MXP.L Share News (MXP)

LONDON (Alliance News) - Share prices started September negatively Tuesday, after a weak economic reading from China and as markets factored back in the possibility of a US interest rate hike this month.

Inmarsat is the top FTSE 100 gainer, up 2.2%, after confirming that the third satellite in its Global Xpress constellation had successfully gone into orbit on Monday, following its launch on Friday.

Shell and BG Group are directly behind, after being upgraded to Buy by HSBC.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.7% at 6,203.10
FTSE 250: down 0.6% at 16,998.65
AIM ALL-SHARE: down 0.2% at 733.73
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Hang Seng: down 0.8% at 21,505.71
Nikkei 225: closed down 3.8% at 18,165.69
DJIA: closed down 0.7% at 16,528.03
S&P 500: closed down 0.8% at 1,972.18
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GBP: up at USD1.5399
EUR: up at USD1.1272

GOLD: up at USD1,142.16 per ounce
OIL (Brent): down at USD52.81 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 in BST)

08:30 Switzerland SVME - Purchasing Managers' Index
08:45 Italy Markit Manufacturing PMI
08:50 France Markit Manufacturing PMI
08:55 Germany Markit Manufacturing PMI
08:55 Germany Unemployment
09:00 Italy Unemployment
09:00 EU Markit Manufacturing PMI
09:30 UK M4 Money Supply, Mortgage Approvals, Consumer Credit
09:30 UK Markit Manufacturing PMI
10:00 Italy Gross Domestic Product
10:00 EU Unemployment
13:30 Canada Gross Domestic Product
13:55 US Redbook index
14:30 Canada RBC Manufacturing PMI
14:45 US Markit Manufacturing PMI
15:00 US ISM Manufacturing PMI
15:00 US IBD/TIPP Economic Optimism
15:00 US Construction Spending
18:30 US Total Vehicle Sales
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The manufacturing sector in China contracted at a faster rate in August, the latest survey from Caixin revealed on Tuesday, as its PMI hit a six-year low reading of 47.3. That's higher than last month's flash estimate of 47.1, but it's down sharply from 47.8 in July. It also moves further beneath the line of 50 that separates expansion from contraction. Caixin also said its services PMI sank to 51.5 from 53.8 in July, while its composite index fell to 48.8 from 50.2.
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India's economy grew at a lower-than-expected 7% between April to June, compared to 7.5% in the previous quarter, government data released Monday showed. Growth data disappointed as several polls by television channels had forecasted a growth of 7.4 to 7.5%. India had outpaced China as the world's fastest growing major economy in the last quarter. But the new figures meant that the giant Asian neighbours are joint holders of that title as China had also logged a 7% growth in the recent quarter.
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The Reserve Bank of Australia kept its key interest rate unchanged for the fourth straight meeting. The policy board governed by Glenn Stevens decided to leave the cash rate at a record low 2.00%. The bank had lowered the rates by 25 basis points each in February and May.
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The US Federal Reserve is leaving the door open to hiking its benchmark interest rate in September, the central bank's vice chairman indicated Saturday, despite speculation the Fed could hold off amid turmoil in global markets. The central bank is eyeing US employment and inflation as it considers its first tightening of monetary policy since the crisis. Vice Chairman Stanley Fischer said in remarks in Jackson Hole, Wyoming that the Fed should not wait until inflation reaches its 2% goal to begin increasing rates. He said there were good indications that inflation would rise.
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Bank of England Governor Mark Carney over the weekend said the current turmoil in the Chinese market will not have any direct, immediate impact on monetary policy in the UK, saying the central bank's plans would only be affected should issues in China, and more broadly in Asia, continue. Speaking at the Economic Policy Symposium at Jackson Hole in Wyoming, Carney said the central bank's Monetary Policy Committee "can look through the temporary disinflationary impact on headline inflation" caused by slowing economic growth in China "and concentrate on potentially more persistent effects through trade and financial channels". The governor repeated his previous statement that should sustained momentum continue in the UK economy and inflation pressures abate, this will put a decision on raising interest rates into "sharper relief" around the turn of the year. He said the recent events in the global economy do not merit a change in strategy for the MPC.
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The UK Oil & Gas Authority has approved the development of the Culzean gas field - the largest new field discovered in the UK North Sea for a decade. The Authority announced Monday that GBP3 billion is to be invested in the North Sea and its supply chain, supporting up to 6,000 UK jobs and creating more than 400. The Maersk Oil operated high-pressure, high-temperature Culzean field was discovered in 2008 and is expected to produce enough gas to meet 5 percentage of total UK demand at peak production in 2020 to 2021.
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Ireland's manufacturing sector expanded at the weakest pace in eighteen months in August, as growth of output, new orders and employment moderated, survey figures from Markit Economics showed. The seasonally adjusted Investec purchasing managers' index fell to 53.6 in August from 56.7 in July. But, any reading above 50 indicates expansion in the sector.
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Germany's unemployment rate held steady in July, figures from Destatis showed. The jobless rate came in at an adjusted 4.7% in July, the same rate as in the previous month. In the corresponding month last year, the rate was 5.0%. The number of unemployed people decreased to 1.97 million in July from 1.98 million in the preceding month. A year ago, the jobless figure totaled 2.09 million.
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The European Central Bank said it has published a new guideline amending the General Documentation on the implementation of the Eurosystem's monetary policy. It will include counter-party eligibility assessment to take into account information on capital, leverage and liquidity ratios. The guideline also specifies new category of assets added as eligible collateral. The ECB's new guideline introduces some changes to the monetary policy implementation framework, with the provisions on counter-party eligibility revised in light of recent legislative developments in the implementation of the Banking Union.
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US President Barack Obama urged an international conference on the Arctic on Monday to unite now to slow climate change, or else face a dire future. "The climate is changing faster than our efforts to address it," he warned the US-hosted GLACIER conference in Anchorage, Alaska. "That, ladies and gentlemen, must change." Obama addressed the GLACIER conference - an acronym for Global Leadership in the Arctic: Cooperation, Innovation, Engagement and Resilience - on the first day of a three-day tour of Alaska designed to highlight his climate agenda.
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BROKER RATING CHANGES
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TRADERS: HSBC RAISES SHELL TO 'BUY' ('HOLD')
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TRADERS: HSBC RAISES BG GROUP TO 'BUY' ('HOLD')
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TRADERS: JPMORGAN CUTS HELICAL BAR TO 'NEUTRAL' ('OVERWEIGHT')
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TRADERS: JPMORGAN CUTS GRAINGER TO 'NEUTRAL' ('OVERWEIGHT')
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TRADERS: JPMORGAN RAISES ST MODWEN PROPERTIES TO 'OVERWEIGHT' ('NEUTRAL')
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COMPANIES - FTSE 100
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Satellite communications company Inmarsat confirmed the successful orbit of the third satellite in its Global Xpress constellation. The company said the Inmarsat-5 F3 was launched from the Baikonur Cosmodrome in Kazakhstan on Friday and entered orbit on Monday morning. The company's operations team will raise the satellite to its final orbit in coming weeks and undertake payload testing. After this, the satellite will be ready to join the existing two-strong constellation.
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AstraZeneca said it has signed a collaboration deal with Canada's Valent Pharmaceuticals Inc under which it will grant Valeant the exclusive licence to develop and commercialise its brodalumab product. Brodalumab is a drug currently in development for patients with moderate-to-severe plaque psoriasis and psoriatic arthritis. Under the deal, Valeant will acquire the rights to develop and commercialise the product globally, except for in Japan.
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COMPANIES - FTSE 250
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Business services company Rentokil Initial said it has agreed a USD425.0 million deal to acquire US-based pest control company The Steritech Group. Rentokil said the deal will strengthen its position as the third-largest pest control services provider in the US market and will make it the third-largest player in the Canadian market. The purchase of Charlotte, North Carolina-based Steritech means Rentokil's North American operation now generates revenue of USD800 million per year and is its largest division. It comes following the agreement struck by Rentokil on Friday to acquire Chicago-based Anderson Pest Solutions.
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Bwin.Party Digital Entertainment said it has now received a revised takeover bid from 888 Holdings, as the latter attempts to ward off the continued attempts to derail its deal with Bwin.Party by smaller rival GVC Holdings. Bwin.Party said it is now evaluating the new 888 proposal, in addition to the one it has received from GVC Holdings, and will consult with key shareholders in coming days before making a decision which bidder to go with. It said its unanimous recommendation of 888's previous offer remains unaffected by the ongoing talks. Bwin.Party didn't state the value of 888's new offer.
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International Public Partnerships said it is planning to raise up to GBP18.0 million via a share issue. The infrastructure investment vehicle said it will use the proceeds of the fundraising to pay down debt. It will issue 13.4 million shares in the issue, meaning the shares will be issued at around 134.32 pence per share. Shares in the company closed on Friday at 135.80 pence.
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Virgin Money Holdings said Chief Financial Officer Lee Rochford will step down from his position with immediate effect. The bank said Rochford will be replaced by Dave Dyer, currently the strategy director of the company, on an interim basis.
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Electra Private Equity said it has proposed a merger of its Park Resorts, South Lakeland Parks and Southview and Manor Park portfolio companies with Parkdean Holidays, the UK-based self-catering holidays company. The merger of the Park Resorts business with Parkdean would create a company with an enterprise value of GBP960.0 million, Electra said. On completion of the deal, a new GBP550.0 million debt facility will be used to refinance the existing debt facilities of the businesses, including those in which Electra has invested, and will result in expected cash proceeds to the private equity investor of GBP96.0 million.
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COMPANIES - LONDON MAIN MARKET AND AIM
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AGA Rangemaster Group said it has received an approach regarding a possible cash offer for the company from US home appliances firm Whirlpool. AGA Rangemaster, which makes brands including AGA and Rayburn range cookers and Fired Earth kitchen and bathroom products, already agreed a GBP129 million takeover offer from US kitchen products company Middleby in July, which was expected to complete by September 23.
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Entu (UK) said its full-year results will be below market expectations after it decided to shut-down its struggling solar business and warned it may cut its dividend. "Following the developments in Solar, Entu now anticipates that its full year results will be below market expectations," said the company in a statement. Entu also said the solar market is expected to become "increasingly difficult" due to speculation that VAT for solar products could rise to 20% from 5%, compounded by uncertainty about the UK Feed-In-Tariff subsidies currently used for solar products.
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COMPANIES - INTERNATIONAL
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Italian energy group Eni said it has discovered a super-giant deep water gas field off the Egyptian shore, the largest ever found in the Mediterranean Sea. The company said its Zohr field could hold a potential of 30 trillion cubic feet of gas, covering an area of about 100 square kilometers. Zohr is the largest gas discovery ever made in Egypt and in the Mediterranean Sea. Eni said it will immediately appraise the field with the aim of accelerating a fast track production utilizing the existing offshore and onshore infrastructures.
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Wal-Mart Stores is reducing employee hours at some stores as part of efforts to cut costs, reports said. In the past weeks, executives at Wal-Mart executives have asked managers at some of its US stores to stick to predetermined staffing plans that are based on a store's sales projections, thereby indicating fewer working hours for its employees. The retailer's instructions applies only to a small number of its 4,500 US locations, reports said.
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Apple and Cisco announced a partnership to create a fast lane for iOS business users by optimizing Cisco networks for iOS devices and apps, integrating iPhone with Cisco enterprise environments and providing unique collaboration on iPhone and iPad.
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Sanofi and the life sciences team at Google have announced that they are collaborating to improve care and outcomes for people with type 1 and type 2 diabetes. The collaboration will pair Sanofi's leadership in diabetes treatments and devices with Google's expertise in analytics, miniaturized electronics and low power chip design.
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Tuesday's Scheduled AGMs/EGMs

Redcentric
Energy Assets
Max Petroleum
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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