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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: FTSE gets week off to a flat start - FTSE inches higher, missing expectations of a strong start
- Osborne to avoid 'good/bad' break-up of RBS
- Aggreko to meet full-year expectations
The FTSE 100 is trading flat early on as investors digest overnight gains in Asia, reports that Chancellor George Osborne will not go through with the RBS 'good/bad' break-up, and a positive housing price report.
A decent performance was seen across Asian markets overnight, with stocks recovering after last week's falls, seen most prominently in Japan and China. It was announced yesterday that Japan will continue with its current pace of asset purchases as the country strives to end deflation. The Bank of Japan's Deputy Governor, Kikuo Iwata, reiterated the central bank's pledge to continue to buy bonds until it achieves its 2% inflation target.
Sky News has reported that Osborne is planning to avoid a 'good/bad' break-up of the Royal Bank of Scotland, and will alternatively put forward a recommendation of an internal 'bad bank', side-stepping a shareholder vote. A meeting to discuss the proposal is believed to have been set up for later this week.
House prices climb 0.5% in October, Hometrack reveals
A housing price report from Hometrack revealed that the average value of houses across England and Wales climbed 0.5% in October, on par with the rise seen the previous month. Hitting its highest level since November 2007, annual price inflation rose to 3.1%.
Begbies Traynor has reported a decline in levels of 'critical' financial distress amongst UK businesses. The group's Red Flag Alert research, which looks at UK corporate financial health, saw a 2% fall in the number of businesses experiencing this level of financial trouble, which follows a 9% decline in the previous quarter.
Meanwhile, it has also been reported that the number of females entering managing director roles has doubled over the past 12 months, meaning women now occupy 12% of such roles, according to Astbury Marsden, the financial services recruitment group.
G4S rejects offer for cash solutions business
Investors are digesting the news that FTSE 100 security giant G4S has rejected a £1,550m offer from Charterhouse Capital Partners for its cash solutions business, saying that that the proposal "fundamentally under-values the business and its prospects" and on the basis of its "strategic importance" to the company as a whole.
"The cash solutions business is integral to G4S' operations and strategic plans. It is unique in its scale and diversity, with unrivalled emerging markets exposure and strong characteristics," the group stated.
Temporary power group Aggreko climbed into the top spot after it said it expected full year profits to be in line with market expectations despite the absence of a one-off lift from the London Olympics.
Also on the rise was Randgold Resources after boss Mark Bristow said the miner is exploring further opportunities in Cote d'Ivoire. Randgold owns and operates Côte d'Ivoire's largest gold mine at Tongon, which has achieved more than 600,000 ounces of gold since it started production at the end of 2010.
InterContinental Hotels Group disappointed investors with the news that its revenue per available room (RevPAR) for its US and Americas brands in the nine months ended September 30th grew 4.5%, driven predominantly by a 2.9% increase in rates.
On the second tier, international infrastructure group Balfour Beatty has been awarded two UK coastal defence contracts totalling £73m for Blackpool Council and Wyre Council. The £20m Anchorsholme Scheme for Blackpool Council and the £53m Rossall Scheme for Wyre Council will replace over 2.9km of the original 1930's seawalls as part of the promenade renewal and beach management projects, Balfour revealed. |
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| | FTSE 100 - Risers
Aggreko (AGK) 1,561.00p +2.90%
Shire Plc (SHP) 2,849.00p +2.63%
Randgold Resources Ltd. (RRS) 4,711.00p +1.55%
Admiral Group (ADM) 1,257.00p +1.37%
AstraZeneca (AZN) 3,284.00p +1.09%
Sage Group (SGE) 334.80p +0.87%
Standard Chartered (STAN) 1,537.50p +0.79%
Royal Bank of Scotland Group (RBS) 371.20p +0.76%
Coca-Cola HBC AG (CDI) (CCH) 1,826.00p +0.72%
G4S (GFS) 260.30p +0.70%
FTSE 100 - Fallers
InterContinental Hotels Group (IHG) 1,825.00p -2.14%
Fresnillo (FRES) 1,018.00p -1.83%
Tullow Oil (TLW) 964.50p -1.43%
Melrose Industries (MRO) 311.30p -1.30%
Travis Perkins (TPK) 1,784.00p -1.11%
BG Group (BG.) 1,242.50p -0.96%
GKN (GKN) 368.80p -0.91%
easyJet (EZJ) 1,318.00p -0.83%
Intertek Group (ITRK) 3,282.00p -0.82%
WPP (WPP) 1,333.00p -0.82%
FTSE 250 - Risers
Rank Group (RNK) 154.00p +2.33%
Caledonia Investments (CLDN) 1,960.00p +1.71%
EnQuest (ENQ) 134.70p +1.66%
Keller Group (KLR) 1,045.00p +1.46%
Pace (PIC) 313.40p +1.42%
Bank of Georgia Holdings (BGEO) 1,988.00p +1.38%
Micro Focus International (MCRO) 820.00p +1.36%
Galliford Try (GFRD) 1,146.00p +1.33%
Playtech (PTEC) 754.50p +1.14%
Premier Farnell (PFL) 225.50p +1.12%
FTSE 250 - Fallers
ITE Group (ITE) 301.20p -4.71%
Essar Energy (ESSR) 119.50p -4.02%
Countrywide (CWD) 566.00p -3.25%
Thomas Cook Group (TCG) 142.30p -2.80%
Computacenter (CCC) 554.50p -2.72%
Carpetright (CPR) 605.00p -2.42%
Kenmare Resources (KMR) 21.50p -2.27%
African Barrick Gold (ABG) 166.80p -2.06%
Diploma (DPLM) 676.00p -2.03%
Daejan Holdings (DJAN) 3,967.00p -1.81%
FTSE TechMARK - Risers
Vislink (VLK) 49.75p +5.85%
Puricore (PURI) 48.50p +4.30%
XP Power Ltd. (DI) (XPP) 1,595.00p +1.59%
Consort Medical (CSRT) 894.00p +1.02%
Anite (AIE) 87.25p +0.87%
FTSE TechMARK - Fallers
Phoenix IT Group (PNX) 145.00p -10.49%
Ricardo (RCDO) 620.50p -1.35%
Wolfson Microelectronics (WLF) 146.00p -0.68%
E2V Technologies (E2V) 143.75p -0.52%
SDL (SDL) 254.50p -0.49%
Vectura Group (VEC) 112.75p -0.22% |
| | UK Event Calendar | | Monday October 28
INTERIM DIVIDEND PAYMENT DATE
Essentra, Keywords Studios, Northbridge Industrial Services, Pendragon, Playtech, Quarto Group Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Capacity Utilisation (US) (15:15)
Industrial Production (US) (15:15)
Pending Homes Sales (US) (14:00)
Speech ECB's Coeure (EZ) (02:20)
Q3
OJSC Magnit GDR (Reg S)
EGMS
O'Key Group GDR (Reg S) (WI)
AGMS
City of London Inv Trust
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
Speech MPC member Spencer Dale, No text released (13:00)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed before US data, Fed meeting - US industrial and manufacturing reports
- US pending home sales
- Federal Reserve policy meeting
- Euro-area employment data
FTSE 100: 0.06%
DAX: 0.15%
CAC 40: -0.08%
FTSE MIB: 0.23%
IBEX 35: 0.06%
Stoxx 600: 0.09%
European stocks opened mixed on Monday ahead of US economic data and the Federal Reserve's policy meeting.
US industrial production in September is expected to increase 0.4%, in line with the prior month's growth, when released later today. Manufacturing output last month rose 0.3%, compared to a 0.7% in August, according to consensus.
Another report is anticipated to show pending homes sales in the world's biggest economy remained little changed.
The data comes as the US central bank prepares to meet tomorrow for its two-day meeting after which it will announce any changes to its stimulus programme and interest rate.
Economists predict the Fed will keep its monthly $85bn bond buying programme unchanged and maintain the interest rate at 0.25%. A tapering of quantitative easing is not expected until March 2014.
"The Fed's $85bn per month of asset purchases has contributed hugely to equity indices in the US reaching record highs," said Craig Erlam, Market Analyst at Alpari UK.
"Therefore, it's no surprise that since [Ben] Bernanke's warning back it May, that purchases will probably be scaled back later in 2013, investors have been paying very close attention to these meetings and any comments from Fed officials that come in the weeks in between."
Italy to determine fate of euro-area, says Asmussen
European Central Bank Executive Board member Joerg Asmussen has said Italy will "critically determine the fate of the euro-area".
He said the euro-area will not prosper unless Italy restores economic growth.
Asmussen's remarks came after after Fitch Ratings affirmed Italy's BBB+ rating with a negative outlook.
Italian officials have forecast unemployment will continue to rise against an unstable coalition due to the legal scandals of former premier Silvio Berlusconi.
Italy will release its labour report for September an hour before the European Union's statistics office publishes the euro-area labour data on October 31st.
Aggreko, Balfour
Aggreko may rise after the temporary power group said it expected full year profits to be in line with market expectations despite the absence of a one-off lift from the London Olympics.
Balfour Beatty is tipped to gain after the infrastructure group was awarded two UK coastal defence contracts for Blackpool and Wyre councils.
ThyssenKrupp may fall following reports that a series of issues made it impossible for the steelmaker to sell its plant in Brazil.
TUI could move after the company halted further development of its Tuscan resort, Castelfalfi, according to a report in Spiegel.
Other asset classes climb
The euro rose 0.07% to $1.3812.
Brent crude futures increased $0.632 to $107.610 per barrel on the ICE. |
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| | US Market Report | | US close: S&P 500 hits fresh high as Microsoft, Amazon impress - Durable goods jump but core reading weak
- Consumer confidence slips on shutdown
- Equity valuations at four-year high
Dow Jones: 0.39%
Nasdaq: 0.36%
S&P 500: 0.45%
Strong gains from Amazon, Microsoft and a host of other blue chips helped markets higher on Friday, sending the benchmark S&P 500 index to another record high.
Markets have performed well over recent sessions on hopes that the Federal Reserve will delay the first taper of asset purchases into next year following September's disappointing jobs report.
A fall in consumer confidence and a weak reading of core durable goods orders added to this speculation on Friday.
The S&P 500, which has now gained 4.7% in October alone, finished at an all-time high of 1,759.77 after three consecutive weeks of gains. This was the index's 31st record close of the year.
According to Bloomberg, equity valuations are now at a four-year high with the S&P 500 trading at 15.9 times estimated operating earnings.
"Investors are clearly still bullish at the moment, which is hardly surprising given that most major central banks appear to have adopted a more dovish tone in recent months," said Market Analyst Craig Erlam from Alpari. "With the Fed, for example, now unlikely to taper before the end of the first quarter of 2014, there's no reason why this liquidity fuelled rally in equities can't continue."
Core durable goods come in weak
Durable goods orders surged in September by 3.7% to $233.4bn, according to the US Census Bureau, a significant pick-up from the 0.2% gain the month before and the 2.3% increase expected. However, the headline figures were largely distorted by a huge 57.5% jump in new orders of commercial aircraft and parts; excluding transportation, core orders were down 0.1% on the month marking the third consecutive fall.
"We already knew that Boeing took orders for 127 new planes in September, up from an unusually low 16 in August," said Chief US Economist Paul Ashworth from Capital Economics.
In other economic data, the final reading of the University of Michigan consumer confidence index dipped to 73.2 in October, below initial estimates and well under 77.5 the month before. The consensus forecast was for a reading of 75. This decline is thought to reflect the impact of the government shutdown which took place during the first half of October.
"While we expect that improving housing and labour markets will cause consumer confidence to trend higher over the medium term, fiscal policy remains a significant downside risk," said analyst Cooper Howes from Barclays.
Amazon.com and Microsoft surge
Online merchant Amazon.com soared after posting third-quarter revenue that beat analysts' expectations. The company narrowed its quarterly loss as it managed to increase sales by a better-than-expected 24%.
Microsoft rallied as it reported a 17% increase in income in the fiscal first quarter to $5.2bn and a 16% rise in revenue to $18.5bn, both of which came in ahead of expectations.
UPS gained as the package delivery company was posted increased third-quarter sales, helped by higher domestic and international shipments.
Online gaming firm Zynga surged after its third-quarter loss narrowed to just $68,000, from $52.7m the year before.
Yahoo slumped after its Japanese business predicted full-year net income that fell short of market estimates.
S&P 500 - Risers
Flowserve Corp. (FLS) $71.22 +12.18%
Amazon.Com Inc. (AMZN) $363.39 +9.39%
Avery Dennison Corp. (AVY) $47.74 +8.38%
Alexion Pharmaceuticals Inc. (ALXN) $125.17 +7.26%
NRG Energy Inc. (NRG) $30.11 +6.81%
Cabot Oil & Gas Corp. (COG) $36.98 +6.14%
Cliffs Natural Resources Inc. (CLF) $24.99 +5.98%
Microsoft Corp. (MSFT) $35.73 +5.96%
Eaton Corporation plc (ETN) $71.64 +4.58%
National Oilwell Varco Inc. (NOV) $82.72 +4.54%
S&P 500 - Fallers
Eastman Chemical Co. (EMN) $77.94 -5.16%
Express Scripts Holding Co (ESRX) $60.88 -4.49%
F5 Networks Inc. (FFIV) $82.71 -2.87%
Cerner Corp. (CERN) $56.13 -2.82%
Dow Chemical Co. (DOW) $39.52 -2.71%
Wynn Resorts Ltd. (WYNN) $168.18 -2.70%
First Solar Inc. (FSLR) $52.80 -2.62%
Yahoo! Inc. (YHOO) $32.25 -2.51%
Moody's Corp. (MCO) $71.56 -2.24%
Teradata Corp. (TDC) $44.47 -2.16%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $35.73 +5.96%
American Express Co. (AXP) $82.61 +2.11%
Intel Corp. (INTC) $24.24 +1.91%
Boeing Co. (BA) $131.19 +1.71%
AT&T Inc. (T) $35.19 +1.62%
Goldman Sachs Group Inc. (GS) $162.09 +1.33%
E.I. du Pont de Nemours and Co. (DD) $61.90 +0.85%
3M Co. (MMM) $124.42 +0.75%
Merck & Co. Inc. (MRK) $46.54 +0.69%
Coca-Cola Co. (KO) $39.03 +0.59%
Dow Jones I.A - Fallers
Procter & Gamble Co. (PG) $80.00 -0.76%
Home Depot Inc. (HD) $76.25 -0.69%
International Business Machines Corp. (IBM) $176.85 -0.53%
Exxon Mobil Corp. (XOM) $87.97 -0.51%
Travelers Company Inc. (TRV) $86.63 -0.46%
Wal-Mart Stores Inc. (WMT) $76.08 -0.44%
Johnson & Johnson (JNJ) $92.09 -0.28%
General Electric Co. (GE) $25.88 -0.23%
Pfizer Inc. (PFE) $30.61 -0.00%
Nasdaq 100 - Risers
Amazon.Com Inc. (AMZN) $363.39 +9.39%
Alexion Pharmaceuticals Inc. (ALXN) $125.17 +7.26%
Microsoft Corp. (MSFT) $35.73 +5.96%
Maxim Integrated Products Inc. (MXIM) $30.10 +3.61%
CA Inc. (CA) $31.40 +3.32%
Western Digital Corp. (WDC) $72.63 +2.96%
Fastenal Co. (FAST) $50.63 +2.82%
Seagate Technology Plc (STX) $49.80 +2.55%
Symantec Corp. (SYMC) $22.03 +2.51%
Stericycle Inc. (SRCL) $116.85 +2.02%
Nasdaq 100 - Fallers
Express Scripts Holding Co (ESRX) $60.88 -4.49%
Sirius XM Radio Inc (SIRI) $3.75 -4.12%
F5 Networks Inc. (FFIV) $82.71 -2.87%
Cerner Corp. (CERN) $56.13 -2.82%
Wynn Resorts Ltd. (WYNN) $168.18 -2.70%
Yahoo! Inc. (YHOO) $32.25 -2.51%
Tesla Motors Inc (TSLA) $169.66 -2.02%
Green Mountain Coffee Roasters Inc. (GMCR) $61.78 -1.86%
Liberty Media Corporation - Class A (LMCA) $151.38 -1.77%
Micron Technology Inc. (MU) $16.58 -1.49% |
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| | Newspaper Round Up | | Monday newspaper round-up: Storms, RBS, Green levies Millions were facing travel misery today as one of the worst storms in a decade swept over Britain - leaving more than 7,000 homes without power. Rail companies said that rush hour services have been delayed or cancelled and 50 short-haul flights from Heathrow had been cancelled by midnight. The tempest, dubbed St Jude after the patron saint of lost causes whose feast day falls today, is due to reach its peak in southern England and Wales during the morning rush hour. The Met Office said that hurricane-force winds would arrive at "the worst possible time" for commuters, The Times reports.
Pressure is mounting on George Osborne to split Royal Bank of Scotland into 'good' and 'bad' banks. The Chancellor looks set to decide the future of the taxpayer-backed lender this week following a Government-commissioned review of the business. A decision could come on Friday when the bank publishes results for the third quarter of the year with analysts expecting profits of £440m. Former Tory Chancellor Lord Lawson, a member of the Parliamentary Commission on Banking Standards, yesterday urged Osborne to break up RBS, The Daily Mail says.
Lady Susan Rice, the senior independent director at electricity and gas supplier SSE, has called for energy companies to be more "transparent" about the charges that their customers face. Rice, who is also managing director of Lloyds Banking Group's Scottish operations, said that greater transparency would help utility companies to regain the public's trust. Tomorrow the House of Commons' energy and climate change committee will question senior executives from the "Big Six" energy companies over the flurry of recent price rises, The Scotsman writes.
David Cameron will lead Britain's attempt to become a global centre of Islamic finance and open the taps for fresh investment. The Prime Minister will speak tomorrow at the first World Islamic Economic Forum, at ExCeL London, where managers and ministers are hoping to drum up billions in Anglo-Muslim trade. The prize for Britain is attracting some of the world's $1.5trn (£928bn) of Islamic investment funds, potentially to fund large capital projects in energy and transport, according to The Times.
Ed Davey, the Liberal Democrat energy secretary, has promised to "fight like a tiger" against Conservative attempts to cut green levies on gas and electricity bills. The senior coalition minister said he would not let the Tories touch subsidies for renewable energy or the fuel poor, describing it as a "red line", and pledged to beat the target of getting 30% of Britain's electricity from green sources by 2020. He spoke out after David Cameron said he wanted to roll back green charges on fuel bills that account for about £112 of the average £1,267 household bill for gas and electricity, The Guardian reports.
British oil giants BP and Royal Dutch Shell are set to report plunging third-quarter profits this week, with both expected to say that they have been hit by weak refining margins and production outages, according to City analysts. Aside from tougher market conditions, analysts believe BP's Gulf of Mexico oil spill legal battles will weigh on its results expected on Tuesday. They predict increased US legal provisions will contribute to profits falling 37% to £4.9bn, The Daily Express writes. | | |
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