they are equivalent to more than 125% of its regulatory requirements. Charles Stanley shares were down 0.9% at 367.00 pence Wednesday morning. It intends to cut its dividend for the year ended March 31, 2015, to 5.0 pence per share from 12.25p for the prior year.
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Motif Bio said the US Food and Drug Administration has agreed to the proposed phase three clinical development programme for the iclaprim product, sending shares in partner Amphion Innovations higher in early trade. Motif said the phase three programme is designed to secure marketing approval for an intravenous formulation of iclaprim for the treatment of acute bacterial skin and skin structure infections. The company said that assuming the necessary funds can be raised or a partnership deal secured, the first phase trial for the treatment will start in the second half of 2015.
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Distil said "one of the largest supermarket retailers in the UK" has listed its RedLeg Spiced Rum brand for its stores. The owner of premium drinks brands said the new listing significantly increases the its presence in the UK adding to the growing number of bars that stock the brand. It didn't name the supermarket. The company also said that Blackwoods Limited Edition 60% Gin has now been fully approved by the US Alcohol and Tobacco Tax and Trade Bureau for sale in the US, and will be distributed throughout the US, Virgin Islands and Puerto Rico by The Winebow Group.
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COMPANIES - INTERNATIONAL
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Nokia and Alcatel-Lucent announced the two companies have entered into a memorandum of understanding under which Nokia will make an offer for all of the equity securities issued by Alcatel-Lucent, through a public exchange offer in France and in the US, on the basis of 0.55 of a new Nokia share for every Alcatel-Lucent share. The all-share transaction values Alcatel-Lucent at EUR15.6 billion on a fully diluted basis. Alcatel-Lucent shareholders would own 33.5% of the fully diluted share capital of the combined company, and Nokia shareholders would own 66.5%, assuming full acceptance of the public exchange offer. The combined company will be called Nokia Corp, with headquarters in Finland and a strong presence in France. Risto Siilasmaa is planned to serve as Chairman, and Rajeev Suri as CEO.
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Google was to be charged by the EU with illegally abusing its dominant position in the internet search market, the Financial Times reported, citing unnamed sources familiar with the case. Google was reportedly aware of the charges, telling staff in an internal email on Tuesday that "We have a very strong case, with especially good arguments when it comes to better services for consumers and increased competition," the Financial Times said. The EU's Competition Commissioner Margrethe Vestager planned to serve Google with a formal list of charges, which could force the US company to change the way it does business in Europe, it said.
Google could also face steep fines, the report said.
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Intel Corp said that its first quarter profit rose 3% from last year, helped by improved gross margin and a lower effective tax rate even as revenue remained essentially flat. The company's quarterly earnings per share came in line with analysts' expectations, but its quarterly revenue fell shy of analysts' forecast. At the same time, the Santa Clara, California-based company gave a downbeat revenue outlook for the current quarter.
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Wednesday's Scheduled AGMs/EGMs

Jupiter Fund Management
Savannah Resources
AFC Energy
Tritax Big Box REIT
Hunting
Central Asia Metals
Dialight
JPMorgan Claverhouse Investment Trust
Bunzl
CLS Holdings
Cambian
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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