Rev Bars Share News (RBG)

LONDON (Alliance News) - London stock prices and the pound were both firm early Tuesday, despite US Fed Chair Janet Yellen refusing to rule out a summer hike in US interest rates.

UK company news was dominated by Royal Dutch Shell, whose A shares were up 2.1% after the oil giant raise its synergies target from its acquisition of BG Group and reduced its capex plan for this year.

Insurer esure led mid-cap gainers, up 4.9%, after announcing a strategic review of GoCompare.com, including a possible demerger of the price comparison website business.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.5% at 6,304.02
FTSE 250: up 0.3% at 17,235.03
AIM ALL-SHARE: up 0.2% at 744.67
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Hang Seng: up 1.3% at 21,300.49
Nikkei 225: closed up 0.6% at 16,675.45
DJIA: closed up 0.6% at 17,920.33
S&P 500: closed up 0.5% at 2,109.41
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GBP: up at USD1.4505 (USD1.4461)
EUR: flat at USD1.1358 (USD1.1361)

GOLD: soft at USD1,242.67 per ounce (USD1,246.45)
OIL (Brent): flat at USD50.44 a barrel (USD50.54)

(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 BST)

08:30 UK Halifax house prices
10:00 EU gross domestic product
13:30 US unit labor costs and nonfarm productivity
13:55 US Redbook index
15:00 US IBD/TIPP economic optimism
15:00 Canada Ivey purchasing managers index
20:00 US consumer credit change
21:30 US API weekly crude oil stocks
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In a closely watched speech that may set the tone for next week's rate-setting meeting, Federal Reserve Chair Janet Yellen expressed renewed concerns about the health of the US jobs market. After the economy generated just 38,000 jobs in May, "recent signs of a slowdown in job creation bear close watching," Yellen said. Still, Yellen expects the economy will continue to improve, allowing for "gradual" rate hikes at an unspecified time. "If the May labor report was an aberration or reflects a temporary slowdown resulting from the weakness in economic activity at the start of the year, then job growth should pick up and support further gains in income." Headwinds from abroad warrant close attention, Yellen warned, citing economic problems in China and the negative impact of a the UK's possible exit from the EU.
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UK Prime Minister David Cameron will face a grilling from a live television audience after one of his ministers warned that European Union membership made it harder to deport killers and rapists. Brexit campaigners claimed laws from Brussels meant British judges were unable to return foreign offenders to their EU countries of origin, with justice minister Dominic Raab warning that UK families were less safe as a result. Meanwhile, the Remain camp continued to focus on the economy, highlighting a GBP34.4 billion "export tax" on firms which trade with the EU if the country backs Leave on June 23.
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Like-for-like sales in the UK were up 0.5% on year in May, the British Retail Consortium said. That beat forecasts for an increase of 0.3% following the 0.9% decline in April. Overall retail sales climbed an annual 1.4% in May, the data showed. "However, with signs that the UK's economy is slowing, it's unlikely that this is the beginning of a complete reversal of fortunes," said BRC chief executive Helen Dickinson.
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Germany's industrial production rebounded in April, provisional data from Destatis showed. Industrial output grew by more-than-expected 0.8% on a monthly basis, reversing a 1.1% drop in March. Production was forecast to grow 0.7%. In April, production in industry excluding energy and construction advanced 1.1%.
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France's trade deficit widened in April after narrowing in the previous month, figures from the Customs Office showed. The trade deficit decreased to EUR5.22 billion from EUR4.20 billion in March. In February, the shortfall was EUR5.27 billion.
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The leading index for Japan, which measures the future economic activity, increased less-than-expected in April, preliminary data from the Cabinet Office showed. The leading index rose to 100.5 in April from 99.1 in the previous month, It was just below economists' expectations for a score of 100.6. The latest reading was the highest since November 2015.
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Foreign businesses increasingly question whether they are welcome in China, US Treasury Secretary Jack Lew told Beijing officials. "Concerns about the business climate have grown in recent years, with foreign businesses confronting a more complex regulatory environment...in China," Lew said on the second day of high-level meetings in Beijing between US and Chinese officials. Lew also called on China to improve policy transparency and intellectual property rights.
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Hillary Clinton urged voters in six US states holding Democratic primaries to head to the polls despite news that she had secured the number of delegates needed to be the party's presidential nominee. Clinton said she was "flattered" to find out that a delegate count conducted by the Associated Press showed she had secured the required 2,383 delegates to clinch the nomination. The AP's own count shows Clinton has commitments from the required number of delegates, which will make her the first woman nominated by a major US political party.
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BROKER RATING CHANGES
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TRADERS: CITIGROUP RAISES RIO TINTO TO 'NEUTRAL' (SELL)
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TRADERS: CANACCORD RAISES WEIR GROUP TO 'HOLD' ('SELL')
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N+1 Singer Ups Goals Soccer Centres To Buy From Hold, Target At 150p
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FinnCap Initiates Revolution Bars Group With Buy, Target At 232p
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COMPANIES - FTSE 100
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Royal Dutch Shell said its plans concerning asset sales and debt reduction remain unchanged and it still plans to maintain its dividend this year followed by a share buyback in 2017, as the oil major set out its plan following the acquisition of BG Group. The major change Tuesday was the increase in the amount of synergies that Shell expects to deliver from its GBP35.00 billion takeover of BG Group earlier this year, as Shell now expects to deliver USD4.50 billion worth of "deal-related synergies" in 2018 compared to the original target of USD3.50 billion. Shell also plans to exit up to 10 countries where it currently operates as part of its asset sale programme that will run until 2018, whilst capital investment this year has been reduced by a further USD1.00 billion.
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COMPANIES - FTSE 250
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The UK Competition & Markets Authority said interdealer broker ICAP's sale of its voice-hybrid broking and information businesses to rival Tullett Prebon will face an in-depth investigation, but focused only on oil products broking. The CMA said after considering the 20 overlapping product categories involved in the deal, the regulator believes all but one of these will result no realistic prospect of a substantial lessening of competition as a result of the deal. However, the CMA said the merger does give rise to the prospect of a lessening of competition for the voice-hybrid broking of oil products, where competition from other brokers is more limited.
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Insurer esure Group said it has kicked off a strategic review of its GoCompare.com price comparison service, including a possible spin off, and has appointed a new CEO for the unit. esure said it has re-invigorated the marketing strategy at GoCompare.com in the first year after it acquired the remaining 50% of the business it had not previously owned. It also has restructured the cost base and widened the product focus of the service. This has underpinned esure's guidance for GoCompare.com to deliver a 20% to 30% improvement in profit in 2016, the company said.
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Sports Direct International Chief Executive Dave Forsey will forgo his four-year share bonus, company founder Mike Ashley said in a letter published ahead of his appearance before a UK parliamentary committee. Ashley is set to appear before the Commons Business, Innovation & Skills committee on Tuesday to defend working practices at the sports clothing and equipment retailer's Shirebrook warehouse. Ahead of that appearance, Ashley sent a letter to the company's staff, saying he intends on "defending the good name" of Sports Direct before the committee, adding he will do this as he believes "we have nothing to hide".
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COMPANIES - INTERNATIONAL
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Telecommunications giant Verizon Communications plans to submit a second-round bid of USD3 billion for Yahoo's core Internet business, the Wall Street Journal reported, citing a person familiar with the matter. According to the WSJ report, Verizon was expected to meet Monday's deadline for the second round of bids. The company is seen as the leading contender to acquire Yahoo. Private equity firm TPG was also expected to submit a second-round bid ahead of the deadline.
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US investigators are trying to determine whether Goldman Sachs broke the law when it didn't sound an alarm about a suspicious transaction in Malaysia, the Wall Street Journal reported citing people familiar with the investigation. At issue is USD3 billion Goldman raised via a bond issue for Malaysian state investment fund 1Malaysia Development Bhd, or 1MDB. Days after Goldman sent the proceeds into a Swiss bank account controlled by the fund, half of the money disappeared offshore, with some later ending up in the prime minister's bank account, the Journal said.
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Ford Motor, aiming to make China the top market for its Lincoln luxury line, is in talks with partner Changan Automobile Group about producing the brand's vehicles in Chongqing, Bloomberg reported citing people familiar with the matter. Ford is considering a major manufacturing presence in the southwestern Chinese city that would serve the domestic market and be an Asian export base. Output could begin as soon as 2018 if Lincoln continues strong growth in China, where it got off to a fast start last year.
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Tuesday's Scheduled AGMs/EGMs

Somero Enterprises
Safestay
Iofina
Masawara
InterQuest Group
Cluff Natural Resources
EU Supply
Oxford Biomedica
Gem Diamonds
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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