UK MORNING BRIEFING: Taylor Wimpey Leads Strong FTSE 250

LONDON (Alliance News) - Mid-cap stocks are leading London equities higher at the open Tuesday, following a strong lead in from the US and Asia, particularly Tokyo.

Taylor Wimpey is leading the mid-cap FTSE 250, up 5.7%, after saying it expects to deliver a big increase in operating margin this year, with a 20% margin between 2015 and 2017.

Betting firm Paddy Power, meanwhile, said it suffered "our two worst weekends ever for football profitability" in March, as the punters won. Shares are down 3.8%.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.2% at 6,863.75
FTSE 250: up 0.7% at 16,085.04
AIM ALL-SHARE: up 0.2% at 809.68
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Hang Seng: up 0.3% at 22,319.28
Nikkei 225: closed up 2.0% at 14,425.44
DJIA: closed up 0.7% at 16,695.47
S&P 500: closed up 1.0% at 1,896.65
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GBP-USD: up at USD1.6870
EUR-USD: up at USD1.3765

GOLD: down at USD1,291.20 per ounce
OIL (Brent): down at USD108.28 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Tuesday's Key Economic Events still to come
(all times British Summer Time)

09:00 Italy Consumer Price Index
10:00 Germany and EU ZEW Survey
12:30 US NFIB Business Optimism Index
13:30 US Import and Export Price Indices
13:30 US Retail Sales
13:55 US Redbook index
15:00 US Business Inventories
16:30 US 4-Week Bill Auction
16:30 Canada BoC Review
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UK retail sales surged in April from the prior year on Easter spending, data from British Retail Consortium showed. Retail sales advanced 4.2% on a like-for-like basis in April from a year ago, when they had decreased 2.2%. Growth was positively distorted by the timing of Easter. On a total basis, sales were up 5.7%, compared to a 0.6% fall in April 2013. According to BRC, furniture and flooring was the best performing category, reporting its highest growth since Easter 2006.
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China's industrial production growth eased unexpectedly in April, data showed. Retail sales also expanded at a slower pace in April. Industrial production grew 8.7% year-on-year in April, which was slightly slower than the 8.8% rise seen in March, the National Bureau of Statistics said. Production was forecast to rise by 8.9%. Retail sales advanced 11.9% in April from a year ago, while the growth was forecast to remain unchanged at 12.2%.
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Germany's wholesale prices declined at a slower pace in April, figures from Destatis showed. Wholesale prices were down 1.3% in April from last year, following a 1.7% drop in March. This was the tenth consecutive fall in wholesale prices. Month-on-month, wholesale prices gained 0.2% after staying flat in March.
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The self-declared People's Republic of Donetsk on Monday asked to leave Ukraine and join the Russian Federation, a day after a hastily arranged secession referendum that has been declared illegal by Western governments. Denis Pushilin, a leader of the separatist movement in eastern Ukraine, declared the region's independence. His movement said that an overwhelming majority in the country's east voted in favour of secession.
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UN Secretary General Ban Ki-moon called for a special tribunal "with international involvement" to investigate atrocities committed in South Sudan after a UN report last week found that violence by all sides may constitute crimes against humanity. "I have requested the Security Council to consider to establish a hybrid or international tribunal," Ban said. "We have found crimes against humanity by both sides...Those perpetrators have to be held accountable, this is a fundamental principle of international human rights law."
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US Secretary of State John Kerry is to meet Palestinian President Mahmoud Abbas Thursday in London on the sidelines of the Syrian support group gathering. "While the door remains open to the peace process, the purpose of the meeting is to discuss our ongoing relationship with the Palestinians," State Department spokeswoman Jen Psaki said Monday. Earlier in the day, EU foreign ministers pledged they would support a new Palestinian government on condition it is committed to peace talks with Israel. Fatah, which controls the West Bank, and the radical Islamist Hamas movement, which dominates the Gaza Strip, agreed late last month to form a transitional unity government and hold elections by November.
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The European Court of Human Rights has ordered the Turkish government to pay EUR90 million in damages for human rights abuses over its occupation of northern Cyprus. The decision marks the largest sum ever awarded by the European Court of Human Rights in a case concerning Cypriot refugees and the 1974 invasion of the island.
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Syria has condemned what it said are moves by France and Germany to block its citizens from voting in upcoming presidential elections, the crisis-stricken country's foreign ministry said on Monday. Accusing the two countries of supporting terrorism, the ministry said in statements carried by the official SANA news agency that they "must know that Syria is an independent, sovereign state and its decisions emanate from the will of its people."
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Islamist extremist sect Boko Haram said it is willing to negotiate with Nigeria's government over the release of more than 200 schoolgirls it abducted four weeks ago. The group released a video Monday demanding the release of all imprisoned insurgents in Nigeria in exchange for the teenagers.
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BROKER RATING CHANGES
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CREDIT SUISSE INITIATES BABCOCK INTERNATIONAL WITH 'OUTPERFORM'
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BERENBERG INITIATES ROYAL MAIL WITH 'BUY' - TARGET 700 PENCE
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HSBC CUTS LONMIN TO 'NEUTRAL' ('OVERWEIGHT') - TARGET 307 (477) PENCE
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GOLDMAN CUTS BLINKX PLC TO 'BUY' ('CONVICTION BUY LIST') - TARGET 130 PENCE
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COMPANIES - FTSE 100
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US pharmaceutical giant Pfizer Inc. is planning to raise its bid for British rival AstraZeneca PLC a second time before it considers whether to make a hostile bid, Bloomberg reported Monday, citing people with knowledge of the matter. According to the Bloomberg report, Pfizer is now exploring a new offer for AstraZeneca that would increase the value modestly above its current bid of 50 pounds per share, while increasing the cash portion of the offer. However, the company will probably wait until after the UK government hearings this week to raise its bid.
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Commercial bank holding company Citizens Financial Group, Inc, owned by Royal Bank of Scotland Group PLC, revealed in a regulatory filling on Monday its plan to raise up to USD100 million in an initial public offering of its common stock in the US. The Providence, Rhode Island-based company said it intends to apply to list its common stock under the ticker symbol 'CFG.' However, the company did not reveal the stock exchange to be listed on, the number of shares, and the estimated price range for the offering.
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GlaxoSmithKline PLC said its Phase III study for drug darapladib in the treatment of acute coronary syndrome failed to meet its primary endpoint of reducing major coronary events compared to a placebo when added to standard care. The company said that the overall safety profile of the drug showed no major safety concerns. Glaxo said that it would further analyse the data from the study to better understand its findings.
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AstraZeneca Sees Positive Results From Phase III Study Of Saxagliptin/Dapagliflozin;Says Results Were For Type 2 Diabetes, Now Will Start Phase III Trial Of Dapagliflozin For Type 1 Diabetes
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London Stock Exchange Group PLC said it is "evaluating the merits" of a potential acquisition of Frank Russell Co. In a statement, the stock exchange said it is in discussions with Frank Russell's parent, The Northwestern Mutual Life Insurance Company, over a potential transaction. London Stock Exchange Group said it would intend to raise equity to part-fund a transaction if it were to proceed. Russell was founded in 1936 and is the creator of the Russell Global Indexes, including the Russell 2000.
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Rexam PLC said it is set to return approximately GBP450 million to shareholders, following completion of the sale of its Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare packaging business. The beverage can maker said shareholders are to receive 57 pence per existing ordinary share, equating to an aggregate return of approximately GBP450 million. The announcement follows Rexam's completion of the sale of its Pharmaceutical Devices and Prescription Retail Packaging divisions of its Healthcare packaging business on May 6.
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Old Mutual Majority-owned Nedbank Q1 Net Interest Income ZAR5.57B Vs ZAR5.12B
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Melrose Industries Says Two Largest Businesses Have Good Visibility;Says Order Intake Up 3% In 2014
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easyJet H1 Pretax Loss GBP53M, Narrowed From GBP61M Year Before; Revenue GBP1.70B, Up 6.3% From GBP1.60B Year Before; Says Trading In 2nd Half Continues To Be In Line With Management Expectations, With 51% Of Seats Booked
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TUI Travel H1 Statutory Pretax Loss GBP386M Vs GBP410M; H1 Revenue GBP5.19Bn Vs GBP5.39Bn; Raises Interim Dividend 8% To 4.05P Vs 3.75P; 60% Summer Programme Sold To Date; Remains Confident In Delivering FY Underlying Operating Profit Growth Of Between 7% to 10%
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COMPANIES - FTSE 250
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National Express Says 2014 Trading Has Been Positive, On Track To Deliver Earnings Expectations; Year-To-Date Group Revenue Up 2%; Says It Has Faced Challenges In North America And Spain Due To Weather, Strike Action
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Enterprise Inns H1 Pretax, Pre-Exceptional Items Profit Flat At GBP55M; Like-For-Like Net Income Growth Of 1%; Revenue GBP308M Vs GBP312M; CEO: Confident Businesses Will Acheive Target Like-For-Like Net Income Growth For Full Year
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Brewin Dolphin Ceases Development, Roll Out Of FIGARO To Rest Of Business; Expects GBP32.0M Exceptional Pretax Impairment Charge In H2; Remains Confident Of Achieving 2016 Operating Margin Target
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Interserve Says Trading In Line With Expectations In 2014
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Taylor Wimpey Expects To Deliver Operating Margin Increase of At least 300 Basis Points; Looking To Achieve Operating Margin Of 20% Between 2015-17; Looking To Achieve A Return On Net Operating Assets Of At least 20% A Year Between 2015-17
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COMPANIES - ALL-SHARE AND AIM
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Crawshaw Group Acquires East Yorkshire Beef Limited; Says Butchers Shop Acquisition Gives The Firm A Foothold In A Different Sector Of The Market
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Brit Q1 Gross Written Premium GBP336.5M Vs GBP332.6M; Says Claims Experience In Line With Expectations, No Major Loss Events
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Speedy Hire FY Pretax Profit GBP7.0M Vs GBP11.3M; Revenue GBP349.7M Vs GBP340.0M; Increases Dividend 15% To 0.61 Pence Vs 0.53 Pence;Says Problems Faced In Middle East Has Affected The Businss
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Xchanging Says It Is Trading In Line To Meet Aim Of Maintaining Current Level Of Operating Profit; Expects Second Half Weighting Of Profit To Be Greater Than Previous Year
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Stock Spirits Says Q1 Trading, Cash Flow In Line With Management Expectations
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Paddy Power Says Had Adverse Football Results Again In March, With "Our Two Worst Weekends Ever For Football Profitability"; Says Adverse Football Results To Be Offset For Full Year By Positive Top-Line Momentum, Recycling Of Winnings, Forex; Says 2013 Growth Has Accelerated In 2014, Sportsbook Stakes Up 20% Online, 5% In Retail; Chief Executive Patrick Kennedy To Step Down In April 2015
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Cello Group Chairman: Firm Has Had A Good Start To The Year, Strong Gross Profit Growth; Confident For H1 Results In Excess Of Prior Year, FY Expectations To Be Met
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Red Rock Resources To Sell Colombian Interests For Up To USD5.0M
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Sportech: Trading In Technology Betting Business, Sportech Racing, Digital Remains In Line With Expectations
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Tuesday's Scheduled AGMs/EGMs

Standard Life
Catlin Group
Henderson High Income Trust
IP Group
Sportech
Xchanging
Henderson Global Trust
Stock Spirits Group
HgCapital Trust
Melrose Industries
esure Group
Interserve
Fox Marble
QinetiQ Group
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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