SPE.L Share News (SPE)

LONDON (Alliance News) - Shares have opened higher in London Wednesday following better results by US blue-chip companies, such as Apple, reporting earnings after the US close Tuesday.

Investors also are looking ahead to the results of the first US Fed meeting of 2015 after the London market close Wednesday.

Amid a raft of UK mining updates, Anglo American is the second biggest FTSE 100 gainer, up 2.7%, while Johnson Matthey is the biggest blue-chip faller, down 5.3%.

Leading FTSE 100 risers is Experian, up 3.8%, after providing a strategy update and saying it will buy USD600 million worth of shares over the next 14 months.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.3% at 6,831.76
FTSE 250: up 0.4% at 16,412.80
AIM ALL-SHARE: up 0.1% at 689.50
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Hang Seng: closed up 0.2% at 24,861.81
Nikkei 225: closed up 0.2% at 17,795.73
DJIA: closed down 1.7% at 17,387.21
S&P 500: closed down 1.3% at 2,029.55
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GBP-USD: down at USD1.5167
EUR-USD: down at USD1.1336

GOLD: down at USD1,288.88 per ounce
OIL (Brent): down at USD49.02 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 GMT)

12:00 US MBA Mortgage Applications
15:30 US EIA Crude Oil Stocks
19:00 US Fed Interest Rate Decision and Monetary Policy Statement
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The EU was considering new sanctions against Russia because of the worsening situation in Ukraine Tuesday, while Russian President Vladimir Putin complained that the conflict manifests geopolitical double standards. The 28 EU leaders asked the bloc's foreign ministers to consider further restrictive measures, given Russia's "continued and growing support" of the separatists. The ministers are to hold an extraordinary meeting Thursday.
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The US government proposed opening for the first time the Atlantic coast to oil and gas drilling as President Barack Obama moved to protect some of the seas off the northern state of Alaska from exploration. The draft proposal, which will be opened to public hearings, would offer 14 potential leases: one off the Mid-to-South Atlantic coast; 10 in the Gulf of Mexico; and three off the coast of Alaska. The government had previously approved drilling off of Virginia's coast, but withdrew it after the disastrous 2010 BP oil spill in the Gulf of Mexico.
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States on the north-eastern tip of the US were hit hard by a blizzard that continued moving through the region Tuesday, delivering up to 90 centimetres of snow by the end of the day. Blizzard warnings remained in place in the coastal areas of Massachusetts, Maine, New Hampshire and Rhode Island - states where heavy snow and strong winds continued from the storm that began Monday afternoon. Boston, which recorded more than 50 centimetres of snow by Tuesday morning, was set to be pummeled with another 30 centimetres during the afternoon. Meanwhile, life was returning to normal in New York and New Jersey, where the storm proved to be less severe than expected.
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A key US senator who had been pushing for fresh sanctions on Iran over its nuclear programme said Tuesday he would no longer seek the measures while negotiations with Tehran remain under way. Senator Bob Menendez, a Democrat who has led the charge for new sanctions along with opposition Republicans, said at a congressional hearing that he would not support passage of a sanctions bill until after a deadline to reach a deal with Iran has passed.
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China's consumer sentiment decreased marginally in January, results of a survey by MNI and Westpac showed. The Westpac-MNI consumer sentiment index edged down to 112.1 in January from 112.5 in December. In November, the index was at 111.
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Israel said it fired artillery shells Tuesday at Syrian-held positions on the Golan Heights after at least two rockets struck the Israeli-controlled side of the plateau. An Israeli army statement said Syrian Army artillery posts were targeted. Army spokesman Peter Lerner said Israel was reacting to rockets fired at Israel that were "blatant breaches of Israeli sovereignty" that would not be tolerated.
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BROKER RATING CHANGES
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BARCLAYS RAISES OCADO TO 'EQUAL WEIGHT' ('UNDERWEIGHT') - TARGET 420 (250) PENCE
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BERENBERG CUTS CARILLION TO 'HOLD' ('BUY') - TARGET 380 PENCE
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COMPANIES - FTSE 100
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FTSE 100 miners Anglo American, Fresnillo and Antofagasta all reported their fourth quarter production results, with Anglo American warning there will be impairment charges for its 2014 financial year, whilst Fresnillo saying it expects production to increase in 2015 and Antofagasta expecting gold production to fall.
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Anglo American reported a 10% increase in iron ore production from its Kumba project in the fourth quarter ended December 31 to 12.4 million tonnes from 11.3 million tonnes in the third quarter. Production increased due to the implementation of a production recovery plan, it said. Anglo American's copper production fell 18% in the fourth quarter to 174,800 tonnes from 214,300 tonnes in the third quarter, which was caused by grade declines at Los Bronces and Collahuasi, it said. Nickel production fell 34% quarter on quarter to 6,700 tonnes, whilst equivalent refined platinum production dropped by 14% to 593,900 ounces. Diamond production fell by 8% to 8.4 million carats, mainly caused by lower grades.
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Fresnillo reported increased production figures for the fourth quarter, with gold production up 77% year on year to 173,471 ounces. The company produced 12.3 million ounces of silver in the quarter, up 15.5% from the fourth quarter in 2013. During 2015, Fresnillo is expecting gold and silver production to increase. The company has set production guidance of 45 million to 47 million ounces of silver and between 670,000 to 685,000 ounces of gold.
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Antofagasta increased gold and copper production in the fourth quarter, but full-year production decreased, and it warned that gold production will decrease further in 2015. Copper production totalled 187,500 tonnes, up 10.8% quarter on quarter, with all copper mines increasing production during the period. Gold production significantly increased in the fourth quarter to 82,300 ounces, up 28% from the third quarter. Molybdenum production for the full year also fell to 7,900 tonnes in 2014 from 9,000 tonnes in 2013, also caused by lower grades. Antofagasta is aiming to produce 710,000 tonnes of copper, 250,000 ounces of gold and 8,000 tonnes of molybdenum during 2015.
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Johnson Matthey stuck with its full-year guidance, after reporting a 1% increase in its pretax profit before exceptional items in the third quarter of its financial year, buoyed by strong sales from its emission control technologies business. In a statement, the emissions and process technology company said pretax profit excluding impairments, restructuring charges, tax changes and any profits or losses on disposals was GBP96.5 million in the three months to end-December, up from GBP96.0 million. The growth was capped after it lost about GBP10 million in commission income from Anglo American Platinum. Excluding this, its underlying pretax profit grew at a double-digit rate.
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Experian said it will buy USD600 million worth of shares over the next 14 months, pledging to return surplus capital to shareholders from time to time, as the information services company outlined its strategy to analysts and investors in London. As part of the presentation, Experian, which provides data and analytics to clients, said its "aspiration" is to deliver annual average growth in organic revenue in the mid-single digit range. "With the application of our cash flows into organic investment opportunities, acquisitions and returns of excess capital to shareholders, we have the potential for strong growth in earnings per share," Experian said.
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Financial Times owner Pearson's Chairman Glen Moreno is preparing to leave the company later this year, Sky News reported. Pearson's nominations committee had enlisted a head-hunting firm, JCA Group, to oversee the process of recruiting a successor, the FT quoted its sources as saying. Moreno has held the position since late 2005.
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The Sage Group said it remains on track to achieve its targeted 6% organic revenue growth and 28% operating margin in its current financial year, with revenue growth weighted towards its second half, after its revenue rose 5.3% in its first quarter on the year before. In the three months to end-December the company said organic recurring revenue increased by 7.0% year-on-year, and organic software and software-related services revenue rose 1.0%.
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Severn Trent launched a GBP100 million buyback programme and joined peers in linking its dividend growth in coming years to retail price index inflation, after it accepted the UK water regulator's final determination on the pricing regime for the next five years. In a statement, the company said it had reviewed its financing and dividend plan in light of the capital it needs to deliver on its operational plan for the next five years, and taking into account the lower cost of capital allowed by regulator Ofwat. It said that it will now manage its existing debt portfolio as well as any future debt issuance by increasing the proportion which is held at floating rates. It will also move towards a net debt to regulatory capital value ratio of about 62.5%, and as part of this move it is launching a GBP100 million share buyback programme.
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COMPANIES - FTSE 250
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Brewin Dolphin Holdings said first-quarter income growth was constrained by a 23% decline in commission income, largely due to fewer transactions amid market volatility. In a statement, Brewin Dolphin said income grew by 1% year-on-year to GBP70.2 million in the last three months of 2014, which is Brewin's financial first quarter. Fee income rose by 14% to GBP47.4 million, while commission income amounted to GBP17.0 million. Funds under management increased to GBP37.9 billion from GBP36.8 billion on September 28, 2014. Discretionary funds rose to GBP24.8 billion at the end of 2014, up from GBP24.0 billion on September 28.
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Intermediate Capital Group reported an 8% increase in total assets under management over the course of the third quarter, as new third party money raised more than realisations, while it also said it is working on improving returns and taking action on its balance sheet. In a statement, the specialist asset manager said that assets under management increased to EUR14.9 billion at the end of 2014. The group said that EUR1.36 billion of new third party money was raised in the quarter, while the level of realisations slowed to about EUR230 million. Total third party assets under management rose to EUR12.53 billion from EUR11.36 billion over the quarter.
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Saga said it has struck a deal to buy motorbike insurer Bennetts for GBP26.3 million in cash. Saga will buy Bennetts, which provides motorbike insurance to more than 200,000 customers, from owner BGL Group.
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Soft drinks company AG Barr said it expects its performance to outpace the wider sector for the fourth quarter of its financial year. The FTSE 250-listed company said it expects sales growth of more than 5% for the fourth quarter to January 25, with sales momentum recovering following a slow third quarter. The group said it expects its revenue for the full year to January 25 to be up around 2% at GBP259 million. It said year-on-year sales growth for the year, stripping out lost Orangina revenue, would be around 3%.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Songbird Estates said it understands its major shareholders intend to accept the takeover bid by Qatar Investment Authority and Brookfield Property Partners LP and said its shareholders should accept the offer if it becomes unconditional, though the board reiterated its opposition to the bid. Songbird said it understands that its major shareholders all intend to accept the 350 pence per share offer for the company from QIA and Brookfield, which would mean the bidders would have received irrevocable undertakings and letters of intent to accept the bid representing 85.6% of its issued share capital.
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Stock Spirits Group said Mariusz Borowiak has left his position as the managing director of its Stock Polksa Sp zoo business, with Chief Operating Officer Ian Crawford to take on his responsibilities. Stock Spirits said Borowiak has left the company by "mutual agreement".
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Sopheon said its 2014 earnings will be "substantially lower" than in 2013, after a number of transactions were delayed into 2015 leading to a drop in revenue. The software and services company expects to post 2014 revenue of USD18 million, compared with nearly USD21 million a year earlier. In 2013 Sopheon posted earnings before interest, tax, depreciation and amortisation of around USD3 million.
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EMIS Group said its Ascribe Ltd subsidiary has won deal to provide NHS Wales with an unscheduled clinical care management product, while it has also appointed Duane Lawrence as managing director of its secondary care division. Under the NHS Wales deal, the company will deploy its Symphony clinical information and management product into emergency departments and minor injuries units. The framework agreement is worth a maximum of about GBP7.6 million over seven years, although there's also an option to extend for a further four years.
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Matchtech Group said it has agreed a recommended takeover of Networkers International PLC in a deal that values that company at GBP57.9 million, while Matchtech Chief Executive Adrian Gunn has decided that the deal marks a good opportunity to bring forward his retirement and has stepped down with immediate effect. In a separate trading statement, Matchtech said it expects its full-year results to be in line with its own expectations.
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COMPANIES - INTERNATIONAL
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Apple said its first quarter profit rose 38% from last year, driven by all-time record revenue from iPhone and Mac sales as well as record performance of its App Store. The company's quarterly earnings per share also breezed past Wall Street expectations as did its quarterly sales. At the same time, the company gave a slightly downbeat revenue forecast for the current quarter. Apple sold a record 74.5 million iPhones in the first quarter, up 46% from 51.0 million in the same quarter last year. The company in September unveiled two new bigger smartphones, iPhone 6 and iPhone 6 Plus, which went on sale on September 19 with record breaking performance.
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Shares of Yahoo! surged 7% in after-hours trade on Tuesday, after the company said it would initiate a tax-free spin-off of its remaining stake in Chinese e-commerce company Alibaba Group, bowing to demand that shareholders partake the priced investment. Yahoo reported a decline in fourth-quarter profit, hurt by a drop in ad revenues with its search business flat, revealing limitations as to the turnaround plans of CEO Marissa Mayer, the lone sweetener being the strength in mobile revenue. However, Yahoo's quarterly earnings topped Wall Street estimates, even as revenue fell shy of expectations. Yahoo said it would spin off its remaining stake in Alibaba into a newly formed independent registered investment company, the stock of which would distributed pro rata to Yahoo shareholders.
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Sony plans to lay off an additional 1,000 employees in its smartphone business, mainly in Europe and China, Nikkei reported. The Japanese electronics giant had announced last October that it would eliminate around 1,000 jobs, mainly in smartphone operations. In all, the workforce will shrink by roughly 30% to 5,000 as of the end of the fiscal year through March 2016.
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AT&T reported a net loss for the fourth quarter of USD4.0 billion, compared to net income of USD6.9 billion for the year-ago quarter. Consolidated revenue for the fourth quarter rose 3.8% to USD34.44 billion from USD33.16 billion a year ago. On a business-as-usual basis without the impact of DIRECTV and the Mexico wireless properties, AT&T expects to deliver continued consolidated revenue growth and adjusted EPS growth in the low single-digit range in 2015.
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Swiss drugmaker Roche Holding reported its fiscal 2014 net income, on IFRS basis, declined 16% to CHF9.54 billion from last year's CHF11.37 billion. The company said its net income was negatively impacted by debt restructuring, impairments and restructuring costs in 2014. Group sales went up 1% to CHF47.46 billion from CHF46.78 billion a year ago. Sales grew 5% at constant exchange rates.
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Wednesday's Scheduled AGMs/EGMs

Imperial Tobacco Group
Standard Life European Private Equity Trust
Schroder Asia Pacific Fund
JPMorgan Asian Investment Trust
Renew Holdings
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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