7th Feb 2014 08:20
LONDON (Alliance News) - UK shares have opened higher Friday, as the market looks ahead positively to the US non-farm payrolls report later in the day.
After its results on Thursday, AstraZeneca has been named a Conviction Buy by Liberum. Meanwhile, JPMorgan has lifted Tate & Lyle straight to Overweight from Underweight.
Vedanta Resources is up 3.0% at the open after it said late Thursday that Executive Chairman Anil Agarwal bought another 1.1 million shares in the company for GBP9.0 million. Agarwal holds 68.37% of the miner after the purchase.
Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 8.64 at 6,566.92
FTSE 250: up 33.45 at 15,823.36
AIM ALL-SHARE: up 3.03 at 860.84
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DJIA: closed up 188.30 at 15,628.53
S&P 500: closed up 21.79 at 1,773.43
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GBP-USD: up at USD1.6350
EUR-USD: flat at USD1.3588
GOLD: up at USD1,262.70 per ounce
OIL (Brent): down at USD107.25 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
09:30 UK Industrial Production
09:30 UK Manufacturing Production
09:30 UK Total Trade Balance
11:00 Germany Industrial Production
13:30 US Nonfarm Payrolls
13:30 US Unemployment Rate
15:00 UK NIESR GDP Estimate
19:00 US Consumer Credit Change
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UK Prime Minister David Cameron is to urge Scotland to vote against independence in September's referendum, arguing that the whole UK would be "deeply diminished" if Scotland opted to leave, the BBC reports. In a speech in London, the prime minister will also warn supporters of the Union against "complacency", the BBC said.
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HSBC JAN CHINA SERVICE PMI 50.7 VS 50.9
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German exports posted a surprise fall in December, bringing to an end four consecutive monthly gains, the Federal Statistics Office said. Monthly exports from Europe's biggest economy fell by 0.9% in December after gaining 0.7% in November. Analysts had expected a rise of 0.8%. Imports also dropped unexpectedly in December, by 0.6%, after contracting by 2.3% in November, the data showed. Analysts had forecast a 1.2% increase.
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Leading bookmakers in Britain and Germany make Norway the favourites to top the medals standings at the end of the Winter Olympics which open in Sochi Friday. Norway, whose team includes many established Olympians such as ski stars Aksel Lund Svindal and Marit Bjoergen, are given odds of around 2-1 to win most golds. Other favourites are the US at odds of 3-1, Germany (6-1), hosts Russia (15-2) and 2010 table-toppers Canada (9-1). The medals standings are based on the most gold medals won rather than the most medals in total. For the most total medals (gold, silver and bronze), the bookmakers see the US team top. The US also won most medals in Vancouver four years ago, but had five fewer golds than Canada, and were also behind Germany in the standings.
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A US warning that terrorists targeting airliners en route to the Sochi Olympics could hide explosives in toothpaste tubes sparked a ban Thursday on all liquids in carry-on baggage aboard Russia-bound flights originating in the US. The US Transportation Security Administration issued the temporary ban, which includes gels and aerosols, ABC News and other US media reported.
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The Syrian government and the opposition agreed Thursday to let humanitarian aid into rebel-held areas of the central city of Homs, prompting positive reactions from the US and Russia. However, the UN Security Council continued to put pressure on Syrian President Bashar al-Assad by inviting him to expedite the process of removing chemical weapons in order to meet the agreed June 30 deadline.
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The US has taken steps to block sanctions-evading deals between Iran and business partners in several European and Middle Eastern countries, the US Treasury Department said Thursday. Companies and individuals in Germany, Spain, Liechtenstein, Georgia, Turkey, Afghanistan and the United Arab Emirates have been targeted over suspicions that business conducted with Tehran violates existing US sanctions.
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Thousands of anti-government demonstrators marched through Bangkok's main business district Friday to raise money for rice farmers who have not been paid for their crops by the government.
The protests over the rice scheme comes as the caretaker cabinet of Prime Minister Yingluck Shinawatra is under pressure following months of street protests and a disrupted general election on Sunday.
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BROKER RATING CHANGES
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AstraZeneca Now Liberum Top Pick - Conviction Buy - Price Target 4,600p
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NOMURA RAISES MITCHELLS & BUTLERS TO 'BUY' ('NEUTRAL') - TARGET 540 (390) PENCE
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NOMURA CUTS MARSTONS TO 'NEUTRAL' ('BUY') - TARGET 143 (116) PENCE
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JPMORGAN RAISES TATE & LYLE TO 'OVERWEIGHT' ('UNDERWEIGHT') - TARGET 900 (735) PENCE
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TRADERS: MERRILL LYNCH RAISES VEDANTA TO 'BUY' ('NEUTRAL')
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BERENBERG RAISES ROTORK TO 'BUY' ('HOLD') - TARGET 2665 (2640) PENCE
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COMPANIES - FTSE 100
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Shire PLC said Thursday that two pivotal Phase 3 investigational studies evaluating the efficacy and safety of Vyvanse Capsules versus placebo as an adjunctive treatment for major depressive disorder in adults who inadequately responded to antidepressant monotherapy with a SSRI or SNRI did not meet their primary efficacy endpoints. The safety profile for Vyvanse in the two studies appears to be generally consistent with the known profile established in studies in adults with Attention-Deficit/Hyperactivity Disorder. Based on the results, Shire said it will no longer pursue the clinical development program.
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A group led by China Minmetals Corp is nearing an agreement to acquire commodities trader and natural resources firm Glencore Xstrata PLC's Las Bambas copper project in Peru for more than USD5 billion, Bloomberg reported citing people familiar with the matter. Citing the people, the report suggested that a deal between Minmetals and Glencore could be announced as early as this month subject to Chinese government approval. The asset could fetch closer to USD6 billion.
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British Land PLC said it has ended up with a 57.2% stake in specialist retail park property group Hercules Unit Trust after a scheduled pre-emption process, a deal that will boost its earnings. The company said Wednesday it wanted to raise its stake to 54.2%, from 49.2%, but could end up with more if it was allocated more than its pre-emptive allocation in the tender. In its statement Friday, it said it has agreed to buy GBP66.8 million worth of units at GBP613 each, 3.8% below the latest net asset value per share. It said the purchase represents an initial yield of 6.1%.
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COMPANIES - FTSE 250
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Defence technology company QinetiQ Group PLC said its full-year outlook remains unchanged, with the downturn in its global products business meaning that the range of possible outcomes remains wider than usual. The company's global products unit, which makes products including unmanned bomb disposal devices and technology that protects soldiers and vehicles from explosions or attack, has been hurt as the US and UK have scaled back military operations in Iraq and Afghanistan in recent years. In a trading update, the company said the unit was continuing to be hit by the military drawdown in conflict zones and it is trying to broaden the unit's portfolio of products beyond defence to reduce its reliance on conflict spending.
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Vedanta Resources PLC late Thursday said Executive Chairman Anil Agarwal recently bought over 1.1 million shares in the company for a total of over GBP9.0 million. The company said that following the deal, Agarwal has a total holding of 182.4 million shares, or 68.37% of the company.
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Shaftesbury Portfolio Remains Substantially Fully Let; Reports Continued Strong Demand
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Electra Private Equity Diluted NAV 2,781P End-Dec Vs 2,764P End-Sep
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COMPANIES - ALL-SHARE AND AIM
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Andes Energia PLC said it has discovered 125 metres of gross pay in the Vaca Muerta formation of the El Manzano West Block, Argentina. The unconventional and conventional oil and gas exploration and development company said it found persistent presence of oil during drilling at the Las Varillas x-1 well at the site.
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Trinity Exploration & Production PLC said its El Dorado well offshore Trinidad has failed to find commercial levels of net oil and gas. The oil and gas exploration and production company with operations in Trinidad and Tobago said the well was drilled to a total depth of 6,174 feet measured depth and intersected a shallow gas sand which held roughly 13 feet of net oil sands and 32 feet of net gas sands. However, the company deemed these amounts to not be commercial and now plans to permanently plug and abandon the site.
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Waterlogic PLC, a manufacturer and distributor of point-of-use drinking water purification and dispensing systems, said it delivered a "solid" financial performance for 2013, with revenues up, and adjusted earning in line with market expectations. Waterlogic said it expects group revenues for the year to the end of December 2013, to be around USD124 million, up 23% from USD101 million a year earlier, with organic revenue growth expected to be in the region of 4.2%. It said adjusted earnings before interest, taxes, depreciation and amortisation are in line with expectations.
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Quintain Estates & Development PLC said it has exchanged contracts to acquire a 21-year leasehold interest in Kingsbourne House at 229-232 High Holborn, London, and part of the adjacent 226 High Holborn for GBP13.7 million in cash. Kingsbourne House is a recently refurbished office building next to Holborn Underground station.
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Software supplier Dillistone Group PLC said it expects its trading performance for 2013 to be in line with market expectations. The company, which supplies software for the international recruitment industry through its Dillistone Systems and Voyager Software divisions, said the financial year to the end of December 2013 was a successful on both an operational and financial perspective. It said its Dillistone Systems division, which targets the executive search industry, is expected to deliver its highest ever revenue.
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Energy storage and clean fuel energy company ITM Power PLC said it has been granted planning permission for five hydrogen refuelling sites on the Isle of Wight. ITM Power said planning permission has been approved for 80 kilogram-a-day hydrogen refuelling stations at four locations, and for one 15kg a day marine refuelling station.
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Johnson Service Group PLC said that non-executive Director Paul Moody will succeed John Talbot as Chairman when the latter steps down May 1. Talbot is executive chairman, while former Britvic PLC Chief Executive Moody will be non-executive chairman.
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Friday's Scheduled AGMs/EGMs
Shaftesbury
Melrose Industries
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By Tom Waite; [email protected]; @thomaslwaite
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
AstrazenecaBritish LandItm PowerTate & LyleMitchells & ButlersVedanta ResourcesSHB.LQinetiqELTA.LRotorkGlencoreShireJohnson ServiceMarstonsDillistoneTrinityQuadriseAEN.L