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LONDON (Alliance News) - UK shares have opened mostly flat Thursday, as dovish meeting minutes from the US Fed have been countered by some negative UK company news and poor data from Japan.

The London Stock Exchange leads FTSE 100 fallers, down 2.2%, on a report in the Financial Times saying the Qatar Investment Authority is to sell down a third of its stake.

Burberry leads blue-chip gainers, up 4.0%, on a strong quarterly sales report.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: flat at 6,715.78
FTSE 250: flat at 15,546.41
AIM ALL-SHARE: up 0.1% at 779.44
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Hang Seng: up 0.1% at 23,207.71
Nikkei 225: closed down 0.6% at 15,216.47
DJIA: closed up 0.5% at 16,985.61
S&P 500: closed up 0.5% at 1,972.83
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GBP-USD: down at USD1.7125
EUR-USD: down at USD1.3636

GOLD: up at USD1,329.88 per ounce
OIL (Brent): down at USD107.88 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)

09:00 EU ECB Monthly Report
09:00 Italy Industrial Output
09:30 UK Trade Balance
11:00 Ireland Consumer Price Index
12:00 UK BoE Interest Rate Decision and Asset Purchase Facility
13:30 US Jobless Claims
13:30 Canada New Housing Price Index
15:00 US Wholesale Inventories
15:30 US EIA Natural Gas Storage change
18:00 US 30-Year Bond Auction
18:15 US Fed's George Speech
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House prices in the UK continued to rise in June, albeit at a slower pace, the latest index from the Royal Institution of Chartered Surveyors revealed. Fifty-three percent of respondents reported an increase in house prices in their designated regions. That was shy of forecasts for 55%, and down from the downwardly revised 56% reading in May (originally 57%). The June reading is the lowest score since March 2013.
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The Federal Reserve plans to completely unwind its asset purchase plan in October as long the economy continues to pick up, the minutes of its June meeting revealed Wednesday. The Federal Open Market Committee has reduced bond purchases by USD10 billion at each meeting since December, and will end by cutting USD15 billion in October. "Participants generally agreed that if incoming information continued to support its expectation of improvement in labor market conditions and a return of inflation toward its longer-run objective, it would be appropriate to complete asset purchases with a USD15 billion reduction in the pace of purchases in order to avoid having the small, remaining level of purchases receive undue focus among investors," the minutes stated. "If the economy progresses about as the Committee expects, warranting reductions in the pace of purchases at each upcoming meeting, this final reduction would occur following the October meeting." The minutes offered few signals about when the Fed might potentially begin tightening interest rates from near zero.
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The value of Chinese exports rose 7.2% in June, year on year, to USD187 billion, Xinhua news agency reported, citing customs data. Imports rose 5.5% to USD155 billion, while total foreign trade increased 6.4% to USD342 billion, according to the General Administration of Customs. Trade balance saw a surplus of 31.6 billion dollars in June, Xinhua reported. In 2014, China's trade growth target is 7.5%, slightly less than last year's expansion of 7.6%, the report said.
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Core machine orders in Japan plummeted 20% on month in May, the Cabinet Office said - worth JPY685.3 billion. Marking the biggest monthly decline on record, the headline figure catastrophically missed forecasts for an increase of 0.7% following the 9.1% contraction in April. On a yearly basis, machine orders tumbled 14% - also well shy of expectations for a gain of 10% following the 18% spike in the previous month.
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FRENCH JUNE CPI UP 0.5% ON YEAR VS 0.7% RISE IN MAY; CONSENSUS +0.7%; UNCHANGED ON MONTH, SAME AS IN MAY; CONSENSUS +0.2%
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FRANCE MAY INDUSTRIAL PRODUCTION -1.7% M/M; APR UNREV 0.3%; IND OUTPUT BELOW EXPECTED; MNI SURVEY MEDIAN 0.3% M/M
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The Euro Area countries should "learn to be sovereign together" in order to fulfill the basic needs of growth and job creation for the citizens, European central Bank's President Mario Draghi said. The eurozone crisis revealed that the cohesion of the Union depended on the behaviour of each of its members and hence governing structural reforms are necessary along with fiscal policy governance, he said in his speech in honour of late ECB policymaker Tommaso Padoa-Schioppa. "If some governments retain the ability to stabilise their economies but others do not, then it becomes more plausible that economic divergence will occur. This is one channel through which the cohesion of the Union can be affected. This ability depends on keeping debt low and budget deficits close to zero when output grows at potential, not on having more flexibility in the existing rules." he explained.
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The US on Wednesday upheld Israel's right to self defence against rocket attacks from the "terrorist" group Hamas. Asked whether Palestinians likewise have a right to self defence, State Department spokeswoman Jen Psaki said: "There is a strong difference between...rocket attacks launched by a terrorist organization that is based in Gaza and the right of Israel to defend itself." She conceded that "both sides" were at fault for not making the "difficult choices needed" to continue the recently collapsed peace process.
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BROKER RATING CHANGES
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UBS ADDS FERREXPO TO 'METALS & MINING MOST PREFERED LIST' - 'NEUTRAL'
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UBS ADDS KAZAKHMYS TO 'METALS & MINING LEAST PREFERED LIST' - 'NEUTRAL'
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UBS RAISES SYNTHOMER TO 'BUY' ('NEUTRAL') - TARGET 265 (280) PENCE
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UBS CUTS CRODA TO 'SELL' ('NEUTRAL') - TARGET 2,000 (2,320) PENCE
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COMPANIES - FTSE 100
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The Qatar Investment Authority is to sell down a third of its stake in the London Stock Exchange Group ahead of the bourse’s USD1.6 billion rights issue to help purchase Frank Russell, the US index compiler, the Financial Times reports citing people familiar with the situation. The sovereign wealth fund has instructed Bank of America Merrill Lynch and Citigroup to sell a near 5% stake in an accelerated bookbuild, the FT reported two people familiar with the situation saying. The QIA is expected to retain a 10% stake in the LSE, with the deal announced on Thursday morning, the newspaper said.
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Oil services company Petrofac Ltd said it has won a USD700 million, three-year contract from Kuwait Oil Company to build one of the three new gathering centres at a site about 70 kilometres north of Kuwait City. In a statement, Petrofac said the three gathering centres are being built to support the Kuwaiti company's plans to increase and maintain oil production over the next five years. Each of the three gathering centres will be capable of producing around 100,000 barrels of oil per day, together with associated water and gas, it said.
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British luxury fashion retailer Burberry Group PLC posted a good increase in retail revenue in the first quarter of its financial year, but said the strength of the sterling continues to take a chunk out of its profits. Retail sales increased to GBP370 million in the three months to June 30, up from GBP339 million in the same period the prior year. On an underlying basis, sales grew 17%, but on a reported basis only 9%, hit by the strength of the sterling. Comparable sales growth in the period was 12%. "If exchange rates remain at current levels, the full impact on reported retail/wholesale profit in financial year 2015 will be material," Burberry said in its statement.
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Associated British Foods PLC said the persistent strength of sterling continued to hit sales in the third quarter, while the growth of its retail business Primark failed to offset a huge sales decline in its struggling sugar business. The food, ingredients and retail group posted a 3% decline in total sales at actual currency exchange rates in the third quarter, hit by the strength of the sterling, but rose 3% on a constant exchange rate basis. In the year to date, AB Foods said sales were down 2% at actual rates, and were up 2% at constant rates. "The likely negative impact arising from currency translation, if current exchange rates prevail, will be some GBP50 million compared with last year's result," the company said. Despite the significant hit from sterling strength, the company said it now expects full year adjusted earnings per share to be ahead of last year, as a bigger profit from its retail division and its grocery and ingredients businesses offset the currency hit and lower sugar prices.
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Housebuilder Barratt Developments PLC said it expects pretax profit for the full year ended June 30 to be around GBP390 million, which it said is above the top end of analysts estimates. In the year to June 30, 2013, the company reported pretax profit of GBP104.8 million and pretax profit before exceptional items of GBP192.3 million. Barratt said the total average selling price increased to GBP220,000 during the recent financial year from GBP194,800 a year earlier.
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Vodafone Group PLC said it has entered into a "partner market agreement" with Bemobile Ltd, which trades as bmobile, for Papua New Guinea and the Solomon Islands. Under the non-equity partnership agreement bmobile will act as Vodafone's exclusive partner in the two markets, and bmobile customers will be able to roam on Vodafone's global mobile network.
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COMPANIES - FTSE 250
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Informa PLC said it has hired St Ives PLC Chief Executive Patrick Martell to head up its new business intelligence division, as it announced changes to its operating model and executive team following a strategic review. The business media and events company said that following a strategic review earlier in the year it was making changes to ensure it can deliver on its future growth potential.
Informa also said it is trading in line with expectations, and it will announce its strategic growth plan for 2015 to 2018 in the second half of the year. Martell will step down from his position at St Ives at the end of July, although he will remain on the company's board until its annual general meeting in November, St Ives said. Martell will be succeeded by Matt Armitage, who is presently chief financial officer and managing director of marketing services at St Ives, from the beginning of August.
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Imagination Technologies Group PLC said Chairman Geoff Shingles will retire within the next six months to a year, when a successor has been appointed. Shingles has acted as Chairman for the processor technology company since 1996, and has been with Imagination Technologies since it listed in 1994. The company said it has already begun the process or recruiting a replacement.
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Premier Oil Says H1 Production Averaged 64.7kboepd, Ahead Of Budget; Keeps Full-Year Production Guidance Of 58-63kboepd, Due To Summer Maintenance, Scott Disposal
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FirstGroup Says 2014 Trading Has Been In Line With Expectations
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Ashmore Group Assets Under Management Up 7% In Q4 At USD75.0B
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Hays Reiterates Full-Year Operating Profit Guidance About GBP140M; Q4 Revenue Up 7% Like-For-Like, Flat In Total
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Supergroup FY Underlying Pretax Profit GBP62.0M Vs GBP52.2M
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COMPANIES - MAIN MARKET AND AIM
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Low & Bonar PLC reported an increase in pretax profit for the full year, reflecting a strong performance across the business. The company which supplies yarns, fabrics and fibres to the materials industry posted pretax profit of GBP3.6 million for the period ended May 31, up from GBP2.4 million a year earlier, as revenue rose to GBP196.3 million from GBP184.1 million.
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Mothercare Appoints Interim CEO Mark Newton-Jones As CEO From July 17
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Aer Lingus Appoints Bernard Bot As CFO
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Restore: Trading In H1 Was In Line With Expectations
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Bglobal To Return GBP11.7M To Shareholders
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Shaft Sinkers Cash Position Has Further Deteriorated In Talks With Various Parties About Urgent New Financing; Says Talks Involve Potential Disposal Of Assets
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Thursday's Scheduled AGMs/EGMs

Telford Homes
Martin Currie Pacific Trust
Biotech Growth Trust
Northcote Energy
Metal Tiger
Wynnstay Properties
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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