Next Share News (NXT)

LONDON (Alliance News) - FTSE 100 fashion retailer Next provided the first glimpse of the full Christmas trading period Tuesday, and the news wasn't great.

Next reported a rise in sales in the year to January 2, although growth was below the bottom end of its prior guidance. The stock was the biggest blue-chip faller at the open, down 3.0%, despite declaring another special dividend.

Just behind in the red, shares in Aberdeen Asset Management were down 2.8% after Barclays downgraded them to Underweight from Equal Weight.

The broader market was higher, as Chinese stock markets stabilized Tuesday. Among early gainers in London, Royal Mail was up 2.5% after being upgraded to Buy from Hold by Cantor Fitzgerald.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 1.2% at 6,163.40
FTSE 250: up 0.5% at 17,210.62
AIM ALL-SHARE: up 0.1% at 736.26
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Hang Seng: closed down 0.7% at 21,188.72
Nikkei 225: closed down 0.4% at 18,374.00
DJIA: closed down 1.6% at 17,148.94
S&P 500: closed down 1.5% at 2,012.66
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GBP: up at USD1.4712 (USD1.4670)
EUR: firm at USD1.0809 (USD1.0791)

GOLD: up at USD1,076.78 per ounce (USD1,074.80)
OIL (Brent): firm at USD37.07 a barrel (USD36.90)

(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
(all times in GMT)

08:55 Germany Unemployment
09:30 UK PMI Construction
09:30 UK BOE Credit Conditions Survey
10:00 Italy Consumer Price Index
10:00 EU Consumer Price Index
13:30 Canada Raw Material and Industrial Product price indices
13:55 US Redbook index
14:45 US ISM New York index
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China's central bank injected about USD20 billion into the money market on Tuesday, in a bid to support the stock market which crashed a day earlier. The People's Bank of China pumped USD19.94 billion or 130 billion yuan in its 7-day reverse repurchase operation, the biggest such injection since September. Funds were offered at 2.25%. The Chinese stock market witnessed a 7% sell-off on Monday that led to suspending trade after the new "circuit breaker" was triggered on its very first day of introduction.
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A top Federal Reserve official downplayed the Chinese economic slowdown as a factor in determining US monetary policy. "I don't see that as a significant risk to the forecast, but it is certainly a risk," Cleveland Fed President Loretta Mester told Bloomberg in a televised interview. "Underlying fundamentals of the US economy remain very sound," she added.
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Japan's automobile sales increased for the third consecutive month in December, the Japan Automobile Dealers Association said. Auto sales grew 3.1% from last year in December. Sales had increased only 0.3% in November. Sales totaled 239,084 in December. In 2015, auto sales decreased 4.2%.
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Germany's unemployment rate remained unchanged in November, labor force survey published by Destatis showed. The jobless rate came in at adjusted 4.5%, the same rate as seen in October. In the same period last year, the rate was 4.9%. There were 1.94 million unemployed in November, up by 88,000 from October.
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Bahrain, the United Arab Emirates and Sudan followed ally Saudi Arabia's lead in severing or downgrading ties with Iran as regional tensions escalate over the Saudi execution of a Shiite dissident cleric. Bahrain and Sudan cut off diplomatic links with Iran on Monday, and the UAE downgraded its ties with the Islamic republic. Riyadh meanwhile stepped up its own measures against Tehran, with Saudi Arabia's General Civil Aviation Authority announcing that airlines had been instructed to stop all flights to and from Iran. The diplomatic fallout came only hours after the Saudi government broke off relations with Tehran, where protesters had stormed the Saudi embassy on Saturday night to protest Riyadh's execution of Nimr al-Nimr, a Shiite critic of the Saudi authorities.
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US President Barack Obama is seeking to expand background checks on gun buyers as part of efforts to be announced Tuesday that attempt to keep more criminals from getting guns.
The Bureau of Alcohol, Tobacco, Firearms and Explosive will clarify its rules to require anyone engaged in the business of selling firearms regardless of the location to have a license and conduct background checks, US officials told reporters late Monday.
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BROKER RATING CHANGES
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Cantor Fitzgerald Raises Royal Mail To Buy From Hold, Lifts Price Target To 530p From 500p
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BARCLAYS CUTS ABERDEEN ASSET MANAGEMENT TO UNDERWEIGHT (EQUAL WEIGHT) - TARGET 250 (350) PENCE
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TRADERS: CREDIT SUISSE RAISES TRAVIS PERKINS TO 'OUTPERFORM' ('NEUTRAL')
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COMPANIES - FTSE 100
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Next reported a rise in sales in the year to January 2, although growth was below the bottom end of its prior guidance, and said it expects full-year profit to remain within its previously guided range. Next also declared another special dividend. The fashion and homeware retailer said total brand sales rose 3.7% in the year to January 2, with Next Retail up 2.1% and Next Directory up 6.1%. This was below its previously guided range of between 4% and 6% growth for total sales. In the 60 days from October 26 to December 24, total brand sales grew 0.4%, as a 2% increase in Next Directory offset a 0.5% decline in Next Retail. Next said its performance in the fourth quarter was "disappointing" due to unusually warm weather in November and December, while Next Directory was hit by poor stock availability from October onwards.
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HSBC Holdings has escaped formal action from the City regulator over allegations its Swiss private bank helped clients to evade tax, Sky News reported. Citing sources, the report said the UK's Financial Conduct Authority ended its examination of the unit several months ago. The conclusion of the review was not made public at the time it ended, the report said. According to the sources, a major tax investigation was a matter for the UK's tax and customs authority, HM Revenue & Customs.
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Old Mutual late Monday said its Old Mutual (Bermuda) Holdings Ltd subsidiary completed the sale of Old Mutual (Bermuda) Ltd to Beechwood Bermuda Ltd on December 31. "This transaction represents an important step in the preparations for the group's exit from its Bermuda businesses by the end of 2018 when the guaranteed minimum accumulation benefits liabilities to customers are due to expire," Don Hope, chairman of Old Mutual (Bermuda) Holdings, said.
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COMPANIES - FTSE 250
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Property developer Great Portland Estates said it has agreed to sell 60 Great Portland Street in central London for GBP102.2 million, in line with the valuation of the property in September 2015. The FTSE 250-listed company said the property has been sold to Cityhold Office Partnership, a joint venture between TIAA-CREF General Account and the AP1 and AP2 Swedish national pension funds. "The sale of 60 Great Portland Street continues our disciplined and profitable recycling from mature assets back into our largest ever development programme which we expect to be a significant driver of future returns," said Toby Courtauld, Great Portland's chief executive.
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AA said it has inked a joint venture deal to develop connected-car software for services provided by roadside assistance clubs. The venture, which has been named Intelematics Europe, will be co-owned by the AA, roadside assistance clubs in the Netherland and in Austria, and Intelematics, which provides similar services in Australia and has a joint venture in the US with Auto Club Enterprises. The technology will enable information to be shared through a small device embedded in the vehicle in question, which could be used to improve safety and security of vehicles and people in them.
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Bwin.Party Digital Entertainment reported a rise in net revenue in the fourth quarter of 2015, ahead of its merger with smaller peer GVC Holdings. The online gaming company said net revenue in the fourth quarter of 2015 grew 4% year-on-year, driven by sports betting and casino, as strong growth in mobile benefited from further product enhancements. Bwin added that its takeover by peer GVC is expected to complete on February 1.
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Builders' merchant and DIY company Grafton Group said it has acquired London-based timber specialist T Brewer & Co for an undisclosed amount. Grafton said T Brewer has three branches, in Clapham, Enfield and Amersham, and generated around GBP14.0 million in revenue in 2015. The group said the acquisition will extend its coverage in the London merchanting market, providing a new area of growth for the company.
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Central and Eastern European budget airline Wizz Air Holdings said its passenger traffic and load factor both improved in December. Wizz Air said it carried 1.5 million passengers in December, up from 1.3 million a year earlier. For the 12 months to the end of December, its passenger traffic increased 22%, up to 19.2 million from 15.8 million. The company's load factor also improved in December, up 0.8 percentage point to 85.1% from 84.3%.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Russia-focused oil and gas company JKX Oil & Gas hit back at shareholder Proxima Capital Group over its plans to attempt to downsize the company's board and change its direction. Ahead of a general meeting to take place on January 28, JKX said the proposals tabled by Proxima, which owns around a 20% stake in JKX, were "an attempt to seize control of JKX without making a bid for it and thereby avoiding offering a fair premium for it". It said the changes proposed to the board, including the removal of all four of its executive directors, would remove a substantial level of experience from the board, which could harm the value of the company.
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Engineer Fenner said Chief Executive Nick Hobson will take a leave of absence for the company due to "physical ill health". Mark Abrahams, the group's non-executive chairman and former CEO, will become executive chairman on an interim basis and will work alongside Finance Director John Pratt at the helm of the company. However, Abrahams also announced he intends to retire from his role as Fenner's chairman in February 2017, with a search for his successor to start in due course.
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Irish housebuilder Cairn Homes said it has signed a contract to acquire a site in the Hanover Quay area of Dublin for EUR18.0 million. The acquisition is the first made by Cairn in the South Dublin docklands area, close to the Dublin 2 business centre in the city's 'Silicon Docks' high-tech hub, which is home to a number of major US technology companies. The project will allow for the development of more than 100 apartments and is expected to complete in February.
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COMPANIES - INTERNATIONAL
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The US Department of Justice, on behalf of the Environmental Protection Agency, filed a civil complaint in federal court in Detroit, Michigan, against Volkswagen group companies in the US. The Department reportedly is seeking billions of dollars in penalties in the wake of an emissions-cheating crisis at the German auto maker. The civil complaint filed accuses the automaker of four violations of the Clean Air Act and outlines penalties that could amount to as much as USD80 billion - about four times as much as the maximum some legal experts had estimated.
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The board of directors of General Motors chose chief executive Mary Barra as its new chairwoman. Barra, who has served as the company's chief executive since January 2014, was unanimously elected to the be chairwoman of the board, effective immediately. Barra, 54, succeeds Theodore (Tim) Solso, 68, who will continue serving as the Board's lead independent director. Solso said the board concluded it was in the best interests of the company to combine the roles of chair and chief executive "in order to drive the most efficient execution of our plan and vision for the future."
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Automaker Ford Motor said it is tripling its fleet of fully autonomous Ford Fusion Hybrid test vehicles this year. New fleet vehicles will use Velodyne's advanced new Solid-State Hybrid Ultra PUCK Auto sensor, providing precision required for mapping and creating accurate, real-time 3D models of the surrounding environment. Separately, Ford said it is developing ways to pair millions of SYNC-equipped vehicles globally with home automation devices or smart home products.
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The US Federal Communications Commission pushed back by two weeks its informal deadline to complete a review of Charter Communications's purchase of Time Warner Cable. The Commission said it needs more time to examine recent filings on the deal's potential impact to the distribution of Time Warner Cable's regional sports networks and Charter's residential pricing and packaging methods, among other things. The Commission said it is pausing its 180-day informal time clock for 15 days, until January 20. In May, Charter Communications agreed to acquire Time Warner Cable in a cash-and-stock deal. Including debt, the deal valued Time Warner Cable at USD78.7 billion.
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Alphabet disclosed in a regulatory filing that it paid USD380 million to acquire startup Bebop Technologies Inc, founded by Alphabet director and executive Diane Greene. Alphabet, parent of Internet giant Google, offered USD380 million of its shares on December 17 in connection with the acquisition.
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Groupama, France-based mutual insurance company, and Orange announce that they entered into exclusive negotiations with a view to working in partnership to develop a new banking model that will enable Groupama to strengthen its online banking business and Orange to successfully diversify into banking services. The negotiations could result in the acquisition by Orange of a 65% stake in Groupama Banque, enabling it to benefit from an existing operational infrastructure for the launch of Orange Bank.
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Global investment banking major Goldman Sachs has picked up a significant 'minority stake' in Gurgaon, India-based hotel investment and development firm Samhi Hotels for USD66 million to help fund its growth plans, the Economic Times reported. Samhi operates 10 hotels and is developing 16 more under brands such as Marriott, Sheraton and Hyatt. It had raised USD170 million over the past four years.
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Tuesday's Scheduled AGMs/EGMs

Carr's Group
Falkland Oil and Gas (re merger with Rockhopper Exploration)
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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