Kingfisher Share News (KGF)

LONDON (Alliance News) - UK supermarket shares lead FTSE 100 gainers Friday after Tesco revealed that it has slowed the decline in its sales, giving the market something other than Greece to talk about.

Amid an overall down market, Tesco shares are up 3.2%, with Sainsbury's up 1.9% and Morrisons up 1.3%.

At the other end of the blue-chip table, ARM Holdings is down 2.9% after the chip-maker was cut to Underperform from Market-Perform by Bernstein.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.6% at 6,768.13
FTSE 250: down 0.4% at 17,872.87
AIM ALL-SHARE: flat at 772.08
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Hang Seng: down 1.7% at 26,694.77
Nikkei 225: closed down 0.3% at 20,706.15
DJIA: closed down 0.4% at 17,890.36
S&P 500: closed down 0.3% at 2,102.31
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GBP: down at USD1.5723
EUR: down at USD1.1195

GOLD: down at USD1,172.20 per ounce
OIL (Brent): flat at USD63.32 a barrel

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

EU Extraordinary Economic Summit
09:00 Italy Consumer and Business Confidence
09:00 EU M3 Money Supply and Private loans
15:00 US Reuters/Michigan Consumer Sentiment Index
15:15 UK BOE Governor Carney speech
17:45 US Fed's George Speech
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Greece and its creditors failed to strike a bailout deal despite two days of intense negotiations, pushing the crisis into the weekend and the country closer to debt arrears. The two sides had been under pressure to reach an agreement in time for an EU summit that got underway on Thursday afternoon, but officials said that last-minute adjustments to the Greek proposals had made a quick resolution impossible. Eurogroup chief Jeroen Dijssebloem said after chairing a meeting of eurozone finance ministers that "on a number of issues, there is still a wide gap with the Greek authorities." German Chancellor Angela Merkel added: "We have not yet made the necessary progress and in some places there is even the impression that we are falling behind a bit."
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Britain and the EU kicked off a negotiation on the terms of the country's membership in the bloc, ahead of an in-out referendum that London plans to hold by late 2017. "The process of British reform and renegotiation...is now properly underway," Prime Minister David Cameron said after a first, brief presentation to his EU counterparts at a summit in Brussels. Officials expect the negotiation to be drawn-out, given its technical complexity and political sensitivity. "One thing should be clear from the very beginning: the fundamental values of the EU are not for sale and so are non-negotiable," warned the bloc's president, Donald Tusk.
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The Confederation of British Industry said the upcoming July 8th UK budget should lock in progress on deficit and investment. In a release following a meeting between the UK Chancellor George Osborne and CBI's John Cridland and Katja Hall, the CBI said progress on cutting the deficit, movement towards a business tax roadmap and an action plan to increase productivity should be the priorities for the upcoming budget. The CBI is of the view that business confidence is based on clear fiscal rules and reform of business rates.
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Consumer prices in Japan climbed at a slower rate of 0.1% compared with a year earlier in May due to plunging crude oil prices, the government said. The core consumer price index, which excludes fresh food, stood at 103.4 in May against a base of 100 for 2010, the Ministry of Internal Affairs and Communications said. The inflation rate stood at 0.3% in April, still far below the 2% target set by the Bank of Japan in April 2013.
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The unemployment rate in Japan was a seasonally adjusted 3.3% in May, the Ministry of Internal Affairs and Communications said - unchanged and in line with expectations.
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EU leaders agree on the principle of redistributing 40,000 asylum seekers across their bloc, but leave the details to be hashed out later amid disagreements on whether member states should be obliged to take in the migrants. "Leaders agreed that 40,000 persons in need will be relocated from Greece and Italy to other states over the next two years. Interior ministers will finalize the scheme by the end of July," EU President Donald Tusk said.
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EU member states gave the final approval for a EUR21 billion fund that will form the heart of a much-touted investment programme intended to boost growth and jobs across the bloc. Despite emerging from recession, the EU's economy remains sluggish, with investments still below pre-crisis levels. The aim of the fund is to provide guarantees attracting around EUR315 billion of investments for projects that would otherwise have been considered too risky.
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Traffic was brought to a standstill across large parts of France Thursday as taxi drivers parked their cars and took to the picket lines to protest Uber, an internet-based car-hire service they say competes unfairly with their business. Much of the work stoppage was focused on Paris, where strikers lit fires along the ringroad and refused to provide service at the city's two main airports and train stations. There were a few isolated reports of violence.
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Russian President Vladimir Putin called US President Barack Obama to discuss the situation in Ukraine and other topics, the White House said. Obama reiterated his demand that Russia to fulfill its commitments under the Minsk agreements, including the removal of all Russian troops and equipment from Ukrainian territory. Putin and Obama also discussed the increasingly dangerous situation in Syria, according to the statement.
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US President Barack Obama's signature domestic achievement withstood another Supreme Court challenge, as the court upheld the subsidies provided under the healthcare reform law known as Obamacare. In a 6 to 3 ruling, the Supreme Court determined that the government can continue providing lower-income Americans with subsidies to purchase health insurance through either the federal or state exchanges.
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BROKER RATING CHANGES
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DAVY INITIATES KINGFISHER WITH 'UNDERPERFORM'
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TRADERS: BERNSTEIN CUTS ARM TO 'UNDERPERFORM' ('MARKET-PERFORM')
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TRADERS: HSBC STARTS ASTRAZENECA WITH 'HOLD' - PRICE TARGET 4640 PENCE
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TRADERS: HSBC STARTS GLAXOSMITHKLINE WITH 'BUY' - PRICE TARGET 1700 PENCE
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TRADERS: LIBERUM RAISES GLAXOSMITHKLINE TO 'HOLD' ('SELL')
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COMPANIES - FTSE 100
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Tesco reported a slower decline in like-for-like sales in the first quarter of its financial year than in the same period a year before, as the grocer tries to pick itself up from the difficult year it recently finished and it continues cutting prices in a deflationary UK food market. The UK's largest retailer reported a 1% drop in group like-for-like sales excluding fuel in the 13 weeks to May 30. Combined UK and Republic of Ireland like-for-like sales excluding fuel declined 1.5% and international like-for-likes fell 1.0%. In the same period last year, the UK and Republic of Ireland like-for-like sales declined 4.1%, while international like-for-like sales declined 1.7%.
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COMPANIES - FTSE 250
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Homewares retailer Dunelm Group said it has appointed John Browett as its new chief executive, with current chief Will Adderley to revert to his role as deputy chairman. Browett will join Dunelm's board on July 1 and will take over as chief executive on January 1, 2016 following a six-month handover period working alongside Adderley. Browett is the former chief executive of Dixons Retail, the electronics retailer which merged with Carphone Warehouse to form Dixons Carphone last year, and spent his early career working at supermarket Tesco. He joins the company from his role as the chief executive of women's fashion retailer Monsoon Accessorize.
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Private equity firm Cinven confirmed it has sold its remaining 8.4% stake in private hospital group Spire Healthcare Group for GBP115.2 million. Cinven sold 33.89 million shares in Spire at 340 pence per share. Spire shares closed at 349.00p Thursday. Cinven previously sold a 10% stake in Spire for GBP136.4 million in April, and on Monday agreed to sell a further 29.9% interest in Spire to Remgro, the major shareholder in South Africa-based private hospital group Mediclinic, for GBP432 million. Following the completion of the sale of shares to Remgro, Cinven will no longer hold any shares in Spire.
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Miner Lonmin welcomed the report published into the Marikana mine deaths in South Africa in 2012, when striking mineworkers were shot to death by police. In 2012, a wildcat strike was called at the Lonmin-owned mine, resulting in violent clashes between members of the South African Police Service, Lonmin security, and leaders of the National Union of Mineworkers. Forty one striking mineworkers were killed after the police opened fire, prompting international condemnation after much of the violence was caught by television cameras. Lonmin said it considered the publication of the report by the Marikana Commission of Inquiry to be a "vital step in the healing process after the tragedy of Marikana", though it said any detailed response to the findings would not be helpful so soon after its publication.
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Steel, mining and vanadium company Evraz late Thursday priced a four year RUB15 billion bond at a coupon rate of 12.95% per year and said it plans to use proceeds from the bond issue to refinance its existing debt. Sberbank CIB, VTB Bank and Sviaz-Bank are acting as joint lead managers and bookrunners, and KIT-Finance and RONIN Corp are acting as co-lead managers.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Security software and hardware developer Sophos Group said it has priced its upcoming IPO, with the company set to have a market capitalisation of around GBP1.01 billion at the start of conditional dealings Friday morning. The offer price for the issue has been set at 225 pence per share, with the company to float 156.5 million shares, representing 34.8% of its issued share capital. Sophos said it will raise around USD125 million in the offer, more than the USD100 million it said it expected to raise when it first announced its plans earlier this month.
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Trinity Mirror said it is expanding its cost reduction programme due to a "more challenging revenue environment", as it expects revenue in its first half to fall, although it still anticipates meeting profit expectations for its full year. For the 26 weeks to June 28, Trinity expects revenue to fall 11% compared to the previous year, as more challenging print advertising markets will lead to a 19% fall in print advertising revenue. Circulation revenue is expected to fall by 6%, although revenue trends will show improvement from May after a cover price increase for the Daily Mirror's Monday to Friday edition, the company said.
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Corporate broker and private wealth manager WH Ireland Group said it has performed well in the first half of the year, with trading stronger year-on-year. The company said its private wealth management arm has continued to grow its asset base, with total assets under management and administration rising to GBP2.8 billion at the end of May, the middle of its financial year, up from GBP2.7 billion at the end of November 2014. In its corporate broking arm, its corporate client base has increased to 98, compared to 92 a year earlier, boosting its recurring retainer fee income.
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Trakm8 Holdings said it has secured a GBP1.1 million contract from a division of shipping and marine services company Bibby Line Group. Under the deal, Trakm8 will provide Bibby Distribution's fleet with a fleet management platform powered by its T8 mini device.
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COMPANIES - INTERNATIONAL
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Canadian fertilizer giant Potash Corp of Saskatchewan said it has made a private proposal to German potash maker K+S Group to negotiate that company's acquisition. Potash Corp added there is no certainty that any offer will ultimately be made, or as to the terms of such an offer. Meanwhile, K+S responded to the announcement by saying that it is currently assessing the available options and the process is still ongoing. According to media reports, Potash Corp has offered to acquire K+S in a deal valued at more than EUR7 billion. Potash Corp has a market capitalization of USD26 billion, while K+S has a market capitalization of EUR5.6 billion.
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Health insurer Aetna is closing in on a deal to buy Humana and a transaction could take place as early as this weekend, Bloomberg said, quoting people familiar with the matter. Talks between the two companies have gained momentum, spurred by recent merger negotiations between Anthem and Cigna, Bloomberg said. While finer details of the merger talks are yet to emerge, Aetna has made a formal cash and stock bid this week, Bloomberg said; any proposal would probably value Humana above its USD28 billion market capitalization.
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Nike, the world's largest athletic shoes and apparel maker, said its fourth quarter profit rose 24% from last year, helped by higher revenue and improved gross margin amid strong growth in North America. The company's quarterly earnings per share also came in above analysts' expectations, as did its quarterly revenue.
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Friday's Scheduled AGMs/EGMs

Tesco
Premier Veterinary Group
Exillon Energy
Lekoil
Independent Oil & Gas
Telit Communications
Boohoo.Com
Fastjet
Providence Resources
Castle Street Investments
Hummingbird Resources
Aberdeen New Thai Investment Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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