JPMorgan Chinese Share News (JMC)

LONDON (Alliance News) - UK shares have opened lower Monday following the victory in Greek elections by the anti-austerity SYRIZA party.

Meanwhile, Irish drug-maker Shire and Irish airline Aer Lingus have cornered corporate news attention in London at the start of the week.

Shire's gamble in buying NPS Pharmaceuticals has paid off, with confirmation that NPS's Natpara drug for hypoparathyroidism has been approved by the US Food and Drug administration. Shire shares lead FTSE 100 winners, up 3.0%.

Aer Lingus confirmed it has received a revised EUR2.55 a share cash offer from British Airways owner International Consolidated Airlines Group, and said its board is considering the offer. Aer Lingus shares are up 3.0%.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.5% at 6,801.66
FTSE 250: down 0.4% at 16,401.17
AIM ALL-SHARE: down 0.1% at 695.75
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Hang Seng: closed up 0.2% at 24,909.90
Nikkei 225: closed down 0.3% at 17,468.52
DJIA: closed down 0.8% at 17,672.60
S&P 500: closed down 0.6% at 2,051.82
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GBP-USD: up at USD1.5027
EUR-USD: up at USD1.1225

GOLD: down at USD1,287.75 per ounce
OIL (Brent): down at USD48.23 a barrel

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

09:00 Germany IFO
09:30 UK BBA Mortgage Approvals
10:00 EU Retail Sales
n/a Ireland Retail Sales
15:30 US Dallas Fed Manufacturing Business Index
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Greeks revolted against five years of austerity policies in a landmark vote that saw the leftist anti-bailout SYRIZA party win parliamentary elections. The opposition party earned 36% of the vote, falling short of an absolute majority in the 300-seat parliament by two seats, the Interior Ministry said. Its success could have profound ramifications for the future of the eurozone, which is already suffering from a host of economic ills, and provoke a confrontation with Greece's international creditors. Thousands of SYRIZA supporters flocked to Athens University chanting and waving the party's red and white flags as party leader Alexis Tsipras addressed the crowd. "The vote of the Greek people has closed the vicious circle of austerity," he said, declaring Greece's EUR240 million bailout now "a matter of the past".
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In a monetary union, there should be a fully integrated capital market, European Central Bank executive board member Yves Mersch said. "A truly integrated capital market would not only benefit the European economy because it would ensure an efficient and location-independent allocation of financial resources," Mersch said. "It would also bring with it a greater distribution of risk."
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Majority of Bank of Japan's policymakers said that the drop in oil prices will affect the economy and inflation positively in the long-term, though it is expected to weigh on inflation in the short-term, the minutes of the meeting held on December 18 and 19 showed. However, one member said that the primary focus should be on the underlying trend in prices when considering the future conduct of monetary policy, and that the key was developments in inflation expectations in a broad context, the minutes said.
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Japan's trade deficit decreased more than expected in December, figures from the Ministry of Finance showed. The trade deficit came in at JPY660.7 billion in December, less than the JPY735.2 billion expected by economists. In November, the deficit was at JPY893.5 billion. In the same month of the previous year, the deficit was at JPY1.307 trillion. Exports rose 12.9% year-over-year following the 4.9% in the previous month. This was more than the 11.2% consensus estimate. Imports rebounded by 1.9% after the 1.6% drop in November, slightly less than the 2% increase expected by economists.
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The Islamic State jihadist group claimed responsibility in an internet radio broadcast for the beheading of a Japanese hostage. "The Japanese hostage was executed after the expiration of a deadline that had been reported to Japan," an Islamic State spokesman said on the militant jihadist group's al-Bayan internet radio service. An internet video released Saturday contained an image of what appeared to be the lifeless remains of Haruna Yakawa, 42. Sunday's internet message was the first confirmation by an Islamic State source. The group continues to hold a second Japanese hostage, Kenji Goto.
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Yemen's parliament postponed a planned vote on whether to accept the resignation of President Abd Rabu Mansour Hadi, who stepped down to protest the demands of Houthi rebels, who have overrun the capital, Sana'a. The state news agency Saba, which is controlled by the mainly Shiite Houthis, said the session had been delayed to allow members of the assembly to be notified. Hadi and the government of prime minister Khaled Bahah both resigned Thursday, a day after reaching an apparent deal with the rebel movement, which had surrounded their residences. The resignations left a political vacuum in Yemen with Houthi fighters in control of much of the north while Hadi loyalists in the south have said they will no longer take orders from Sana'a.
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The pro-Western government in Ukraine announced it plans to bring charges before the International Criminal Court in The Hague against the pro-Russian separatists it blames for the large number of civilian deaths in the east of Ukraine. The Ukrainian government would also like to have the self-proclaimed People's Republic of Donetsk and Lugansk declared a terrorist organization internationally. In response to Saturday's attack on the port city of Mariupol, in which at least 30 civilians were killed, Ukraine's National Security Council has ordered new weapons for its armed forces.
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The Islamist group Boko Haram has seized the important transport junction of Monguno during a simultaneous attack upon it and Maiduguri, a north-eastern state capital, Premium Times newspaper reported, citing security sources. The army and air force had repelled the attack on the capital of Borno state, which has a population of 1.2 million people, but Premium Times reported many deaths in the attack.
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BROKER RATING CHANGES
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TRADERS: CANACCORD INITIATES LAND SECURITIES WITH 'BUY'
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TRADERS: CANACCORD INITIATES HAMMERSON WITH 'BUY'
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UBS CUTS SMITHS GROUP TO 'SELL' ('NEUTRAL') - TARGET 1,115 (1,070) PENCE
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TRADERS: JPMORGAN RAISES RANDGOLD RESOURCES TO 'OVERWEIGHT' ('NEUTRAL')
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COMPANIES - FTSE 100
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Irish airline Aer Lingus Group confirmed that it has received a revised EUR2.55 a share cash offer from International Consolidated Airlines Group, and said its board is considering the offer. It is the second time that IAG has raised its offer for the Irish flag carrier, whose major shareholders include the Irish government and Ryanair Holdings. The parent of British Airways and Spain's Iberia originally offered EUR2.30 a share, and then raised its offer to EUR2.40 a share. The latest offer comprises a EUR2.50 a share cash offer for Aer Lingus shares and a cash dividend of EUR0.05 a share, meaning the offer values Aer Lingus at EUR1.36 billion.
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Earlier, the Irish Times newspaper reported that the Irish government plans to consider the takeover bid. Transport Minister Paschal Donohoe was reported as saying the government would assess the value of the offer and any impact of the sale on Ireland's links to the rest of the world. The Irish government, which has a 25.1% stake in Aer Lingus, will have the final say on whether to accept or reject the offer.
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Shire noted that NPS Pharmaceuticals Inc, which Shire is acquiring, has had its Natpara drug for hypoparathyroidism approved by the US Food and Drug administration, saying it was further evidence of the value of the deal. The US FDA has approved Natpara as an adjunct to calcium and vitamin D to control hypocalcemia in patients with hypoparathyroidism, which is a rare endocrine disorder characterized by insufficient levels of parathyroid hormone. The company also announced that its SHP609 compound for the treatment of neurocognitive decline associated with Hunter syndrome has been granted a fast track designation by the US Food and Drug Administration.
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SSE kept its lowered guidance for its results in the current financial year, and said it still expects to pay a dividend for the year that's at least equal to RPI inflation, continuing that policy in future years as well. In a trading statement, the gas and electricity generator said it still expects its results for the year to March 31 to be in line with the guidance it gave when it put out its half-year results last November. At that time, it had said adjusted earnings per share would be towards the lower end of a guidance range it had given in March, and roughly the same level as it had achieved in its last financial year.
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Rolls-Royce Holdings said it has won an order worth about EUR100 million for its MTU rail locomotive engines from China's CNR Dalian. In a statement, the engine maker said it will provide 232 engines for freight locomotives that Dalian is producing for use in South Africa. It expects delivery to take place between 2015 and 2017.
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Vodafone Group said it has signed a new partner agreement with Docomo Pacific covering Guam and the Commonwealth of the Northern Mariana Islands, building on its existing strategic partnership with NTT Docomo. The deal means NTT Docomo becomes Vodafone's preferred partner in Guam and the islands and the two companies will jointly offer business and consumer customers a range of products and services.
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Standard Chartered is to step up its search to find a replacement for Chief Executive Peter Sands after its two largest investors said a succession plan must be put in place so that he can depart by the end of the year, the Sunday Telegraph reported. According to the report, it is understood that Temasek and Aberdeen Asset Management have in recent weeks separately told the emerging markets bank that a successor to Sands must be found within months. Temasek holds a 17.73% stake in Standard Chartered, while Aberdeen's shareholding amounts to about 8%.
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Sports Direct International late Friday increased its exposure to Debenhams, opting to terminate one of its put options for a 6.6% stake in the company, instead taking up a new put-option agreement with Goldman Sachs International for a 10.5% stake. The company reiterated that it does not intend to make an offer for Debenhams, and said that it would encourage Debenhams' leadership team to "concentrate fully on delivering their strategic plans." The company said that, combined with the put option over a 6.1% stake it announced in November, the put options represent a 16.6% interest in Debenhams. Sports Direct's maximum exposure under the two put options is GBP131 million.
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COMPANIES - FTSE 250
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AVEVA Group warned of increasing uncertainty and reduced visibility in the oil and gas market, which has been compounded by the recent sharp decline in oil price, although it expects its fourth-quarter rental renewals to be in line with its "historical experience". In a trading update, the engineering data and design IT system provider said it derives around 45% of its revenues from the oil and gas market. It said that, outside of oil and gas, trends have not changed, with steady growth in the power market and with marine markets subdued.
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Petra Diamonds said two exceptional diamond sales and weakness in the South African rand offset a softer rough diamond market in the first half, as its production fell slightly but revenue rose. FTSE 250-listed Petra said its production in the first half of its financial year to the end of December was down 2% year-on-year to 1.60 million carats from 1.63 million last year. It said it has upgraded its full-year production guidance, however, to 3.3 million carats from 3.2 million previously. Revenue in the half was up 16% to USD214.8 million from USD184.6 million a year earlier, boosted by USD38.7 million in revenue made from the sale of two exceptional diamonds.
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Balfour Beatty said it has been named the preferred bidder for the GBP120 million East Slope Residences project at the University of Sussex. The FTSE 250-listed construction and support services group said it will work in partnership with the university to design, build, finance and operate the project under a 50-year deal.
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LondonMetric Property said it repositioned its portfolio in the third quarter, with a focus on capitalising on the growth of e-commerce, and said it expects to benefit further from capital recycling in the coming year. The FTSE 250-listed property investor said it undertook GBP362.1 million of investment activity in the trading period between October 1 and January 26, of which GBP344.4 million had been previously announced. LondonMetric said it has now substantially repositioned its portfolio, with 90% of its investments concentrated on its core sectors of retailer-led distribution and out-of-town retail properties. The group's core portfolio is 99.5% occupied.
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Card Factory is understood to be in the early stages of a bid for high-street rival Paperchase Ltd, the Daily Telegraph reported. Paperchase has been put up for sale by private equity owner Primary Capital, which has owned the company since acquiring it from American bookstore chain Borders in 2010, and it is thought likely to fetch around GBP150 million, the newspaper said.
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COMPANIES - LONDON MAIN MARKET, AIM AND OTHER
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Recruitment company SThree posted a rise in pretax profit for its financial year and maintained its dividend as revenue increased on the back of a strong performance from its contract business. SThree said its pretax profit for year to November 30 was GBP29.3 million, up from GBP21 million for its previous financial year, which included a 53rd week of trading. Revenue for the year was up to GBP746.9 million from GBP634.3 million.
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Philip Green is understood to be considering takeover offers tabled for his BHS department store chain after receiving "several approaches", the BBC reported. BHS is part of the Arcadia Group, which also includes high street retailers Topshop, Burton and Evans. A spokesperson for Arcadia told the BBC the group has received "several approaches for BHS over the past few months" and said "it is now the company's plan to explore whether any of these can be brought to a conclusion".
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Irish building materials company Kingspan Group said it was in "advanced discussions" to acquire Belgian steel manufacturer Joris Ide Group. Kingspan confirmed the acquisition talks, following recent speculation in the Belgian press.
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Venture Life Group said it has signed a 30-year distribution deal with Chinese retailer REC Cosmetics Ltd, a subsidiary of Gialen Group Co Ltd, a deal which will bring in around GBP40 million in sales for Venture Life. Gialen operates over 1,000 retail skincare and cosmetics stores across China, and is currently embarking on a rapid new store-opening programme. Venture Life said for the initial range, contractual annual minimum purchase obligations have been agreed and are worth around CNY52.8 million, or GBP5.7 million, in sales for Venture Life over the first five years.
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Stobart Group said it had won a 14-year index-linked fuel supply agreement, worth more than GBP110 million in total, to supply a new 40 megawatt waste wood-fuelled biomass plant near Margam, South Wales, its largest supply contract by volume.
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WYG launched a strategic review, saying it will look at all options for the future of the growing business, including whether it would be better off being acquired and made part of a larger group. In a statement, the programme, project management and technical consultancy firm said it will look at strategic options including a strategic partnership, a merger or acquisition, selling a stake in the business to a new investor, selling the company, taking out a new or extended bank facility, or continuing to invest in expanding the business organically and through partnerships and bolt-on acquisitions.
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APR Energy said it has still not received ratification of its contract in Libya and said it has decided to reassign the assets dedicated to this project to other operations, following months of delays related to the contract. APR in December warned the woes it was facing with its Libya contract would drag down its earnings for the year and said it would book a non-cash charge on the contract.
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COMPANIES - INTERNATIONAL
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Google may provide subscribers with the ability to choose the best signal from a variety of sources in its upcoming wireless service, thus ending the reliance on a single carrier, The Wall Street Journal reported, quoting people familiar with the plan. The service is expected to feature new technology that would search through cellular connections provided by Sprint Corp. and T-Mobile US Inc. and Wi-Fi hotspots. It will pick up whichever offers the best signal to route calls, texts and data, the report added.
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South Korean conglomerate Samsung Electronics will supply application processors for Apple's next iPhone, the South Korea-based Maeil Business Newspaper reported, citing sources in the semiconductor industry. Samsung will reportedly supply the application processor A9 for Apple's next handset model, the iPhone 7, and also be responsible for about 75% of the chip production for the smartphone. The A8, iPhone 6's application processor, was solely supplied by Taiwan Semiconductor Manufacturing Co. or TSMC, the world's largest chip foundry operator.
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Apple will unveil its Apple Watch with a battery that may last only 2.5 to 4 hours on very active use, according to a report in 9to5mac. Sources say the Watch should display its clock face for approximately three hours, including watch ticking animations, if nothing else is done with the device. Also, Apple is now targeting 2.5 hours of "heavy" application use, such as processor-intensive gameplay. 9to5mac points out that in passive use where the device is prodded to display, the battery may last several days
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Monday's Scheduled AGMs/EGMs

Punch Taverns
JPMorgan Chinese Investment Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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