SGI.L Share News (SGI)

LONDON (Alliance News) - Shares in London have opened higher Wednesday, ahead of a US interest rate decision and monetary policy statement due after the UK close at 1900 BST.

As London nears the peak of its interim earnings season, Barclays, BAT and Sky are in demand following their pre-market updates. Compass, Antofagasta, Capita and St James's Place are lower after theirs.

Hikma Pharmaceuticals tops the FTSE 100, continuing its gains for Tuesday. Jefferies has raised the stock to Buy from Hold after Hikma's acquisitions announced on Tuesday.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: up 0.8% at 6,605.25
FTSE 250: up 0.7% at 17,509.63
AIM ALL-SHARE: up 0.1% at 749.59
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Hang Seng: up 0.4% at 24,596.05
Nikkei 225: closed down 0.1% at 20,302.91
DJIA: closed up 1.1% at 17,630.27
S&P 500: closed up 1.2% at 2,093.25
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GBP: down at USD1.5592
EUR: down at USD1.1037

GOLD: up at USD1,096.88 per ounce
OIL (Brent): down at USD52.82 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 in BST)

09:30 UK M4 Money Supply, Consumer Credit, Mortgage Approvals
11:00 Ireland Retail Sales
12:00 US MBA Mortgage Applications
15:00 US Pending Home Sales
15:30 US EIA Crude Oil Stocks
19:00 US Fed Interest Rate Decision and Monetary Policy Statement
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Greece's government launched negotiations on a new multi-billion-euro bailout programme, insisting that it has taken all the measures agreed with creditors for reaching a deal. Representatives of Greece's creditors started talks at a technical level, visiting Greece's General Accounting Office and the Bank of Greece, a finance ministry official said Tuesday. The same official said "technical groups are expected to complete their work by Friday 31 July" adding that no further meetings are expected during the weekend, "unless otherwise specified".
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NATO ambassadors pledged their "strong solidarity" with Turkey following a series of terrorist attacks in the country, at emergency talks Tuesday in Brussels that did not, however, feature a request from Ankara for military support. "Turkey didn't ask for any additional military NATO presence in Turkey," NATO Secretary General Jens Stoltenberg said. "Turkey has a very capable armed forces - the second-largest army within the alliance."
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US Secretary of State John Kerry sought to win over sceptical lawmakers for the Iran nuclear deal, warning that walking away from the agreement would give Iran the green light to develop a nuclear weapon. "The Vienna plan will provide a stronger, more comprehensive and more lasting means of limiting Iran's nuclear programme than any realistic alternative," Kerry told the Foreign Affairs Committee in the House of Representatives.
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German consumer confidence is set to stabilize in August, survey data from market research group GfK showed. The forward-looking consumer sentiment index came in at 10.1 points, unchanged from July. The score came in line with expectations. The economic expectations index dropped 6.5 points to 18.4 in July. As a result, the economic indicator has lost just under 20 points within two months.
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Confidence among Japan's small and medium-sized enterprises increased in July to reach its highest level in four months, survey figures released by the Shoko Chukin Bank showed. Th small business confidence index rose by 2.4 percentage points to 49.3 in July from 46.9 in the previous month. In May, the score was 48.1.
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BROKER RATING CHANGES
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TRADERS: NUMIS RAISES RATHBONE BROS TO 'ADD' ('HOLD')
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TRADERS: JEFFERIES RAISES HIKMA PHARMACEUTICALS TO 'BUY' ('HOLD')
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GOLDMAN RESUMES GREENE KING WITH 'BUY' - TARGET 1060 PENCE
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GOLDMAN INITIATES BUNZL WITH 'NEUTRAL' - TARGET 1816 PENCE
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COMPANIES - FTSE 100
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In its first set of results since the board sacked Antony Jenkins as chief executive earlier this month, Barclays reported an increase in second-quarter net profit, and revealed plans to intensify the scaling down of its non-core assets. Net profit increased to GBP1.15 billion in the quarter ended June 30, compared with GBP161 million in the corresponding period the prior year. Adjusted pretax profit, a closely watched measure of the bank's performance, increased to GBP1.85 billion in the quarter, up from GBP1.66 billion year-on-year, ahead of the GBP1.75 billion forecast by analysts. Barclays' interim dividend remains at 2.0 pence per share. Barclays is keeping its dividend flat at 6.5p for this year, and targeting a progressive dividend policy over time.
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Sky sweetened its full year dividend as it posted a rise in pretax profit, a year after it agreed to acquire Sky Italia and a majority stake in Sky Deutschland and change its name from British Sky Broadcasting. Sky posted a pretax profit of GBP1.52 billion for the year to end-June, up from GBP1.03 billion a year before, as revenue rose to GBP9.99 billion from GBP7.45 billion. The company proposed a final dividend of 20.5 pence, which takes its total dividend for the year to 32.8 pence, up from 32.0 pence a year before.
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British American Tobacco reported growth in profit in the first half of 2015, although revenue was hit by adverse exchange rate movements, but it said it remains confident it will deliver an improved performance in the second half. Thecompany reported a rise in pretax profit in the six months to June 30 to GBP3.5 billion from GBP2.6 billion, as revenue grew 2.4% at constant rates to GBP7 billion from GBP6.8 billion, but declined 5.9% to GBP6.4 billion at current rates. BAT will pay an interim dividend of 49.4 pence, up from 47.5p.
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St James's Place said it has agreed to acquire Bristol-based Rowan Dartington Holdings, a stockbroker and discretionary investment manager with more than GBP1 billion in funds under management. The wealth management and financial advice company said it the provision of a discretionary fund management service has been on the cards for some time, with the acquisition of Rowan Dartington giving it a platform from which to do just that. The acquisition was revealed as St James's Place said it had a net inflow of funds under management of GBP2.67 billion in the six months to the end of June, compared with GBP2.44 billion in the corresponding period the prior year. That helped funds under management to increase by 6.7% to GBP55.5 billion during the first six months of 2015. St James's Place increased its interim dividend by 20% to 10.72 pence per share.
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The Royal Bank of Scotland Group said it has priced its offering of shares in Citizens Financial Group, having announced it would sell a further stake in the US retail bank on Tuesday. RBS said it will sell 86 million shares in Citizens, or 16% of the total issued share capital of the company, for USD26 per share. RBS will get gross proceeds of USD2.2 billion from the sale and intends to use the proceeds for general business purposes.
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SSE said it has agreed to acquire a 20% stake in four gas fields offshore the Shetland Islands in the UK from Total E&P UK. The gas fields surround the exploration acreage approximately 125 kilometres north-west of the Shetland Islands, collectively known as the Greater Laggan Area. SSE also will have a 20% stake in the gas plant servicing those fields. SSE will pay a total of GBP565 million for the 20% interest and will invest a further GBP350 million between 2015 and 2018 to complete the entire development of those fields.
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Switzerland-based Zurich Insurance said that should it make any offer for RSA Insurance Group PLC, the offer would be made solely in cash. The announcement was made in relation to Swiss market regulations. Shares in RSA closed up 16% on Tuesday following Zurich confirmation that it is running the rule over the insurer.
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Capita said its pretax profit fell in the first half of 2015 despite a rise in revenue, as the group said it has won more contracts in the period and hiked its interim dividend. The FTSE 100-listed outsourcing company said its pretax profit in the half to the end of June was GBP146.1 million, down from GBP152.3 million a year earlier, despite revenue rising to GBP2.29 billion from GBP2.07 billion. It will pay an interim dividend of 10.5 pence, up from 9.6 pence a year earlier.
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Catering services and outsourcing company Compass Group said sales growth in the third quarter was slightly slower than for the rest of the year, but said it is having a strong year, though it will book some restructuring charges related to its offshore and remote business. The FTSE 100-listed group said organic revenue growth in the third quarter to the end of June was 5.1%, slightly slower than the 5.5% growth it registered in the first nine months of the year, with strong business wins in North America and good growth in Europe and Japan offset by a more subdued environment in its fast growing and emerging markets business and in its offshore and remote business, which primarily serves the oil and gas and mining industries.
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Taylor Wimpey said its pretax profit surged in the first half of 2015, driven by higher housing completions and better selling prices, prompting the company to say it will return a further GBP300 million in cash to shareholders. The FTSE 100-listed housebuilder said its pretax profit for the six months to the end of June was GBP237.2 million, up from GBP197.3 million a year earlier, as revenue for the group increased to GBP1.34 billion from GBP1.19 billion. It will pay an interim dividend of 0.49 pence per share, up from 0.24 pence last year.
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COMPANIES - FTSE 250
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Premier Farnell warned it now expects its adjusted operating profit for its first half to be down 10% compared to the previous year, hit by slowing sales, challenging market conditions and the continued weakness of the euro. As a result it now expects adjusted operating profit to be down around 6% compared to the previous year.
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National Express Group Psaid it posted a higher pretax profit for the first half of 2015 as one-off charges it booked a year earlier did not recur and as revenue ticked higher for the transport operator. The company said its pretax profit for the six months to the end of June was GBP54.3 million, up from GBP23.4 million a year earlier, as revenue rose to GBP960.2 million from GBP939.5 million. In constant currencies, National Express said its revenue rose in all of its operations. The group said it will pay an interim dividend of 3.685 pence, up from 3.35 pence per share a year earlier, and said it is on track to generate GBP100 million of free cash for the year.
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COMPANIES - LONDON MAIN MARKET AND AIM
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London-focused property company Quintain Estates & Development confirmed a Sky News report, saying it has agreed to be taken over by US private equity house Lone Star Funds for GBP700 million, at a cash price of 131 pence per share, a 22% premium to the stock's close on Tuesday.
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COMPANIES - INTERNATIONAL
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German conglomerate Bayer reported second-quarter net income advanced 21% to EUR1.152 billion from last year's EUR953 million. Quarterly sales increased 18% to EUR12.09 billion from EUR10.23 billion a year ago. After adjusting for currency and portfolio effects, the increase was 3.7%.
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Twitter shares declined after the company's second quarter net loss narrowed from the year-ago quarter, while its adjusted earnings per share topped Street view. Revenue improved 61% and came above the consensus estimate. The company forecast third quarter revenue in line with estimate and raised the low end of its full-year 2015 revenue guidance.
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Swiss cement giant Holcim, which merged with French peer Lafarge, announcing standalone results for the first half of 2015, reported that net income for the period to shareholders of the company grew 18% to CHF573 million from CHF485 million in the prior-year period.
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Lafarge reported that its second-quarter 2015 net loss group share was EUR381 million, compared to net income of EUR205 million in the same quarter last year. Sales for the quarter grew to EUR3.540 billion from EUR3.367 billion last year. Overall the group continues to see cement demand increasing for the full year. Taking into account volumes trends observed in the first half of the year, the company now estimates market growth of between 1% to 4% in 2015 versus 2014.
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IBM UK disclosed in a regulatory filing that it has appealed a ruling that it unfairly changed its UK pension plan. If the appeal is unsuccessful, it could result in an estimated non-operating one-time pre-tax charge of approximately USD250 million, plus ongoing defined benefit related accruals.
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Gilead Sciences reported a 23% increase in profit for the second quarter from last year, reflecting strong sales of its hepatitis C drug Harvoni. Both revenue and adjusted earnings per share for the quarter beat analysts' estimates. Looking ahead, the company raised its product sales outlook for fiscal 2015.
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HeidelbergCement reported that its profit for the second quarter of 2015 rose by 11% to EUR322 million from EUR290 million in the same quarter last year.
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Procter & Gamble announced the promotion of David Taylor to the role of Chief Executive Officer, as the consumer goods giant replaces Chief Executive AG Lafley for the second time. Taylor, a 35-year-veteran and currently president of Global Beauty, Grooming and Health Care, will take over reins of the company on November 1. Lafley becomes executive chairman.
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Hewlett-Packard said it has agreed to acquire ActiveState Software Inc's Stackato business, an enterprise-ready Platform as a Service solution with Cloud Foundry at its core. The financial terms of the deal were not disclosed. The deal is expected to close in the fourth quarter of HP's fiscal year 2015, upon which the Stackato business will become part of HP Cloud.
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LVMH Moët Hennessy Louis Vuitton, the world's largest maker of luxury goods, reported net profit of EUR1.58 billion for the first half of 2015, up 5% from EUR1.51 billion in the first half of 2014. Total revenue for first half increased 19% to EUR16.71 billion from EUR14.01 billion in the same period last year, driven by strong growth in Europe and the US.
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Wednesday's Scheduled AGMs/EGMs

Tate & Lyle
EMED Mining
Polar Capital Holdings
Acal
James Cropper
Stanley Gibbons
CML Microsystems
WS Atkins
GB Group
TyraTech
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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