SHG.L Share News (SHG)

LONDON (Alliance News) - UK shares have opened mostly lower Thursday despite a strong lead from the US, as investors digest a rush of UK company announcements.

In another surprise from Mike Ashley, Sports Direct International said it has sold its 4.6% stake in Debenhams, acquired only three days ago, and has instead entered into a put option agreement for a 6.6% stake in the ailing retailer.

Here is what you need to know at the UK market open:

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MARKETS
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FTSE 100: down 3.50 at 6,816.36
FTSE 250: down 5.84 at 16,287.10
AIM ALL-SHARE: down 0.40 at 882.80
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DJIA: closed up 108.08 at 16,481.94
S&P 500: closed up 9.50 at 1,848.38
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GBP-USD: down at USD1.6345
EUR-USD: up at USD1.3610

GOLD: down at USD1,239.04 per ounce
OIL (Brent): down at USD105.89 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

09:00 EU ECB Monthly Report
10:00 EU Consumer Price Index
10:00 Germany German Buba President Weidmann speech
13:30 US Consumer Price Index
13:30 US Jobless Claims
13:30 US Treasury Sec Lew Speech
14:15 US FOMC Member Williams speech
15:00 US NAHB Housing Market Index
15:00 US Philadelphia Fed Manufacturing Survey
15:30 US EIA Natural Gas Storage change
16:10 US Fed's Bernanke Speech
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An index monitoring house prices in the UK came in with a score of 56% in December, the latest survey from the Royal Institution of Chartered Surveyors revealed. That was shy of forecasts for 60%, and down from the reading of 58% in November - although the index remained above 50% for the fourth consecutive month. Among the individual components of the survey, expectations for an increase in house prices climbed to 61% from 59% in the previous month.
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Investor sentiment towards UK listed shares has hit a record high, according to the results of the latest Lloyds Bank Private Banking Investor Sentiment Index Survey. The monthly survey, which began in March 2013, charts the difference between the percentage of investors that hold positive views and those that hold negative views on each major asset class. In January 2014, the amount of investors holding a positive view on UK shares rather than negative was the highest since the survey began. The reading of +38 for the UK equity asset class was up from the +35 recorded in December and up from +16 in the first survey in March 2013.
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The number persons employed in German manufacturing sector increased in November from a year earlier, the latest data from the Federal Statistical Office revealed. Almost 5.3 million people were employed in the manufacturing firms with 50 or more employees in November. This was 0.6% more than a year earlier.
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The US economy expanded at a moderate pace in the final weeks of 2013, according to the Federal Reserve's collection of anecdotal information known as the Beige Book. Two-thirds of the 12 districts reported increases in hiring, with most districts expecting the "more of the same" into the new year. Three-quarters of the Districts indicated that retail activity had increased since the last Beige Book report. All Districts reported year-over-year increases in manufacturing activity.
The recovery in housing continued in most regions.
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The global growth momentum should strengthen further in 2014, largely due to improvements in advanced economies, International Monetary Fund Managing Director Christine Lagarde said Wednesday. "The world economy had avoided a worst case scenario, thanks to the efforts of global policymakers over the past half decade," she said during remarks at the National Press Club in Washington D.C. At the same time, she warned about underlying risks to global economic outlook. "The global growth is still too low, too fragile, and too uneven," Lagarde said. "It is not enough to create the jobs for the more than 200 million people around the world who need them." While many of the advanced economies face rising risks of deflation, emerging markets are becoming highly vulnerable to risks arising from financial market turbulence and the volatility of capital flows, Lagarde noted.
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China attracted USD12.08 billion foreign direct investment in December, figures from the Ministry of Commerce showed. Investment grew 3.3% year-on-year and was up from USD8.5 billion FDI posted in November. In 2013, FDI increased 5.3% to USD117.59 billion, it said. The Chinese economy expanded 7.8% in the third quarter, the fastest pace in 2013, government data showed in October. The statistical office is scheduled to release the fourth quarter GDP data on January 20.
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The Bank of Japan upgraded its assessment for five of the nine regions in Japan, according to a report published by the central bank. The BoJ's view for the rest of the four regions was left unchanged from that in the previous outlook report released in October.
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Core machine orders in Japan jumped a seasonally adjusted 9.3% on month in November, the Cabinet Office said - coming in at 882.6 billion yen. The headline figure shattered forecasts for an increase of 1.1% following the 0.6% gain in October. On a yearly basis, core machine orders climbed 16.6% - also topping expectations for a jump of 11.7% following the 17.8% spike in the previous month.
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An index tracking the prices of domestic corporate goods was up 0.3% in December compared to the previous month, the Bank of Japan said, standing at 102.8. That matched forecasts following the downwardly revised flat reading in November (originally 0.1%).
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An index measuring tertiary industry activity in Japan was up a seasonally adjusted 0.6% in November compared to the previous month, the Ministry of Economy, Trade and Industry said, coming in at 100.1. That missed forecasts for an increase of 0.7% following the downwardly revised 0.9% contraction in October (originally -0.7%). Industries that saw activity increase included retail trade, finance, accommodations, real estate and health care. Industries that saw activity decline included technical services, communications and utilities.
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More than half of Egypt's eligible voters cast their ballots in a referendum on a draft constitution that marks the first major step in the country's military-backed transition to democracy, an official said on Thursday, citing initial results. "Vote counting is under way. Results available so far point to a high turnout exceeding 55%," police spokesman General Abdel-Fatah Othman said. "Voters who have approved the constitution may exceed 95% of all those who cast their ballots," he told the private broadcaster al-Hayat.
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The Israel air force hit four targets in Gaza in response to rockets fired from the Palestinian territory, the Israeli army said. Militants in the Hamas-controlled Gaza Strip launched a volley of rockets toward the Israeli coastal city of Ashkelon, five of which were shot down by Israel's Iron Dome missile defence system, an Israeli military spokesman said.
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German Chancellor Angela Merkel telephoned Afghan President Hamid Karzai Wednesday to discuss the status of international forces in his country, including the length of time that German troops would stay in Afghanistan, German magazine Der Spiegel reported. The telephone conversation covered a "possible extension" in the length of time that German forces, currently numbering about 3,100, would remain, the report said, citing government sources in Berlin. The extension is a reference to a smaller number of German troops that could stay in Afghanistan after foreign combat troops end their mission in late 2014.
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BROKER RATING CHANGES
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HSBC CUTS NATIONAL EXPRESS TO 'NEUTRAL' ('OVERWEIGHT') - TARGET 300 (290) PENCE
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HSBC RAISES STAGECOACH TO 'OVERWEIGHT' ('NEUTRAL') - TARGET 415 (325) PENCE
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CITIGROUP RAISES BHP BILLITON TO 'BUY' ('NEUTRAL') - PRICE TARGET 2100 PENCE
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BERENBERG CUTS INTERTEK TO 'HOLD' ('BUY') - TARGET 3,000 (3,300) PENCE
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UBS RAISES POLYMETAL TO 'BUY' ('NEUTRAL') - TARGET 610 (590) PENCE
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UBS RAISES ANGLO AMERICAN TO 'BUY' ('NEUTRAL') - TARGET 1,580 (1,500) PENCE
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BERNSTEIN INITIATES MEGGITT WITH 'OUTPERFORM' - TARGET 665 PENCE
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COMPANIES - FTSE 100
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Associated British Foods PLC, in its interim management statement for the 16 weeks to 4 January 2014, said that Group revenue for the first 16 weeks was in line with last year. The company said that compared with the first quarter last year, sterling weakened against the euro but has strengthened against most other major currencies, particularly in recent weeks. As a result, group revenue for the quarter would have been 1% higher at constant currency. If sterling remains at current rates the impact for the rest of the year will be more significant. "Lower sugar prices, as the market rapidly adjusts ahead of EU regime reform in 2017, will result, as previously indicated, in a substantial reduction in profit from our sugar businesses this year. With the further recent fall in world sugar prices this reduction will now be greater than previously expected. Building upon the like-for-like growth already achieved, and with the further store expansion planned for the remainder of the year, Primark's profit will be well ahead of last year with a higher margin than expected," the company said.
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Anglo-Australian mining giant Rio Tinto PLC reported a 6% increase in global iron ore production for the fourth quarter, reflecting the expansion of mining operations in the Pilbara region. Shipments also grew 8% to a record amid continued demand from Chinese steel manufacturers. Rio Tinto, the world's second largest iron-ore producer, said global iron ore production for the fourth quarter increased 6% from last year to 70.43 million tons, with Rio Tinto's share also growing 7% from last year to 55.51 million tons. Iron ore accounts for roughly two-thirds of the profit of Rio Tinto.
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British energy giant BP PLC Wednesday published its BP Energy Outlook 2035, expecting 41% increase in global energy consumption from 2012 to 2035 driven by emerging economies - led by China and India. The outlook, which focuses on supply sufficiency, security and sustainability, noted that global energy demand continues to grow but that growth is slowing. The projection of 41% increase in global energy consumption compares to 55% over the last 23 years and 30% over the last ten.
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Aberdeen Asset Management Q1 AuM GBP193.6B Against GBP200.4B On Sept 30; GBP4.4B Net Outflow In Q1; Expects To Add GBP2B To AuM In Early 2014; Says Acquisition Of SWIP From Lloyds Progressing Well
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Experian Expects Continues To Expect FY Improved Margins; Expects H2 Revenue Growth At Least Similar To Q3
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COMPANIES - FTSE 250
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Sports Direct International said it has sold its 4.6% stake in Debenhams, acquired only three days ago, and has instead entered into a put option agreement for a 6.6% stake in the ailing retailer. Sports Direct bought a share in Debenhams Monday after the department-store chain reported a poor Christmas, hit by discounting in the sector in the run up to the key retail trading period. Debenhams said it was open to working with Sport Direct to looks at ways to improve its operating performance. Sports Direct said Thursday that it was required to transfer cash collateral to cover its obligations under the put option, and the maximum exposure is around GBP64 million.
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Bovis Homes Group PLC said it expects to announce a significant increase in profit before tax for 2013, in line with market expectations. In a trading update, the builder reported a 19% growth in legal completions to 2,813 from last year's 2,355, including a 26% increase in private homes to 2,330. Average sales price increased 14% to 195,100 pounds from 170,700 pounds, primarily due to an improved mix of larger homes with a greater proportion of higher value Southern site.
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Home Retail Group PLC announced the appointment of John Walden as new Chief Executive. Following a period of handover from Terry Duddy, Walden will join the Board as Chief Executive with effect from 14 March 2014. Walden joined the Group in February 2012, and served as Managing Director for Argos. The Group also released its Interim Management Statement for the 18 weeks from 1 September 2013 to 4 January 2014. Total sales at Argos grew by 3.6% to GBP1.81 billion . Total sales at Homebase grew by 2.3% to GBP464 million. The Group said it now expects to achieve full year benchmark profits towards the top end of the current range of market expectations of GBP90 million to GBP109 million.
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Electricals retailer Dixons Retail PLC, in its trading update for the period from Nov. 1 to Jan. 4, posted like-for-like sales growth of 3%, marking second consecutive year of strong growth over the Christmas period. In UK & Ireland, like-for-like sales were up 5%, with further market share gains and a particularly strong post Christmas sale period. Like-for-like sales were up 2% in Northern Europe, while it was down 8% in Greece. Underlying group sales, which exclude trading results from businesses exited and discontinued operations, were 3% ahead of last year on local currency basis.
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UK-based exploration and production company Premier Oil PLC announced that it expects total revenues for 2013 to be in the order of USD1.5 billion, higher than last year's USD1.4 billion. The company noted that profits for the full year will reflect updated future abandonment costs and related non-cash impairment costs. The company plans to record an estimated additional USD50 million charge in the second half of the year for the impairment of B-Block.
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N Brown Says In Six-Week Christmas & New Year Trading Period LFL Revenue Up 7.2%; Expects FY Results Broadly In Line With Expectations
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Ocado Q4 Gross Sales Up 20.1% To GBP271.0M Vs GBP225.7M; Gross Sales For 6 Weeks To January 5 Up 21.3% To GBP11.1M Vs GBP91.6M; CEO: Expects To Continue Growing Broadly In Line Or Slightly Ahead Of The Market
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ComputaCenter Expects Results To Be Slightly Ahead Of Previous Expectations
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Halfords Says Revenue For 15 Weeks To Jan 10 2014 Up 6.6%; Appoints Andy Randall As Managing Director Of Autocentres
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Xaar Expects FY Adjusted Operating Margin In Range Of 30-31%
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Booker Group Says 16 Weeks Like-For-Like Total Sales Up 2%, Non-Tobacco Sales Up 4.1%; Says Customer Numbers Up, Sales In Line With Expectations For 16 Weeks To Jan 3 2014
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COMPANIES - ALL-SHARE AND AIM
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MotiveTV Deployment In Turkey Exceeds Expectations
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Craneware Report For 6 Months To Dec. 31 To Be In Line With Management Expectations
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Cambria Automobiles Expects H1 Results To Be Significantly Ahead Of Last Year's
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Keywords Studios Buys Video-Games Voice Production Service Liquid Violet For Up To GBP1.6M Cash
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Stanley Gibbons Says Current Trading Remains Strong
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Rockhopper Completes Concept Selection Process For Sea Lion Development With Premier Oil; Says Final Premier Oil Investment Decision For Sea Lion Development Expected H1 2015
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Leeds Group H1 Pretax Profit GBP975,000 Vs GBP114,000
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Sinclair IS Pharma Expects FY Results In Line With Expectations
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Bonmarché Headline Like-For-Like Sales Up 6.0% In 5 Weeks To Dec. 28, 2013; Like-For-Like Sales, Plus Online Sales, Up 7.0% In 13 Weeks, 8.4% In 5 Weeks
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Shanta Gold Increases Mineral Resource Estimate For Bauhinia And Luika 9% To 629,000 Oz, Ave Grade 5.5G/T
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SintecMedia In Recommended Takeover Offer For Pilat Media Global; Cash Offer For Pilat Media Global Is 95p Per Share, Values Pilat At GBP63.3M
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GeoPark 4Q Oil & Gas Production Up 37% To 14,548boepd From 10,627boepd Year Before
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Thursday's Scheduled AGMs/EGMs

Plant Impact
Cambria Automobiles
Aberdeen Asset Management
Cardiff Property
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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