Breedon Share News (BREE)

LONDON (Alliance News) - Doveish minutes from the most recent US Federal Reserve policy setting meeting, released late Wednesday, have set a positive tone for equities in London Thursday. Shares are higher with mid-cap stocks slightly outperforming, led by mining stocks.

Centamin is up 4.5%, the third biggest gainer in the FTSE 250. Centamin said it has increased production from its Sukari gold mine in Egypt in the third quarter as its plant reached its capacity target following its expansion.

Randgold Resources is the biggest FTSE 250 gainer, up 6.4%. Numis has raised Randgold to Buy from Add.

New Britain Palm Oil is up 77% after Malaysia's Sime Darby Bhd said it intends to make a GBP1.07 billion cash takeover offer.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 0.7% at 6,526.53
FTSE 250: up 1.1% at 15,090.75
AIM ALL-SHARE: up 0.4% at 730.64
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Hang Seng: up 1.1% at 23,518.77
Nikkei 225: closed down 0.8% at 15,478.93
DJIA: closed up 1.6% at 16,994.22
S&P 500: closed up 1.8% at 1,968.89
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GBP-USD: up at USD1.6170
EUR-USD: up at USD1.2758

GOLD: up at USD1,226.20 per ounce
OIL (Brent): down at USD91.40 a barrel

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

09:00 EU ECB Monthly Report
11:00 Ireland Consumer Price Index
12:00 UK BoE Interest Rate Decision and Asset Purchase Facility
n/a UK BoE Monetary Policy Statement
13:30 US Jobless Claims
13:30 Canada New Housing Price Index
15:00 US Wholesale Inventories
15:30 US EIA Natural Gas Storage
16:00 EU ECB President Draghi's Speech
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Members of the US Federal Reserve are worried about global economic weakness and the impact of a stronger dollar, according to the minutes of the September 16-17 meeting released Wednesday. At that meeting, the Fed said it will end its bond-buying program after October and discussed plans for how to eventually raise interest rates. There was disagreement over the Fed's promise to keep interest rates at zero for a "considerable time," with several voting members expressing concerns that the phrase will give markets an inaccurate outlook for when the central bank will tighten. "The concern was raised that the reference to 'considerable time' in the current forward guidance could be misunderstood as a commitment rather than as data dependent," the minutes said. "It was emphasized that the current forward guidance for the federal funds rate was data dependent and did not indicate that the first increase in the target range for the federal funds rate would occur mechanically after some fixed calendar interval following the completion of the current asset purchase program," the statement added.
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UK manufacturing and exports growth slowed in the third quarter, sounding the first "alarm bell" for the economy, the British Chambers of Commerce warned. According to the Quarterly Economic Survey, whilst the UK economy is still growing, the growth slowed in the third quarter. The balance of opinion on manufacturing sales and domestic orders recorded steep falls in the third quarter. However, the balance of opinion on domestic service sector sales were largely unchanged.
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House prices in the UK were down in September, the Royal Institution of Chartered Surveyors said on Thursday with a seasonally adjusted index score of 30%. That was shy of forecasts for 36% following the downwardly revised reading of 39% in August (originally 40%). The biggest drops were seen in the London area, which had surged in recent months. "The growing sense of caution seems to have taken a particular toll on the London market," RICS said.
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The Bank of Japan has many policy easing measures available and it will not hesitate to adopt any actions if required to achieve the 2% inflation target, Governor Haruhiko Kuroda said. Overcoming deflation is an important prerequisite for raising growth potential, Kuroda told the Economic Club of New York. The bank will make adjustments without hesitations if the risks appear and if necessary to achieve its 2% inflation target, the central banker said. The bank's commitment is result oriented, Kuroda added.
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Core machine orders in Japan jumped 4.7% on month in August, the Cabinet Office said - worth JPY807.8 billion. The headline figure topped forecasts for an increase of 0.5% following the 3.5% gain in July. On a yearly basis, core machine orders fell 3.3% - but that also beat expectations for a decline of 4.9% following the 1.1% gain in the previous month.
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A steady flow of bodies and ambulances crossed the Turkish border on Wednesday as Kurdish fighters held out against the Islamic State inside the beleaguered northern Syrian town of Kobane. A series of heavy explosions shook the town during the day, including airstrikes by a US-led coalition, which has belatedly come to the aid of the surrounded Kurds. An opposition monitoring group, the Syrian Observatory for Human Rights, said coalition airstrikes had killed 45 Islamic State fighters since they began "in earnest" on Monday night.
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The US will screen passengers arriving at five airports from three West African countries for symptoms of the Ebola virus, officials said Wednesday as the first patient to be diagnosed with the illness outside Africa died at a US hospital. Passengers who come from Guinea, Liberia and Sierra Leone will have their temperatures taken and be checked for signs of illness, complete a health questionnaire and provide authorities with contact information, US officials said.
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Italy's government won a confidence vote in the Senate early on Thursday after a bitter parliamentary fight against labour reforms criticized by trade unions and opposition parties. Prime Minister Matteo Renzi says deregulating the labour market - which includes such policies as making it easier to fire people - will encourage new hirings. His reform package also foresees an expansion of welfare schemes for the unemployed.
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EU parliamentarians blocked Wednesday a bid by former Slovenian prime minister Alenka Bratusek to hold a powerful energy post in the next European Commission - the only commissioner nominee not allowed to proceed. Bratusek had come under fire for facing a corruption probe back home, refusing to apologize for singing along to a song that had "long live communism" in its chorus and providing vague answers when quizzed by the European Parliament.
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French President Francois Hollande on Wednesday gave up on plans to boost EU funding for a jobless youths scheme amid opposition from paymasters Germany. As he arrived in Milan for a one-day EU summit focussed on jobs, Hollande said the EU's Youth Guarantee, which offers job or training opportunities to young people, should be financed to the tune of EUR20 billion right up to 2020. However, he was forced to backtrack after talks with German Chancellor Angela Merkel and others in Italy's industrial capital.
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BROKER RATING CHANGES
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TRADERS: INVESTEC RAISES HSBC TO 'ADD' ('HOLD') - TARGET 650 (620) PENCE
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TRADERS: NUMIS RAISES RANDGOLD TO 'BUY' ('ADD') - TARGET 5,100 (5,800)P
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TRADERS: MACQUARIE RAISES LONDON STOCK EXCHANGE TO 'OUTPERFORM' ('NEUTRAL')
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TRADERS: MACQUARIE RAISES ST JAMES'S PLACE TO 'OUTPERFORM'
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TRADERS: MACQUARIE RAISES 3I GROUP TO 'OUTPERFORM'
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COMPANIES - FTSE 100
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Royal Mail said it has set aside a provision of GBP18 million in its half-year accounts to cover a possible fine for an alleged breach of antitrust laws in France, although it is expecting a reduced fine after entering a settlement agreement with the French regulator. In a statement, the British postal operator said the settlement agreement covers alleged breaches of antitrust laws by its GLS France subsidiary before the end of 2010.
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Old Mutual said the initial public offering of its subsidiary OM Asset Management Ltd, the holding company for its US-based institutional asset management business, has been priced below the range it guided in September when the sale process was launched. In a statement, FTSE 100 financial services group Old Mutual said the 22 million shares have been priced at USD14.00 per share. Old Mutual had intended to sell the 18.3% stake at a range between USD15.00 and USD17.00. The sale will results in a USD308 million realisation for Old Mutual, with the proceeds after offering costs to be used for general corporate purposes.
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Aircraft and marine engine maker Rolls-Royce Holdings said it has won a deal to fit Trent 1000 engines to nine Boeing 787-9 Dreamliner aircraft that airline Norwegian is leasing, a contract that comes with an order for USD440 million of aftercare servicing. In a statement, Rolls-Royce said the latest order means Norwegian now has 17 Trent 1000-powered Dreamliners in operation. All the engine sales are already accounted for in the Rolls-Royce order book it said.
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COMPANIES - FTSE 250
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Centamin said it has increased production from its Sukari gold mine in Egypt in the third quarter as its plant reached its capacity target following its expansion. Production from Sukari in the third quarter ended September 30, totalled 93,624 ounces, a 15% increase on the second-quarter and 10% higher than the same quarter in 2013. The average grade from underground and open pit mining increased over the third quarter and is expected to improve further during the fourth quarter, increasing gold production levels, the miner said. Centamin has maintained its full-year forecast of 420,000 ounces of gold, it said.
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Victrex reported strong growth in sales volumes for its last financial year, but kept its profit expectations unchanged. In a statement, the high-performance polymer company said growth momentum has remained positive in the first weeks of its current financial year, although it is still facing a significant hit from unfavourable currency exchange rates.
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British home shopping retailer N Brown Group reduced its full-year profit guidance, after saying trading in the second half so far has been hit by weaker September sales, following on from a drop in both revenue and profit for the first half of the year. The owner of brands including JD Williams, Figleaves online lingerie store and the plus-size Simply Be brand, has been investing in revitalising and expanding its businesses. However, it said that a lower first-half profit due to its planned later phasing of products and marketing activities, will not flow through into a better second half as previously expected. It left its interim dividend unchanged at 5.67 pence per share.
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Recruiter Hays said net fees grew across its regions and segments in the first quarter of its financial year, with its major markets of the UK, Australia and Germany growing simultaneously for the first time in nearly four years, although it continued to be hit by the strength of sterling. In a statement, the company said net fees grew 4% in the three months to end-September, or 9% on a like-for-like basis, which strips out the impact of acquisitions and currency movements. Its said growth from permanent placements was 12% and was 7% from temporary placements.
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Oil services company John Wood Group retained its guidance for an improved financial performance in 2014, driven by growth in its PSN production services unit and an expected significant improvement in its turbine business in the second half of the year. In a statement, the company said the PSN Production Services unit continues to deliver strong growth, driven by its performance in the Americas thanks to high-margin US shale work and the benefit of the Elkhorn business it acquired in 2013.
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COMPANIES - LONDON MAIN MARKET AND AIM
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Malaysia's Sime Darby Bhd said it intends to make a GBP1.07 billion cash takeover offer for New Britain Palm Oil, sending the palm oil producer's shares sharply higher as it said its independent directors intend to unanimously recommend the deal. In a statement, Sime Darby Berhad, which is pursuing the deal through its Malaysian palm oil producing subsidiary Sime Darby Plantation Sdn Bhd, said it wants to acquire New Britain Palm Oil at 715 per share.
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Breedon Aggregates said it has expanded into southwest Scotland by buying Barr Quarries Ltd for GBP21 million in cash. Barr Quarries employs approximately 130 people and is headquartered near Cumnock, 35 miles south of Glasgow. It operates 11 quarries, five asphalt plants and six ready-mixed concrete plants extending from Dalry in the north to Stranraer in the south and east to Moffat.
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Gresham Computing said it now expects its full-year earnings to be "materially below" current market expectations, due to a delay in revenue from new Clareti Transaction Control contracts, which it said will now fall into 2015 rather than in 2014 as previously expected. The software and services company said its continued to make progress in commercialising Clareti Transaction Control, its new matching and reconciliation product, in the first nine-months of the year, with CTC revenue up on last year. It also said its non-CTC parts of the business continue to perform in line with plan.
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UK Oil and Gas Investments PLC Wednesday said it has raised GBP2 million before expenses in a discounted share placing, money it will use to make more investments in the UK oil and gas sector as well as for working capital. In a statement, the company said it placed nearly 166.7 million shares at 1.2 pence each with institutional and other investors.
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Industrial fuel cell power company AFC Energy PLC Wednesday said it is set to raise GBP9 million in a share placing and open offer at a discounted price of 10 pence a share, money it will use to fund a key project and further enter commercial markets. In a statement, the company said it has placed 52 million shares at 10 pence each in the placing with institutional and other investors, raising up to GBP5.2 million. The deal included a placing of 22 million shares with Lanstead Capital LP, worth GBP2.2 million. It also offered existing shareholders a way to contribute, saying it planned to raise up to GBP3.88 million in an open offer, offering 4 shares for every 23 existing shares.
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COMPANIES - INTERNATIONAL
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Billionaire activist investor Carl Icahn said Wednesday he will send an open letter to technology giant Apple Inc Chief Executive Officer Tim Cook on Thursday. Shares of Apple regained the USD100 mark in the regular trading session following the news. Icahn said on Twitter, "Tomorrow we'll be sending an open letter to Tim Cook. Believe it will be interesting."
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Alcoa Inc, the largest US aluminum producer, said Wednesday after the markets closed that its third quarter profit rose sharply from last year, helped by strong productivity gains and improved pricing.
The company's quarterly earnings per share, excluding items, also handily beat analyst estimates as did its quarterly sales. Alcoa also reaffirmed its forecast of global aluminum demand growth of 7% for 2014.
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Gap Inc on Wednesday named Art Peck as its new chief executive officer effective February 1, to succeed Glenn Murphy. Peck is currently president of Gap's growth, innovation and digital division.
Following the announcement, Gap shares slid 8% in after-hours trade on the New York Stock Exchange, also due partly to some soft September sales and muted outlook for the current quarter.
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Australian lender National Australia Bank announced it now anticipates cash profit for the full-year 2014 to declined 14% from last year, citing hefty write-downs of just over USD1 billion primarily from its troubled UK operations. The bank is scheduled to release financial results for the full year on October 30.
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Thursday's Scheduled AGMs/EGMs

IPPlus
Standard Life UK Smaller Companies Trust
Mothercare
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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