Record Share News (REC)

LONDON (Alliance News) - London share prices have opened higher Thursday, after the Greek Parliament approved a second set of economic reforms required to progress the nation's debt bailout agreement.

Market participants also are digesting a slew of UK and international company news.

Unilever and Kingfisher lead the FTSE 100, up 2.1% and 1.9%, respectively, after providing trading updates.

Meanwhile, in the FTSE 250, Britvic said it has bought Brazilian soft drinks company Empresa Brasileira de Bebidas e Alimentos for GBP113.6 million, partly financed by a share issue, and reported a rise in revenue in the third quarter of its financial year. The stock is down 0.3% at the open.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.3% at 6,688.39
FTSE 250: up 0.2% at 17,681.81
AIM ALL-SHARE: up 0.1% at 754.08
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Hang Seng: up 0.7% at 25,454.11
Nikkei 225: closed up 0.4% at 20,683.95
DJIA: closed down 0.4% at 17,851.04
S&P 500: closed down 0.2% at 2,114.15
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GBP: up at USD1.5637
EUR: up at USD1.0952

GOLD: up at USD1,097.58 per ounce
OIL (Brent): down at USD55.93 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 BST)

09:00 Italy Trade Balance
09:30 UK BBA Mortgage Approvals
09:30 UK Retail Sales
11:00 Ireland Gross Domestic Product
13:30 US Jobless Claims
13:30 Canada Retail Sales
15:00 US CB Leading Indicator
15:00 EU Consumer Confidence Preliminary
15:30 US EIA Natural Gas Storage
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Greece cleared another hurdle and stepped into the bailout zone after the government approved the second set of reform measures early Thursday local time, as Prime Minister Alexis Tsipras is seeking to close a deal that will offer up to EUR86 billion debt even as the crisis struck country faces protests and violence. The reforms, which are the final requirement before the country can start the bailout negotiations with its creditors, included lifting of liquidity of banks, deposit security and renewing of the judicial system. In the 300-seat parliament, 230 lawmakers voted in favor of the bill, with support for the ruling party coming from the pro-euro opposition parties. Last week, the Greek parliament passed the first set of reforms that aimed at tax increases and budget disciplines. However, both sets of reforms do not include pension curbing early retirement and raising tax rates for farmers were not included.
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UK car production logged a seven-year high in the first half of the year, data from the Society of Motor Manufacturers and Traders showed. During the first six months of this year, total car production rose 0.3% compared to the same period a year ago, which was the highest half-year level since 2008. Car manufacturing grew 5.4% year-over-year to 143,759 units in June. Export demand surged 9.0% in June from the previous year, while domestic sales declined by 7.1%.
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Japan posted a merchandise trade deficit of JPY69.045 billion in June, the Ministry of Finance said. That missed forecasts for a surplus of JPY45.8 billion following the downwardly revised JPY217.2 billion deficit in May. Exports climbed 9.5% on year to JPY6.505 trillion, shy of expectations for a gain of 10.0% following the 2.4% increase in the previous month. Imports dipped an annual 2.9% to JPY6.574 trillion versus expectations for a fall of 4.2% after tumbling 8.7% a month earlier.
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US Defence Secretary Ashton Carter met Wednesday with Saudi King Salman to reassure the key Washington ally about the international nuclear deal struck last week with Iran. Carter discussed US-Saudi relations and developments in the Middle East with the monarch, the official Saudi Press Agency reported. Carter reassured King Salman that the US remains committed to peace and stability in the region, the agency reported without details.
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Yemen's exiled government reopened Aden airport on Wednesday, a week after its loyalists retook control of most of the southern port city. A Saudi military plane landed at the airport, marking the reopening. The airport was closed about four months ago because of fighting between forces loyal to the exiled president, Abd Rabu Mansour Hadi, and Iran-backed Houthi rebels.
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French lawmakers approved a bill aimed a reducing the reliance on nuclear power in favour of greener sources of energy. The Socialist majority in the lower house of parliament approved the bill, which seeks to cut the share of nuclear power in the energy mix from 75% to 50% in 10 years. It also aims at bringing CO2 emissions by 2050 to 75% less than their 1990 levels.
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BROKER RATING CHANGES
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TRADERS: MACQUARIE CUTS BT GROUP TO 'UNDERPERFORM' ('NEUTRAL')
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TRADERS: MACQUARIE RAISES SKY TO 'OUTPERFORM' ('NEUTRAL')
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TRADERS: MACQUARIE CUTS TALKTALK TELECOM TO 'NEUTRAL' ('OUTPERFORM')
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BERENBERG INITIATES SPIRE HEALTHCARE WITH 'BUY' - TARGET 420 PENCE
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GOLDMAN RESUMES KAZ MINERALS WITH 'SELL' - TARGET 137 PENCE
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COMPANIES - FTSE 100
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Unilever reported a drop in profit in the first half of 2015, although revenue grew in each of its Personal Care, Foods, Refreshment and Home Care divisions. The maker of consumer products including Ben & Jerry's ice cream, Lipton tea, Vaseline and Dove beauty products, and Persil washing power, reported a 14% drop in pretax profit to EUR3.6 billion from EUR4.2 billion in the first half, although revenue grew 12% to EUR27 billion from EUR24.1 billion. Both are at reported currencies. At constant currencies, revenue grew 1.8% and pretax profit fell 21%. Unilever will pay a quarterly dividend for the second quarter of EUR0.302 per share.
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SABMiller reported a drop in reported net producer revenue in the first quarter of its financial year, but said it grew on a constant currency basis, as volume growth was mixed in different geographic regions. The brewer, which makes Grolsch, Peroni and Coors beers, said that reported net producer revenue in the quarter to June 30 declined 10% due to the depreciation of some currencies against the US dollar, but grew 3% on a constant currency basis.
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Anglo-Dutch publisher RELX Group reiterated its outlook for 2015 as it posted a flat pretax profit for its first half, in its first results as a consolidated group. The company, formerly known as Reed Elsevier, recently transferred the assets of its UK and Dutch parent companies into a new single group entity called RELX Group PLC. RELX said it has now fully aligned the boards of the two parent companies. RELX posted a pretax profit of GBP601 million for the half year to end-June, broadly flat from GBP606 million a year before, as a rise in revenue to GBP2.96 billion from GBP2.85 billion was offset by a rise in cost of sales and operating expenses.
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SSE said production across most all of its divisions, except coal, rose in the first quarter of the financial year, but it reported a fall in customer accounts and average customer consumption. The UK energy provider said the number of retail electricity and gas customers at the end of March had fallen to 8.49 million from 8.58 million at the end of March 2014. Average customer consumption of electricity in the first quarter fell to 822,000 kilowatt hours from 853,000 kilowatt hours a year earlier. However, average gas consumption experienced a small lift to 75 therms per customer from 68 therms. SSE said it is aiming for a minimum of 115.0 pence of adjusted earnings per share for the full financial year and reiterated its dividend increase will be at least equal to RPI inflation.
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Aberdeen Asset Management said its assets under management dropped in the third quarter of its financial years amid outflows related to volatility in Asian and emerging markets. The asset manager said its assets under management fell to GBP307.3 billion at the end of June, down from GBP330.6 billion at the end of March. Aberdeen attributed the fall to market conditions and foreign exchange movements.
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Kingfisher reported a rise in sales on a constant currency basis in the second quarter of its financial year, as it demonstrated growth in each of the regions it operates in and as it continues with its strategy to create a unified 'ONE' Kingfisher. The DIY retailer, which owns brands including B&Q, Screwfix and Castorama, said that total sales in the 10 weeks to July 11 grew 4.8% on a constant currency basis, while like-for-like revenue rose 3.5%.
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Supermarket J Sainsbury said it has launched a GBP250 million perpetual subordinated bond issue. The proceeds from the issue will be used for general corporate purposes, Sainsbury's said, including lending to its subsidiaries and contributions to its pension funds. The bonds will have no fixed redemption date and will be optionally convertible into fully paid new and/or existing ordinary shares of Sainsbury's. The initial conversion price is expected to be at a premium of 30.0% to 35.0% to the volume-weighted average price of Sainsbury's shares between launch and pricing.
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The Royal Bank of Scotland Group said it has struck a GBP400 million deal to sell a portfolio of loans to an entity managed by Deutsche Bank and funds affiliated with US private equity firm Apollo Global Management. The bank said it will receive GBP400 million in cash from the sale of the portfolio, with the proceeds to be used for general corporate purposes.
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The US Department of the Interior has granted the final two permits to Royal Dutch Shell to start exploring for crude oil in the Arctic this summer, but has said the company cannot drill into the oil zone until the required emergency equipment arrives in the region, Reuters reports. The department's Bureau of Safety and Environmental Enforcement conditionally granted Shell's permits for exploration in the Chukchi Sea off Alaska, but said the company must have emergency equipment to contain a potential blown-out well deployable within 24 hours before drilling begins.
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Thousands of shareholders in Lloyds Banking Group have started a GBP350 million court compensation claim over the bank's takeover of HBOS at the height of the financial crisis in November 2008, The Daily Telegraph reports. The shareholders argue Lloyds and its directors failed to fully disclose the troubled state of HBOS's finances when it distributed the takeover documents. They claim that they were hit to the tune of GBP1 per share from the HBOS deal and are now seeking to claim that back from the lender.
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COMPANIES - FTSE 250
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Britvic said it has bought Brazilian soft drinks company Empresa Brasileira de Bebidas e Alimentos for GBP113.6 million, partly financed by a share issue, and reported a rise in revenue in the third quarter of its financial year. Britvic said the acquisition will provide it with access to the world's sixth largest soft drinks market and the largest concentrates market globally, and will allow it to introduce its current brands into the Brazilian market. Britvic said it will place up to 12.4 million shares, 4.97% of its current total, through an accelerated bookbuild process in order to raise GBP90 million to fund its acquisition of ebba, which would equate to 725.81 pence per share. Britvic shares closed at 733.31p on Wednesday.
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Kitchens and joinery products manufacturer Howden Joinery Group hiked its interim dividend on the back of a rise in pretax profit and revenue in the first half of 2015. Howden said its pretax profit in the half to the end of June was up to GBP59.2 million from GBP57.2 million, with growth held back somewhat by higher selling and disribution costs and administrative expenses, as the group continues to invest to expand its operations. The rise in profit and strong underlying trading prompted the group to hike its interim dividend to 2.8 pence per share, up from 1.9p a year earlier.
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Investment trust Alliance Trust said its returns proved disappointing in what was a turbulent first half for the company. Alliance Trust said its net asset value total return in the six months to the end of June was 1.4%, with its total shareholder return at 2.7%. The returns were "disappointing", Alliance said, and were hit in the second quarter by weakness in some of its income holdings. "The first half of 2015 was a particularly challenging period for Alliance Trust. In the run up to our AGM a significant proportion of our shareholder base indicated that they sought change. The board has listened to these concerns and is actively engaged in addressing them. The board anticipates announcing, in the Autumn, the changes that it intends to make," said Chairman Karin Forseke.
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TSB Banking Group said its pretax profit fell heavily in the first half of 2015, in line with its expectations, primarily due to lower average loan balances and the recognition of its full-year Financial Services Compensation Scheme levy in the period. The bank, which is set to be acquired by Spanish lender Banco Sabadell for GBP1.7 billion, said its pretax profit fell to GBP23.2 million in the six months to the end of June, down from the GBP41.7 million profit it posted in the second half of 2015.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Banknote printer De La Rue said its trading in the first quarter of its financial year has been satisfactory and in line with its expectations. The company, which was relegated from the FTSE 250 in the most recent quarterly review, said that while market conditions remain challenging in its currency division, it has secured a number of important orders. De La Rue said 90% of the orders needed to secure its expected revenue for the current financial year is secured and is has an encouraging pipeline in place. Its identity systems and security products business are both trading in line.
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Daily Mail and General Trust lowered its expectations for its full year, citing a weaker UK print advertising market and challenging financial market conditions it experienced in its third quarter. The media and business information company now expects its full year results to be towards the lower end of market expectations. On a reported basis the company saw revenue rise 2% for the quarter to end-June, however, on adjusted basis, meaning at constant currency and stripping out costs including sales, acquisitions, closures and non-annual events, revenue fell 1%.
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COMPANIES - INTERNATIONAL
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Patients who started using an experimental Alzheimer's drug earlier in time did better in memory and thinking tests than those who received delayed treatment, the US drug company Eli Lilly said. The drug solanezumab is one of several drugs now in late-stage testing in the elusive search for help in preventing or at least delaying the disease that causes cognitive and memory decline, especially in the older age groups.
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Swiss lender Credit Suisse Group said its second-quarter attributable net income totalled CHF1.051 billion, compared to a loss of CHF700 million ast year that included the CHF1.6 billion litigation charge related to settlements with US authorities. Net revenue grew 8% to CHF6.955 billion from CHF6.463 billion last year. Looking ahead, the lender said that so far in the third quarter, it has seen continued momentum in Asia Pacific, Wealth Management Clients and equities. However, the weaker trends in the fixed income markets seen in June have continued into July.
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Package delivery company UPS is in talks to buy Coyote Logistics LLC for about USD1.8 billion, Bloomberg reported citing people familiar with the matter. The report indicated that a deal for the Chicago-based provider of transport-management services could be reached as soon as this month.
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Swiss drug maker Roche Group reported its first-half IFRS net income declined 7% to CHF5.25 billion from last year's CHF5.64 billion. Group sales increased 3% to CHF23.59 billion from CHF22.97 billion a year ago. At constant exchange rates, sales grew 6%. Looking ahead, Roche said it continues to expect sales to grow low- to mid-single digit at constant exchange rates in 2015.
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Qualcomm reported a 47% decline in third-quarter profit, hurt by a sharp drop in revenue and as well on impairment charges. However, quarterly earnings topped Wall Street estimates, while sales fell short of expectations. The mobile chip maker provided weak guidance for the current quarter and slashed its outlook for the full year, indicating the tough times it is enmeshed in. Qualcomm said it will cut 15% of its workforce, reduce USD1.14 billion in annual costs, and consider spinning off its businesses. The move seem to stem from pressure put on by key stakeholder and activist investor, Jana Partners.
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Swiss engineering firm ABB said its second-quarter net income declined to USD588 million from USD636 million in the previous year. Revenue declined to USD9.165 billion from USD10.190 billion in the previous year, but grew 3% on a like-for-like basis. Analysts expected revenues of USD9.09 billion. Orders fell to USD8.996 billion from USD10.567 billion, and slid 4% on a like-for-like basis.
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American Express reported a drop in profit for the second quarter, hurt largely by lower revenues and the absence of a gain from a sale of a unit last year. Nonetheless, earnings for the quarter trumped Wall Street expectations, while revenues fell short of estimates.
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Bank of America said Chief Financial Officer Bruce Thompson has decided to step down after 5 and half years as chief risk officer and chief financial officer. Paul Donofrio, who has been with Bank of America since 1999, will become CFO, effective August 1.
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Thursday's Scheduled AGMs/EGMs

Land Securities Group
Premier Foods
Electrocomponents
Halma
Shanks Group
Sefton Resources
Record
Green Dragon Gas
Royal Mail
Mothercare
SSE
Bloomsbury Publishing
Synergy Health
Caffyns
De La Rue
Dee Valley
F&C Global Smaller Companies
Fuller Smith & Turner
Personal Assets Trust
SABMiller
Vertu Motors
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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