ICP.L Share News (ICP)

LONDON (Alliance News) - UK shares opened slightly weaker Wednesday following disappointing trade figures from China.

However, shares in J Sainsbury rose 2.6%, the top blue-chip gainer, after the supermarket chain said it made a solid start to the year with transaction growth across channels in the first quarter, though like-for-like sales declined.

The grocer said like-for-like retail sales in the 12 weeks to June 4 fell 0.8% excluding fuel and were down 1.0% including fuel. Total retail sales were up 0.3% excluding fuel and down 0.1% including fuel in the quarter.

But the group said it saw like-for-like transaction growth across its sales channels in the quarter, which Chief Executive Mike Coupe said marked a "solid start" for the group.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.2% at 6,272.83
FTSE 250: down 0.2% at 17,161.39
AIM ALL-SHARE: flat at 744.70
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Hang Seng: up 0.4% at 21,251.79
Nikkei 225: closed up 0.9% at 16,830.92
DJIA: closed up 0.1% at 17,938.28
S&P 500: closed up 0.1% at 2,112.13
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GBP: down at USD1.4541 (USD1.4570)
EUR: up at USD1.1373 (USD1.1347)

GOLD: up at USD1,250.71 per ounce (USD1,241.18)
OIL (Brent): flat at USD51.31 a barrel (USD51.10)

(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come
(all times in BST)

09:30 UK industrial and manufacturing production
12:00 US MBA mortgage applications
13:15 Canada housing starts
13:30 Canada building permits
15:00 US JOLTS job openings
15:00 UK NIESR GDP estimate
15:30 US EIA crude oil stocks
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Prime Minster David Cameron insisted the UK should fight for its future inside the European Union rather than "quitting" as he claimed Leave campaigners were prepared to sacrifice people's jobs to secure their dream of Brexit. Appearing live on ITV, Cameron was challenged over issues of sovereignty, with one audience member saying it was a "disgrace" that laws were made by "unelected bureaucrats" in Brussels and the Supreme Court could be overruled by European judges. The PM acknowledged that sometimes the EU "can drive me mad, it is a bureaucracy, it is frustrating" but "walking away, quitting, would reduce our national influence, would reduce our economy, would reduce our say in the world and as a result would damage our country".
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Chancellor of the Exchequer George Osborne warned the UK will be "permanently poorer" if it leaves the EU as figures indicated the City's unease about the possibility of Brexit. More than GBP65 billion either left the UK or was converted into foreign currencies in March and April, according to Bank of England statistics. The figures showed the flow of money out of sterling amounted to more than GBP59 billion in March, with a further GBP63 billion in April. The Chancellor said: "Financial markets are telling us what all the evidence shows: that Britain will be permanently poorer if we vote to leave the EU and the single market."
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The World Bank trimmed its global growth outlook due to sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade and diminishing capital flows. The global economy is forecast to grow 2.4% this year instead of the 2.9% projected in January, the bank said in the June Global Economic Prospects report. The growth outlook for the next year was trimmed to 2.8% from 3.1%. Nonetheless, the pace of expansion is expected to pick up to 3% by 2018, as stabilizing commodity prices provide support to commodity exporting emerging markets.
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Chinese exports declined at a faster pace in May, as overseas demand for Chinese products weakened further, data from the General Administration of Customs revealed. Exports slid 4.1% year-over-year in May, only slightly worse than economists' expectations for a 4.0% decline but accelerating from a 1.8% decrease in April. At the same time, imports dropped 0.4% in May from a year ago, much slower than the 6.7% fall expected by economists and a 10.9% fall registered in April.
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Japan had a current account surplus of JPY1.878 trillion in April, the Ministry of Finance said.
That was shy of expectations for JPY2.308 trillion following the JPY2.980 trillion surplus in March. The trade balance came in at JPY697.1 billion, missing forecasts for JPY919.0 billion following the JPY927.2 billion in the previous month. Exports were down 10.4% on year after shedding 11.4% a month earlier. Imports tumbled an annual 23.1%.
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Japan's gross domestic product was revised up to 0.5% quarter-on-quarter in the first quarter of 2016, the Cabinet Office said. GDP was in line with expectations following last month's preliminary reading for a 0.4% gain. That followed the 0.4% contraction in the previous three months. On a yearly basis, GDP growth was revised up to 1.9% - again in line with expectations and up from 1.7% in the preliminary reading. It contracted 1.1% in the previous three months.
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A Chinese fighter jet intercepted a US spy plane in international airspace over the East China Sea in an "unsafe manner," news reports said, quoting US defence officials. The Chinese J-10 fighter jet flew at "a high rate of speed as it closed in," one of the officials said, according to CNN. The Chinese aircraft was never closer than 30 metres from the US Air Force RC-135 reconnaissance plane, the source added.
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US President Barack Obama and Indian Prime Minister Narendra Modi discussed climate change, cybersecurity, regional security issues, nuclear energy and economic relations during a meeting Tuesday at the White House. Obama recalled the US and Indian diplomatic cooperation at global climate talks, which helped forge an agreement in December in Paris. He told reporters that he and Modi had discussed "how we can, as quickly as possible, bring the Paris agreement into force," including helping India move toward clean energy. Modi is to address a joint session of the US Congress on Wednesday.
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One day after declaring that she had enough delegates to clinch the Democratic Party's nomination for president, Hillary Clinton put an exclamation point on the race by winning several contests to erase any doubt. The former secretary of state picked up wins in New Jersey, New Mexico, South Dakota - and was far ahead in the biggest prize of all, California. Vermont Senator Bernie Sanders won the North Dakota caucus and was also ahead in Montana. The night's results put Clinton well over the 2,383-mark needed to secure the nomination - even without counting the so-called super delegates of which Sanders had been so critical.
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BROKER RATING CHANGES
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TRADERS: LIBERUM CUTS INTERMEDIATE CAPITAL TO 'HOLD' ('BUY')
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UBS CUTS HOCHSCHILD MINING TO 'NEUTRAL' ('BUY') - TARGET 160 (120) PENCE
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TRADERS: CITIGROUP RESUMES VEDANTA RESOURCES WITH 'NEUTRAL' - TARGET 440 PENCE
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COMPANIES - FTSE 100
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Tesco is set to announce the disposal of its interests in Turkey and Giraffe Restaurants business later this week as Chief Executive Dave Lewis accelerates the grocer's exit from underperforming businesses, Sky News reported. The report said Tesco is close to agreeing the sale of Kipa in a move that will mark a further stage in its international retrenchment following the sale or closure of its operations in China, South Korea and the US. Lewis has also sanctioned the sale of Giraffe, which the company has owned for just three years.
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Imperial Brands reiterated its commitment to 10% growth in its dividend over the medium term. Ahead of its investor day in Bristol, the tobacco group said its focus remains on simplifying its brand portfolio and optimising its investment decisions both in terms of brands and markets. In addition, Imperial Brands said it will maintain a disciplined approach to costs, which will underpin plans to increase its dividend 10% by a year in the medium term.
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COMPANIES - FTSE 250
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AO World, the online seller of washing machines and other household appliances, named Geoff Cooper, who chairs Card Factory, as the man to replace Richard Rose as chairman, and reported that losses widened in the financial year ended March 31. AO reported a pretax loss of GBP6.7 million in the year ended March 31, widening from GBP2.9 million a year earlier, even as revenue rose to GBP599.2 million from GBP476.7 million.
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WH Smith said sales have increased in the third quarter of its financial year so far, with a familiar pattern of strong trading in its travel business but a decline for its high street branches. The books, magazines and stationary retailer said group sales grew 2.0% year-on-year in the 14 weeks to June 4, with like-for-like sales flat. The group's financial year runs to the end of August.
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Pizza delivery company Domino's Pizza Group said it has invested GBP24.0 million to acquire significant minority interests in the Domino's Iceland, Norway and Sweden units. Domino's said the acquisition of the stake marks an agreed future route to majority ownership and control of the master franchisees for the Domino's businesses in the Scandinavian countries. It is acquiring the stakes from Birgir Bieltvedt, the chairman and founder of Domino's Iceland, and other investors. Following the investment, Domino's Pizza Group will own 49% of the Iceland business and an effective 45% in the Norwegian and Swedish businesses. It has the option to by the remainder of the shares between 2020 and 2023.
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Flexible office-space provider Workspace Group hiked its dividend by 25% as it reported rises in both its property valuation and rental income over its financial year that ended March 31. Workspace posted a final dividend of 10.19 pence per share, taking its full-year dividend to 15.05p per share, up 25% from the 12.04p per share paid for the year prior. Net rental income rose 28% to GBP74.1 million from GBP57.7 million, driving up revenue to GBP101.2 million from GBP83.6 million, whilst Workspace's underlying property valuation increased by 21% to GBP1.78 billion from the GBP1.42 billion reported a year earlier.
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3i Infrastructure said it has raised a total of GBP385.0 million from its capital raising to fund the completion of previous investments and to fund new deals. The infrastructure investment group said it issued 233.3 million shares at 165 pence per share to raise the funds. Shares in the company closed at 167.00p on Tuesday.
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COMPANIES - LONDON MAIN MARKET AND AIM
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CMC Markets, the financial trading provider founded by Chief Executive Peter Cruddas, declared its first dividend as a publicly listed company and reported a 23% jump in full-year pretax profit. CMC, which will join the FTSE 250 index on June 20, said it made a GBP53.4 million pretax profit in the financial year ended March 31, up from GBP43.5 million a year earlier, as net operating income rose to GBP169.4 million from GBP143.6 million. CMC, which listed in February, declared a total dividend of 8.9 pence, up from 5.7p the prior year.
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Online fashion retailer Boohoo.com said revenue surged higher in the first quarter, helped by a strong performance in the UK, prompting a slight upgrade to its sales growth guidance for the full year. Boohoo said total revenue in the three months to the end of May was GBP58.2 million, up 41% year-on-year from the GBP41.3 million made a year earlier. UK revenue grew 42% in the quarter, while revenue from its European and international operations also increased sharply.
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Henry Boot said it expects to post pretax profit for 2016 "comfortably ahead of current market expectations" in light of the high level of land sales completed since the start of the year, together with the commercial development planned for the second half. The land and property investor and construction company said that since its trading update on May 26, it has concluded two further land sales for 275 house units, one of which was ahead of schedule.
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Engineer Fenner said Chief Executive Nicholas Hobson has stepped down from the board with immediate effect, and will continue on garden leave for the rest of his contractual notice period to "enable him to continue with treatment for his ill health". Fenner said it has commenced a search to find a replacement chief executive, but until one can be found, Mark Abrahams has agreed to step back into the role, relinquishing his chairmanship.
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COMPANIES - INTERNATIONAL
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Jeff Bezos, founder and CEO of Amazon.com, said the company will invest an additional USD3 billion in India, bringing the company's total pledged investment in the country since 2014 to USD5 billion as it chases growth outside the US. Bezos announced the investment at the US-India Business Council's Leadership Summit in Washington, where Indian Prime Minister Modi spoke to executives from US companies.
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Wednesday's Scheduled AGMs/EGMs

WPP
Belgravium Technologies
Central Asia Metals
Hurricane Energy
M&C Saatchi
Share
TyraTech
Witan Pacific Investment Trust
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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