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3/2/2016, 9:54 AM (Source: TeleTrader)
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U.K. trade opens up on earnings, and despite China rating cut

The trading day in the City of London started with a careful confidence, despite the rating for the Chinese economy from the Moody's rating agency changing from "stable" to "negative".

The U.S.-based agency confirmed the People's Republic of China current debt rating, calling for reforms, as economists Moody's economists expect a continued decline of the fiscal strength. There are fewer foreign investments, and the capital flight seen from last July's market crash continued although at slower pace.

The London's benchmark FTSE 100 index added 0.34% to 6,174 points soon after open.

Shares of ITV fell 2.57% to 243.20p despite media group reporting good results for 2015. ITV Plc total revenues rose 15% to £2.97 billion (€2.59 billion), and EBITDA adjusted profits were up 18% at £865 million (€1.11 billion). The earnings per share were declared 20% higher at 16.5p, which compares to 13.8p a year ago.

The online, pay and interactive services jumped 23% to £188 million (€241 million), while ITV Studios revenue grew by whopping 33% to £1.24 billion (€1.54 billion). ITV also gave an optimistic view of the business growth throughout 2016, with accented growth in advertising coming from European football championship broadcast and ITV Studios activities.

Intertek, a testing and inspection company, reported great pre-tax loss of £307.7m in 2015 in comparison with profit before tax of £252.2m in 2014. A non-cash impairment charge of £577m is due to the continuing challenging trading conditions in the global oil and gas industry, according to the company’s press annual report.

Revenues of £2,166.3m represent improvement of 3.5% year on year (up 3.2% at constant exchange rates). Operating profit was £343.4m, up 5.9% on the prior year. The London-based Intertek Group is highly cash generative and with operating cash flow of £466m which was up by 15% year on year.

The full-year dividend per share rose 6.5% to 52.3p from 49.1p last year. The final dividend of 35.3p per share will be proposed at the Annual General Meeting on 25 May 2016. Intertek gave an optimistic outlook for the future, mostly organic, growth.

Shares of the Intertek Group PLC lost 2.66% to 2,924p in the first half hour of trade after the company reported its 2015 results.

The U.K. sterling rose 0.09% compared to the euro, and 0.30% compared to the Swiss franc, and also added 0.04% versus the euro, while staying flat compared to the U.S. dollar.

Breaking the News / ZR