SUMM.L Share News (SUMM)

LONDON (Alliance News) - UK shares have made a firm start Thursday on a strong lead from Wall Street and ahead of a full plate of international economic data. A European Central Bank rate decision and press conference also are set for later in the session.

Tullow Oil is a top FTSE 100 gainer after saying it has struck oil offshore Norway.

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 6,832.53
FTSE 250: up 0.2% at 15,920.69
AIM ALL-SHARE: up 0.1% at 785.25
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Hang Seng: down 0.1% at 23,529.74
Nikkei 225: closed down 0.1% at 15,348.29
DJIA: closed up 0.1% at 16,976.24
S&P 500: closed up 0.1% at 1,974.62
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GBP-USD: down at USD1.7154
EUR-USD: flat at USD1.3658

GOLD: down at USD1,320.53 per ounce
OIL (Brent): down at USD110.89 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 British Summer Time)

08:45 Italy Markit Services PMI
08:50 France Markit Services PMI
08:55 Germany Markit Services PMI
09:00 EU Markit Services and Composite PMI
09:30 UK Markit Services PMI
n/a France 10-y Bond Auction
10:00 EU Retail Sales
11:00 Ireland Gross Domestic Product (YoY)
12:45 EU ECB Interest Rate Decision
13:00 US Labor Force Participation Rate
13:30 US Nonfarm Payrolls, Unemployment Rate and Jobless Claims
13:30 EU ECB Monetary policy statement and press conference
13:30 Canada Trade Balance
13:30 US Trade Balance
14:45 US Markit Services PMI
14:45 US Markit PMI Composite
15:00 US ISM Non-Manufacturing PMI
15:30 US EIA Natural Gas Storage change
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UK regulators are under pressure to open an investigation into the suspected manipulation of the closing prices of ordinary shares traded in London after it was claimed in Parliament Wednesday that attempted market abuse was rife, The Times reports. The newspaper quotes Andrew Tyrie, the chairman of the Treasury select committee, saying that all committee members were “amazed” that no one at the Financial Conduct Authority appeared to have looked at the issue in spite of widespread rumours of manipulation. The focus of the lawmaker's concern is the closing auction process conducted for five minutes at 4.30pm each day by the London Stock Exchange, in which market traders put in “buy” and “sell” orders to a computer that crunches the numbers and spits out an official closing price for each stock.
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The European Central Bank is expected on Thursday to decide against announcing any new action to help boost the struggling eurozone's economic fortunes as it sizes up the impact of sweeping measures it unveiled four weeks ago. Analysts said bank chief Mario Draghi could use his regular monthly press conference instead to unveil further details on the implementation of the complex battery of steps the bank set out in June.
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Interest rate adjustments are not the appropriate tool to stabilize financial markets, Federal Reserve Chairwoman Janet Yellen said late Wednesday. In a speech at the International Monetary Fund, Yellen urged central banks around the world to rely more on building resilience in their financial systems. "Monetary policy faces significant limitations as a tool to promote financial stability," Yellen said. "Its effects on financial vulnerabilities ... are less direct than a regulatory or supervisory approach."
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China allowed banks to set the exchange rate they offer customers between renminbi and the US dollar, a news report said, in the latest loosening of the controlled rate. The State Administration of Foreign Exchange said late Wednesday that banks can set their own rates for over-the-counter deals on the basis of market demand, Xinhua news agency reported. The rate range for interbank trading is limited to 2% on either side of a government-regulated parity rate. The band was set in March, at double the range of the previous restrictions.
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China's services sector grew at a faster pace in June, the latest survey from HSBC and Markit Economics revealed on Thursday - posting an index score of 53.1 and touching a 15-month high.
That's up from 50.7 in May. That lifted China's composite PMI to 52.4 - up from 50.2 in the previous month.
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In a separate PMI reading Thursday, the National Bureau of Statistics said the services sector in China continued to expand in June, albeit at a slower pace - showing an index score of 55.0. That's down from 55.5 in May, which represented a six-month high.
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Russia and Ukraine agreed that negotiations on a long-lasting ceasefire in Ukraine would begin at the latest by Saturday, said mediator Frank-Walter Steinmeier, Germany's foreign minister. Russia, represented at the talks in Berlin by Foreign Minister Sergei Lavrov, also said it was prepared to take up joint border patrols with Ukrainian officials after the ceasefire takes effect.
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Israeli aircraft carried out several strikes in the Gaza Strip early Thursday, an official and witnesses said, after Palestinians fired rockets into southern Israel. At least 10 civilians were injured in the northern Gaza Strip, including a woman in critical condition, Gaza emergency chief Ashraf al-Qedra told reporters. Witnesses reported hearing explosions in the northern Gaza Strip and Gaza city. Clashes intensified late Wednesday between Israeli police and Palestinians angry over the killing of a teenager near Jerusalem, two days after the bodies of three kidnapped Israeli teens were found.
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Libya's acting Prime Minister Abdullah al-Thinni said the government had reached a deal with rebels and had reassumed control of the country's two eastern oil terminals, which were blocked by rebels a year ago, Libyan television reported Wednesday. Thinni confirmed that the government now controls the ports of Ras Lanuf and al-Sidra, which export about half of Libyan oil. He said the takeover came after an agreement with separatist rebel leader Ibrahim Jathran.
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BROKER RATING CHANGES
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JPMORGAN REINITIATES ASTRAZENECA WITH 'UNDERWEIGHT' - PRICE TARGET 3700 PENCE
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JEFFERIES INITIATES SPORTS DIRECT WITH 'BUY' - TARGET 1,000 PENCE
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MERRILL LYNCH RESUMES HAYS WITH 'UNDERPERFORM' - TARGET 125 PENCE
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MERRILL LYNCH RESUMES MICHAEL PAGE WITH 'NEUTRAL' - TARGET 460 PENCE
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HSBC INITIATES BANK OF GEORGIA WITH 'OVERWEIGHT' - TARGET 2720 PENCE
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CREDIT SUISSE RAISES DRAX TO 'OUTPERFORM' ('NEUTRAL') - TARGET 750 (650) PENCE
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CITIGROUP REMOVES DS SMITH FROM 'CONVICTION SELL LIST' - STILL 'SELL'
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UBS RAISES BERENDSEN TO 'BUY' ('NEUTRAL') - TARGET 1,150 (1,100) PENCE
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TRADERS: INVESTEC RAISES NICHOLS TO 'BUY' ('HOLD')
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UBS REMOVES STHREE FROM MOST PREFERRED EUROPEAN SUPPORT SERVICES LIST - 'BUY'
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CITIGROUP INITIATES SAGA WITH 'BUY' - TARGET 205 PENCE
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COMPANIES - FTSE 100
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Tullow Oil PLC said the Hanssen well in its production licence 537, offshore Norway, has found a 20- to 25-metre region of oil bearing sandstones at its main target, adding to the potential of the Wisting cluster area. The FTSE 100 oil and gas exploration company said the well found a good quality reservoir in the Stø Formation and also found poor-quality hydrocarbon bearing sandstones in the Late Triassic and Middle Triassic zones of the well. The company said coring and sampling has been carried out on all of the formations but the new discovery produced a maximum production rate of 2,006 barrels per day of oil and 325,000 standard cubic feet per day of gas after a short test at the site.
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RSA Insurance Group PLC said it has reached a deal to sell its China business to Swiss Re for about GBP71 million, as Chief Executive Stephen Hester continues to sell smaller businesses as part of his project to shore up the insurer's balance sheet and focus it on its bigger operations. In a statement, the insurer said the sale of Sun Alliance Insurance (China) Ltd is expected to result in a gain on the sale and addition to RSA's tangible net assets of about GBP26 million.
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COMPANIES - FTSE 250
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Construction and infrastructure company Balfour Beatty PLC said it still expects its pretax profit to be between GBP145 million and GBP160 million in 2014, even though trading has worsened in the mechanical and electrical engineering part of its UK construction business. In a trading statement, Balfour said the deterioration amounts to a GBP35 million profit shortfall, but it expects to offset this from gains on disposals from its public-private partnerships portfolio in the second half of the year. The full-year pretax profit guidance remains the same as it gave when it put out a first quarter trading statement in early May.
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Argos and Homebase owner Home Retail Group PLC said its general merchandise retailer Argos and online auction site eBay Inc have extended and expanded their UK collection service tie-up. Home Retail's Argos and eBay began trialling a UK collection service last September, which they said would last around six months and would enable shoppers to pick up products sold by about 50 eBay sellers at around 150 Argos stores throughout the UK. Home Retail said Thursday the two companies have now entered an agreement to extend the offering of click & collect services via Argos stores, which will enable shoppers to select products from a wider range of eBay merchants and now collect from around 650 its Argos stores.
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Ultra Electronics PLC said it has won a GBP64.4 million contract extension with the UK Ministry of Defence to provide in-service support for its Litening Pods. Ultra's support will provide advanced targeted and reconnaissance capability for the Royal Air Force's Eurofighter Typhoon and Tornado aircraft fleets, it said. Its Litening support centre will provide engineering support to the fleet as well as conducting test and repair of all Litening components. The Litening pod is a type of gun pod - a detachable pack mounted to aircraft containing weaponry - designed for precision targeting. The company originally won the contract in 2006, and combined with the outstanding amount of the original contract, the deal is worth GBP80.4 million.
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Building products supplier SIG PLC said it has bought Netherlands-based air handling products company Inatherm BV for up to EUR7.4 million in cash, a deal that will bolster its existing European air handling products division. In a statement, SIG said it will pay seller Triple R Holdings EUR4.7 million up front, a deferred payment of EUR0.7 million in January 2016, and then up to EUR2.0 million depending on how Inatherm performs until the end of 2016.
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Discount retail chain Poundland Group PLC reported strong growth in sales in its last financial year boosted by new store openings, although the retailer said its profit for the year was held back by costs relating to its recent IPO. The discount retailer, which sells everything for GBP1 in its Poundland stores and the equivalent from its Dealz stores in Ireland, said the strong trading momentum has continued into the new financial year, with sales up 18% in the first three months of the new year to GBP262.6 million, as it said its retail proposition continues to gain traction.
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COMPANIES - MAIN MARKET AND AIM
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Bullabulling Gold Ltd gave in to pressure from Norton Gold Fields Ltd and recommended that shareholders accept its increased takeover offer despite continuing to say it materially undervalues the company. Bullabulling, which mines for gold in Australia, said it sees the AUD0.08 a share offer as too low, but because Norton has already increased its acceptances, including from Bullabulling's two major shareholders, to have interest in 41.35% of the necessary shares, the company bowed to pressure and unanimously resolved to recommend the offer. Norton Gold Fields made a cash offer of AUD0.07 a share for Bullabulling on April 17, but struggled to get many acceptances. In mid-June, it said it would raise the offer to AUD0.08 a share, but only if it got an interest of 30% or more of Bullabulling's shares by June 30.
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MoPowered Group PLC said Finance Director Ben Carswell has stepped down and left the company with immediate effect, following a profit warning from the company on Tuesday. MoPowered warned Tuesday that its revenues had risen less than anticipated in its first half, and as a result its revenues for 2014 were now expected to be more modest. The software-as-a-service provider said Thursday it had already begun the search for a replacement for Carswell, and in the meantime, "appropriate interim arrangements are in hand."
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Cyprotex PLC proposed a share consolidation in an effort to have a "more appropriate number of shares in issue" for a company of its size. The biotechnology company has proposed a consolidation of every 10 existing ordinary shares into one new ordinary share, with any fractional entitlements arising to be aggregated and sold on the market with the proceeds being donated to charity. Cyprotex thinks the consolidation might also help to make its shares more attractive to investors, which could help improve liquidity.
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Thursday's Scheduled AGMs/EGMs

C&C Group
Emblaze Limited
Harvey Nash Group
Great Portland Estates
Shires Income
Tex Holdings
Vipera
Distil
Summit Corporation
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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