LONDON (Alliance News) - UK shares have opened cautiously higher Monday, amid a lack of economic data and with a wary eye on developments in Ukraine.
BSkyB confirmed press reports that has approached its major shareholder 21st Century Fox about buying Sky Deutschland and Sky Italia, in which Fox holds 55% and 100%, respectively. BSkyB said the talks haven't moved beyond the preliminary stage as yet and no agreement has been reached. It said that the public share price of Sky Deutschland would need to remain steady for any deal to be consummated.
Meanwhile, among small-cap stocks, Wessex Exploration unveiled its long-promised Far East acquisition, agreeing to buy Hague And London Oil BV, which comes with a 15% stake in a Philippine oil asset.
Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.2% at 6,827.31
FTSE 250: up 0.3% at 15,931.44
AIM ALL-SHARE: up 0.2% at 807.86
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Hang Seng: up 2.0% at 22,297.95
Nikkei 225: closed down 0.4% at 14,149.52
DJIA: closed up 0.2% at 16,583.34 (record high)
S&P 500: closed up 0.2% at 1,878.48
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GBP-USD: up at USD1.6874
EUR-USD: up at USD1.3771
GOLD: up at USD1,289.93 per ounce
OIL (Brent): up at USD108.32 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Monday's Key Economic Events still to come
(all times British Summer Time)
16:30 US 3- and 6-Month Bill Auction
17:00 US Philadelphia Fed's Plosser speech
19:00 US Monthly Budget Statement
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Residents of eastern Ukraine cast an overwhelming vote for independence Sunday in an unauthorized referendum organized by pro-Russian separatists and rejected by the government in Kiev. The leaders of the self-declared "people's republics" of Donetsk and Lugansk spoke at day's end of an overwhelming vote to declare independence from the central government in Kiev. Pro-Russian separatists said that nearly 90% of voters in the Donetsk region had backed independence. There were no international observers of the election, which was not recognized by the international community.
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Ireland's construction activity continued to expand in April and registered its sharpest growth in more than nine years, data from Markit Economics showed. The Ulster Bank Purchasing Managers' Index rose sharply to 63.5 in April from 60.2 in March. Any reading above 50 indicates expansion in the sector. The construction sector expanded for the past eight months, with the latest expansion the sharpest since December 2004. Both growth of activity and new business reached multi-year highs.
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Japan's economy watchers' assessment of current conditions deteriorated notably in April, while outlook surged from March, survey data showed. The current conditions index plunged to 41.6 in April from 57.9 in the prior month. The score was forecast to fall to 45. Meanwhile, the outlook index climbed more-than-expected to 50.3 from 34.7. The expected reading was 40.
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Key Thai institutions are resisting opposition demands to install an appointed government to make political reforms, reports said. There is no constitutional precedence for the proposal being pushed by anti-government protesters, an unnamed senior judge was quoted as saying by the Bangkok Post. Analysts also said the Senate, the Electoral Commission and various courts were unlikely to implement such a plan because it would put them at risk of breaking the law and exacerbating the conflict. Protesters began moving their rally site in central Bangkok to the area surrounding parliament, hoping to pressure the Senate to appoint an interim government to institute reforms before new elections.
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Egypt's top prosecutor Saturday referred 200 alleged jihadists to trial on terrorism-related charges, including attacks on security forces and facilities. The defendants are affiliated to the radical group Ansar Beit al-Maqdis and will be tried by the Criminal Court, according to a statement from the chief prosecutor's office. The group is believed to be linked to al-Qaeda.
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French President Francois Hollande plans to host an African summit in Paris next Saturday to address the kidnapping of more than 270 Nigerian school girls, according to a report Sunday in Le Monde. Nigeria, Chad, Cameroon, Niger and Benin would likely participate, according to officials close to the president cited by Le Monde.
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South Sudan's tentative ceasefire agreement appeared to be holding with no reports of fresh clashes Saturday, hours after the warring sides signed a deal in Addis Ababa to end hostilities. South Sudanese President Salva Kiir and rebel leader Riek Machar unexpectedly signed an agreement "to immediately cease all hostile activities" late Friday after holding direct talks in Addis Ababa.
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BROKER RATING CHANGES
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TRADERS: EXANE BNP CUTS BARCLAYS TO 'NEUTRAL' ('OUTPERFORM')
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GOLDMAN CUTS UNITED UTILITIES TO 'BUY' ('CONVICTION BUY LIST')
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DEUTSCHE BANK RAISES HALFORDS GROUP TO 'HOLD' ('SELL') - TARGET 430 (410) PENCE
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TRADERS: INVESTEC RAISES NICHOLS TO 'HOLD' ('SELL')
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TRADERS: BARCLAYS CUTS CHEMRING GROUP TO 'UNDERWEIGHT' ('OVERWEIGHT')
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COMPANIES - FTSE 100
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BSkyB Confirms It Initiated Discussions With 21st Century Fox Regarding Buying Germany, Italy TV Assets; Says Discussions Have Not Progressed Beyond Preliminary Stage, No Agreement Has Been Reach, No Certainty One Will; Says Potential Agreement Would Require Sky Deutschland Share Price To Stay "Undisturbed"; Says Any Offer To Sky Deutschland Minority Holders Would Be Made Without Premium
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Pfizer Inc Chief Executive Officer Ian Read said the company's proposed takeover of British drug maker AstraZeneca PLC would be a "win-win" for society and shareholders. In a series of videos posted on Pfizer's website, Ian Read said that the deal would liberate the balance sheet and tax of the combined companies and that will allow them to have great cash flow and together be a stronger company, and together be able to invest in research, and in development, and with the scientific community.
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Meanwhile, AstraZeneca and Amgen Inc said the Phase 3 AMAGINE-1 study evaluating brodalumab in patients with moderate-to-severe plaque psoriasis met all primary and secondary endpoints for both evaluated doses. Brodalumab is the only investigational treatment in development that binds to the interleukin-17 receptor and inhibits inflammatory signaling by blocking the binding of several IL-17 ligands to the receptor.
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Royal Bank of Scotland Group PLC has been ordered by a New York district judge to stop using certain software used for processing loans and credit services in relation to its trade-finance business after a six-year dispute, The Financial Times reported Sunday. According to the FT, RBS was ordered to stop using the software for new trade finance transactions within 60 days and to stop using it completely within a year.
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The UK's Serious Fraud Office has stepped up its probe into Barclays PLC's dealings in Qatar, the Financial Times reported Sunday. According to the FT, former chief executives Bob Diamond and John Varley are set to be questioned under caution by the SFO. The FT said the development represents an acceleration of the SFO's probe into alleged corrupt arrangements in Qatar as part of Barclays' emergency capital raising in 2008.
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BP PLC, Niko Resources Ltd and Reliance Industries Ltd together announced on Saturday that they issued on Friday a notice of arbitration to the Indian government over gas prices. The firms had won the approval in 2013 to nearly double their prices at the Indian natural gas field KG-D6, which they jointly operate, but the companies continued to see delays by the government in putting the changes in place, after implementation of the approval was deferred by India's election watchdog ahead of the ongoing general elections. The three firms said that, without knowledge of the specific price plan, they are unable to sanction planned investments of up to USD4 billion so far in 2014, and that they hope to work with the government to achieve a swift and efficient resolution to the problem.
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Capita Made "Strong Start" To Year, Secured GBP1.1B In Sales Vs GBP660M; Says Bid Pipeline Strong, At GBP5.5B As Of February 27, 2014; Expects Organic Growth, Operating Margins In Line With Consensus Expectations For FY
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Babcock International Named Preferred Bidder For Network Rail's Plain Line Track Works
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COMPANIES - FTSE 250
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Just Retirement Q3 Individual Underwritten Annuity Sales GBP288.0M, Up 34%; CEO: Sales Around Half Of Pre-Budget Levels; Announces Reorganisation To Save GBP14.0M In Next Financial Year; Reorganisation Will Result In GBP5.0M One-off Costs
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Diploma H1 Pretax Profit GBP24.2M Vs GBP23.8M; Revenue GBP148.6M Vs GBP139.7M; Interim Dividend 8% To 5.4 Pence
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Lonmin H1 Pretax Loss USD278M Vs Pretax Profit USD54M; Revenue Down, USD578M Vs USD735M; H1 Lost 155,720oz Equivalent Saleable Platinum On Strike Action
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Polymetal Completes Reserves And Resources Audit For Svetloye Gold Deposit; Says Svetloye Has Total Ore Reserves At 7.3Mt With Average Grade 2.8g/t, For 700,000oz Gold; Says Svetloye Has Total Mineral Resources At 1.1Mt At Average Grade 2.3g/t, For 100,000oz Gold
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UBM Acquires Expo CIHAC From Centro Impulsor de la Construcción y Habitación; Expo CIHAC Is Among Mexico's Ten Largest Tradeshows
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Dignity Revenue For 13 Weeks To March 28 GBP69.1M Vs GBP67.8M
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Interserve's Landmarc Wins GBP322M Contract To Manage MoD's National Training Estate
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Ladbrokes Goes Live With SafeCharge Payment Technologies
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COMPANIES - ALL-SHARE AND AIM
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Orosur Mining In Talks To Combine Business With Waymar Resources; Says Completion Of Acquisition Would Create "Premier" South American Gold Company; Orosur Mining Will Hold Approximately 80.9% Upon Completion
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Finsbury Food Appoints Peter Baker As Non-Executive Chairman
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Wessex Exploration Says Has Exchanged Heads Of Agreement To Buy Hague And London Oil BV With Philippine Asset; HALO Holds 15% Interest In Offshore Service Contract SC54A In Philippines; Will Issue 241M Wessex Shares To HALO Vendors, 25% Of Enlarged Total; HALO Brings USD1M Cash With It; HALO Principals Andrew Cochran And Bill Phelps To Join Wessex Board; Cochran To Be Wessex Chairman And Interim CEO, Current Chairman Butler To Step Down; Reiterates HALO Transaction Conditional On Shareholders Rejecting Resolutions At May 15 EGM
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Rare Earth Minerals Increases Strategic Holding In JV Partner Bacanora Minerals Limited To 8.6% Through "On-Market Purchases" Totalling GBP532,000
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Blur Group Expects FY Revenue Of USD4.8M Up From USD2.8M
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London Mining Q1 Production Up 17% on Q4 To 900,000wmt; Reiterates 2014 Production Guidance Of 4.9-5.4Mwmt
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Waterman Group Says Trading In Line With Expectations
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Anite Expects FY Revenue To Be In Line With Expectations
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Paragon Diamonds Says It Increased Interest In Lesotho Subsidiary Meso Diamonds To 100%
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Strategic Natural Resources Says London Commodity Brokers Has Agreed To Apply to Adjourn Winding Up Hearing
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InternetQ Says It Has Made A Good Start To 2014, In Line With Expectations For Revenue, Profit
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Monday's Scheduled AGMs/EGMs
Savills
Candover Investments
Capita
Centrica
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
Copyright 2014 Alliance News Limited. All Rights Reserved.
17 Sep 2014 12:34