(Alliance News) - Stocks in London are called to follow New York higher on Friday morning, after the Bank of England left interest rates on hold in a split decision.

At its February meeting, the BoE kept its bank rate at 5.25%. It is the fourth successive hold, following one in September, which ended a streak of 14 consecutive hikes since December 2021, and two more in November and December. The BoE had rapidly increased bank rate from a Covid-19-induced low of 0.10%.

It was a split outcome, with six Monetary Policy Committee members, Governor Andrew Bailey included, favouring the hold. Two would have preferred rates to have been lifted by 25 basis points, they were Jonathan Haskel and Catherine Mann. One member, Swati Dhingra, preferred to reduce bank rate by 25 basis points, to 5%.

At 1215 GMT on Friday, UK Bank of England Chief Economist Huw Pill will speak.

In early corporate news, airlines Ryanair and Wizz Air reported a higher number of passengers in January, but lower load factors.

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 0.6% at 7,668.30

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Hang Seng: down 0.1% at 15,550.44

Nikkei 225: closed up 0.4% at 36,158.02

S&P/ASX 200: closed up 1.5% at 7,699.40

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DJIA: closed up 369.54 points, 1.0%, at 38,519.84

S&P 500: closed up 60.54 points, 1.3%, at 4,906.19

Nasdaq Composite: closed up 197.63 points, 1.3%, to 15,361.64

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EUR: up at USD1.0879 (USD1.0851)

GBP: up at USD1.2749 (USD1.2708)

USD: up at JPY146.43 (JPY146.13)

Gold: down at USD2,055.44 per ounce (USD2,061.02)

(Brent): down at USD79.03 a barrel (USD81.21)

(changes since previous London equities close)

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ECONOMICS

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Friday's key economic events still to come:

12:15 GMT UK Bank of England Chief Economist Huw Pill speaks

08:30 EST US nonfarm payrolls

10:00 EST US Michigan consumer sentiment index

10:00 EST US vehicle sales

10:00 EST US factory orders

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The IMF sees a greater risk to the global economy if central banks start cutting interest rates too soon than if they move "slightly" too late, Managing Director Kristalina Georgieva said Thursday. The US Federal Reserve, the European Central Bank and others have held interest rates elevated in recent months in an attempt to bring inflation back down toward target, following a post-pandemic surge in prices. With inflation now falling in many of the world's advanced and emerging economies, attention has now turned to when they should start cutting rates to stimulate investment and economic growth. "Our team has looked back in history, and the conclusion they drew is that the risk of premature easing is higher than the risk of being slightly behind," Georgieva told reporters during a briefing at the International Monetary Fund in Washington.

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BROKER RATING CHANGES

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RBC cuts Close Brothers to 'sector perform' ('outperform') - target 650 (800) pence

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Barclays raises Wizz Air to 'equal weight' (underweight) - price target 2,200 (1,750) pence

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Barclays raises easyJet to 'overweight' (equal weight) - price target 700 (450) pence

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COMPANIES - FTSE 100

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AstraZeneca noted positive high-level results from the Japan Phase III trial of acoramidis in adults with transthyretin-mediated amyloid cardiomyopathy. ATTR-CM is a rare, systemic, progressive and fatal condition that leads to heart failure and high rates of fatality within four years from diagnosis, the pharmaceutical company said. "Acoramidis is an investigational, next-generation, oral, highly potent small molecule stabiliser of transthyretin, designed to achieve maximal stabilisation and preserve native TTR," Astra said. It added that acoramidis was well-tolerated, with no safety signals of potential clinical concern identified.

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After market close on Thursday, Hikma Pharmaceuticals said it has agreed a US-wide settlement designed to resolve its opioid-related claims with US states, local communities and tribal nations. The London-based pharmaceutical company has agreed to pay up to USD115 million in cash and USD35 million?in donations of naloxone, an opioid antagonist used to reverse the effects of opioid overdose. It stressed that the settlement is not an admission of wrongdoing or liability and will continue to defend against any litigation that this settlement does not resolve.

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COMPANIES - FTSE 250

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Wizz Air reported a higher number of passengers and capacity in January. Capacity rose by 20% on-year to 5.8 million seats from 4.8 million seats. The number of passengers jumped 14% to 4.7 million from 4.1 million. However, load factor fell to 82% from 86%. Wizz Air explained that the fall was "primarily attributable to an increase in one-directional visual flight rules traffic and the reallocation of capacity in response to evolving geopolitical events." On a rolling 12 months basis, capacity in January increased by 24% to 67.4 million from 54.5 million a year ago. The number of passengers jumped 28% to 60.9 million from 47.4 million. Load factor improved to 90% from 87%

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Octopus Renewables Infrastructure Trust said it has completed the acquisition of four newly-constructed solar farms located close to Dublin, Ireland. The solar complex totals 199 megawatts and was acquired from Statkraft Ireland, which developed and constructed the projects under ORIT's oversight. Following the acquisition, ORIT's total capacity of operational renewable energy assets reaches 735MW. The total acquisition cost of EUR160 million was in part financed using a EUR80.6 million debt facility provided by Allied Irish Banks and La Banque Postale. Chair Phil Austin commented: "We are pleased to have completed this substantial acquisition, which sees ORIT become the owner of Ireland's largest solar complex which will deliver a substantial amount of green electricity. Projects like this are vital to accelerating the journey to net zero. We have been delighted to partner with Statkraft as a highly experienced developer and Microsoft as the offtaker."

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OTHER COMPANIES

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Ryanair said that in January 2024, its number of guests increased by 3.4% to 12.2 million from 11.8 million a year earlier. Its load factor edged lower to 89% from 91%. During the month, Ryanair operated over 71,700 flights, however over 950 flight were cancelled due to the Israel/Gaza conflict. On a rolling 12 months basis, the number of guests climbed 10% to 182.1 million from 165.3 million. Load factor rose slightly to 94% from 93%.

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Goldway Capital Investment said it has made a takeover offer for MC Mining, following a non-binding indicative offer in December. Goldway's offer for MC Mining is AUD0.16 per share. This is a 14% premium to the closing price of MCM shares at AUD0.14 on Thursday. The consortium currently has 64.3% of shares. Goldway said the offer values MC Mining equity at AUD65.3 million, worth ZAR803 million or GBP33.8 million, as well as an enterprise value of AUD75.5 million, worth ZAR928 million or GBP39.1 million.

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By Sophie Rose, Alliance News senior reporter

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