Spire Healthcare Share News (SPI)

LONDON (Alliance News) - Another set of weak economic data from China and yet more political upheaval in Greece has sent stock markets in Asia and Europe tumbling Friday.

The manufacturing sector in China continued to struggle in August as the contraction accelerated, a preliminary survey from Caixin showed.

Meanwhile, Greek Prime Minister Alexis Tsipras tendered his resignation late Thursday, paving the way for snap elections next month. It is feared that Greece now will pass no further economic reforms before the September 20 election date.

ARM Holdings leads FTSE 100 losers, down 3.7%. Liberum cuts its price target on the stock, reiterating its Sell recommendation, saying the smartphone market is slowing sharply and ARM remains a smartphone play.

Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: down 0.9% at 6,311.76
FTSE 250: down 1.1% at 17,054.59
AIM ALL-SHARE: down 0.7% at 738.63
----------
Hang Seng: down 1.8% at 22,348.63
Nikkei 225: closed down 3.0% at 19,435.83
DJIA: closed down 2.1% at 16,990.69
S&P 500: closed down 2.1% at 2,035.73
----------
GBP: flat at USD1.5692
EUR: up at USD1.1258

GOLD: down at USD1,153.00 per ounce
OIL (Brent): up at USD46.34 a barrel

(changes since end of previous GMT day)
----------
ECONOMICS AND GENERAL
----------
Friday's Key Economic Events still to come
(all times in BST)

08:30 Germany Markit Composite, Services and Manufacturing PMI Preliminary
09:00 EU Markit Composite, Services and Manufacturing PMI Preliminary
09:30 UK Public Sector Net Borrowing
13:30 Canada Consumer Price Index
13:30 Canada Retail Sales
14:45 US Markit Manufacturing PMI Preliminary
15:00 EU Consumer Confidence Preliminary
----------
The manufacturing sector in China continued to struggle in August as the contraction accelerated, a preliminary survey from Caixin showed, with a Performance of Manufacturing Index score of 47.1. That's down from 47.8 in July, and it represents a 77-month low. It also moves further beneath the line of 50 that separates expansion from contraction. "The Caixin Flash China General Manufacturing PMI for August has fallen further from July's two-year low, indicating that the economy is still in the process of bottoming out. But overall, the likelihood of a systemic risk remains under control and the structure of the economy is still improving," said He Fan, chief economist at Caixin Insight Group.
----------
Greek prime minister Alexis Tsipras tendered his resignation late Thursday, paving the way for snap elections next month. Tsipras, who was elected only in January on a pledge to renegotiate austerity measures, said he felt "a moral obligation to place this deal in front of the people, to allow them to judge...both what I have achieved, and my mistakes". The election date is yet to be set, but government officials said the aim was to hold the election on September 20. Greece received the first EUR13 billion tranche of a new EUR86 billion bailout on Thursday after it was approved by relevant European parliaments. It arrived just in time for Greece to repay EUR3.2 billion to repay a EUR3.2 billion debt to the European Central Bank and avoid a default.
----------
British households perceive that the value of their home increased in August, a survey from Knight Frank and Markit Economic showed. The house price sentiment index rose to 59.5 in August from 58.6 in the previous month. This marked the twenty-ninth successive month of the index remaining above 50. A reading above 50 signals a rise in house prices, while a figure below 50 indicates a decline. "The strength of the UK economy, rising wages and an undersupply of housing stock on the market are combining to underpin UK house prices. This has resulted in the first rise in the House Price Sentiment Index in August, usually a quieter summer period, seen since 2009, " Grainne Gilmore, head of UK residential research at Knight Frank, said
----------
Germany's consumer sentiment is set to drop in September, survey data from market research group GfK showed. The consumer sentiment index fell to 9.9 in September from 10.1 points in August. Economists had forecast it to remain unchanged at 10.1. The economy and income expectations as well as the willingness to buy have suffered losses. The downward trend in economic expectations continued in August. The economic expectations index dropped 1.8 points to 16.6.
----------
The manufacturing sector in Japan continued to expand in August, and at a faster rate, a preliminary survey from Nikkei showed, with a Performance of Manufacturing Index score of 51.9. That's up from 51.2 in July and shows expansion.
----------
Russia is a "very, very significant threat," and the US must adjust its defence capabilities to account for Moscow's aggression, US Defence Secretary Ashton Carter said. Carter stopped short of calling Russia the "number one threat" as the incoming chairman of the joint chiefs of staff, Marine General Joseph Dunford, did during his recent confirmation hearing, but Carter said Russian President Vladimir Putin had been acting as "an antagonist" with actions in Ukraine.
----------
BROKER RATING CHANGES
---------
Liberum Cuts ARM Holdings Price Target To 650p From 700p, Reiterates Sell
----------
BERENBERG CUTS TOPPS TILES TO 'HOLD' ('BUY') - TARGET 175 PENCE
----------
BERENBERG CUTS OXFORD INSTRUMENTS TO 'SELL' ('HOLD') - TARGET 800 (950) PENCE
----------
BERENBERG CUTS NORTHGATE TO 'SELL' ('BUY') - TARGET 455 (675) PENCE
----------
COMPANIES - FTSE 100
----------
GlaxoSmithKline said it has signed an agreement with a subsidiary of Swiss peer Novartis to sell its rights to ofatumumab for auto-immune indications, including multiple sclerosis. Under the terms of Glaxo's divestment, it will get USD300 million upon closing of the transaction, USD200 million once a phase 3 study starts into using ofatumumab for relapsing remitting multiple sclerosis, plus further contingent payments of up to USD534 million, payable upon other development milestones being reached. Novartis Pharma will also pay Glaxo royalties of up to 12% on any future net sales of ofatumumab in auto-immune indications.
----------
Zurich Insurance has brought in Evercore Partners to work on a bid for insurer RSA Insurance Group alongside Morgan Stanley, according to a Financial Times report. The newspaper, which cited people with knowledge of the situation, said that investment bank advisers for the two sides remain "far apart" on price. Takeover rules require Zurich to state whether it wants to make a firm offer or walk away by 1700 BST Tuesday next week, according to stock exchange documents.
----------
COMPANIES - FTSE 250
----------
Private healthcare company Spire Healthcare Group cut its revenue guidance for 2015 on the back of short-term challenges it expects to face in NHS activity in the second half, as the group's pretax profit and revenue both grew in the first half. Spire said it now expects flat revenue in the second half of 2015, compared to previous predictions for low single-digit growth, due to a slowdown in the flow of cases from the NHS to the independent sector in recent weeks. The cut to the revenue guidance means the group now expects its revenue and earnings before interest, taxation, depreciation and amortisation growth to be 4% to 6% for the full year. The downgrade to its guidance came as Spire said it turned to a pretax profit in the first half of the year to the end of June, generating a GBP30.8 million profit, compared to a GBP7.8 million loss a year earlier due to higher financing costs. The group added it will pay its maiden interim dividend of 1.3 pence per share, having floated in London in June last year.
----------
HellermannTyton Group said its pretax profit and revenue both increased in the first half, buoyed both by a strong performance in the majority of its markets and by the effect of the weak euro, the currency in which it reports. The company, which makes wires and cables and which recently agreed to be acquired by UK-based automotive parts manufacturer Delphi Automotive PLC for GBP1.07 billion, said its pretax profit for the six months to the end of June was EUR42.5 million, up from EUR34.6 million a year earlier. The company said it will pay an interim dividend of 3.09 euro cents per share, up from 2.82 cents a year earlier.
----------
COMPANIES - LONDON MAIN MARKET AND AIM
----------
Real estate investment trust Tritax Big Box REIT said its net asset value per share rose in the first half of 2015 as the valuation of its portfolio and its contracted annual rent roll both surged higher, prompting it to hike its interim dividend by 62%. The company, which invests in very large logistics warehouse assets, or big box assets, in the UK, said its net asset value per share rose to 117.06 pence at the end of June, up from 102.01 pence a year earlier. Tritax said the valuation of its portfolio surged higher, up to GBP1.09 billion from GBP360 million, while its contracted rent roll rose to GBP58.9 million from GBP20.8 million. Tritax lifted its interim dividend to 3.00 pence per share, up from 1.85p a year earlier.
----------
HgCapital, the private equity manager of London-listed HgCapital Trust, said several of its investments are performing ahead of plan, meaning they are expected to return cash to investors, including HgCapital, in the second half. In addition, the private equity manager said it is likely to continue to hold several of its older investment that could be realised now for good returns, on the belief that there is "more to go given their trading performance and market opportunity". The manager's comments came within the trust's interim results statement for the six months to the end of June. They showed that the trust's net asset value per share increased to 1,293 pence at the end of June from 1,278p six months earlier, taking into account the 32p dividend paid by the trust in May.
----------
PhotonStar LED Group posted a flat pretax loss in the first half of 2015, despite revenue falling, but said it expects revenue to grow in the second half as sales hit a positive trend moving into the latter part of the year. The smart LED lighting products company said its pretax loss in the half to the end of June was GBP600,000, flat year-on-year, despite its revenue falling by 14% to GBP3.3 million from GBP3.8 million and its gross margin falling to 37% from 39%.
----------
Temporary power company APR Energy said it has made progress on winding up its operations in Yemen and Libya but said it has booked further provisions related to its operations in Angola. APR said it has received a USD8.4 million payment from its terminated project in Yemen, which will reverse the provision of the same amount it made in the second quarter. In addition, it has gained access to its Yemen project, having been unable to do so previously, and has been able to start to re-evaluate the USD24 million impairment it booked in the second quarter after it had been unable to enter the sites safely at the time.
----------
Westminster Group said that one of the prop shafts on the Sierra Queen, the flagship vessel for its new ferry project in Sierra Leone in West Africa, has been removed and returned to the UK for repair after the company discovered that it was out of line. Westminster, which supplies managed services and technology-based security solutions to governments and non-governmental organisations, said that the repair job is expected to take around 15 days and that operations are now expected to commence in September.
----------
COMPANIES - INTERNATIONAL
----------
Computer and printer maker Hewlett-Packard said its third quarter profit fell 13% from last year, as revenue declined 8% amid a slump in the global PC market. However, the company's quarterly earnings per share, excluding items, came in above analysts' expectations, but its quarterly revenue fell short of analysts' forecast. At the same time, the company gave a downbeat earnings forecast for the current quarter, and narrowed its fiscal year 2015 adjusted earnings outlook.
----------
United Technologies Corp is in talks to buy Nortek, a maker of home-security and ventilation systems, The Wall Street Journal reported citing people familiar with the matter. It is unclear where talks between United Technologies and Nortek stand or what price is being discussed. As with all such discussions, they may not lead to a deal, the Journal said. As of on Thursday, Nortek has a market value of USD1.41 billion.
----------
Friday's Scheduled AGMs/EGMs

ReNeuron Group
----------
By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

Copyright 2015 Alliance News Limited. All Rights Reserved.