London Stocks End Session Slightly Higher

02/11/2013| 12:10pm US/Eastern

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MARKETS: 
FTSE 100          6277.06  +13.13  +0.21% 
FTSE 250         13373.63   -1.62  -0.01% 
FTSE AIM All-Share 747.55   +1.19  +0.16% 

1640 GMT [Dow Jones] FTSE 100 ends 0.2% higher at 6277.06, having oscillated between positive and negative territory throughout the session. Traders have struggled for direction and Angus Campbell at Capital Spreads adds that US stocks have retreated from recent 5-year highs. "The inability of the indices to take out the recent highs...is making investors a little wary of the longevity of this rally," he says. In London, most mining stocks manage to maintain gains; Eurasian Natural Resources closes +4.8%. Tesco ends 1.5% higher after a rating upgrade. The downside is a mixed bunch with Randgold Resources the biggest faller, down 2.6% after a retreat in the gold price. Tuesday, UK PPI and CPI data for January are both out at 0930 GMT.

 
TOP NEWS: 

U.K. Regulator to Investigate Autonomy Accounts

The regulator that oversees the professional conduct of Britain's accountants has launched a probe into the past financial reports of Autonomy Corp. PLC, the U.K. software firm that Hewlett-Packard Co. (>> Hewlett-Packard Company) purchased for $11 billion in 2011 and later accused of having made outright financial misrepresentations ahead of the deal.

Makeover At Barclays Won't Be Extreme

After spending his first six months on the job speaking about cultural change at scandal-plagued Barclays PLC, Chief Executive Officer Antony Jenkins on Tuesday will unveil a plan that is expected to leave the bank's strategy largely intact, according to people briefed on the matter.

UK PM: Discussed EU-US Trade With Obama, Progress Being Made

U.K. Prime Minister David Cameron said he discussed trade between the European Union and U.S. with President Barack Obama Monday and he believed progress was being made on this issue.

 
COMPANIES NEWS: 

UK Miners Brace For Lower Profits, Focus On Costs

The five largest mining companies listed in the U.K. are forecast to announce lower earnings this week due to a fall in commodity prices and multi-billion dollar write downs that have resulted in a change of chief executives at several of the large diversified miners.

North Sea Crude Market Shaken Up as Shell, BP Change Terms of Trade

Two of the biggest trading companies in North Sea crude changed the way they do business in the region, effective Monday, in an attempt to support the position of benchmark Brent as the price-setter for billions of dollars in trade each day.

Mahindra to Buy BAE Systems 26% Stake in India Defense JV

Mahindra & Mahindra Ltd. (500520.BY) will buy BAE Systems PLC's (>> BAE Systems plc) stake in Defence Land Systems, a joint venture, the two companies said Saturday.

Rio Tinto Offered Gas Supply to Keep Australia Smelter Open

The government of Australia's Northern Territory said Monday it would divert gas to Rio Tinto PLC's (>> Rio Tinto plc) unprofitable Gove alumina refinery as long as the miner commits to keep open the biggest employer in the far-north town of Nhulunbuy.

AB Foods: Illovo Not Engaged in Zambian Tax Cutting Activities

Associated British Foods PLC (>> Associated British Foods plc)), an international food, ingredients and retail group which owns budget clothing store Primark, Monday denies that Illovo is engaged in anything illegal, immoral or designed to reduce the tax payable to the Zambian government.

Perrigo Acquires U.K.-Based Rosemont Pharmaceuticals

Perrigo Co. (>> Perrigo Company) acquired Rosemont Pharmaceuticals Ltd. for roughly GBP180 million ($283 million) in a deal that expands the store-brand pharmaceutical and nutritional-products maker's international presence and complements its U.K. over-the-counter business.

British Land Buys a Portfolio Of Properties in London for GBP183.8M

British Land Co PLC (>> The British Land Company plc), a real estate investment trust, said Monday that it has acquired a portfolio of properties in London from Wereldhave for GBP183.8 million.

Rolls-Royce Secures $97.3M Contract from US Air Force

Rolls-Royce Holdings PLC (RR.LN), a global power systems company, Monday said it has been awarded a 97.3 million dollars contract from the U.S. Air Force to support its C-130J transport fleet in 2013.

Balfour Beatty Named Preferred Bidder for GBP45M University Job

Balfour Beatty PLC (>> Balfour Beatty plc), an international infrastructure group, said Monday it has been appointed preferred bidder for Aberystwyth University's 45 million pound student accommodation project.

Mothercare: New CFO Matt Smith Joins Company on March 25

Mothercare PLC (>> Mothercare plc), the mother and baby products retailer, Monday announced that Matt Smith, whose appointment as Chief Financial Officer and Executive Director was announced in November 2012, will be joining the Company on March 25.

 
OTHER NEWS: 

Scottish Independence Debate Campaigning Intensifies

The two sides in the debate over Scottish independence on Monday intensified campaigning, gearing up for a long fight to persuade Scots of the merits or otherwise of going it alone, ahead of next year's referendum.

No Evidence of Health Risk From Horse Meat Contamination - UK Govt

There is no evidence of any risk to public health from the discovery of undeclared horse meat in a range of meat products purporting to be made of beef in Britain, government officials said Monday, although they acknowledged significant public concern.

 
BROKER COMMENTS: 

Credit Suisse Cuts Premier Foods Price Target

1229 GMT [Dow Jones] Credit Suisse cuts its Premier Foods (>> Premier Foods Plc) price target to 100p from 120p. Says trading has stabilized after years of declines, but growth still seems a way off. Furthermore, says the group will have to grapple with a major reconfiguration of the bread operations this year after a significant contract loss. Also notes that, while the business has shrunk, the pension fund has not. The last actuarial deficit was GBP535M but the next review in April will likely see this rise to nearer GBP1B, says the brokerage. Keeps its rating at neutral. Shares trade 1.1% higher at 90p.

Credit Suisse Lowers BG Group Price Target

1222 GMT [Dow Jones] Credit Suisse lowers its BG Group (BG.LN) price target to 1150p from 1215p following the company's production guidance [Feb 5]. Says the operational disappointments in recent years which culminated in the steep cut to 2013 outlook suggest that, internally, BG is in far from perfect shape. "If history is any guide, a full turnaround of a company will take years to implement," says Credit Suisse. Has no doubt though the new CEO is the right man with the right approach. Keeps a neutral rating. Shares trade 0.5% higher at 1111p.

Bumi Board Proposal Only Path Forward - Liberum

1159 GMT [Dow Jones] The proposal put forth by Bumi's (>> Bumi PLC) board of directors to separate the Bakrie family from Bumi is "the only clear path" forward for Bumi, Liberum Capital says. "Whilst Rothschild has assembled a high-calibre chairman and CEO, we think his team's ability to reduce debt and drive shareholder value will be compromised by the dispute over the validity of the relationship agreement and lack of a defined strategy in relation to the disposal of PLC's Bumi Resources stake," a major component in the value of the board's proposal, Liberum notes. It adds that the success of the board's proposal would value the company at GBP4.40 per share on a sum-of-the-parts basis. Conversely, if the deal fails, the downside to the SOTP is GBP3.35 per share. Bumi shares are up 3.6% at 392p.

Ocado Surges On Upbeat Analyst Comments

1119 GMT [Dow Jones] Ocado Group (>> Ocado Group PLC) is up 6% at 126p following upbeat comments from Exane BNP Paribas. It says a combination of weaker-than-expected trading and extra costs have pressured Ocado's earnings and hence have reduced the headroom on its loan covenants. "However, the group has raised additional equity, shifted capex and had its covenants relaxed meaning that it should no longer breach the limits," says Exane. Rates Ocado at outperform with a 145p target. It also upgrades Tesco (>> Tesco PLC) to neutral from underperform and raises the target price by 17% to 375p. Ocado's FY results were very well-received last week. On Feb 7, the shares rose by 10.7%.

Deutsche Bank Lifts Reckitt Benckiser Target

1047 GMT [Dow Jones] Deutsche Bank lifts Reckitt Benckiser (RB.LN) target to 4600p from 4100p ahead of the group's 4Q results. Analyst Harold Thompson says the broker has a long-term positive view on the company. Says growth in the household goods market keeps sentiment high. Has a buy rating. Shares +0.5% at 4256p.

Contact: London Services, Dow Jones Newswires; +44-20-7842-9319

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