15th Apr 2016 07:21
LONDON (Alliance News) - Campaigning ahead of the UK's June 23 referendum on EU membership officially began Friday, with the likes of Lloyds Banking and insolvency firm Begbies Traynor warning about the impact of a possible Brexit.
Shares were flat to lower, after in-line Chinese economic data lent little impetus to Asian or early European trade.
Here is what you need to know at the London market open:
----------
MARKETS
----------
FTSE 100: down 0.1% at 6,359.83
FTSE 250: down 0.2% at 16,973.63
AIM ALL-SHARE: flat at 732.33
----------
Hang Seng: down 0.2% at 21,300.16
Nikkei 225: closed down 0.4% at 16,848.03
DJIA: closed up 0.1% at 17,926.43
S&P 500: closed flat at 2,082.78
----------
GBP: firm at USD1.4144 (USD1.4131)
EUR: flat at USD1.1248 (USD1.1252)
GOLD: soft at USD1,229.40 per ounce (USD1,231.18)
OIL (Brent): down at USD43.79 a barrel (USD44.27)
(changes since previous London equities close)
----------
ECONOMICS AND GENERAL
----------
Friday's Key Economic Events still to come
(all times in BST)
World Bank and IMF spring meeting in Washington
09:00 Italy Trade Balance
10:00 EU Trade Balance
13:30 US NY Empire State Manufacturing Index
13:30 Canada Manufacturing Shipments
14:15 US Industrial Production and Capacity Utilization
15:00 US Reuters/Michigan Consumer Sentiment Index Preliminary
17:30 US Fed's Evans Speech
18:00 US Baker Hughes US Oil Rig Count
----------
The Brexit battle may seem to have already lasted for months or even years - but the EU referendum campaign officially begins on Friday. With just under 10 weeks until the June 23 showdown, strict rules governing funding and how groups on the same side work together now come into force. Bob Posner, director of party and election finance and legal counsel at the Electoral Commission, said: "Today marks one of the most important dates in the referendum timetable for campaigners. It's crucial that anyone who is, or is considering, campaigning is both aware of what the rules are and that they follow them."
----------
Lloyds Banking Group warned of short-term "economic uncertainty" in the event of the UK voting to leave the European Union, the BBC reported Thursday. The FTSE 100 bank said the long-term effects of Brexit are "unclear" because of uncertainty about the UK's future position outside the EU.
----------
Corporate insolvency firm Begbies Traynor Group warned that thousands of UK manufacturers which rely heavily on exports "could be tipped over the edge" in the event that the country votes to leave the EU. Even with the pound falling 7.5% against the euro and 4.0% versus the dollar to date in 2016 boosting exporters, Begbies warned that the UK's largest exporting industries are suffering from "rising" financial distress. The research comes ahead of the UK's June 23 referendum on whether to remain in the EU or leave. Begbies' Red Flag Alert, which measures corporate distress, found that 21,061 UK manufacturers ended the first quarter in a state of "significant" financial distress, a 20% increase on the corresponding three months a year earlier.
----------
China's gross domestic product expanded 6.7% on year in the first quarter of 2016, the National Bureau of Statistics said. That was in line with expectations but slowed from 6.8% in the three months prior. The bureau also noted that industrial production gained 6.8% in March - topping forecasts for 6.0% growth and accelerating from 5.9% in February. Retail sales advanced 10.5% on year, beating expectations for 10.3% and improving on 10.2% growth in the previous month.
----------
Japan's industrial production declined less than initially estimated in February, final figures from the Ministry of Economy, Trade and Industry showed. Industrial production fell a seasonally adjusted 5.2% month-over-month in February, revised from a 6.2% plunge reported earlier.
----------
Brazil's government has appealed to the country's Supreme Court to issue an emergency ruling to stop a vote scheduled for Sunday on the impeachment of President Dilma Rousseff. Attorney General Jose Eduardo Cardozo filed the application, emphasizing that it sought fair treatment of Rousseff, who has been under pressure to resign for months. She has been accused of hiding the extent of the budget deficit during her re-election campaign at the end of 2014.
----------
Panama will comply with international standards for automatic tax information sharing, a top official from the country's Economy Ministry said in Washington. The announcement follows revelations this month of a data leak from Panama-based law firm Mossack Fonseca detailing how money was funnelled to shell companies in tax havens. "We have reiterated our full commitment to cooperating with the international community during investigations and to continue to implement significant reforms to strengthen the transparency of our financial and legal framework," said Ivan Zarak, Panamanian vice minister for economy, on the sidelines of spring meetings of the World Bank and International Monetary Fund. Organization for Economic Co-operation and Development Secretary-General Angel Gurria hailed the Panamanian statement as "very good news indeed."
----------
Russian fighter jets that made numerous low-altitude passes close to a US military destroyer in the Baltic Sea earlier this week observed all safety regulations, a Russian Defence Ministry spokesman said. According to the Pentagon, the Russian Sukhoi Su-24 jets made "aggressive" flyovers on Monday and Tuesday in close proximity to the USS Donald Cook, with US media reporting that they flew as close as an estimated 10 metres from the ship.
----------
Just five days ahead of the critical primary races in New York State, Democratic presidential hopefuls Hillary Clinton and Bernie Sanders gave voters another look at their respective views in the first debate in more than a month. Squaring off at Duggal Greenhouse in Brooklyn, the candidates traded increasingly heated jabs in front of a raucous and evenly split crowd.
----------
BROKER RATING CHANGES
----------
COMMERZBANK RAISES RECKITT BENCKISER TO 'BUY' (HOLD) - PRICE TARGET 8000 (6200) PENCE
----------
GOLDMAN CUTS WILLIAM HILL TO 'NEUTRAL' ('BUY') - TARGET 380 (460) PENCE
----------
BERENBERG CUTS MOTHERCARE TO 'SELL' ('HOLD') - TARGET 130 (250) PENCE
----------
HSBC CUTS POUNDLAND GROUP TO 'HOLD' ('BUY') - TARGET 160 (290) PENCE
----------
COMPANIES - FTSE 100
----------
BP admitted late Thursday that its shareholders demonstrated their real concern over the company's remuneration policy for 2015 but suggested it will stick to its proposed payment plan as the company said it will only propose a new policy next year. "We have already spoken to a number of shareholders and they are seeking changes to our remuneration policy for the future. We will continue this engagement and bring a revised policy to our next AGM," said BP in a statement. The vote on BP's proposed remuneration policy for Chief Executive Bob Dudley and Chief Financial Officer Brian Gilvary came after shareholders highlighted concerns about their pay packets for 2015 following one of the company's worst financial performances. BP confirmed that over 59% voted against the policy.
----------
Rio Tinto and Sinosteel have extended their Channar Mining joint venture in Australia's Pilbara region. The Channar joint venture extension, together with a separate agreement for Rio Tinto to supply iron ore from the Pilbara, will enable sales of up to 70 million tonnes of iron ore to Sinosteel over the next five years. The extension will see 30 million tonnes of iron ore supplied into the joint venture, with Sinosteel making a one-off payment of USD45 million to Rio Tinto and providing additional production royalties linked to the iron ore price. In a separate agreement, Rio Tinto will sell up to 40 million tonnes of iron ore to Sinosteel between 2016 and 2021.
----------
COMPANIES - FTSE 250
----------
Man Group reported stable funds under management in a volatile first quarter of 2016, warning that market uncertainty has the potential to hit its clients' appetite for risk and have a knock-on effect on the company. Funds under management edged down slightly to USD78.6 billion from USD78.7 billion in the three months ended March 31, a result of net inflows of USD0.5 billion, a USD0.7 billion hit from the value of investments, and a USD0.8 billion boost from the weakening of the dollar against the yen and euro.
----------
Polymetal International said production slipped in the first quarter of 2015 due to declining grades whilst sales lagged behind due to seasonal factors, but the miner reiterated its full-year production guidance for 2016. The Russian gold miner reported production of 260,000 ounces of gold equivalent in the first quarter of 2016, down 4% from a year earlier due to lower grades, as expected, at the mature Okhotsk operations, lower-grade stockpiles at Varvara, and a "one-off release of work in progress" at Voro, it said.
----------
John Wood Group said it has appointed the current Chief Executive of Carillion, Richard Howson, as a non-executive director. Howson will join John Wood on May 12.
----------
COMPANIES - LONDON MAIN MARKET AND AIM
----------
Drinks distributor Stock Spirits Group has appointed a new managing director for its Polish business. Marek Sypek will take on what is a key role for Stock Spirits in June and moves from his current job as chief executive of Agros-Nova Holdings, a Polish drinks, jams and preserved vegetables producer. The appointment comes ahead of Stock Spirits' annual general meeting, at which shareholders will be asked to vote on the potential removal of Chief Executive Chris Heath. Western Gate Investments, the largest shareholder in Stock Spirits with a 9.7% stake, has called for Heath to be removed from his role after raising a number of concerns, including the loss of market share the company has suffered in Poland.
----------
Shipping company Irish Continental Group said it has acquired a new vessel for USD13.3 million. Irish Continental said it has bought the Westpac Express high-speed craft from BALI Westpac 2006. The vessel is due to be delivered to Irish Continental in late May. The vessel will be bareboat chartered to a third party, Sealift.
----------
COMPANIES - INTERNATIONAL
----------
French grocery retailer Carrefour Group reported its first-quarter total sales including value added tax or VAT was EUR20.05 billion, down 4.3% at current rates including petrol. At constant rates including petrol, sales grew 2.6%. Like-for-like sales including petrol increased 2.7%. In the quarter, currencies and petrol prices had unfavourable impacts of 6.9% and 1.2%, respectively. Excluding petrol, reported sales growth was 3.8%, and like-for-like sales growth was 3.1%.
----------
Apple has constructed a secret team to explore changes to the App Store, including a new strategy for charging developers to have their apps more prominently displayed, Bloomberg reported citing people familiar with the matter. The report noted that Apple is considering paid search, a Google-like model in which companies would pay to have their app shown at the top of search results based on what a customer is seeking.
----------
Microsoft says the US government is violating the US Constitution by barring the company from telling its customers when the FBI or another federal agency is looking at their emails. Microsoft made the accusations in a lawsuit filed in federal court in Seattle. The suit says the US Justice Department forces Microsoft to turn its customers' e-mails and other data over to law enforcement without their knowledge. The case seeks to stop "broad and indefinite secrecy orders" that block Microsoft from informing customers when the government requests their data or emails, Microsoft said in an email to dpa.
----------
Friday's Scheduled AGMs/EGMs
Zegona Communications
Kellan Group
Henderson Global Trust (re reconstruction & winding-up proposals)
Henderson International Income Trust (re merger of assets with assets of Henderson Growth)
Bankers Investment Trust (re reconstruction & winding-up of Henderson Global)
----------
By Tom Waite; [email protected]; @thomaslwaite
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
WMH.LMothercareRB..LPLND.L