Lloyds Share News (LLOY)

LONDON (Alliance News) - UK shares have opened firmly Thursday, as markets await monetary policy announcements by the Bank of England and European Central Bank.

Ahead of the ECB statement and press conference by President Mario Draghi, the euro is trading down against the dollar at a rate last seen in September 2003.

The firm open in London comes despite a decline by the Hong Kong and Shanghai stock markets, after China reduced its growth target. Still, miner Rio Tinto leads FTSE 100 losers in London, down 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: up 0.1% at 6,922.42
FTSE 250: up 0.4% at 17,205.04
AIM ALL-SHARE: down 0.1% at 711.51
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Hang Seng: closed down 1.1% at 24,193.04
Nikkei 225: closed up 0.3% at 18,751.84
DJIA: closed down 0.6% at 18,096.90
S&P 500: closed down 0.4% at 2,098.53
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GBP-USD: down at USD1.5251
EUR-USD: down at USD1.1045

GOLD: down at USD1,201.51 per ounce
OIL (Brent): down at USD60.42 a barrel

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

09:00 Italy Gross Domestic Product
12:00 UK BoE Interest Rate and Asset Purchase Facility 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, Unit Labor Costs, Nonfarm Productivity
15:00 US Factory Orders
15:00 US FOMC Member Williams speech
15:00 Canada Ivey Purchasing Managers Index
15:30 US EIA Natural Gas Storage
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China's Premier Li Keqiang lowered the growth target for China this year to "approximately 7%." The sobering projection was in his report presented at the opening of the 11-day annual session of its nominal state parliament, the National People's Congress. Li's speech outlined a government work report on the country's key economic policies for this year. He said China faces challenges including sluggish investment growth, falling prices on manufactured products and an "inefficient" growth model, coupled with problems of overcapacity and lack of innovation. The country's economy grew last year by 7.4% - the weakest growth in 24 years - missing the 7.5% target announced at last year's congress.
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The European Central Bank is expected to set the stage for the formal launch this month of its new EUR1.1 trillion asset-buying programme, while leaving interest rates on hold at historic lows. The ECB's 25 head-governing council meeting in the Cypriot capital of Nicosia - one of the Frankfurt-based bank's regular out-of-town meetings - comes six weeks after chief Mario Draghi unveiled bank plans to spend EUR60 billion a day on buying public and private assets as part of a broad-based quantitative easing programme. After so far providing relatively few details about the programme, Draghi is expected to use his Thursday press conference to set out technical details of the scheme, which have been eagerly awaited by markets. This includes announcing the date when it will start.
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The US Senate failed to override President Barack Obama's veto of legislation calling for the construction of the Keystone XL oil pipeline. Sixty-two senators voted to override, five votes short of the two-thirds supermajority needed to block a presidential veto. Obama vetoed the measure last week, following through on a long-standing promise to do so.
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The US ambassador to South Korea was knifed by an activist shouting pro-unification slogans, officials and news reports said. Mark Lippert was hospitalized with injuries to his right cheek and left wrist, as well as cuts to his arm and fingers, Yonhap News Report said, citing unnamed officials. His injuries were not life-threatening, the US State Department said.
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BROKER RATING CHANGES
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GOLDMAN RAISES ITV TO 'CONVICTION BUY LIST' ('BUY') - TARGET 284 (253) PENCE
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CS CUTS RIGHTMOVE TO 'NEUTRAL' ('OUTPERFORM') - TARGET 3220 (2700) PENCE
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COMPANIES - FTSE 100
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London Stock Exchange Group reported higher operating profit for 2014, as strong growth in revenue was partially offset by a rise in costs, and it said it has also got a number of expressions of interest in the Russell Investment Management business it is trying to sell. The stock exchange and clearing house operator reported an operating profit of GBP346.0 million for 2014, up from GBP329.4 million in 2013, as revenue jumped by nearly a third to GBP1.28 billion, from GBP974.0 million, thanks to growth in all businesses bar its CC&G and Monte Titoli post trade services businesses. It said it will pay a 12.8 pence a share final dividend for 2014, up 6.5% on an equivalent basis. The company's results and comparisons are skewed by changing its financial year.
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Admiral Group reported a lower profit for 2014, hit by investments it made in a US price comparison site and lower average premiums in its UK car insurance business. The insurer reported a pretax profit excluding minority interests of GBP357 million for 2014, down from GBP371 million in 2013. Pretax profit fell to GBP350.7 million, from GBP370.2 million, as net insurance premium revenue dropped to GBP464.9 million, from GBP483.0 million, partly offset by a fall in net insurance claims to GBP259.1 million from GBP303.0 million. Admiral will pay a final dividend for 2014 of 49.0 pence, comprising a 22.5p normal dividend and 26.5p special dividend. That brings its total dividend for the year to 98.4p, down from 99.5p in 2013.
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Aviva said its turnaround is ongoing as it reported a fall in net profit for 2014 due to the 2013 sale of its US life and related internal asset management businesses, but operating profit excluding this rose as increases in its life business, general insurance and health helped to offset a fall in fund management operating profit. In what could be its last annual earnings statement in its current form with the proposed GBP5.6 billion acquisition of life insurance rival Friends Life Group expected to complete in the second quarter of 2015, Aviva said its net profit fell to GBP1.74 billion in 2014, compared with GBP2.15 billion in 2013. Friends Life, meanwhile, swung to a net loss of GBP138 million in 2014, compared with a net profit of GBP235 million in 2013.
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Schroders raised its dividend as it reported growth in pretax profit, net inflows from clients and assets under management in 2014. In a statement, the asset manager said it made a GBP517.1 million pretax profit in 2014, compared with GBP447.5 million in the prior year, as net revenue rose by GBP123.6 million to GBP1.53 billion and operating expenses increased by GBP55.3 million to GBP1.03 billion. Schroders upped its dividend for 2014 by 20 pence to 78.0 pence per share.
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EasyJet and Aer Lingus both reported improvements in key traffic metrics in February, with low-cost airline easyJet reporting increases in both passenger numbers and the measure of how full its planes are. Easyjet said it flew nearly 4.5 million passengers in February, up 6.1% from 4.2 million in February 2013, while its load factor, a measure of how full its planes are, rose to 90.9%, from 90.7%. Traffic at Aer Lingus, measured in revenue passenger kilometres, rose 6.9% in February, while load factor rose 1.9 percentage points to 69.2%.
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Aggreko reported a fall in profit in 2014, mainly due to large hit from the strength of sterling on its translated overseas earnings, while revenue was broadly flat as challenging trading in Asia Pacific offset strong growth in the Americas and a good performance in Europe, Middle East and Africa. The temporary power company also said 2015 had got off to an encouraging start, although it warned it may face a hit from the recent sharp fall in oil price later in the year and it's currently expecting its key profit measure to be flat compared with 2014. Aggreko reported a pretax profit of GBP289 million for 2014, down from GBP333 million in 2013. Aggreko said it will pay a final dividend of 17.74 pence, bringing the total for the year to 27.12p, up from 26.30p in 2013. It had already paid a 75 pence special dividend in 2014.
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The Bank of England’s chief banking supervisor has told British lawmakers that he is holding HSBC Holdings’ top executives’ “feet to the fire” to ensure they simplify the group and improve its risk controls after a tax evasion scandal at its Swiss private bank, the Financial Times reports. The comment from Andrew Bailey, head of the Prudential Regulation Authority, increases the pressure on the biggest British bank to accelerate plans for shedding businesses it judges too risky to manage in an increasingly strict regulatory climate, the paper says.
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COMPANIES - FTSE 250
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Satellite communications company Inmarsat reported stronger profit and revenue in 2014 on the back of growth in its maritime, aviation and LightSquared business, which offset weakness in its government and enterprise divisions. The company said pretax profit for the year was USD342.8 million, up from USD189.1 million last year, boosted in part by higher revenue and also by the non-recurrence of a USD185.2 million impairment charge it booked in 2013. The company said it intends to pay a final dividend of 30.26 cents per share, up from 28.82 cents a year earlier, pushing its total dividend to 48.94 cents, up 5% year-on-year.
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Online betting firm Betfair Group revised up its full-year earnings expectations, after delivering revenue growth of 20% in the third quarter, its fourth consecutive quarter of double-digit growth, as it continues to attract new customers. The company said it is now expecting full-year earnings before interest, taxes, amortisation and depreciation of between GBP113 million and GBP118 million for its financial year to end-April, having said at its half-year results that it was expecting a figure between GBP97 million and GBP103 million.
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Aerospace and defence manufacturer Cobham reported a big fall in pretax profit for 2014 despite higher revenue, as the company's results were held back by restructuring and acquisition costs. Cobham said its pretax profit for the year was GBP24 million, sharply down from the GBP127 million it posted a year earlier due to costs related to the acquisition of US communications equipment maker Aeroflex and restructuring measures. Despite the fall in profit, the company is recommending a 10% hike to its total dividend for the year to 10.65 pence, up from 9.68 pence a year earlier. That includes a 7.746 pence final dividend, up from 7.04 pence in 2013.
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Hunting said it has increased its final dividend by 5% despite its pretax profit falling in 2014 due to impairment charges. Profit from continuing operations, before impairment charges, totalled USD217.8 million, up from USD200 million a year earlier. But pretax profit was USD108.5 million, down from USD136.4 million. Despite the fall in profit, the company increased its final dividend by 5% to 22.9 cents per share from the 21.8 cents per share paid a year earlier, as Hunting has "confidence in the longer term fundamentals of our industry," it said.
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Spirax-Sarco Engineering added its name to the list of UK engineering companies which saw results held back by the strength of sterling in 2014, with the company reporting a small fall in pretax profit, though the company sweetened the pill with a GBP91 million return of capital. FTSE 250 constituent Spirax-Sarco said its pretax profit for 2014 edged down to GBP144.8 million from GBP145.7 million last year, as revenue fell to GBP678.3 million from GBP689.4 million. At constant exchange rates, revenue rose by 5%, the company said. Despite the fall in pretax profit, the company said it will increase its final dividend payment to 45 pence per share, from 41 pence last year, meaning its total dividend for the year will be 64.5 pence, up 9% on the 59 pence per share paid a year earlier. In addition to the dividend hike, the company said it would return GBP91 million to shareholders via a special dividend, translating to 120 pence per share.
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Specialty chemicals company Croda International appointed Anita Frew as its non-executive chairman designate. She will take up the non-executive directorship with immediate effect and will take over as chairman from Martin Flower in September, Croda said, when Flower is due to retire. Frew is currently the deputy chairman of Lloyds Banking Group and a senior independent director on the board of engineering company IMI.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Quindell said it has sold off its minority stake in Nationwide Accident Repair Services PLC, has reached a litigation settlement on Navseeker Inc and will issue shares to cover the consolidation of its property services arm. The insurance outsourcing company said it struck a deal on Wednesday to sell its 25% minority stake in Nationwide Accident Repair Services for 65 pence per share, raising approximately GBP7.1 million. That will go towards general working capital, Quindell said.
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Genel Energy reported a significant rise in revenue and production in 2014 and said its expects "significant further growth" in 2015, but the company swung to a pretax loss in 2014 on the back of significant depreciation charges and write offs. Genel reported a substantial rise in revenue of USD519.7 million for the year ended December 31, from USD347.9 million a year earlier, driven by an increase in production. Earnings before interest, tax, depreciation, amortization and exploration expenses totalled USD410.6 million, also a rise from USD274.8 million.
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COMPANIES - INTERNATIONAL
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Technology giant Apple Inc has now rescheduled the start of mass production of a larger screen iPad to September 2015 from the previous projection of December 2014, according to a Bloomberg report on Wednesday. Apple is now looking to debut the iPad in the fourth quarter or early 2016. The suppliers of Apple had originally planned to produce the larger screen "iPad Pro" - the 12.9-inch model, in mass volume beginning in December, with a launch expected in the first quarter of 2015. Supplies of the larger screens have been hampered by the strong demand for the two new larger screen smartphones, iPhone 6 and iPhone 6 Plus.
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HBO is in talks with at least five companies including Apple and Google Inc to distribute a web-only service, according to reports citing people familiar with the matter. HBO's current streaming channel, HBO Go, is already available on Apple TV but only to pay-TV subscribers. HBO's new service, tentatively called HBO Now, would let consumers watch the channel via Apple TV without paying for a cable subscription, the reports said.
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Four technology giants - Apple, Google, Intel Corp and Adobe Systems - reportedly reached a tentative USD415 million settlement on a class-action lawsuit related to violation of antitrust laws on poaching each other's employees. The US District Court in San Jose, California has granted preliminary approval for the settlement. US District Judge Lucy Koh stated that the settlement avoids the complex and expensive litigation. The class-action lawsuit was filed in 2011 by about 64,000 current and former employees. The details on the settlement are currently not available.
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Thursday's Scheduled AGMs/EGMs

Avesco Group
CQS Diversified Fund
Jersey Electricity
JPMorgan Russian Securities
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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