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LONDON (Alliance News) - Shares opened flat in London Wednesday, as Japanese shares continued to slide but Chinese markets remained closed for Lunar New Year.

Hikma Pharmaceuticals and ARM Holdings were the two major UK company news makers early Wednesday and also the two biggest FTSE 100 losers, down 11% and 5.2%, respectively.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: flat at 5,631.95
FTSE 250: up 0.2% at 15,352.21
AIM ALL-SHARE: flat at 671.38
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Hang Seng: market closed for holiday, reopening Thursday
Nikkei 225: closed down 2.3% at 15,713.39
DJIA: closed down 0.1% at 16,014.38
S&P 500: closed down 0.1% at 1,852.21
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GBP: flat at USD1.4493 (USD1.4489)
EUR: soft at USD1.1290 (USD1.1312)

GOLD:down at USD1,188.34 per ounce (USD1,193.31)
OIL (Brent): down at USD31.07 a barrel (USD32.03)

(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
(all times in GMT)

09:00 Italy Industrial Output
09:30 UK Industrial and Manufacturing Production (MoM)
10:00 EU European Commission's Economic Growth Forecasts
12:00 US MBA Mortgage Applications
12:00 Ireland Consumer Confidence
15:00 US Fed Chair Yellen testifies
15:00 UK NIESR GDP Estimate
15:30 US EIA Crude Oil Stocks
18:30 US FOMC Member Williams speech
19:00 US Monthly Budget Statement
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Billionaire businessman Donald Trump topped a crowded Republican field in New Hampshire primaries Tuesday, while Senator Bernie Sanders trounced Hillary Clinton in the closely watched first US presidential primary election. Trump led with 35% of the vote with more than 70% of ballots counted. On the Democratic side, Sanders took 60% of the vote to 39% for Clinton. Sanders said his victory serves notice to the political and economic establishment in the US. "We must tell the billionaire class and the 1% that they cannot have it all," said Sanders, a self-described democratic socialist who serves in the US Senate as a Vermont independent.
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The US Supreme Court has put on hold plans by President Barack Obama to limit carbon emissions by power plants amid a host of legal challenges. The nine-member high court ruled 5-4 to temporarily stay the regulations pending five separate legal challenges to the carbon pollution emissions guidelines issued last year. The rules dictate an overall reduction in heat-trapping gasses of 32% below 2005 levels by 2030. The US Court of Appeals for the District of Columbia is due to hear the cases in June.
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The White House released US President Barack Obama's last budget request Tuesday, seeking USD4.1 trillion in spending. The budget for the 2017 fiscal year, which begins in October, projects an extra USD308 billion in revenue and would increase spending by USD196 billion. The budget proposal from Obama, who leaves office in January 2017, has few prospects for serious consideration in Congress, where the opposition Republicans hold majorities in both chambers. The White House budget calls for a new tax of USD10 per barrel on oil to pay for sustainable transportation infrastructure.
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Ireland's justice minister said a violent gangland feud was "unprecedented in its audacity" on Tuesday after a second murder in four days in Dublin thrust organized crime into the spotlight ahead of a general election on February 26. "The gangs show no regard for public safety," Justice Minister Frances Fitzgerald said after a meeting with Ireland's police commissioner. Fitzgerald, a leading member of Prime Minister Enda Kenny's centre-right Fine Gael party, pledged an initial EUR5 million to help the police tackle criminal gangs and set up a 55-strong Armed Support Unit for Dublin.
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The last missing person after a train crash in southern Germany was found dead early Wednesday, bringing the final death toll to 11, police said. Two commuter trains carrying a total of 150 people collided head-on near the Bavarian town of Bad Aibling at 6:50 am (0550 GMT) Tuesday, on a single-track line. Eighteen people were seriously injured and over 60 sustained light wounds, police said. The crash, which happened on a bend with poor visibility, was caused by "human error" according to initial investigation findings, a source told dpa on condition of anonymity.
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Producer prices in Japan were down 0.9% on month in January, the Bank of Japan said. That missed forecasts for a decline of 0.7% following the 0.4% contraction in December. On a yearly basis, producer prices skidded 3.1% - also shy of expectations for a fall of 2.8% following the 3.5% decline in the previous month.
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North Korea has expanded its nuclear programme and restarted a plutonium reactor at its main nuclear facility, the US' intelligence chief said. "Pyongyang continues to produce fissile material and develop a submarine-launched ballistic missile," Director of National Intelligence James Clapper told a US Senate committee. North Korea's recent missile and nuclear activity has alarmed its regional neighbours, in particular South Korea and Japan, and provoked warnings from the US, China, and the United Nations.
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BROKER RATING CHANGES
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EXANE BNP INITIATES LSE WITH 'OUTPERFORM' - TARGET 2700 PENCE
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BARCLAYS RESUMES STANDARD CHARTERED WITH 'EQUAL WEIGHT' - TARGET 500 PENCE
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GOLDMAN CUTS BBA AVIATION TO 'NEUTRAL' ('BUY') - TARGET 181 (300,55) PENCE
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TRADERS: NOMURA INITIATES VIRGIN MONEY WITH 'BUY' - TARGET 445 PENCE
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COMPANIES - FTSE 100
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Chip-designer ARM Holdings reported a rise in pretax profit in 2015, as it saw a strong performance in its fourth quarter with revenue up 19%. ARM reported a pretax profit of GBP414.8 million for 2015, up from GBP316.5 million in 2014, as revenue rose to GBP968.3 million from GBP795.2 million, more than offsetting increases in research and development costs. On a dollar basis, as ARM generates a majority of its revenue in dollars, revenue rose to USD1.49 billion from USD1.29 billion. ARM proposed a final dividend of 5.63 pence for the year, which brings its total dividend to 8.78 pence, up from 7.02 pence a year before.
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Hikma Pharmaceuticals said it has agreed a lower price for its acquisition of Roxane Laboratories and Boehringer Ingelheim Roxane from German pharmaceutical company Boehringer Ingelheim. This is as a result of new information having been received from Hikma in relation to the financial performance of Roxane in 2015, following the publication of Hikma's prospectus regarding the acquisition in January. As a result of this information the two companies have agreed to reduce the purchase price, and Hikma will now pay USD647 million in cash instead of the USD1.18 billion it had originally agreed, although it will still additional issue 40 million shares to Boehringer as part of the consideration at a price of 2,350 pence per share. Hikma shares closed on Tuesday at 1,995.00p.
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Barclays said Tuesday it has appointed Paul Compton as chief operating officer from May, succeeding Jonathan Moulds, who will leave the UK bank just a year after being poached from Bank of America Merrill Lynch. Compton will join from JPMorgan Chase & Co, and will join the executive committee of Barclays and report directly to Chief Executive Jes Staley, who also is ex-JPMorgan Chase. This appointment comes within weeks of Barclay's appointing CS Venkatakrishnan of JPMorgan Chase as its new group chief risk officer.
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COMPANIES - FTSE 250
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Tullow Oil reported a narrower pretax loss in 2015 despite reporting a steep drop in revenue due to the fall in oil prices, as the company said it remains focused on reducing costs and getting the TEN development in Ghana producing. Tullow had already guided last month that its earnings would be considerably lower year-on-year after lower oil prices hampered results, as a fall in net production from Europe offset a rise from its flagship operations in West Africa. The oil company reported a USD1.29 billion pretax loss from continuing activities in 2015 compared to a USD2.04 billion loss in 2014. Tullow stuck to its guidance to have a USD1.10 billion capital expenditure budget in 2016, but said this could fall to USD900.0 million. Importantly, with TEN almost finished, the company believes capital expenditure could be as low as USD300.0 million per year from 2017 onwards.
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Bellway said it remains on target to increase volume growth by around 10% in its current financial year, supported by positive UK government initiatives, as it saw a 12% rise in housing completions in its first half. The housebuilder said that it made 4,188 housing completions in the half year to end-January, up from 3,754 a year before. Average selling price was up 17% to GBP257,000, from GBP219,343 in the previous period. Bellway said it has a substantial forward order book comprising of 4,434 homes, up from 4,213 homes a year before, with a value of GBP1.03 billion, up from GBP975 million.
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Greene King reported growth in sales in the 40 weeks to February 7 as well as in the two weeks over Christmas, and said it achieved record trading on Christmas Day. The pub company said Greene King retail like-for-like sales were up 2.2% year-on-year in the 40 weeks, as like-for-like sales from the Spirit managed estate grew 1.1%. In the two Christmas weeks, Greene King like-for-like sales increased 5.0%, while Spirit like-for-likes rose 5.2%.
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Kier Group said it was been awarded a package of road maintenance services contracts with Surrey County Council worth around GBP160 million, as part of a four-year extension to its current contract that started in 2011.
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Dunelm Group reported growth in profit in the first half of its financial year, as sales grew and it benefited from six extra days of winter price promotion. The homewares retailer said pretax profit in the 26 weeks ended January 2 grew by 11% to GBP75.5 million from GBP68.2 million in the same period the year before, as sales rose by 10% to GBP448.1 million from GBP406.4 million. Total like-for-like sales, meanwhile, were up 4.6% to GBP404.9 million from GBP387.0 million. Dunelm increased its interim dividend by 9.1% to 6.0 pence per share from 5.5p. It will also pay a special dividend of 31.5p per share in line with its capital structure policy.
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COMPANIES - INTERNATIONAL
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Walt Disney Co reported record quarterly earnings, thanks in part to the stratospheric success of Star Wars: The Force Awakens, now the third-highest grossing film of all time. The media giant netted USD2.9 billion in its fiscal first quarter, an increase of 32% year-on-year. Revenue grew 14% to USD15.2 billion. The success was driven by Star Wars' "phenomenal success," Disney Chairman Bob Iger said in a press release.
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The US Securities & Exchange Commission announced that Monsanto Co has agreed to pay an USD80 million penalty to settle charges that it violated accounting rules and misstated company earnings as it pertained to its flagship product Roundup. Three accounting and sales executives also agreed to pay penalties to settle charges against them.
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Wednesday's Scheduled AGMs/EGMs

Port Erin Biopharma Investments
Next (re technical infringement of Companies Act)
Blackrock Frontiers Investment Trust (re tender offer)
Daily Mail and General Trust
Schroder UK Mid Cap Fund
Grainger
Victrex
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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