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LONDON (Alliance News) - London shares opened softer Wednesday, retreating from new 2016 highs reached on Tuesday, as the dollar recovered strength and oil and gold both gave up some gains.

Ahead of UK unemployment and earnings data at 0930 GMT, focus was on first-quarter company updates. ARM Holdings was the top FTSE 100 gainer, up 2.6%. The chipmaker reiterated expectations for full-year dollar revenue in line with market expectations.

Among mid-caps, retail N Brown was down 12% after reporting a fall in profit in its recently-ended financial year, due to exceptional costs, but higher revenue.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.2% at 6,391.22
FTSE 250: down 0.2% at 17,006.52
AIM ALL-SHARE: up 0.2% at 735.51
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Hang Seng: down 1.2% at 21,181.34
Nikkei 225: closed up 0.2% at 16,906.54
DJIA: closed up 0.3% at 18,053.60
S&P 500: closed up 0.3% at 2,100.80
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GBP: down at USD1.4367 (USD1.4397)
EUR: down at USD1.1350 (USD1.1378)

GOLD: down at USD1,248.58 per ounce (USD1,254.50)
OIL (Brent): down at USD43.20 a barrel (USD43.99)

(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 BST)

09:30 UK ILO Unemployment Rate and Average Earnings
10:00 Switzerland ZEW Survey
12:00 US MBA Mortgage Applications
13:30 Canada Wholesale Sales
15:00 US Existing Home Sales
15:30 US EIA Crude Oil Stocks
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A group of former US treasury secretaries has warned that leaving the EU would be a "risky bet" for the UK. George Schultz, Larry Summers and five other ex-White House advisers have backed the Remain campaign, saying it was better for Britain's future. In an open letter in The Times, they called the referendum a "consequential decision" and said the special relationship benefited from having the UK in the EU.
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A senior manager at Tata Steel is believed to have expressed an interest in a potential buyout of the Port Talbot steelworks. Stuart Wilkie, managing director of Tata's Strip Products, is understood to be canvassing workers about joining a bid. The investment he is seeking from employees could be as much as GBP10,000 each, according to sources. Private investors and government support would also be needed.
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Bank of England Governor Mark Carney said the bank has a duty to report on the implications of Brexit to Parliament and to the public. "Assessing and reporting major risks does not mean becoming involved in politics; rather it would be political to suppress important judgments which relate directly to the Bank's remits and which influence our policy actions," Carney told lawmakers. "These policy actions include developing, and if necessary implementing, contingency plans," he said. Earlier, Carney said any decision to exit EU would be a major domestic risk to the UK. Carney was criticised for backing the government's bid to maintain the nation in the EU.
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Japan posted a merchandise trade surplus of JPY754.99 billion in March, the Ministry of Finance said. The headline figure was shy of expectations for JPY819.1 billion yen following the JPY242.2 billion surplus in February. Exports were down 6.8% on year, beating forecasts for a fall of 7.1% following the 4.0% contraction in the previous month.
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Japanese Prime Minister Shinzo Abe's government will postpone ratifying a huge Pacific trade deal in the current parliamentary session as immediate legislative action is likely required following the two major earthquakes in southern Japan, local media reported. Leaders of the ruling Liberal Democratic Party held a meeting Tuesday and agreed to delay the vote on the controversial Trans-Pacific Partnership trade pact and related legislation, the Nikkei business daily reported. Analysts said some LDP lawmakers wanted to avoid the ratification of the unpopular trade agreement ahead of this summer's upper house election.
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Republican front-runner Donald Trump rolled to victory in the presidential primary in his home state of New York, while Democratic front-runner Hillary Clinton was projected to win her party's contest in the state she also calls home. The results were based on partial returns and projections by US cable television networks, citing exit polls. Trump won in the state where he was born and where the billionaire built much of his real estate and entertainment empire. With 90% of the votes counted, he had 60%. Ohio Governor John Kasich was a distant second at 25%, with US Senator Ted Cruz of Texas at 15%. Meanwhile, Clinton had 57.5% of the Democratic vote to 42.5% for Sanders with 90% counted.
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More than 500 people were confirmed killed in Ecuador's most powerful earthquake in decades, officials said, as rescuers were searching for the missing amid widespread destruction. A total of 507 bodies were recovered, of which 499 were identified, the Attorney General's office said late Tuesday. More than 4,600 were injured, and more than 100 still missing, the National Risk Management Agency said. The coastal province of Manabi was hit hardest, accounting for nearly all of the casualties.
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Brazil's Senate is making plans to vote on the impeachment of President Dilma Rousseff on May 17, according to a calendar cited by news outlet Folha de S Paulo. If the upper house passes the impeachment as predicted, it would suspend Rousseff from office for 180 days, preventing her from opening the Olympic Games on August 5.
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Passenger railway services across the EU are to be opened up for more competition in a bid to lower prices and raise standards, under a deal reached between EU member states and the bloc's lawmakers. Once finalized, the agreement will "improve the quality and efficiency of railway services in Europe," said Sharon Dijksma, Dutch state secretary responsible for infrastructure. The Netherlands holds the EU's rotating presidency.
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BROKER RATING CHANGES
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TRADERS: MERRILL LYNCH RAISES VODAFONE TO 'BUY' (NEUTRAL)
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GOLDMAN CUTS BURBERRY GROUP TO 'NEUTRAL' ('BUY') - TARGET 1550 (1690,80) PENCE
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SOCGEN CUTS ASHMORE GROUP TO 'HOLD' ('BUY') - TARGET 295 (240) PENCE
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JEFFERIES CUTS BT GROUP TO 'HOLD' (BUY) - PRICE TARGET 475 (515) PENCE
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TRADERS: INVESTEC RAISES BHP BILLITON TO 'HOLD' ('SELL')
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COMPANIES - FTSE 100
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BHP Billiton said it cut its fiscal year 2016 iron ore production outlook for its Australian mines by 10 million tonnes to 260 million tonnes due to adverse weather and the initiation of an accelerated rail network maintenance. "The productivity of our company continues to improve notwithstanding the disruption largely caused by adverse weather this quarter," Chief Executive Officer Andrew Mackenzie said in the statement. Total iron ore production for the nine months ended March 2016 was broadly unchanged at 171 million tonnes. Production for the 2016 financial year is now expected to be approximately 229 million tonnes, 3.0% below prior guidance, and reflects a reduction in guidance at Western Australia Iron Ore.
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Chip designer ARM Holdings reiterated expectations for full-year dollar revenue in line with market expectations, as it reported a rise in pretax profit for its first quarter. ARM saw pretax profit rise to GBP112.0 million in the first quarter of 2016, up from GBP103.4 million the year before, as revenue rose 14% to USD398.0 million from USD348.2 million. In sterling, revenue rose 22% to GBP276.4 million from GBP227.5 million.
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Outsourcing and distribution group Bunzl said revenue grew in the first quarter of 2016 and said it is on track for the year ahead. The company said group revenue for the quarter to the end of March grew 13% year-on-year in reported exchange rates and 10% in constant currencies. Half the constant currency growth was driven by acquisitions, with the rest driven by additional trading days for the group compared to the year earlier, the company said. Michael Roney, Bunzl's chief executive, will step down after the annual general meeting of the company on Wednesday, handing over to Frank van Zanten.
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Engineer GKN said trading in the first quarter was in line with its expectations, though its trading margin took a hit from an adverse shift in the revenue mix for its aerospace arm. The company, which makes airframe structures and automotive driveline systems, said sales in the three months to the end of March hit GBP2.18 billion, up from GBP1.94 billion a year before. Organic sales grew 1.0% and the group got a 3.0% boost from beneficial currency moves, but the majority of the rise was driven by acquisitions.
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Builders' merchant Travis Perkins said trading met its expectations in the first quarter, with total and like-for-like sales growth proving robust. Travis said total sales grew 5.0% in the quarter to the end of March, while like-for-like sales rose 4.2%.
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COMPANIES - FTSE 250
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Price comparison portal Moneysupermarket.com Group said group revenue grew in the first quarter, though revenue for its TravelSuperMarket.com brand was sapped by a tough holiday market. Moneysupermarket said group revenue in the quarter to the end of March hit GBP83.7 million, up 9.0% year-on-year. Revenue for its MoneySuperMarket.com brand grew 12%, while revenue for MoneySavingExpert.com rose 43%. This was partially offset by revenue for the TravelSupermarket.com channel falling 24% in the quarter.
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N Brown Group reported a fall in profit in its recently-ended financial year due to exceptional costs it booked, but revenue rose boosted by a continued strong performance from its three 'power brands'. The online and catalogue fashion retailer said its pretax profit in the year ended February 27 fell to GBP72.2 million from GBP78.3 million the year before due to GBP17.2 million in exceptional costs it booked in the first half of the year relating to the closure of its clearance stores, reorganisation costs and VAT-related legal and professional fees. N Brown will pay a total dividend of 14.23 pence, which is flat year-on-year.
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Business services company Rentokil Initial said revenue grew in the first quarter, primarily driven by acquisitions. The group, best known for its pest control business, said total first quarter revenue hit GBP472.0 million, with GBP468.1 million from its ongoing operations. Revenue from ongoing operations grew 12% year-on-year in the quarter at constant currencies, with 2.8% of this growth organic and the balance driven by acquisitions.
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Virgin Money Holdings said trading in the first quarter of 2016 was in line with its expectations. In a brief trading update ahead of a more detailed release due on May 4, Virgin Money said it made good progress in the quarter across its mortgages, credit cards and savings products.
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Evraz published a mixed set of production results covering the first quarter of 2016, but said coking coal, pig iron and prices for its steel products have continued to fall since the start of the year. The steel maker and mining company operating in Russia said consolidated crude steel output "remained stable" in the first quarter of 2016, amounting to 3.5 million tonnes, adding that its Russian steel mills are currently running at full capacity. That is down 0.5% from the final quarter of 2015 and also 0.5% lower than a year earlier.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Metro Bank said it saw record deposit growth, a strong organic lending performance and growth in customer accounts in the first quarter, its first trading update since floating in London in early March. Metro Bank - the largest IPO in the London market so far this year by market capitalisation, at GBP1.60 billion - said its underlying loss after tax for the quarter to the end of March was GBP7.9 million, an improvement on the GBP8.5 million loss a year earlier, but this excludes costs related to its London Main Market listing. Including those one-off costs, Metro Bank's loss after tax in the first quarter was GBP11.1 million. But revenue for Metro Bank grew to GBP37.7 million in the quarter, up 60% year-on-year and 11% from the fourth quarter of 2015.
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COMPANIES - INTERNATIONAL
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Intel, the world's biggest chipmaker, reported an increase in profit for the first quarter, as revenue increased. Intel announced plans to cut its global workforce by 11% as it restructures itself. Intel expects itself to transition away from being a computer-based company to a company that "powers the cloud and billions of connected computing devices." Intel sees data center and Internet of Things businesses as its primary growth engines, which contributed up to 40% of revenues and majority of operating profit, helping it offset the decline in the PC market segment.
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Viacom said its discussions with satellite-TV provider Dish Network to renew carriage of its TV channels have broken down, raising the prospect that its programming could go dark for Dish's customers late Wednesday. "DISH is refusing Viacom's very reasonable renewal terms that would replace our already-expired seven-year deal," Viacom said in a blog post. The media company, owner of networks such as Nickelodeon, Comedy Central, MTV and TV Land, accused Dish of making unreasonable demands, despite its offer of a "best-in-class" deal on rates and terms for carriage of its networks.
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Yahoo! reported a loss for the first quarter, hurt largely by lower revenue. Nevertheless, Yahoo's adjusted earnings trumped Wall Street estimates by a penny. Meanwhile, the company said its "top priority" remains a corporate sale. Sunnyvale, California-based Yahoo reported a first-quarter loss of USD99 million or USD0.10 per share, compared with profit of USD21 million or USD0.02 per share last year. Yahoo's revenue for the quarter dropped to USD1.09 billion from USD1.23 billion last year. Analysts had a consensus revenue estimate of USD1.08 billion.
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German business software maker SAP reported first-quarter profit after tax on IFRS basis climbed 38% to EUR570 million from last year's EUR413 million. Total revenue grew 5% to EUR4.73 billion from EUR4.50 billion. Looking ahead for 2016, the company continues to expect non-IFRS operating profit to be in a range of EUR6.4 billion to EUR6.7 billion at constant currencies, compared to EUR6.35 billion in 2015.
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Swiss engineering firm ABB reported 11% decline in first-quarter net income to USD500 million from last year's USD564 million. Revenue for the quarter declined 8% to USD7.90 billion from prior year's USD8.56 billion On a comparable basis, revenue dropped 2% on lower short-cycle volumes and timing of order backlog. Orders fell 11% to USD9.25 billion from USD10.40 billion a year ago.
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Wednesday's Scheduled AGMs/EGMs

Bunzl
Essentra
Moneysupermarket.com Group
Unilever
Oracle Coalfields
RTC Group
CLS Holdings
Drax Group
JPMorgan Claverhouse Investment Trust
Domino's Pizza Group
EP Global Opportunities Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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