Smurfit Kappa Share News (SKG)

LONDON (Alliance News) - Shares have opened mostly flat Wednesday, as the market awaits the Bank of England's Quarterly Inflation Report at 1030 GMT.

Telecity is holding back the FTSE 250. The data-centre provider is down 13% after announcing higher 2013 profit and dividend, but revenue that missed expectations.

Merrill Lynch has raised FTSE 100 outsourcing firm Bunzl straight to Buy from Underperform, according to traders.

Here is what you need to know at the UK market open:
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MARKETS
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FTSE 100: up 4.89 at 6,677.55
FTSE 250: down 0.01 at 16,078.27
AIM ALL-SHARE: up 1.19 at 869.42
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DJIA: closed up 192.98 or 1.2% at 15,994.77
S&P 500: closed up 19.91 or 1.1% at 1,819.75
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GBP-USD: flat at USD1.6445
EUR-USD: down at USD1.3632

GOLD: up at USD1,287.21 per ounce
OIL (Brent): up at USD108.87 a barrel

(changes since end of previous GMT day)
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ECONOMICS AND GENERAL
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Wednesday's Key Economic Events still to come

10:00 EU Industrial Production
10:30 UK Bank of England Quarterly Inflation Report
10:30 UK BOE's Governor Carney speech
12:00 US MBA Mortgage Applications
15:30 EU ECB President Draghi's Speech
15:30 US EIA Crude Oil Stocks change
19:00 US Monthly Budget Statement
23:50 Japan Domestic Corporate Goods Price Index
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Chinese export and import growth accelerated unexpectedly at the start of the year, defying expectations that the economy is set for a slowdown in early 2014. Shipments surged 10.6% in January from last year, data from the General Administration of Customs showed. Exports were expected to have risen by a mere 0.1% after expanding by 4.3% in December. Imports advanced 10% versus December's 8.3% growth and the 4% growth forecast by economists. As a result,the trade surplus increased to USD31.9 billion in January from USD25.6 billion a month ago.
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The House of Representatives agreed Tuesday in a lopsided bipartisan vote to suspend the government's borrowing limit with no strings attached. The debt limit bill was approved 221-201, with only 28 Republicans voting in the majority. Minority Democrats carried most of the vote. The tea party faction of the Republican Party tried once again to demand concessions from the Democratic-controlled White House in exchange for agreeing to pay the government's bills. But the White House refused to be held "ransom," as spokesman Jay Carney has said, and Republicans were already smarting from the blame they carried for the expensive government shutdown in October.
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A severe winter storm packing ice and snow was moving across the south-eastern US late Tuesday, prompting warnings across the region. Nine states from Louisiana to Virginia were under a winter storm warning, the National Weather Service said. Portions of Georgia and South Carolina were under an ice storm warning.
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The Bank of Japan has no need to ease monetary policy further as inflation is rising toward the 2% target, Jerry Schiff, a senior International Monetary Fund official said. But it should take necessary action if the progress in inflation stalls, Schiff told reporters in Tokyo. In an interview with the Nikkei, BoJ policymaker Takahide Kiuchi said negative effects from any additional easing would outweigh its positive effects. He said it is difficult to predict how additional easing would push up consumer prices.
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Core machine orders in Japan plummeted a seasonally adjusted 15.7% on month in December, the Cabinet Office said - worth 744.1 billion yen. The headline figure was well shy of forecasts for a decline of 4.0% following the 9.3% jump in November. On a yearly basis, core machine orders added 6.7% - also missing expectations for a jump of 17.4% following the 16.6% gain in the previous month.
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The EU is not ruling out sanctions in response to the situation in Ukraine, the bloc's top diplomat said Tuesday, stressing however that the emphasis remains on seeking a solution through dialogue and political reforms. "No options are being taken off the table," EU foreign policy chief Catherine Ashton told lawmakers in the European Parliament, after being asked whether preparations were underway to eventually apply sanctions.
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The French and US presidents have vowed to take strong steps against any businesses that try to revive ties with Iran during the interim nuclear agreement. "They do so at their own peril right now, because we will come down on them like a ton of bricks," US President Barack Obama warned at a news conference on Tuesday. A delegation of 100 heads of French firms visited Tehran last week to probe business potential as the P5+1 (US, Russia, China, France, Britain and Germany) minimally lightened some sanctions for six months while Iran reduces its uranium enrichment programme. French President Francois Hollande said he could not control travel by French companies. But he said he had "let them know that sanctions were enforced and would remain enforced" and the companies "are very much aware of this situation."
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US President Barack Obama charged that Russia is blocking the delivery of humanitarian aid to besieged Syrian communities by obstructing a vote in the UN Security Council. Obama and French President Francois Hollande confirmed during a joint press conference that there are efforts within the Security Council to pass a resolution to ensure delivery of food, shelter, clothing and fuel, but Obama said "Russia is a holdout."
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Greek and Turkish Cypriot leaders on Tuesday agreed to work toward a new system of power sharing for the ethnically divided island of Cyprus, a pledge that came at the start of long-stalled peace talks. "The leaders express their determination to resume structured negotiations in a results-oriented manner," said UN envoy Lisa Buttenhein, reading from a joint statement as Greek Cypriot President Nicos Anastasiades and Turkish Cypriot leader Dervis Eroglu stood by. Both sides agreed to create a bi-zonal federation, ideally made up of two autonomous regions which will be linked to one central government.
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BROKER RATING CHANGES
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CITIGROUP REMOVES SHIRE FROM 'FOCUS LIST EUROPE' - 'BUY'
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DEUTSCHE BANK RAISES SMITH & NEPHEW TO 'BUY' ('HOLD') - TARGET 1125 (650) PENCE
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BARCLAYS RAISES KAZAKHMYS TO 'EQUAL WEIGHT' ('UW') - TARGET 220 (192) PENCE
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TRADERS: PANMURE RAISES KENMARE RESOURCES TO 'BUY' ('HOLD')
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TRADERS: MERRILL LYNCH RAISES BUNZL TO 'BUY' ('UNDERPERFORM')
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COMPANIES - FTSE 100
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Tullow Oil PLC said its pretax profit fell significantly in its recent full year, due to lower disposal gains and higher exploration write-off charges. The major oil and gas company said pretax profit fell 72%, to USD313 million for the twelve months ended December 31, 2013 from USD1.12 billion the previous year. The company said its figures were impacted by both a USD670 million decrease in profit on disposals, following major disposal gains the previous year, and a USD200 million increase in exploration write-offs to USD871 million after spending USD1.1 billion on exploration and appraisal activities during the period.
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The founding family of grocer Wm Morrison Supermarkets PLC has contacted private-equity funds such as CVC Capital Partners Ltd and Carlyle Group LP to weigh their interest in taking the retailer private, Bloomberg Businessweek reported, citing people with knowledge of the matter said. The family, which hold about 9% to 10% of the business, has so far been unable to find a buyout partner due to concerns about Morrison’s slow sales growth and the size of the deal, the magazine said on its website, quoting two of the people.
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Wolseley Buys Finnish Building Materials Distribution Business; Says Acquisition Also Includes Freehold Properties
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Household goods producer Reckitt Benckiser reported lower 2013 profits as it booked higher charges for legal provisions and restructuring and acquisition costs, but revenues and adjusted operating profits increased, driven by growth for its health and hygiene products. However, the maker of products including Cillit Bank cleaning fluids, Dettol disinfectants, Durex condoms and Nurofen and Strepsils cold and flu remedies echoed rivals in warning that market conditions at the start of 2014 are tougher than they were a year ago, particularly in emerging markets. It said it thinks it can offset this challenge.
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Admiral Extends Existing UK Reinsurance Arrangements
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The US Food and Drug Administration has requested clinical trial data from AstraZeneca PLC, the manufacturer of saxagliptin, to investigate a possible association between use of the type 2 diabetes drug and heart failure. The request follows a study published in the New England Journal of Medicine, which reported an increased rate of hospitalization for heart failure, when the heart does not pump blood well enough, with use of saxagliptin compared to an inactive treatment. The study did not find increased rates of death or other major cardiovascular risks.
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COMPANIES - FTSE 250
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TeleCity Group PLC raised its total dividend as it saw pretax profit rise in the full year ended December 31, 2013, and forecast revenues between GBP355 million to GBP362 million for 2014. TeleCity proposed a final dividend of 7.0 pence per share, up from 5.0 pence in the previous year, bringing its total dividend to 10.5 pence, up from 7.5 pence. The carrier-neutral data-centre provider posted a pretax profit of GBP88.4 million, up from GBP76.1 million in the previous year.  Revenue was GBP325.6 million, up from GBP283.0 million in the previous year, but missing consensus forecasts which anticipated revenues of GBP328.6 million.
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WS Atkins PLC said its outlook for the current financial year remains unchanged as it has continued to trade in line with expectations. In a statement, the engineering consultancy said its UK business is continuing to trade well, driven by government infrastructure investment that's helping its rail and highway consultancy units. Revenues in its European business continue to be in line with expectations, while market conditions in the US are stable and it continues to expect a stable margin performance through the second half of the year.
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African Barrick Gold FY Pretax Loss USD928.7M Vs Pretax Profit USD179.2M; Gold FY Revenue Down, USD929.0M vs USD1.01B; Gold FY Production Up 3% At 641,931Oz, Sales Volumes Up 7% At 649,742Oz; Proposes Final Dividend USD2.0 Cents, Total 2013 USD3.0 Cents
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Carillion JV Wins GBP110M Contract With Aabar Properties To Build Five Star Hotel In Abu Dhabi
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UDG Healthcare Sells Specials Sector Businesses For GBP23.5M
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WS Atkins Says UK Trading Well, US Stable, Middle East, Asia Growing
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COMPANIES - ALL-SHARE AND AIM
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Powerfilm Inc said it expects its 2013 pretax loss to widen after sales revenues fell short of company goals. In a trading update ahead of its results, the maker of thin flexible solar panels said it expects to post a pretax loss of about USD2.2 million for the year, compared with a loss of USD1.2 million in 2012. Powerfilm said revenue in the second half of 2013 increased to USD4.9 million compared with USD3.3 million in the first half, however full year revenue is expected to be around USD8.2 million down from USD10.3 million in 2012.
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Cape Signs GBP295M Revolving Credit Facility;Also Signs GBP50M Accordion
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Infinis Energy Says Confident Current Trading In Line With Expectations For Full Year; Says On Track to Deliver On Dividend Commitments
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Town Centre Securities H1 Profit GBP12.3M Vs GBP117,000; Gross Revenue GBP11.5M Vs GBP11.3M; Declares Interm Dividend Of 3.1 Pence, Unchanged
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Bushveld Minerals Says Resource Upgrade Planned For P-Q Project Delayed By Regulators; Expects Amended Right For Extension Of P-Q Prospecting Area To Be Granted In Near Future; Vanadium Project Shows Excellent Concentrate Grades
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Globalworth Real Estate Says FY Pretax Profit EUR13.7M; Revenue EUR8.1M
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Avanti Communications H1 Pretax Loss USD41.8M Vs Pretax Loss USD22.0M; Revenue USD25.0M Vs USD13.8M; Says Second Half Has Started Positively
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Smurfit Kappa Q4 Revenue EUR2.03B Vs EUR1.82B; Raises Final Dividend To 30.75 Cents Vs 20.50 Cent
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Frontier Development H1 Pretax Loss GBP1.6M Vs GBP9321,000 Profit; Revenue GBP5.0M Vs GBP6.0M; Maintains No Dividend Policy
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Volex Anticipates Full Year Results In Line With Expectations
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Asia Resource Minerals FY Production Exceeds Target 23Mt; Q4 Production Up 1.1% To 5.9Mt
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LiDCO Expects Pretax Profit To Be In Line With Expectations; Revenue Up 20% Since Interim Results, Ahead Of Market Expectations
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Costain JV Awarded Network Rail Contract Worth GBP900M Over 7 Years
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Tangiers Petroleum Announces 2.87% Shareholding In Jacka Resources
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Great Eastern Energy Says Pretax Profit Up 129% In 9 Months To Dec 31; Revenue Up 21% In 9 Months To Dec 31
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Rare Earth Minerals Places GBP4.6M In Shares At 0.4p Per Share To Fund Mexican Lithium Expansion
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Immedia Group Says Pretax Profit To Be Ahead Of Broker's Forecasts; Says It Had Strong Q4 Of Trading in 2013
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APR Energy Announces Landmark 82MW Contract Win With Myanmar; Expects 82MW Plant In Myanmar to Commission In Q2
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Speedy Hire Confident To Meet Full-Year Expectations; Says Investigations Into Accounting Irregularities In International Business Nearing Conclusion
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Ithaca Energy Says Handcross Well Is In Process Of Being Plugged And Abandoned
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AFC Energy FY Pretax Loss Widens, GBP4.5M Vs GBP4.2M; Revenue Up, GBP759,441 Vs GBP357,367
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Punch Taverns Withdraws Resolutions To Help Talks With Noteholders
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Wednesday's Scheduled AGMs/EGMs

F&C Capital & Income Inv Tst
Northern 2 VCT
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By Tom Waite; thomaslwaite@alliancenews.com; @thomaslwaite

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