Ms Intl. Share News (MSI)

LONDON (Alliance News) - UK shares are higher at the open Wednesday, led by some individual companies and some positive Chinese economic data overnight.

Meggitt leads the FTSE 100, up 9.2%, amid speculation emanating from the Farnborough Air Show, and reported by the Daily Mail, of a takeover by US-based United Technologies.

Royal Mail is at the bottom of the blue-chip index after saying its has received a notice from the French competition authority about alleged breaches of antitrust laws.

After Sports Direct International shareholders finally approved a bonus share award for Mike Ashley, the retailer's founder and deputy chairman, the company said Wednesday he won't take them.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.5% at 6,746.11
FTSE 250: up 0.4% at 15,502.48
AIM ALL-SHARE: up 0.1% at 774.44
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Hang Seng: up 0.3% at 23,519.15
Nikkei 225: closed down 0.1% at 15,379.30
DJIA: closed up 0.03% at 17,060.68
S&P 500: closed down 0.2% at 1,973.28
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GBP-USD: flat at USD1.7137
EUR-USD:down at USD1.3554

GOLD: up at USD1,296.88 per ounce
OIL (Brent): up at USD107.30 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 British Summer Time)

09:00 Italy Trade Balance
09:30 UK Unemployment Rate and Average Earnings
10:00 EU Trade Balance
10:00 Switzerland ZEW Survey
n/a Germany 10-year Bond Auction
12:00 US MBA Mortgage Applications
13:30 Canada Manufacturing Shipments
13:30 US Producer Price Index
14:00 US Net TIC Flows
14:15 US Industrial Production and Capacity Utilization
15:00 Canada Bank of Canada Interest Rate Decision and Statement
15:00 US Fed's Yellen testifies
15:00 US NAHB Housing Market Index
15:30 Canada Bank of Canada Monetary Policy Report
15:30 US EIA Crude Oil Stocks
16:15 Canada Bank of Canada Press Conference
17:00 US Fed's Richard Fisher's speech
19:00 US Fed's Beige Book
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Chinese economic growth edged up in the second quarter to reach 7.5% year on year, official figures showed Wednesday. The figure matched the Chinese government's current target for annual GDP growth, and beat analysts' expectations by 0.1%. Growth in the previous quarter was 7.4% compared to the same period the previous year. The National Statistics bureau said the economy had expanded by 7.4% overall in the first half of the year compared to last year, Xinhua news agency reported.
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CHINA INDUSTRIAL PRODUCTION +9.2% ON YEAR IN JUNE
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CHINA RETAIL SALES +12.4% ON YEAR IN JUNE
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A gradual increase in short-term interest rates will serve the US economy well, Esther George, President of the Federal Reserve Bank of Kansas City, said Wednesday. The economy has been steadily improving post the crisis in the past five years, however, the rate of recovery still remains weak, she said. Though the labor market is optimistic and new job creations are increasing, the more than expected inflation rates, particularly inflation in food prices and rents, puts a strain on the low-income households in the face of nominal wages.
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US President Barack Obama telephoned Tuesday with German Chancellor Angela Merkel, personally discussing the latest allegations of US spying in Berlin for the first time, the White House said. The two leaders had not spoken since allegations became public in early July that a German intelligence agent and a Defence Ministry worker had passed documents to US spies. Last week German authorities announced that the CIA station chief at the US embassy in Berlin was being expelled. During Tuesday's call, the two leaders "exchanged views on US-German intelligence cooperation, and the president said he'd remain in close communication on ways to improve cooperation going forward," the White House said in a statement.
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A mammoth free trade deal being hammered out by the EU and the US came under attack Tuesday, as EU lawmakers said "opaque" negotiations would lead to an erosion of standards and undue protection for investors. EU Trade Commissioner Karel De Gucht joined the parliamentary debate, which coincided with this week's sixth round of negotiations on the pact, known as the Transatlantic Trade and Investment Partnership (TTIP). "The criticism from the population at the TTIP negotiations is becoming ever stronger," EU lawmaker Helmut Scholz of the far-left GUE/NGL party told the commissioner, calling on him to pause the talks and reconsider.
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Almost 20 civilians were killed in two days of rocket attacks in eastern Ukraine, authorities said Tuesday, while Germany stepped up efforts to restart peace negotiations. Eleven people were killed and eight more injured when a house collapsed in Snizhne early Tuesday, a city between Donetsk and the border with Russia, the Donetsk regional administration said. The administration gave no explanation, but separatists pinned the blame for the airstrike on the Ukrainian armed forces. In a fresh attempt to find a political solution, German Chancellor Angela Merkel and Ukrainian President Petro Poroshenko discussed a possible new round of the so-called contact group.
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The number of dead in the conflict in Gaza reached more than 200, a Palestinian official said Wednesday, as cross-border attacks continued with rockets from militants in the Gaza Strip and airstrikes from the Israeli military. Palestinian armed groups on Tuesday rejected an truce proposed by Egypt, prompting Israel to warn that it would intensify a deadly offensive aimed at curbing rocket attacks. Israeli warplanes bombed targets throughout the Gaza Strip about every 10 minutes, killing at least 10 Palestinians since the strikes resumed late Tuesday afternoon.
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The leaders of the BRICS nations agreed to set up a new USD100 billion development bank and another USD100 billion currency reserve to reduce their dependence on global financial lenders and to bring stability in the financial system of emerging nations. At the sixth summit of BRICS, held in Brazil on Tuesday, Brazilian President Dilma Rousseff, her Russian counterpart Vladimir Putin, Indian Prime Minister Narendra Modi, Chinese President Xi Jinping and South African President Jacob Zuma agreed on the terms of launching the new bank. The bank will be based in Shanghai, China and the first president will be from India with the first chair of the bank board of governors from Russia.
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Japanese regulators approved the restart of nuclear reactors near an active volcano amid lingering worries following the 2011 Fukushima atomic disaster, a media report said. Japan's Nuclear Regulatory Authority unveiled a draft safety screening report required to reactivate the two reactors at the Sendai Nuclear Power Station, located 50 kilometres from the active volcano Sakurajima on the southern island of Kyushu, the Kyodo News agency reported.
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BROKER RATING CHANGES
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UBS CUTS RSA INSURANCE TO 'SELL' ('NEUTRAL') - TARGET 427 (455) PENCE
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DEUTSCHE BANK CUTS BWIN.PARTY TO 'HOLD' ('BUY') - TARGET 110 (170) PENCE
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UBS ADDS WH SMITH TO 'GENERAL RETAILERS LEAST PREFERRED LIST'
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UBS REMOVES N BROWN FROM 'GENERAL RETAILERS LEAST PREFERRED LIST'
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COMPANIES - FTSE 100
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Sports Direct International PLC said Executive Deputy Chairman Mike Ashley, has withdrawn from the company's 2015 Bonus Share Scheme. In an about turn after extensive discussions with the board and shareholders as well as revised bonus scheme proposals - during which the company's share price took a hit after shareholders blocked a GBP72.5 million share bonus package for Ashley, the company's founder and biggest shareholder - the retailer said Ashley does not wish to be awarded any shares under the 2015 Bonus Share Scheme. At the beginning of July the company's shareholders voted in favour of its 2015 Bonus Plan for executives, in a move that would have resulted in founder Ashley receiving his first remuneration since the company listed in 2007.
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Anglo-Australian mining giant Rio Tinto PLC reported that global iron ore production for the second quarter grew 11% from last year, reflecting productivity improvements and the completion of ramp up of mining operations in the Pilbara region. The company also maintained its full-year 2014 production guidance, while raising copper production guidance. Rio Tinto, the world's second largest iron-ore producer, said global iron ore production for the second quarter increased 11% on a 100% basis from last year to 73.1 million tonnes, with Rio Tinto's share also growing 11% from last year to 57.5 million tonnes. Iron ore sale accounts for roughly 90% of the profit of Rio Tinto.
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Fresnillo PLC said total silver production for its second quarter compared to the previous year was flat as increased Silverstream production offset lower production elsewhere, while its gold production rates continued to be low as a result of explosion permit problems and stoppages earlier in the year. The precious metals miner, operating in Mexico, said its total silver production was flat at 10.9 million ounces for the three months ended June 30, as a 13% increase in its Silverstream production to 1.1 million ounces offset a 1.3% fall in its other silver operations to 9.8 million ounces.
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Royal Mail PLC said certain group companies have received notice from Autorité de la Concurrence, the French competition authority, that one of its subsidiaries, GLS France, is involved in an investigation which alleges breaches of antitrust laws. Royal Mail said that the notice alleges breaches of antitrust laws by its GLS France business in connection with a broader investigation into "alleged activities within the industry in France." In a statement Wednesday the FTSE 100-listed company said, "We are currently considering the notice received from the French regulator. Given the early stage of this matter, we cannot yet determine the amount or range of potential loss; however, it is possible that it could be material."
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Severn Trent PLC said trading across the group has been in line with expectations since April 1, with its forecasted bad debt level maintained at around 2.2% of revenue for the full-year to March 2015.
In an interim management statement for the period April 1 to date, Severn Trent said operating expenditure continues to be in line with internal expectations, while operating costs are expected to rise year-on-year due to the impact of inflation and power costs.
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Institute Of Directors Raises Concerns Over Experian's Chairman Appointment
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Glaxo, Theravance Announce Global Phase III Study Called IMPACT; Study Relates To Patients With COPD
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British Land Says Retail Occupancy Up 10 Bps To 98.6%
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London Stock Exchange Q1 Total Income Up 16% To GBP323.9M; Q1 Revenue GBP299.9M Vs GBP249.7M; Q1 Capital Markets Revenues Up 16%; Expects To Post Rights Issue Prospectus In Late August; CEO Pleased By Continued IPO Resurgence
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COMPANIES - FTSE 250
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ICAP PLC said first-quarter revenue fell by 19%, hit by currency movements and tough trading conditions. In a statement, ICAP said its performance between April 1 and July 15 was hurt by a 10% fall, to USD707.0 billion, in average daily electronic volumes for its BrokerTec and EBS platforms. In addition, ICAP's global broking division, which now contributes less than 30% of group profits as the interdealer broker intensifies its focus on its post trade businesses, saw a 25% fall in its reported revenues. These weaknesses were partly offset by double-digit revenue growth in ICAP's post trade risk and information division, and growth in EBS Direct volumes, which averaged USD11.0 billion a day in June.
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Workspace Group: Total Rent Roll Of GBP61.0M Up 4.6% In Quarter To June 30; Like-For-Like Rent Roll Up 3.3% In Quarter To June 30; Like-For-Like Occupancy Up 0.6% In Quarter To June 30
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Balfour Beatty HK Venture Wins Two Building Contracts Worth GBP300M Total
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Fenner Says Trading Since March Has Been In Line With Expectations
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Evraz Q2 Saleable Coke Production Down 31.5% To 273,000t; Q2 Pig Iron Production Up 0.8% To 3.1Mt; Q2 Crude Steel Production Down 4.2% To 3.9Mt
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Euromoney Says Trading Has Continued In Line With Board Expectations; Says Quarterly Revenues Fell By 6% To GBP106.6M; Attributes Revenue Fall To Currency Movements; Acquiring Trade, Certain Assets Of Summit Professional Networks; Main Asset Acquired Is Investing in African Mining Indaba; Paying GBP45.3M, Funded Through Existing Borrowing; Expects Acquisition To Boost Earnings For FY To Sept 30 2015
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Oxford Instruments: On Constant Currency, Q1 Orders Ahead Of Last Year
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BTG Says Trading In Q2 has Been In Line With Expectations Across All Business Segments; Says FY Revenues Should Be In The GBP330M To GBP345M In Line With Guidance
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Big Yellow Group: Q1 Like-For-Like Closing Occupancy Across 54 Stores Rose; Total Store Revenue For 55 Stores Was GBP18.6M
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COMPANIES - MAIN MARKET AND AIM
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BrainJuicer Expects To Meet Market Profit Expectations For FY
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e2v Technologies Says Financial Position Remains Strong, Expectations Remain Unchanged
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Ilika FY Pretax Loss GBP3.1M, Vs GBP3.5M Loss Year Before; Revenue GBP1.049M, Vs GBP1.004M Year Before; Says Has GBP600,000 Revenue Already Secured For 2014
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APC Technology Warns FY Revenues, Profits To Be Below Market Expectations; Says Unlikely To Fulfil All New Customer Orders In Current FY
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Walker Greenbank Says Brand Sales Up 6.0% In Reported Currency In First 5.5 Mos Of Year; UK Brand Sales Up 10.3%, Overseas Down 0.1% But Up 4.7% In Constant Currency; Says Confident For Remainder Of Year
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Speedy Hire: Group Revenue Rose 15.7% In Three Mon To June 30
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Hochschild Mining Q2 Silver Production Up, 5.0Mt Vs 4.8Mt; Q2 Gold Production Down, 38,670oz Vs 44,760oz; Q2 Total Gold Equivalent Production Down, 121,870oz Vs 124,270oz
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Development Securities To Bring Forward Development Of Preston Barracks
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Wednesday's Scheduled AGMs/EGMs

Severn Trent
RPC Group
ICAP
BT Group
e2v technologies
FirstGroup
BTG
London Stock Exchange Group
Speedy Hire
Big Yellow Group
Workspace Group
Wincanton
Development Securities
Green Dragon Gas
MS International
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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