RDSA.L Share News (RDSA)

LONDON (Alliance News) - Shares opened firm Tuesday, amid hopes for central bank stimulus in China and the European Union.

Brent crude rallied above USD35 a barrel, after Reuters reported that oil officials from Saudi Arabia, Russia and several other key members from the Organization of the Petroleum Exporting Countries will meet on Tuesday for their highest-level discussion in months.

Emerging markets bank Standard Chartered was the biggest FTSE 100 loser early Tuesday, down 3.0%, after Investec downgraded the stock to Hold from Buy. Right behind was Randgold Resources, down 1.5% as the recently strong gold price suffered another setback.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.6% at 5,860.52
FTSE 250: up 0.5% at 15,801.12
AIM ALL-SHARE: flat at 671.65
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Hang Seng: closed up 1.1% at 19,122.08
Nikkei 225: closed up 0.2% at 16,054.43
Wall Street closed for holiday Monday.
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GBP: flat at USD1.4444 (USD1.4437)
EUR: firm at USD1.1164 (USD1.1144 )

GOLD: down at USD1,199.00 per ounce (USD1,205.20)
OIL (Brent): up at USD35.25 a barrel (USD33.57)

(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)

09:00 Italy Trade Balance
09:30 UK Consumer, Retail and Producer Price indices
09:30 UK DCLG House Price Index
10:00 Germany ZEW Survey
10:00 EU ZEW Survey
13:30 US NY Empire State Manufacturing Index
15:00 US NAHB Housing Market Index
21:00 US Net TIC Flows
21:30 US API Weekly Crude Oil Stocks
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Japan applied its first-ever negative interest rate policy from Tuesday in its latest attempt to boost inflation and growth. The Bank of Japan's nine-member board voted 5-4 on January 29 to apply an interest rate of minus 0.1% to current accounts that financial institutions hold at the central bank. This means the bank will impose a 0.1% commission on some deposits, to encourage investors to put their money into the productive economy rather than save it. The bank "will cut the interest rate further into negative territory if judged as necessary," it said.
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The European Central Bank will "possibly" approve fresh stimulus measures next month, its president Mario Draghi confirmed on Monday, commenting on faltering growth and stock market jitters in the eurozone. Acknowledging "a general deterioration in market sentiment [that] has taken root and has gathered pace over the last week," Draghi told the European Parliament in Brussels that the eurozone and the EU "face significant challenges". "The ECB is ready to do its part...The governing council will review and possibly reconsider the monetary policy stance in early March," he added, in comments to the parliament's economic affairs committee. The ECB rate-setting panel is to meet in Frankfurt on March 10.
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Ian McCafferty said he dropped his call for an interest rate hike in the UK because inflationary pressures in the UK have receded. In an interview with The Wall Street Journal published on Monday, McCafferty, one of the nine members of the Bank of England's Monetary Policy Committee, noted the recent fallback in wage growth has meant there is no longer an urgent need for an interest rate hike in the UK. "The upside risks to wage costs and inflation haven't disappeared by any sense, but they have been pushed further out," McCafferty told the newspaper. McCafferty said the Bank of England even has scope to cut interest rates and revive its bond-buying program if the economy lurches downward, telling WSJ: "I certainly don't believe we are out of ammunition."
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EU President Donald Tusk warned that negotiations on reforms demanded by Britain ahead of an in-out referendum are "fragile" and have reached a "critical moment," amid a whirlwind of diplomacy to win over other member states. EU leaders will attempt later this week to strike a deal on the reforms, which British Prime Minister David Cameron has said would allow him to campaign for his country to remain an EU member. Cameron and Tusk are both touring European capitals this week in a bid to drum up support for the reforms on immigration, competitiveness, economic governance and sovereignty. Tusk has prepared a compromise package for the leaders, but is facing resistance in some countries. "The risk of break-up is real because this process is indeed very fragile," Tusk said on Monday evening after talks in Bucharest with Romanian President Klaus Iohannis.
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Oil officials from Saudi Arabia, Russia and several other key members from the Organization of the Petroleum Exporting Countries will meet on Tuesday for their highest-level discussion in months, a possible sign that producers are at last preparing to tackle a devastating supply glut, reported Reuters. According to sources, Reuters said the talks in Doha will involve Saudi Oil Minister Ali al-Naimi and his Russian counterpart Alexander Novak, two figures who must reach an accord for any coordinated global action to hold any hope of success. They will be joined by Venezuela's Oil Minister Eulogio Del Pino, who has in recent weeks been visiting major oil producers to rally support for the idea of "freezing" production at current levels in an effort to halt a downward spiral in prices.
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China's new yuan loans surged to a record high in January ahead of Lunar Near Year holidays as banks usually tend to front load loans at the start of the year. According to figures published by the People's Bank of China, new yuan loans rose to CNY2.51 trillion in January, well above CNY1.9 trillion forecast by economists and CNY597.8 billion credit provided in December.
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US President Barack Obama welcomed leaders from south-east Asian nations to a California retreat centre Monday for talks centred on economic and security issues as part of his administration's broader focus on Asia. The two days of talks with the Association of South-East Asian Nations are the first of their kind to be held on US soil and illustrate the nations' role as a "hub" within the region, White House officials said ahead of the meeting at Sunnylands in Rancho Mirage, California.
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BROKER RATING CHANGES
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Investec Cuts Standard Chartered To Hold From Buy, Price Target 460p
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GOLDMAN REINITIATES SHELL WITH 'BUY' - PRICE TARGET 1805 PENCE
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BERENBERG RESUMES LEGAL & GENERAL WITH 'BUY' - TARGET 276 PENCE
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BERENBERG RESUMES AVIVA WITH 'SELL' - TARGET 417 PENCE
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TRADERS: LIBERUM CUTS CLOSE BROTHERS TO 'HOLD' ('BUY')
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TRADERS: CREDIT SUISSE CUTS PENNON GROUP TO 'UNDERPERFORM' ('NEUTRAL')
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COMPANIES - FTSE 100
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Anglo American reported 2015 earnings that beat analyst expectations despite sharp declines, as the company stepped up its restructuring programme in an attempt to adjust the business to cope with low commodity prices. The multi-commodity miner reported a 55% fall in underlying earnings before interest and tax to USD2.23 billion from USD4.93 billion in 2014. However that was considerably higher than the USD2.00 billion expected by analysts. As previously guided, Anglo American will not pay a final dividend for the year, but shareholders did receive the interim dividend of 32.0 cents announced in 2015. Anglo American said it aims to have positive free cashflow in 2016, importantly at current commodity prices, and said it is targeting a USD1.90 billion Ebit benefit through further cost cutting and productivity improvements.
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Ratings agency Moody's downgraded its rating on Anglo American to junk territory, expressing concerns about further problems in its bulk commodities operations and expressing doubts about its ability to complete the divestments it needs to make. Moody's downgraded its rating on Anglo to Ba3 from Baa3 with a negative outlook.
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Vodafone Group and Liberty Global said they had agreed to merge their operations in the Netherlands, creating a joint venture between the two covering the country. Vodafone had disclosed discussions with Liberty about such a venture at the beginning of February. Under the agreement, Vodafone's Netherlands business will be merged with Liberty Global's Ziggo brand, creating a communications provider with more than 15 million revenue-generating customers, along with a combination of their respective enterprise service platforms. Based upon the value of each business, Vodafone will pay Liberty Global around EUR1.0 billion to equalise the 50:50 ownership of the joint venture.
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India may seize Vodafone Group 's assets in the country if the company doesn't pay a disputed USD2.1 billion tax bill that's still undergoing international arbitration proceedings, Bloomberg reported, citing a copy of the notice that was sent to the company this month. Anil Sant, deputy commissioner of income tax, reportedly informed the company's Vodafone International Holdings Dutch unit of its dues in a letter dated February 4. The dispute traces back to Vodafone's USD11 billion acquisition of a 67% stake in the mobile-phone business owned by Hutchison Whampoa, now part of CK Hutchison Holdings.
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Anglo-South African packaging group Mondi said it is set to report a rise in underlying operating profit in 2015. The group said its underlying operating profit for the full year will be ahead of the EUR767.0 million it posted in 2014, tracking with the 29% rise it had reported for the first nine months of 2015 to the end of September.
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Attractions and theme parks operator Merlin Entertainments said it has hired Anne-Françoise Nesmes as its chief financial officer, poaching her from veterinary pharmaceuticals company Dechra Pharmaceuticals. Nesmes will join Merlin from August 1 and will take over from Andrew Carr, who will retire from the role.
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COMPANIES - FTSE 250
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UK-focused property investor Redefine International said it will seek to raise at least GBP100.0 million through a share placing to finance the acquisition of the second part of the AUK Portfolio. In September, Redefine acquired the AUK portfolio, comprising 19 properties in the UK, mostly in London and the South East, for GBP437.2 million from Aegon UK Property Fund. The second tranche of the acquisition comprises a total of nine properties, and Redefine said the combined portfolio will add GBP28.3 million in gross rental income. Redefine said it will issue up to 375.0 million share in the placing and may increase the total raised to GBP150.0 million should demand be sufficient.
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Precision instrumentation and controls supplier Spectris said restructuring costs and higher spending pushed its profit lower in 2015, exacerbating the mixed trading conditions in its markets as it was hit by a slowdown in the US manufacturing industry. The company said its pretax profit dipped to GBP141.6 million in the year, down 17% from the GBP171.1 million it made a year earlier. Spectris said it will pay a final dividend of 32.2 pence per share, taking its total dividend to 49.5p, up 6.0% year-on-year.
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BGEO Group said it has increased its dividend payout after reporting a solid set of results in 2015 that showed a material rise in revenue and profit. BGEO, the holding company of JSC Bank of Georgia, reported an 30% lift in pretax profit in 2015 to GEL359.4 million from GEL276.6 million a year earlier after revenue soared 39% to GEL861.6 million from GEL621.2 million. BGEO raised its annual dividend for the year by 14% to GEL2.4 per share.
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Automotive online retailer Pendragon said its pretax profit for the full year was up from the previous year, driven by strong demand for used vehicles, as well as investment in its retail facilities. The group said its pretax profit for the year to the end of December rose to GBP79.0 million from GBP64.6 million. Pendragon said its dividend will be 1.3 pence per share for the year, up 44% from last year when dividend was 0.9p, reflecting profit progression.
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Zoopla Property Group revealed it has invested in and formed strategic partnerships with four of the UK's "most-promising and innovative" property technology start-up firms. Zoopla, which owns brands including uSwitch and Primelocation, said it has invested a combined total of GBP1.0 million in the four companies and established exclusive, long term partnerships with each of them.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Solid fuel and bulk material logistics supplier Hargreaves Services posted lower first half pretax profit and revenue, slashed its interim dividend and said it intends to reduce its exposure to thermal coal markets in the next 18 months following a tough half for the group. For the six months to the end of November, Hargreaves Services said its pretax profit dropped to GBP800,000 from GBP15.2 million, as revenue plunged to GBP174.8 million from GBP351.2 million and it booked restructuring costs, as it sought to protect itself amid very challenging coal and steel market conditions in the UK. The weak results meant the group slashed its interim dividend to 1.7 pence per share from 10.0p a year earlier.
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COMPANIES - INTERNATIONAL
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French telecommunications operator Orange reported fiscal 2015 net income for the year attributable to equity holders of the group of EUR2.65 billion, up from EUR925 million in the prior year. Revenue for the year was EUR40.24 billion, a decrease of 0.1% on a comparable basis from EUR40.28 billion last year. Looking ahead to 2016, Orange now expects restated EBITDA higher than in 2015 on a comparable basis.
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Dutch package delivery company TNT Express, which is being acquired by US peer FedEx Corp, reported its fourth quarter profit attributable to equity holders of the parent was EUR19 million, compared to last year's loss of EUR137 million.
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Air Liquide reported its net profit, group share, for the fiscal year 2015 stood at EUR1.756 billion, a 5.5% increase on a reported basis. Consolidated revenue was EUR16.380 billion, an increase of 6.7% on a reported basis compared with 2014 and of 3.3% on a comparable basis.
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Tuesday's Scheduled AGMs/EGMs

Medicx
Vitesse Media (re proposed subscription by Chris Ingram)
Berkeley Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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