Last checked at LONDON (Alliance News) - UK shares have opened lower Friday, following some mixed economic data from China and weak figures from Germany. The main economic event of the day, however, is still to come, with US non-farm payrolls at 1330 GMT.
Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 0.3% at 6,552.70
FTSE 250: down 0.3% at 16,042.68
AIM ALL-SHARE: up 0.2% at 701.75
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Hang Seng: closed up 0.4% at 23,919.95
Nikkei 225: closed up 0.2% at 17,197.73
DJIA: closed up 1.8% at 17,907.87
S&P 500: closed up 1.8% at 2,062.14
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GBP-USD: up at USD1.5098
EUR-USD: up at USD1.1808
GOLD: up at USD1,211.74 per ounce
OIL (Brent): down at USD50.88 a barrel
(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
(all times in GMT)
09:00 Italy Public Deficit/GDP
09:30 UK Industrial Production
09:30 UK Manufacturing Production
09:30 UK Total Trade Balance
13:30 US Nonfarm Payrolls
13:30 US Unemployment Rate
14:00 UK NIESR GDP Estimate
15:00 US Wholesale Inventories
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UK firms hired staff at a faster rate and starting salaries continued to rise in December, results of a survey by the Recruitment and Employment Confederation, or REC, and KPMG showed. Permanent staff appointments increased at a faster rate in December after rising at the slowest rate in 18 months in November. However, job vacancies for permanent positions grew at the slowest rate since July 2013. Average starting salaries for people placed in permanent positions increased at a strong rate in December, almost unchanged from the rate in November.
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China's consumer prices inflation picked up speed in December from the five-year low in the previous month, in line with the consensus estimate, data from the National Bureau of Statistics showed Friday. Annual consumer prices inflation quickened to 1.5% in December from the five-year low of 1.4% in November. This matched the expectations of economists.
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In a separate report, the National Bureau of Statistics showed that Chinese producer prices fell more than expected in December. Producer prices dropped 3.3% year-over-year in December, faster than the 2.7% decline in November. This was more than the 3.1% decrease expected by economists. This marked the 34th consecutive month of decline in prices.
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Germany's industrial production declined unexpectedly in November, data from Destatis revealed. Industrial output was down 0.1% in November from October, confounding expectations for a 0.3% rise. This was the first fall in three months. In October, production advanced 0.6%.
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Germany's exports decreased at a faster rate in November while imports rebounded, data from Destatis showed. Exports fell 2.1% month-on-month in November, faster than the 0.5% drop in October. Economists had forecast a 1% decline. At the same time, imports recovered by 1.5% after decreasing 3.3% a month ago. Imports were expected to rise 0.5%. The trade surplus narrowed to a seasonally adjusted EUR17.7 billion from EUR20.8 billion in October.
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French industrial and manufacturing production declined for the second straight month in November, the statistical office Insee showed. Industrial production fell unexpectedly 0.3% from October, but the rate of decline slowed from the 0.7% fall seen in October. Economists had forecast 0.3% rise.
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France's merchandise trade deficit for November narrowed more-than-expected from a year ago, figures from the French Customs showed. The merchandise trade deficit fell to EUR 3.23 billion from EUR 5.79 billion in the same month of 2013. Economists had forecast a shortfall of EUR 4.50 billion.
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French police were searching woodland north of Paris Thursday night in the hunt for two brothers suspected of carrying out the killing of 12 people at the satirical magazine Charlie Hebdo, news reports said. The search and security operation was focussed on an area near the town of Villers-Cotterets, around 80 kilometres north-east of Paris, Liberation newspaper reported online. Nationwide, 88,000 police and military forces were involved, with another 400 soldiers to be deployed Friday, Interior Minister Bernard Cazeneuve said. The suspects, Paris-born brothers Cherif Kouachi, 32, and Said Kouachi, 34 were known to French authorities.
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Indonesian searchers detected a signal from the flight recorders of the AirAsia plane that crashed on December 28, the army said. A search vessel "received a signal ping estimated 300 metres from the first point," army chief General Moeldoko said on local broadcaster Metro TV, referring to the location where the tail was found earlier this week.
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A widespread attack in northern Nigeria by the Islamist extremist group Boko Haram may have killed hundreds in at least 11 locations, officials indicated. The number of people killed is still unclear, said one official who spoke on condition of anonymity. He said however that the 11 villages had also been set on fire. Alhaji Baba Abba Hassan, head of the town of Baga that is located in the middle of the 11 villages, put the death toll at "possibly" several hundred in remarks to local media.
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BROKER RATING CHANGES
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JPMORGAN CUTS HARGREAVES LANSDOWN TO 'NEUTRAL' ('OVERWEIGHT') - TARGET 1050 (1280) P
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BARCLAYS INITIATES TSB WITH 'EQUAL WEIGHT' - TARGET 270 PENCE
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TRADERS: HSBC RAISES HALFORDS GROUP TO 'OVERWEIGHT'
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JPMORGAN RAISES HENDERSON GROUP TO 'OVERWEIGHT' ('NEUTRAL') - TARGET 245 (222) PENCE
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JPMORGAN CUTS ASHMORE GROUP TO 'UNDERWEIGHT' ('NEUTRAL') - TARGET 270 (295) PENCE
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JPMORGAN CUTS COLT TELECOM TO 'UNDERWEIGHT' ('NEUTRAL') - TARGET 105 (115) PENCE
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COMPANIES - FTSE 100
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Sports Direct International is understood to be planning to close a swathe of USC fashion stores across the UK, The Daily Telegraph reported. The directors of USC, led by Sports Direct Chief Executive Dave Forsey, have filed a notice of intention to place USC into administration, the paper said, putting around 1,000 jobs at risk. It is believed the move would result in around a third of the worst-performing USC stores being closed.
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Wm Morrison Supermarkets is expected to announce it has agreed a deal to take over as the long-term sponsor of the Great North Run, Sky News reported. The supermarket is understood to have agreed a multi-million pound deal to become the main sponsor of more than a dozen running events in the UK, Sky said. The four-year deal is believed to be a push by Morrisons to promote its brand and association with healthy living at a time of intense competition among Britain's supermarkets.
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COMPANIES - FTSE 250
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The Unite Group said the value of its property portfolios increased over the final quarter of 2014 both on a quarter-by-quarter and year-on-year basis. The FTSE 250-listed student accommodation company said the UK Student Accommodation Fund was independently valued at GBP1.57 billion at December 31, up 1.2% against the end of the previous quarter on September 30. The value of the portfolio has increased by 3.9% over the year. The London Student Accommodation Joint Venture portfolio was valued at GBP426 million at December 31, up 1.2% against the previous quarter and up 4.6% year-on-year.
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Fast-food chain group SSP Group said trading in the first quarter of its new financial year was in line with expectations, delivering like-for-like sales growth on the back of strong trading in the UK, North America, the Middle East and Asia Pacific. SSP owns brands including Upper Crust and Caffe Ritazza, which are primarily located in travel locations. The group said revenue rose 2.9% over the three months to end-December on a constant currency basis, with like-for-like sales growth of 2.7% on the prior year.
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Riverstone Holdings said it has created Riverstone Credit Opportunities LP, a new fund designed to capitalise on the current issues facing leveraged capital markets for energy companies. Riverstone Holdings has committed a total of USD375 million to the new vehicle, comprising USD250 million from Riverstone Global Energy and Power Fund V and up to USD125 million from FTSE 250-listed vehicle Riverstone Energy Ltd.
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The Restaurant Group said it full-year results will show "material growth" in both earnings and cash flow, boosted by revenue growth and new restaurant openings. The owner of the chains Frankie & Benny's, Chiquito, Coast to Coast and Garfunkel's also gave a confident outlook for the current financial year. Restaurant Group said revenue grew by 9.6% in the financial year ended December 28, 2014. Like-for-like sales rose 2.8% over the year, while the restaurant group ended the year strong, with like-for-like sales growth of 5% over the two-week Christmas trading period to January 4.
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Laird said that, based on trading through its fourth quarter, it is confident that its expectations for the financial year 2014 remain on track. "Execution of our strategy has delivered further good progress through the year, and we remain encouraged by the outlook for Laird," Chief Executive David Lockwood said in a trading update.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Shanta Gold said a fire broke out at the crushing circuit of the gold processing plant at the New Luika Gold Mine in South Tanzania on Thursday. Shanta said two people suffered minor injuries in the fire but were able to return to work later in the shift and said the rest of the processing plant was not impacted. Shanta said it does not expect any impact on its gold production in the first quarter from the fire as it is able to revert to the standby crusher as repair works take place.
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Tarsus Group said its outlook for 2015 remains positive, and it anticipates its results for 2014 will be in line with its expectations. Although the company said that forward bookings for its major events in 2015 are strong, it has been "deliberately cautious in [its] budgets for 2015" given the current geopolitical environment. In a trading update the media and exhibitions firm said its revenue for the year was up by around 10% at constant exchange rates.
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Hume Capital Securities said it has appointed Phil Dixon as its new chief operator officer and finance director designate, with immediate effect. Dixon is taking over as COO from Ben Ticehurst, who is no longer COO but will remain on the board as an executive director in the short term to assist with the development of the fund management business.
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Nanoco Group said South Korean electronics group LG Electronics has signed a deal with The Dow Chemical Co for the supply of Nanoco's cadmium-free quantum dots for its Ultra HD TV range. The new range of TVs from LG was launched at the Consumer Electronics Show in Las Vegas this week. The deal comes after shares in Nanoco dropped heavily earlier this week after Samsung Electronics unveiled new TVs at the CES event which use technology from Nanoco's rival Nanosys.
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MJ Gleeson said it expects half-year profits to "show a strong increase" over the same period a year earlier and its full year to be in line with current expectations.
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Meat packing business Hilton Food Group said it finished its 2014 financial year in line with board expectations, citing higher volumes in the UK and the Netherlands, although it said that trading in central Europe is still soft and revenue continues to be hit by sterling strength and lower raw material prices. The group said in Western Europe, volume growth in its UK business as well as in Holland, were both the main drivers of growth during the financial year just ended to December 28. However it did say that some of that growth was offset by weak demand in Ireland, which has now resumed growth, and lower volumes in Denmark.
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Power control components firm XP Power said it expects to see further modest growth in revenue in 2015, as it enters the current financial year with positive momentum despite the "mixed global economic climate." XP Power expects to pay a final dividend of no less than 21 pence per share, meaning its minimum total dividend for the year will be 60 pence, up 9% from 55 pence for 2013. In a trading update, the company said that its revenue for 2014 was in line with 2013 at real exchange rates, although at constant currency, they were ahead of 2013 by 5%. Orders for the year rose to GBP105.1 million from GBP103.7 million a year before.
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Speedy Hire said Russell Down will become its new finance director in April. He joins from his role as group finance director at London-listed Hyder Consulting.
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COMPANIES - INTERNATIONAL
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Macy's Inc said its same-store sales on an owned-plus-licensed basis rose by 2.7% in the months of November and December 2014 combined, compared with the same period last year. On an owned basis, same-store sales rose by 2.1% in the combined November/December period. The company maintained its full-year 2014 earnings guidance of USD4.25 to USD4.35 per share.
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Gap Inc said its net sales were up 4% and same-store sales were up 3% for the November and December 2014 holiday shopping season, compared with last year.
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Starbucks Corp said its chief operating officer Troy Alstead is taking an extended unpaid leave from the company. His last day in his current role will be March 1.
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Friday's Scheduled AGMs/EGMs
Qihang Equipment Co
Prezzo
Betfair Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite
Copyright 2015 Alliance News Limited. All Rights Reserved.
2 Oct 2023 08:46
LONDON MARKET OPEN: Stocks rise; United Utilities and Pennon impress
(Alliance News) - London's FTSE 100 made a solid start to the final stretch of the year, though the mood was still uneasy despite a deal being struck in the US to avert a government shutdown.
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