UK MORNING BRIEFING: Share Open Lower But Prudential Gains

LONDON (Alliance News) - Share are lower at the open Wednesday, following Asian and US markets.

Just after the open, insurer Prudential declared a 15% dividend increase for 2013. CEO Tidjane Thiam promised "more of the same, just better". It also announced an expanded relationship with Standard Chartered in Asia. Prudential shares are bucking the early trend, up 2.4%.

Housebuilders and property investors were in focus for analysts Wednesday, according to traders. Goldman Sachs raised Redrow to Buy from Neutral, while cutting Barratt Developments to Neutral from Buy. Jefferies cut both British Land and Land Securities to Hold from Buy.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: down 45.09 at 6,640.43
FTSE 250: down 70.95 at 16,410.50
AIM ALL-SHARE: down 2.92 at 893.16
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Hang Seng: closed down 367.66 at 21,901.95
Nikkei 225: closed down 393.72 at 14,830.39
DJIA: closed down 67.43 at 16,351.25
S&P 500: closed down 9.54 at 1,867.63
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GBP-USD: down at USD1.6602
EUR-USD: down at USD1.3840

GOLD: up at USD1,354.85 per ounce
OIL (Brent): down at USD107.80 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come

10:00 EU Industrial Production
n/a Germany 2-year Notes auction
11:00 US MBA Mortgage Applications
14:30 US EIA Crude Oil Stocks change
17:00 US 10-Year Note Auction
18:00 US Treasury Sec Lew Speech
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The UK's financial conduct regulator said it will launch a review into the way payday lenders and other high-cost short term lenders collect debts and manage borrowers in arrears. The Financial Conduct Authority said its review will be one of its very first moves when it become responsible for regulating consumer credit on April 1. The move comes amid intense scrutiny of the so-called payday lending sector, which makes small, short-term loans but can charge interest rates running at over 100% or more.
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European ministers gave consent to improve the mandate to tackle the menace of bank failure, yet much more remained to be agreed on the scheme to handle bad banks. Ministers need to decide on how much countries should help one another in managing a troubled bank. Members were open to reducing the mutualisation period of the EUR 55 billion Single Resolution Fund to 8 years from 10 years. But the details on the subject remain unclear. "The Council adjusted the mandate given to the presidency for negotiations with the European Parliament on the establishment of a single resolution board and a single fund for the resolution of banks," the EU said in a statement after the meeting on Tuesday.
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Employment in France's non-agricultural sector returned to growth in the December quarter, ending six quarters of contraction, data released by statistical office Insee revealed. The number of employees in the market sector, excluding the farm division, moved up by 15,100, or 0.1%, in the fourth quarter from the the preceding three-month period, when payroll numbers decreased by about 9,600.
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An indicator of activity in the Japanese economy declined for the second successive month in January, suggesting that the current expansion in economic activity is unlikely to accelerate in the coming months, survey data published by the Conference Board revealed. The leading economic index dropped 0.7% month-on-month to 100.4 in January, after falling 0.2% in December. In November, the index recorded a 0.5% increase.
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Malaysian Prime Minister Najib Razak appealed for patience in the search for a missing Malaysia Airlines jet amid confusion over the aircraft's last known location that prompted Vietnam to scale down its effort. The Malay-language Berita Harian newspaper had quoted air force chief General Rodzali Daud as saying that flight MH370, with 239 people on board, changed course before it disappeared.
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The US House of Representatives on Tuesday passed a resolution condemning Russia's violation of Ukrainian sovereignty and calling for Russian sanctions. "This resolution is an important part of a larger effort to aid Ukraine and impose real costs on Russia," said Representative Ed Royce, a Republican from California and chairman of the House Foreign Affairs Committee, which unanimously passed the resolution last week. Royce called the resolution, which now goes to the Senate, "a very important declaration of support for the people of Ukraine during this crisis." It condemns "in clear and unmistakable terms" Russia's aggression.
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BROKER RATING CHANGES
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TRADERS: MORGAN STANLEY RAISES EUROPEAN OIL & GAS SECTOR TO 'ATTRACTIVE'
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TRADERS: INVESTEC CUTS HUNTING TO 'HOLD' ('BUY')
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DEUTSCHE BANK CUTS GO-AHEAD GROUP TO 'HOLD' ('BUY') - TARGET 2100 (1640) PENCE
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TRADERS: GOLDMAN RAISES REDROW TO 'BUY' ('NEUTRAL')
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TRADERS: GOLDMAN CUTS BARRATT DEVELOPMENTS TO 'NEUTRAL' ('BUY')
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TRADERS: GOLDMAN CUTS RIGHTMOVE TO 'BUY' ('CONVICTION BUY LIST')
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TRADERS: JEFFERIES CUTS BRITISH LAND TO 'HOLD' ('BUY')
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TRADERS: JEFFERIES CUTS LAND SECURITIES TO 'HOLD' ('BUY')
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UBS CUTS N BROWN TO 'SELL' ('NEUTRAL') - TARGET 535 (565) PENCE
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COMPANIES - FTSE 100
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Prudential FY IFRS Operating Profit GBP2.95B, Up 17%; Raises Dividend 15% To 33.57 Pence; CEO Predicts "More Of The Same, Just Better"; Says It Has Made Encouraging Start To Achieving New 2017 Objectives Set In December 2013; says has expanded pan-Asian Bancassurance partnership with Standard Chartered
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Troubled outsourcing company G4S PLC said it swung to a loss in 2013 as it booked GBP386 million in charges and restructuring costs related to its issues with UK government contracts, but new Chief Executive Ashley Almanza said the company was already looking to the future. G4S booked a pretax loss of GBP170 million for 2013, compared with a profit of GBP158 million in 2012. Its net loss was GBP362 million, compared with a GBP40 million profit.
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AstraZeneca PLC said it will book a USD275 million write down in the first quarter of 2013, as it announced the sale of its Alderley Park Site in Cheshire to Manchester Science Parks. The sale is part of AstraZeneca's plan to establish a new global research and development centre and corporate headquarters in Cambridge in 2016.
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COMPANIES - FTSE 250
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Hikma Pharmaceuticals PLC proposed a final special dividend and raised its total dividend, as it saw pretax profit jump in 2013. Pretax profit was USD298 million, up from USD132 million in 2012, as revenue rose to USD1.37 billion from USD1.11 billion. The company posted a total dividend of 20.0 cents per share, up from 16.0 cents in the previous year. Additionally, Hikma announced a special dividend final dividend of 4.0 cents, bringing its total special dividend for the year to 7.0 cents.
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Online grocery retailer Ocado Group PLC said group gross sales rose 23% in the first trading quarter of its new financial year, boosted by strong double digit growth in the number of average orders per week, and the launch of its delivery services for Wm Morrison Supermarkets PLC's fledgling online business. For the 12 weeks to February 23, Ocado said group gross retail sales increased by 23% to GBP227.5 million, up from GBP185.5 million for the same period a year earlier, driven by an 18% increase in average orders per week to 155,152, up from 130,995 the prior year. It said that average order size in the period fell by 0.4% to GBP117.53m, compared with GBP117.99.
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COMPANIES - ALL-SHARE AND AIM
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Discount retailer Poundland PLC and pets product retailer Pets at Home Group PLC both priced their initial public offerings on Wednesday and started conditional dealings. Poundland priced its initial public offering at 300 pence per share, valuing the company at GBP750 million. Pets at Home set its IPO price at 245 pence, giving it a total market capitalisation of GBP1.23 billion.
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Brooks Macdonald Group PCL reported a 16% rise in half-year pretax profits, as its funds under management grew by GBP570 million over the six month period. The AIM-listed wealth management group reported a GBP4.9 million pretax profit for the six months ended December 31, compared with GBP4.3 million reported for the corresponding period in 2012. Revenue grew by 6.1% to GBP33.4 million, while administrative costs grew by 4.0% to GBP28.3 million. Funds under management, as announced in a January 24 trading update, amounted to GBP5.68 billion at the end of the six months, a combination of GBP315 million in net new business and GBP255 million of investment growth.
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Hochschild Mining PLC said it swung to a pretax loss in the full year 2013 as lower revenues, higher costs and impairments hit the company, forcing Hochschild to suspend its final dividend. The precious metals producer posted a pretax loss of USD119.6 million compared from a pretax profit of USD212.3 million the previous year as revenues fell 24% to USD622.2 million from USD818.0 million in 2012.
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French Connection Group FY Pretax Loss GBP6.1M Bs GBP10.5M;Underlying Pretax Loss GBP4.4M Vs GBP7.2M; Revenue Down 4% To GBP189.4M Vs GBP197.3M; Pays No Dividend For Year, Same As Prior Year
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Phoenix IT Group To Place 7.5M Shares, 9.99% Of Current Capital, At 114p To Raiise GBP8.6M; To Use Share Placing Proceeds To Pay Down Debt; Placing Led By Investec
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Regenersis Wins 3-Year Contract With Wincor Nixdorf In North America; To Open New Facility In Memphis, Tennessee To Support Wincor Nixdorf Deal
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Sinclair IS Pharma Gets US Orphan Drug Designation For Flammacerium
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Proxama Agrees Exclusive Partnership With Provider Of Secure Identity Solutions HID Global
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Verdes Management Settles RAB Capital, Wildey Convertible Loans; Also Pays Off A Number Of Other Creditors; Finance Chief Says Now Clear Of Major Liabilities
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Hangar 8 H1 Pretax Profit GBP670,000, Vs GBP649,000; Revenue GBP12.5M, Vs GBP11.1M; Plans To Declare Maiden Dividend With Final Results
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Glanbia 2013 EBITDA EUR187.7M, Up 6.2% from EUR176.7M; Up 10% At Constant Currencies; 2013 Adjusted Earnings Per Share 55.46c, Up 8.0% From 51.34c; Up 12% At Constant Currencies; Sees 8% To 10% Growth In Adjusted Earnings Per Share At Constant Currencies In 2014; 2013 Total Dividend 10.00 Cents, Up 10%; 2013 Total Group Revenue EUR3.28B, Vs EUR3.04B
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Financial services business IFG Group PLC said it has agreed to sell its UK traditional independent financial advisory business IFG Financial Services To Ascot Lloyd Holdings Ltd for up to GBP5.6 million, in a deal that represents the final step of the company's strategy of selling off its non-core businesses.
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Wednesday's Scheduled AGMs/EGMs

No Events Scheduled
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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