Positive China PMI Score Ahead Of Key US Jobs Report

LONDON (Alliance News) - A string of economic data reports building up to the US nonfarm payrolls report provides the global trading focus on Friday.

The US jobs report is seen as a key input for the US Federal Reserve, as policymakers decide whether or not to raise US interest rates for a third time this year, most likely this month or in December.

Already out are positive PMI readings from China, Japan and Ireland. Those for the European Union and the UK follow later Friday morning.

Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: called up 5.38 points at 7,436.00
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Hang Seng: down 0.1% at 27,945.43
Nikkei 225: closed up 0.2% at 19,691.47
DJIA: closed up 0.3% at 21,948.10
S&P 500: closed up 0.6% at 2,471.65
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GBP: up at USD1.2916 (USD1.2885)
EUR: firm at USD1.1891 (USD1.1872)

GOLD: firm at USD1,319.49 per ounce (USD1,316.29)
OIL (Brent): up at USD52.64 a barrel (USD52.16)

(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
(all times in BST)

0815 Spain Markit manufacturing PMI
0815 Switzerland real retail sales
0830 Switzerland SVME PMI
0845 Italy Markit manufacturing PMI
0850 France Markit manufacturing PMI
0855 Germany Markit manufacturing PMI
0900 Italy gross domestic product
0900 EU Markit manufacturing PMI
0930 UK Markit manufacturing PMI
1330 US nonfarm payrolls, unemployment rate, average earnings
1430 Canada Markit manufacturing PMI
1445 US Markit manufacturing PMI
1500 US Michigan consumer sentiment index
1500 US ISM manufacturing PMI and ISM prices paid
1500 US construction spending
1800 US Baker Hughes US oil rig count
2030 US vehicle sales
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China's manufacturing activity expanded at a faster pace in August on new orders, survey results from IHS Markit showed. The Caixin Purchasing Managers' Index rose to 51.6 in August from 51.1 in July. The score was forecast to drop to 51.0. The manufacturing sector has strengthened in each of the past three months, with the latest upturn the strongest since February.
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The manufacturing sector in Japan continued to expand in August, and at a faster rate, the latest survey from Nikkei revealed with a manufacturing PMI score of 52.2. That's up from 52.1.
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Ireland's manufacturing activity expanded at the fastest pace in just over two years in August, survey figures from IHS Markit showed. The seasonally adjusted Investec Purchasing Managers' Index, or PMI, rose to 56.1 in August from 54.6 in July. Any reading above 50 indicates expansion in the sector.
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Brexit Secretary David Davis is insisting he is a "determined optimist" after a bruising week of EU withdrawal negotiations in Brussels. Davis will use a keynote address in Washington DC on Friday to stress the UK can secure a good divorce deal from the EU and will not turn isolationist after Brexit. Striking an upbeat note on the outcome of fraught negotiations on Brexit, Davis will tell an audience in the US capital: "I am a determined optimist.
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Theresa May has been given an audience with Emperor Akihito on the last day of her visit to Japan on Friday. After two days of talks on trade and security with Japanese counterpart Shinzo Abe, the UK prime minister steered clear of hard politics in the final hours of the trip. At the Imperial Palace in Tokyo, May spent 20 minutes in private talks with Japan's symbolic figurehead, who is expected to abdicate following ill health in the coming months. Abe's decision to say he had faith in the future of the British economy after Brexit "particularly pleased" No 10.
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Pressuring North Korea over its nuclear missile programme is "misguided and futile", Russian President Vladimir Putin said, arguing that only a dialogue without pre-conditions could resolve the crisis. The Korean Peninsula was "balancing on the brink of a large-scale conflict", Putin wrote in an article to be published in media in BRICS emerging economies ahead of a summit in China which begins on Sunday. "Russia believes that the policy of putting pressure on Pyongyang to stop its nuclear missile programme is misguided and futile," he wrote.
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French President Emmanuel Macron on Thursday revealed long-awaited details of the centrepiece of his domestic agenda: a labour market reform package. Amending France's highly complex labour laws - designed to protect the individual worker - was a central plank of Macron's political platform. Passing the reforms has been seen as a major test for Macron's socio-liberal government as the new leader - elected in a landslide victory in May - struggles with low approval ratings. The reforms would give companies more flexibility to negotiate working conditions. The measures also partly relax protections for workers facing dismissal.
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BROKER RATING CHANGES
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DEUTSCHE BANK STARTS LONDON STOCK EXCHANGE WITH 'HOLD' - PRICE TARGET 4000 PENCE
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INVESTEC CUTS DIXONS CARPHONE TO 'HOLD' ('BUY')
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HSBC CUTS JD WETHERSPOON TO 'HOLD' ('BUY') - TARGET 1090 (1200) PENCE
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HSBC CUTS GREENE KING TO 'REDUCE' ('HOLD') - TARGET 595 (680) PENCE
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MORGAN STANLEY RAISES CMC MARKETS TO 'OVERWEIGHT' ('EQUAL-WEIGHT')
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COMPANIES - FTSE 100
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Rio Tinto said it has completed the sale of its wholly-owned subsidiary Coal & Allied Industries to Yancoal Australia. From Friday, Yancoal takes over management of Rio Tinto's thermal coal business in the Hunter Valley region of New South Wales. Rio Tinto noted that it will receive total consideration of USD2.69 billion for the sale, together with customary adjustments for net debt and net working capital at completion.
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COMPANIES - FTSE 250
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Rathbone Brothers late Thursday said it has terminated exclusive merger discussions with Smith & Williamson Group. Rathbone Brothers said that, following "very extensive due diligence and negotiations" it was unable to conclude a transaction in the best interest of its shareholders. Rathbone said it had incurred a one off cost of around GBP5 million in expenses associated with the prospective transaction, of which GBP1.8 million was included in its interim results for the first half of the year.
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Indivior said it intends to appeal a ruling from a US court that found that generic competitors to its core Suboxone Film product from Dr Reddy's Laboratories do not infringe its patents. Indivior's 2017 guidance assumed no generic launch, but given this new ruling, the risk to Indivior's guidance has "significantly increased", it warned. It will monitor market conditions, and update its financial guidance "if appropriate". The US District Court for the District of Delaware ruled that the asserted claims for three of Indivior's US patents are valid, but that Dr Reddy's does not infringe any asserted claims of those patents.
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ZPG, which owns digital property companies Zoopla and uSwitch, said it has bought UK firm Ravensworth for an undisclosed amount. Ravensworth provides on-demand print and creative marketing services to estate and letting agents, and is based in Cramlington, Northumberland. ZPG said the acquisition is part of its "mission to provide the best value and most effective solutions to all UK property professionals".
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COMPANIES - INTERNATIONAL
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Vivendi reported its earnings attributable to shareowners for the first half of 2017 amounted to EUR176 million, down 81%. The decrease primarily resulted from the favourable impact of certain non-recurring items during the first half of 2016 included the reversal of reserve related to the Liberty Media litigation and the net capital gain on the sale of Vivendi's remaining interest in Activision Blizzard in January 2016, totalling EUR576 million before taxes. Adjusted net income, which is not affected by these non-recurring items, amounted to a profit of EUR320 million, up 12%. For the first half of 2017, revenue amounted to EUR5.437 billion, up 7.8% and up 4.8% at constant currency.
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A US judge rejected a lawsuit filed against Volkswagen in a victory which could save the German automotive giant billions of dollars in payouts. The ruling could deter dozens of other US states from going after Volkswagen with similar environmental claims following the "dieselgate" emissions scandal which has plagued the car manufacturer for almost two years. Federal judge Charles Breyer rejected the lawsuit from the US state of Wyoming in a San Francisco court because the so-called Clean Air Act must be regulated by the US Environmental Protection Agency rather than the 50 US states. Volkswagen has already settled a complaint from EPA and has racked up EUR22.6 billion in legal costs in North America.
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As many as 3.5 million potentially unauthorized bank accounts were opened at Wells Fargo, the embattled San Francisco-based financial services firm announced after completion of an outside review. The new estimate of potentially unauthorized accounts, released in a statement by the bank, is two-thirds higher than the 2.1 million accounts the bank previously had acknowledged. Well Fargo was fined USD185 million by US regulators about a year ago, after the accounts scandal came to light.
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Friday's Shareholder Meetings

Anglesey Mining