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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 slips into red despite positive start - FTSE initially opens higher before dropping into red
- RBS to avoid 'good/bad' bank break-up
- AT&T planning to take stake in Vodafone, reports claim
techMARK 2,654.18 -0.29%
FTSE 100 6,731.31 -0.00%
FTSE 250 15,449.06 -0.20%
The FTSE inched higher in early trading, but was soon down in the red, as investors digested losses seen in the US overnight coupled with a mixed performance on Asian markets.
October Chinese factory activity gave investors some cause for concern because although it climbed from 51.1 to 51.4 month-on-month, there was in fact a significant gap between big and small manufacturers, with the smaller companies actually experiencing a contraction in the four-week period.
Zhao Qinghe, a spokesman for China's National Bureau of Statistics, said: "Although the PMI rose in October for the fourth consecutive month, the momentum driving the increase is unbalanced."
In Japan, shares in Sony plunged after the group issued a profit warning, saying it now expects full-year profit to be a whoppin 40% lower than previously expected, and posted a loss for the quarter to the end of September.
Back in the UK, today's focus will be on the purchasing managers' index (PMI) for manufacturing, which is tipped to drop slightly to 56.4 in October from 56.7 in September.
Also making headlines today will be Royal Bank of Scotland, which has said it will not split into 'good' and 'bad' banks, as it reported a 14% fall in core operating profit to 1.28bn in the third quarter. The 81% state-owned bank will instead create an internal 'bad bank' where it will shelve off £38bn of its toxic assets.
Over in Germany, the government slammed "incomprehensible" criticism from the US Treasury, which said its export-led growth model was damaging growth for the Eurozone as well as the wide global recovery.
In other noteworthy news, the founder of Dunelm, the homewares retailer, has been unveiled as a major shareholder in Marks & Spencer. Bill Adderley is the company's biggest private investor with a 3% stake, market filings have revealed.
US posts biggest October gain for three years
In the US, although stocks finished broadly lower they were actually up for the month as a whole, posting the biggest gains for that month in three years.
The Chicago NAPM´s purchasing managers´ index for the month of October surged to 65.9, which beat estimates for a reading of 54.5. Some market commentary was also referencing the approaching mid-December deadline on Capitol Hill for Congressmen to thrash out a medium-term proposal on fixing the country´s finances.
In today's data, the US Institute for Supply Management's (ISM) manufacturing index is expected to fall to 55.1 in October from 56.2 a month earlier. A reading above 50 signals expansion.
Later in the day, Federal Reserve officials will speak after the central bank this week announced it was keeping its monetary policy unchanged.
The Fed on Wednesday said it would maintain its monthly $85bn bond buying programme and keep its interest rate at 0.25%.
Meanwhile, some spying by the US National Security Agency went too far, the US Secretary of State John Kerry has conceded. He assured listeners that he would work together with President Obama to ensure no further inappropriate spying took place. The issue has caused considerable tension between the US and its European allies.
Meggitt leads the downside
Meggitt had a double dose of bad news for investors as it told them trading had been "slightly" below expectations and a supply hiccup could cost 20m pounds. The FTSE 100 aerospace and defence manufacturer warned it now expected 2013 revenue growth rates to be in the "low single digits". It had given guidance of mid single digit revenue growth for the full year at its interims in August.
RBS was also lower after it reported, in addition to the above news, that non-core operating losses widened to £845m from £586m a year earlier due to exit and restructuring costs as the bank prepares to return to privatisation.
Meanwhile, Vodafone shares jumped on reports that AT&T is planning to invest in the telecoms giant in early 2014.
BAE shares were also higher, following yesterday's news that it has scored a £429m deal, under which it will supply howitzers to the US Army.
Whitbread shares were on the rise; Deutsche Bank this morning reiterated its 'hold' rating and 3,485p price target on the stock. |
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| FTSE 100 - Risers
Vodafone Group (VOD) 229.25p +2.12%
Shire Plc (SHP) 2,779.00p +1.02%
BT Group (BT.A) 380.10p +0.82%
HSBC Holdings (HSBA) 686.90p +0.70%
BG Group (BG.) 1,282.00p +0.67%
Royal Dutch Shell 'B' (RDSB) 2,172.50p +0.60%
Kingfisher (KGF) 379.70p +0.58%
Severn Trent (SVT) 1,867.00p +0.54%
Centrica (CNA) 355.20p +0.51%
Vedanta Resources (VED) 1,068.00p +0.47%
FTSE 100 - Fallers
Meggitt (MGGT) 525.00p -8.30%
Royal Bank of Scotland Group (RBS) 357.60p -2.72%
easyJet (EZJ) 1,287.00p -1.68%
Aggreko (AGK) 1,584.00p -1.61%
Wolseley (WOS) 3,315.00p -1.37%
Croda International (CRDA) 2,403.00p -1.35%
Unilever (ULVR) 2,492.00p -1.31%
Barclays (BARC) 260.20p -1.29%
Experian (EXPN) 1,256.00p -1.10%
Travis Perkins (TPK) 1,836.00p -1.08%
FTSE 250 - Risers
Rank Group (RNK) 148.70p +3.62%
IP Group (IPO) 152.00p +3.40%
AL Noor Hospitals Group (ANH) 867.00p +2.00%
Direct Line Insurance Group (DLG) 228.50p +1.56%
Rentokil Initial (RTO) 105.90p +1.34%
Henderson Group (HGG) 217.00p +1.21%
Partnership Assurance Group (PA.) 412.70p +1.15%
Berendsen (BRSN) 981.00p +1.08%
African Barrick Gold (ABG) 194.50p +1.04%
Hiscox Ltd (HSX) 667.50p +0.91%
FTSE 250 - Fallers
Genus (GNS) 1,288.00p -2.42%
Domino Printing Sciences (DNO) 677.50p -2.02%
Kenmare Resources (KMR) 20.00p -1.72%
Spirent Communications (SPT) 109.00p -1.71%
Diploma (DPLM) 681.50p -1.66%
Go-Ahead Group (GOG) 1,655.00p -1.61%
Chemring Group (CHG) 214.10p -1.56%
Cobham (COB) 283.70p -1.56%
Bwin.party Digital Entertainment (BPTY) 120.90p -1.55%
AZ Electronic Materials SA (DI) (AZEM) 283.20p -1.50%
FTSE TechMARK - Risers
Puricore (PURI) 51.00p +10.87%
Oxford Biomedica (OXB) 2.75p +0.92%
SDL (SDL) 254.25p +0.89%
Innovation Group (TIG) 32.00p +0.79%
NCC Group (NCC) 165.00p +0.61%
Anite (AIE) 90.75p +0.55%
E2V Technologies (E2V) 144.75p +0.52%
Vectura Group (VEC) 110.50p +0.45%
Ricardo (RCDO) 611.00p +0.08%
IShares Euro Gov Bond 7-10YR UCITS ETF (IEGM) € 179.91 +0.07%
FTSE TechMARK - Fallers
Consort Medical (CSRT) 882.50p -1.06%
Torotrak (TRK) 27.00p -0.92%
Wolfson Microelectronics (WLF) 139.69p -0.58% |
| | UK Event Calendar | | INTERIM DIVIDEND PAYMENT DATE
Amati Vct 2, Charlemagne Capital Ltd., Costain Group, Crawshaw Group, CRH, F&C Asset Management, Fairpoint Group, Foresight 2 VCT Planned Exit Shares, Foresight VCT Planned Exit Shares, H.R. Owen, Henry Boot, Hygea VCT, Inmarsat, InterQuest Group, IS Solutions, Kentz Corporation Ltd., Pennant International Group, Real Estate Investors, Smurfit Kappa Group, Vitec Group
QUARTERLY PAYMENT DATE
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INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Durable Goods Orders (US) (13:30)
IFO Business Climate (GER) (09:00)
IFO Current Assessment (GER) (09:00)
IFO Expectations (GER) (09:00)
M3 Money Supply (EU) (09:00)
U. of Michigan Confidence (Final) (US) (15:00)
Q3
Polski Koncern Naftowy Orlen S.A. GDR(Reg S), Samsung Electronics Co Ltd (ATT) GDR (Reg S)
ANNUAL REPORT
Daily Internet
IMSS
APR Energy
SPECIAL DIVIDEND PAYMENT DATE
Fortune Oil
AGMS
Daily Internet , Galleon Holdings, Hargreaves Lansdown, Murray Income Trust
TRADING ANNOUNCEMENTS
Mail.ru Group Ltd GDR (Reg S)
UK ECONOMIC ANNOUNCEMENTS
GDP (Preliminary) (09:30)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
City of London Investment Group, Consort Medical, Development Securities, ECO Animal Health Group, Norish Units |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed ahead of manufacturing data - US and UK manufacturing data released
- Chinese manufacturing expands
- Federal Reserve officials speak
FTSE 100: 0.01%
DAX: -0.17%
CAC 40: -0.33%
FTSE MIB: -0.34%
IBEX 35: -0.21%
Stoxx 600: -0.17%
European stocks were little changed as investors waited for the release of US and UK manufacturing data and speeches from key Federal Reserve officials.
The US Institute for Supply Management's (ISM) manufacturing index is expected to fall to 55.1 in October from 56.2 a month earlier. A reading above 50 signals expansion.
In the UK, the purchasing managers' index (PMI) for manufacturing is tipped to drop slightly to 56.4 in October from 56.7 in September.
Later in the day, Federal Reserve officials will speak after the central bank this week announced it was keeping its monetary policy unchanged.
The Fed on Wednesday said it would maintain its monthly $85bn bond buying programme and keep its interest rate at 0.25%.
Fed policymakers James Bullard, Narayana Kocherlakota and Jeffrey Lacker may shed further light on the reasoning behind the central bank's decision in their speeches today.
In China, manufacturing activity rose to the highest level in 18 months. The PMI increased to 51.4 in October from 51.1 a month earlier, the National Bureau of Statistics and China Federation of Logistics and Purchasing revealed. It beat analysts' estimates for a reading of 51.2.
RBS posts third quarter loss
Royal Bank of Scotland fell after reporting a third-quarter loss and saying it expects a "substantial" group loss for the full year.
Vodafone jumped following a report that AT&T executives are in talks for a potential takeover of the telecoms business.
Renault fell after Nissan downgraded its guidance for net income of 355bn yen in the year ending March 31st, compared with its previous estimate of 420bn yen.
ASM International, the society for materials scientists and engineers, rallied as it reported third-quarter sales that beat forecasts.
Euro/dollar slides
The euro fell 0.40% to $1.3530.
Brent crude futures rose $0.330 to $109.200 per barrel on the ICE. |
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| | US Market Report | | US close: Stocks end the month on down note The main Wall Street benchmarks finished with slight falls on the last day of the month, albeit with their best monthly register in three years. That may have been a result of investors - those in the retail segment in particular - reacting to a perceived higher probability that the Fed might initiate the tapering of its quantitative easing meaasures sooner than was expected.
That came despite a surge in the the Chicago NAPM´s purchasing managers´ index for the month of October, to 65.9, which handily beat estimates for a reading of 54.5. Some market commentary was also referencing the approaching mid-December deadline on Capitol Hill for Congressmen to thrash out a medium-term proposal on fixing the country´s finances.
Initial jobless claims for the week ended October 25th declined to 340,000 compared to 350,000 a week earlier, according to the Labour Department. However, it missed the consensus forecast for 338,000 claims by a tad.
"While claims data have been noisy for the past two months, we expect that they will resume their gradual downward trend in the coming weeks," Barclays explained to clients in a report.
A separate report showed consumer confidence in the world's biggest economy fell for a fifth straight week. The Bloomberg Consumer Comfort Index declined in the period ended October 27th to minus 37.6, the weakest reading since October 2012, from minus 36.1.
The data followed the Federal Open Market Committee's announcement on Wednesday night to maintain its monthly $85bn bond buying programme.
While many economists continue to expect that a reduction to quantitative easing will be held off until March 2014 some interpreted the Fed's statement as a suggestion that this could come sooner, perhaps even in December.
"The statement wasn't actually overly different from the one released in September," said Craig Erlam, Market Analyst at Alpari UK.
"However, investors were clearly not overly impressed with it, with many now concerned that the Fed will 'taper' in December, rather than the first quarter of next year, which many had started to believe."
Starbucks, Exxon Mobil Corp.
Starbucks declined after the coffee shop chain reported slower sales growth in Asia.
Oil bigwig Exxon Mobil rallied after saying that its third quarter earnings totalled $7.87bn, or $1.79 a share, compared to $9.57bn, or $2.09 a share, in the same period a year ago, on revenue of $112.4bn (2012 Q3: $115.14bn).
Facebook, which last night reported 25 cents-a-share earnings for the third quarter, fell after Chief Financial Officer David Ebersman said the company will limit news-feed ads and younger teens aren't using its website as much as they used to.
Expedia extended last night's gains a announcing an 8% increase in its adjusted earnings per share to $1.43, beating expectations.
West Texas Intermediate crude futures rose 0.16% to $96.52 per barrel on the NYMEX.
The 10-year US government yield was up 1 basis point to 2.56%.
S&P 500 - Risers
Expedia Inc. (EXPE) $58.97 +18.02%
Harman International Industries Inc. (HAR) $81.02 +12.50%
Microchip Technology Inc. (MCHP) $42.96 +7.53%
Cardinal Health Inc. (CAH) $58.66 +5.35%
Discovery Communications Inc. Class A (DISCA) $88.86 +5.34%
Tenet Healthcare Corp. (THC) $47.19 +5.10%
Owens-Illinois Inc. (OI) $31.79 +3.99%
CIGNA Corp. (CI) $76.98 +3.14%
TripAdvisor Inc. (TRIP) $82.71 +3.11%
Time Warner Cable Inc. (TWC) $120.15 +2.80%
S&P 500 - Fallers
Avon Products Inc. (AVP) $17.50 -21.87%
JDS Uniphase Corp. (JDSU) $13.09 -11.25%
Western Digital Corp. (WDC) $69.63 -4.89%
Computer Sciences Corp. (CSC) $49.26 -4.53%
Visa Inc. (V) $196.67 -3.51%
MetLife Inc. (MET) $47.31 -3.45%
Williams Companies Inc. (WMB) $35.71 -3.36%
Garmin Ltd. (GRMN) $46.75 -3.15%
Teradata Corp. (TDC) $44.07 -3.08%
International Game Technology (IGT) $18.80 -2.99%
Dow Jones I.A - Risers
Exxon Mobil Corp. (XOM) $89.62 +0.91%
3M Co. (MMM) $125.85 +0.85%
Boeing Co. (BA) $130.50 +0.63%
McDonald's Corp. (MCD) $96.52 +0.51%
E.I. du Pont de Nemours and Co. (DD) $61.20 +0.29%
United Technologies Corp. (UTX) $106.25 +0.28%
Walt Disney Co. (DIS) $68.59 +0.18%
Home Depot Inc. (HD) $77.89 +0.01%
Dow Jones I.A - Fallers
Visa Inc. (V) $196.67 -3.51%
JP Morgan Chase & Co. (JPM) $51.54 -2.02%
American Express Co. (AXP) $81.80 -1.56%
Procter & Gamble Co. (PG) $80.75 -0.94%
General Electric Co. (GE) $26.14 -0.87%
Pfizer Inc. (PFE) $30.68 -0.79%
Goldman Sachs Group Inc. (GS) $160.86 -0.73%
Travelers Company Inc. (TRV) $86.30 -0.69%
Cisco Systems Inc. (CSCO) $22.56 -0.64%
International Business Machines Corp. (IBM) $179.21 -0.52%
Nasdaq 100 - Risers
Expedia Inc. (EXPE) $58.97 +18.02%
Microchip Technology Inc. (MCHP) $42.96 +7.53%
Discovery Communications Inc. Class A (DISCA) $88.86 +5.34%
Staples Inc. (SPLS) $16.13 +2.44%
Facebook Inc. (FB) $50.21 +2.44%
Micron Technology Inc. (MU) $17.68 +1.67%
Linear Technology Corp. (LLTC) $41.15 +1.49%
Vodafone Group Plc ADS (VOD) $36.85 +1.47%
Netflix Inc. (NFLX) $322.48 +1.36%
Avago Technologies Ltd. (AVGO) $45.43 +1.29%
Nasdaq 100 - Fallers
Catamaran Corp (CTRX) $46.97 -5.53%
Western Digital Corp. (WDC) $69.63 -4.89%
Randgold Resources Ltd. Ads (GOLD) $73.90 -4.14%
Garmin Ltd. (GRMN) $46.75 -3.15%
Broadcom Corp. (BRCM) $26.72 -2.69%
Baidu Inc. (BIDU) $160.80 -2.51%
F5 Networks Inc. (FFIV) $81.54 -2.34%
Expeditors International Of Washington Inc. (EXPD) $45.29 -2.26%
Nuance Communications Inc. (NUAN) $15.56 -2.14%
Gilead Sciences Inc. (GILD) $71.18 -2.06% |
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| | Newspaper Round Up | | Friday newspaper round-up: ECB, Shell, Marks and Spencer Pressure grew on the European Central Bank (ECB) on Thursday to cut interest rates after inflation slowed sharply in the euro-area. Meanwhile, Germany hit back at a jibe from the US Treasury that laid the blame for deflationary trends at Berlin's door. The euro area's annual inflation rate unexpectedly slowed to 0.7 per cent in October, well below the ECB's target of close to, but below, 2 per cent, the Financial Times explains.
Shell is planning to resume its ill-fated Arctic drilling campaign next summer, less than a year after one of its rigs ran aground in stormy weather. The Anglo-Dutch group has had little to show for its $5bn outlay other than condemnation from environmentalists, censure from US regulators and badly damaged equipment. However, Simon Henry, its finance director, said yesterday: "We would like to drill as soon as possible." The group expects to submit its formal exploration plan to the US federal authorities this month, The Times writes.
The founder of homewares retailer Dunelm, Bill Adderley, has been revealed as the biggest private investor in Marks & Spencer. New stock market filings show Mr Adderley has built a 3% stake in M&S, worth £244m at Thursday night's closing share price. It is understood that the Leicestershire-based tycoon started buying M&S shares last year, but his investment was only disclosed on Thursday after Mr Adderley's stake crossed the 3% benchmark, The Daily Telegraph reports.
Germany has struck back at the US Treasury after it became the target of an unusual swipe in a report blaming the eurozone's biggest economy for giving a deflationary bias to the euro area and the world economy. Although the US Treasury has criticised German policy before, in its new semi-annual currency report it elevated the comments to a "key finding" alongside China's undervaluation of the renminbi and Japan's monetary stimulus, the Financial Times says.
George Osborne will move to deflate the London and South East property bubble by forcing foreign property owners to pay tax on the gains they make selling UK homes, according to reports. The Chancellor of the Exchequer is considering announcing in his Autumn Statement in December that capital gains tax will be imposed on non-resident property sellers for the first time, Sky News reported. UK residents must pay CGT - at 18% for basic rate taxpayers but more usually 28% - on proceeds from the sale of second homes. This does not currently apply to non-resident owners, The Times says.
Royal Bank of Scotland's new boss has pledged a raft of actions to boost its support for smaller businesses after an independent report out today claims the bank has failed to meet the expectations of its customers. Ross McEwan said he fully accepted the sometimes "uncomfortable" findings of City grandee, Sir Andrew Large, who was commissioned by the bank last July amid mounting criticism of RBS's performance for small and medium-sized companies (SMEs), The Scotsman writes. | | |
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