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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: Investors turn cautious ahead of FOMC minutes - Bernanke comments in focus ahead of FOMC minutes
- Telecom Plus buys back businesses from Npower
- Diageo CEO warns of 'uncertain' global economy
techMARK 2,637.85 -0.24%
FTSE 100 6,687.39 -0.16%
FTSE 250 15,243.72 -0.14%
UK stocks declined on Wednesday as investors adopted a cautious approach ahead of the release of the minutes from the latest Federal Reserve policy meeting this evening.
The Federal Open Market Committee will release details of its October meeting this afternoon as markets wait to hear about the central bank's decision to maintain its stimulus programme last month.
However, comments from Fed Chairman Ben Bernanke last night were in focus this morning after he reiterated that any tapering of asset purchases remains dependent on incoming economic data, as he held back from shedding any light on the timetable for an impending withdrawal.
"This comes before the FOMC meetings minutes will be released later today which will undoubtedly lead to volatility as investors attempt to decipher the underlying sentiment of the FOMC," said Alex Conroy, Financial Sales Trader at Spreadex.
Retail sales, consumer price inflation and existing-home sales data is also due out today from the US this afternoon.
Meanwhile, investors closer to home will be watching closely for the release of the minutes from the Bank of England's latest policy meeting.
Telecom Plus soars after H1 results, acquisitions
Utilities reseller Telecom Plus was a high riser this morning after agreeing to pay £218m to buy back two gas and electricity supply businesses from Npower which it sold in 2006. The announcement came as the firm delivered a 17% increase in revenues in the first half, as profits rose 10.1%.
Drinks group Diageo was under the weather after Chief Executive Ivan Menezes was reported as saying that the "uncertain" macro environment will continue to limit sales growth. Sector peer SABMiller was also out of favour this morning.
Airline group easyJet was extending gains made yesterday after the company delivered a 51% increase in annual profits and unveiled an unexpected special dividend to shareholders.
GlaxoSmithKline rose after completing the partial sale of Aspen Pharmacare, raising gross proceeds of 7.06bn South African rand ($695m).
Engineering and construction firm Kentz was higher after being awarded a $190m contract with Qatar Petroleum for services on 775 wells across the Dukhan Oilfield in Qatar, extending the firms' long-standing relationship which started back in 1997. |
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| FTSE 100 - Risers
Aberdeen Asset Management (ADN) 487.80p +2.65%
easyJet (EZJ) 1,367.00p +1.64%
Pearson (PSON) 1,348.00p +1.43%
London Stock Exchange Group (LSE) 1,593.00p +1.34%
British Sky Broadcasting Group (BSY) 835.00p +1.21%
Travis Perkins (TPK) 1,743.00p +1.04%
William Hill (WMH) 364.80p +0.97%
Royal Bank of Scotland Group (RBS) 330.70p +0.95%
Shire Plc (SHP) 2,824.00p +0.86%
Persimmon (PSN) 1,193.00p +0.68%
FTSE 100 - Fallers
Rexam (REX) 494.50p -1.79%
Vodafone Group (VOD) 228.05p -1.72%
Diageo (DGE) 1,999.50p -1.43%
Weir Group (WEIR) 2,185.00p -1.27%
Tate & Lyle (TATE) 811.00p -1.22%
Hammerson (HMSO) 509.00p -1.17%
Centrica (CNA) 338.10p -1.14%
Intertek Group (ITRK) 3,067.00p -1.13%
Sainsbury (J) (SBRY) 407.50p -1.02%
Meggitt (MGGT) 501.50p -0.99%
FTSE 250 - Risers
Telecom Plus (TEP) 1,711.00p +13.54%
Perform Group (PER) 443.80p +3.21%
International Personal Finance (IPF) 591.50p +2.69%
Kentz Corporation Ltd. (KENZ) 556.00p +2.58%
BH Global Ltd. USD Shares (BHGU) 11.91 +1.79%
Barratt Developments (BDEV) 326.80p +1.78%
Telecity Group (TCY) 683.00p +1.64%
Lancashire Holdings Limited (LRE) 804.00p +1.45%
Devro (DVO) 310.90p +1.44%
KCOM Group (KCOM) 104.40p +1.36%
FTSE 250 - Fallers
Henderson Group (HGG) 216.90p -1.86%
Centamin (DI) (CEY) 48.98p -1.84%
Spirent Communications (SPT) 103.90p -1.70%
Dunelm Group (DNLM) 879.00p -1.68%
Bodycote (BOY) 608.50p -1.62%
African Barrick Gold (ABG) 188.60p -1.62%
Hikma Pharmaceuticals (HIK) 1,194.00p -1.57%
Great Portland Estates (GPOR) 562.00p -1.40%
Witan Inv Trust (WTAN) 650.50p -1.36% |
| | UK Event Calendar | | Wednesday November 20
INTERIMS
HICL Infrastructure Company Ltd, Hyder Consulting, UK Mail Group
INTERIM DIVIDEND PAYMENT DATE
NTT DoCoMo Inc, Proven Planned Exit VCT
INTERIM EX-DIVIDEND DATE
Carphone Warehouse Group, Charles Stanley Group, Great Portland Estates, Hill & Smith Holdings, Liontrust Asset Management, Next, Prime People, Sainsbury (J), Synergy Health, TalkTalk Telecom Group , Tate & Lyle, Trifast, Vodafone Group, Walker Crips Group
QUARTERLY PAYMENT DATE
Caterpillar Inc.
QUARTERLY EX-DIVIDEND DATE
Canaccord Genuity Group Inc., Carnival
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Business Inventories (US) (13:30)
Consumer Price Index (US) (13:30)
Crude Oil Inventories (US) (15:30)
Existing Home Sales (US) (15:00)
FOMC Interest Rate Minutes (US) (19:00)
Manufacturing Inventories (US) (15:00)
MBA Mortgage Applications (US) (12:00)
Producer Price Index (GER) (07:00)
Retail Sales (US) (13:45)
Retail Sales Inventories (US) (15:15)
FINALS
Avon Rubber
SPECIAL EX-DIVIDEND PAYMENT DATE
Keystone Inv Trust
EGMS
Absolute Return Trust Ltd. Stg Shs NPV
AGMS
Armor Designs Inc. (DI), Ceramic Fuel Cells Ltd., Crystal Amber Fund Ltd., Global Petroleum Ltd., International Ferro Metals Group, Jupiter Primadona Growth Trust, Leeds Group, Regenersis
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Minutes (09:30)
FINAL DIVIDEND PAYMENT DATE
Barratt Developments, Henderson EuroTrust
FINAL EX-DIVIDEND DATE
Edinburgh Dragon Trust, Euromoney Institutional Investor, Finsbury Food Group, GETECH Group, Gleeson (M J) Group, London Finance & Investment Group
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide before FOMC and BoE meeting minutes - FOMC releases meeting minutes
- BoE unveils interest rate minutes
- US retail sales to be released
FTSE 100: -0.22%
DAX: -0.05%
CAC 40: -0.12%
FTSE MIB: 0.18%
IBEX 35: -0.26%
Stoxx 600: -0.11%
European stocks declined as investors waited on the release of meeting minutes from the Federal Open Market Committee (FOMC) and Bank of England (BoE).
The FOMC's minutes should shed light behind the Federal Reserve's decision last month to keep interest rates near zero and its monthly $85bn bond buying programme unchanged.
Markets have been speculating over when the Fed might begin tapering quantitative easing, with most economists predicted a March 2014 start.
Fed Chairman Ben Bernanke, who steps down in January, last night said the US economy is growing stronger but failed to offer any hints as to when the central bank would start scaling back stimulus.
Federal Reserve Bank of Chicago President Charles Evans also spoke last night, saying that the Fed may buy a total of $1.5trn in bonds in a programme that started in January 2013 to ensure steady employment gains.
He said the Fed should be careful not to prematurely reduce bond purchases, saying he would rather "wait just a little bit longer" until it's certain labour market improvements are sustainable.
Vice Chair Janet Yellen will face a Senate Banking Committee vote on Thursday for nomination as the new Chair to succeed Bernanke.
Today, the US will also turn to data on retail sales, manufacturing inventories and mortgage applications to gauge the health of the world's biggest economy.
Retail sales are "extremely important for the US economy and therefore have the potential to create big moves in the markets", according to Craig Erlam, Market Analyst at Alpari.
Analysts expect a 0.1% increase in retail sales in October.
In the UK today, the BoE releases minutes of its interest rate decision. The central bank last month announced it would keep interest rates at 0.5% and asset purchases at £375bn.
Investors will be looking to see if the BoE has shown any signs that policy makers favour a new unemployment threshold.
Diageo, Serco
Diageo declined after Chief Executive Officer Ivan Menezes said uncertainties in the global economy will hurt sales growth for the world's biggest distiller.
Serco Group slumped following reports that the British government services company withdrew from a bid to handle UK military purchasing.
Societe Television Francaise advanced after France beat the Ukraine to advance to the next year's soccer World Cup.
Euro weakens against dollar
The euro fell 0.04% to $1.3532.
Brent crude futures rose $0.233 to $107.170 per barrel on the ICE. |
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| | US Market Report | | US close: Stocks fall on taper uncertainty ahead of FOMC minutes - Comments from Fed speakers in focus ahead of FOMC minutes
- OECD cuts global growth forecasts
- Best Buy, Campbell Soup fail to impress with earnings
Dow Jones: -0.06%
Nasdaq: -0.43%
S&P 500: -0.20%
Increased speculation over the scaling back of quantitative easing pushed US markets into the red on Tuesday while quarterly results from Best Buy and Campbell Soup disappointed.
Eyes were beginning to turn to Wednesday release of the minutes of October's Federal Open Market Committee (FOMC) meeting as investors await hints of a potential timeframe for the impending 'taper'.
Fed Bank of New York President William Dudley spread concerns that the central bank's staged withdrawal of stimulus could be just around the corner after saying that he was "getting more hopeful" on the outlook for the US economy.
However, head of the Chicago Fed Charles Evans said he is "not in a hurry myself to reduce the flow of purchases […] I'd rather wait just a little bit longer and have more confidence".
This follows comments from Philadephia Fed President Charles Plosser, who called for a fixed dollar amount on the Fed's asset purchase programme, proposing an end to the scheme once that limit is reached.
Meanwhile, investors were restrained today after OECD revised down its global growth forecasts "significantly", blaming a slowdown in emerging markets. It expects the global economy to expand by just 2.7% in 2013 and 3.6% in 2014, compared with previous estimates in May of 3.1% and 4% growth, respectively.
The OECD also said that the tapering of asset purchases and brinkmanship in Washington over the debt ceiling were potential risks that could derail the global recovery. "These episodes could easily be replayed, quite possibly in a more virulent form, in the period ahead," warned Pier Carlo Padoan, Deputy Secretary-General and Chief Economist of the OECD.
Anxiety over the recent run on equity markets continued to dampen sentiment after activist investor Carl Icahn was reported as saying on Monday that a "big drop" could be around the corner. According to Reuters, Icahn said he was "very cautious on equities today" given that valuations are rich and earnings are bolstered by low borrowing costs rather than management's efforts to improve results.
Best Buy, Campbell Soup under selling pressure
Consumer-electronics retailer Best Buy slumped after it warned that margins could come under pressure as it attempts to keep up with promotional activity across the industry on Black Friday and throughout the Christmas shopping season.
Campbell Soup also fell sharply after its fiscal first-quarter net income dropped 30%, coming in well below analysts' estimates.
Tesla Motors gained strongly after Chief Executive Elon Musk outlined a plan on a company blog to ease fears amongst investors regarding recent incidents involving its electric cars.
Horizon Pharma surged after agreeing to buy the US rights for AstraZeneca's Vimovo treatment for osteoarthritis and rheumatoid arthritis.
S&P 500 - Risers
Devon Energy Corp. (DVN) $62.77 +4.98%
Tyson Foods Inc. (TSN) $30.78 +4.62%
Boston Scientific Corp. (BSX) $11.96 +3.37%
Southwestern Energy Co. (SWN) $37.44 +3.14%
Automatic Data Processing Inc. (ADP) $79.71 +3.04%
Range Resources Corp. (RRC) $75.55 +2.37%
Abbott Laboratories (ABT) $38.71 +2.03%
Alcoa Inc. (AA) $9.13 +2.01%
McGraw Hill Financial Inc (MHFI) $73.56 +2.00%
Bank of America Corp. (BAC) $15.20 +1.88%
S&P 500 - Fallers
Best Buy Co. Inc. (BBY) $38.78 -10.97%
Campbell Soup Co. (CPB) $39.20 -6.24%
Jacobs Engineering Group Inc. (JEC) $60.03 -5.84%
Salesforce.Com Inc. (CRM) $52.74 -4.99%
Altera Corp. (ALTR) $31.06 -4.34%
First Solar Inc. (FSLR) $60.42 -3.90%
LSI Corporation (LSI) $7.89 -3.48%
GameStop Corp. (GME) $53.19 -3.36%
Electronic Arts Inc. (EA) $23.32 -3.32%
Tenet Healthcare Corp. (THC) $40.63 -3.19%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $122.06 +1.24%
Home Depot Inc. (HD) $80.38 +0.89%
JP Morgan Chase & Co. (JPM) $56.15 +0.74%
Cisco Systems Inc. (CSCO) $21.42 +0.61%
Johnson & Johnson (JNJ) $94.86 +0.59%
Goldman Sachs Group Inc. (GS) $166.60 +0.56%
International Business Machines Corp. (IBM) $185.25 +0.42%
Intel Corp. (INTC) $24.70 +0.41%
McDonald's Corp. (MCD) $97.98 +0.34%
AT&T Inc. (T) $35.72 +0.34%
Dow Jones I.A - Fallers
Visa Inc. (V) $197.39 -1.26%
Microsoft Corp. (MSFT) $36.74 -1.24%
Pfizer Inc. (PFE) $31.66 -1.09%
Boeing Co. (BA) $136.98 -1.00%
Nike Inc. (NKE) $77.81 -0.98%
General Electric Co. (GE) $27.03 -0.70%
Walt Disney Co. (DIS) $69.12 -0.55%
Caterpillar Inc. (CAT) $83.67 -0.44%
E.I. du Pont de Nemours and Co. (DD) $61.49 -0.34%
Procter & Gamble Co. (PG) $84.34 -0.27%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $126.09 +3.71%
Automatic Data Processing Inc. (ADP) $79.71 +3.04%
Randgold Resources Ltd. Ads (GOLD) $74.23 +1.87%
Biogen Idec Inc. (BIIB) $245.46 +1.74%
Facebook Inc. (FB) $46.36 +1.16%
Vertex Pharmaceuticals Inc. (VRTX) $62.38 +1.12%
Gilead Sciences Inc. (GILD) $69.66 +1.00%
Garmin Ltd. (GRMN) $47.70 +1.00%
Celgene Corp. (CELG) $154.44 +0.95%
DIRECTV (DTV) $65.47 +0.66%
Nasdaq 100 - Fallers
Altera Corp. (ALTR) $31.06 -4.34%
Activision Blizzard Inc. (ATVI) $16.89 -3.62%
Green Mountain Coffee Roasters Inc. (GMCR) $61.43 -3.12%
Wynn Resorts Ltd. (WYNN) $159.20 -2.68%
Autodesk Inc. (ADSK) $42.28 -2.36%
Avago Technologies Ltd. (AVGO) $42.95 -2.30%
F5 Networks Inc. (FFIV) $82.02 -2.23%
Whole Foods Market Inc. (WFM) $55.72 -2.23%
Sears Holdings Corp. (SHLD) $61.61 -2.22%
Nvidia Corp. (NVDA) $15.44 -2.15% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Iran, India, Households Barack Obama made a personal appeal to leading senators on Tuesday to postpone new sanctions on Iran. The move came on the eve of crucial nuclear talks. However, the US president still faces fierce opposition from many Republicans in Congress. The US administration had initially appeared to win some political breathing space over its nuclear negotiations after a leading Republican senator left a meeting with Obama and said that no new sanctions were likely until at least next month, the Financial Times says.
A £480m contract to supply 12 British-built helicopters to India was on the brink of collapse last night after a bribery scandal prompted Delhi to abandon the deal. Executives from AgustaWestland, Britain's only helicopter manufacturer, were scheduled to meet India's Defence Ministry in Delhi today in a last-ditch effort to rescue the deal which, since February, has been overshadowed by corruption allegations, according to The Times.
The number of households that they are struggling to make ends meet each month has risen by more than 800,000 compared to a year ago, research shows. The soaring cost of living has left an estimated 3.5m households without enough income to cover all their bills every month - a rise of 30% from 2.7m last year, according to a report from Legal & General. The figure is now equivalent to almost a fifth (18%) of all households compared to one in 8 just a year ago, adding weight to Labour leader Ed Miliband's claim that Britain is facing a cost of living crisis despite the recovery in economic growth, The Daily Mail says.
The US would impose a one-time 20% tax on an estimated $2trn of cash held overseas by American multinationals under a proposal from Democrats on the Senate finance committee that would reshape international tax policy. The proposal by Max Baucus, the veteran Montana lawmaker who chairs the panel, was unveiled on Tuesday as a way to stoke momentum for a sweeping rewrite of the US tax code, which is facing uncertain political prospects, the Financial Times writes.
The Chairman of the US Federal Reserve Bank last night pledged that it would maintain its $85bn-a-month asset purchase scheme. Ben Bernanke, in one of his final speeches before handing over to Chairman-elect Janet Yellen, said that the Fed's Open Market Committee "remains committed to maintaining highly accommodative policies for as long as they are needed", The Times reports.
Investment banking giant JP Morgan Chase & Co last night signed a $13bn (£8bn) agreement with the US government to settle claims that it had overstated the quality of mortgages sold to investors in the run-up to the financial crash. The civil settlement – the largest ever reached between a government and a company – marks the end of weeks of tense negotiations between representatives of JP Morgan, the largest US bank, and government agencies under pressure to hold banks accountable for wrongdoing that led to America's housing crisis, The Scotsman explains.
The Co-op Bank's £1.5bn recapitalisation could be "at risk", the troubled lender was warned as it continued to face the fall-out from damaging revelations about the private life of its disgraced former chairman. Lord Myners, the former City minister, warned the growing scandal over the sex life and alleged drug use by Paul Flowers, the Co-op Bank's chairman until his resignation in June, risked scuppering a rescue deal for the bank and could lead the lender's backers to rethink the terms of recent recapitalisation plan, The Daily Telegraph says. | | |
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