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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: Markets edge higher ahead of UK GDP figures - Second estimate of Q3 UK GDP due for release
- Plenty of economic data from the States
- Ex-dividend stocks limit gains in London
techMARK 2,654.69 +0.19%
FTSE 100 6,649.71 +0.20%
FTSE 250 15,370.31 +0.42%
UK markets edged higher on Wednesday morning despite some ex-dividend stocks capping gains on the FTSE 100, as markets awaited data predicted to show a small acceleration in UK economic growth in the third quarter.
Today's focus will be on the second estimate of UK gross domestic product (GDP) for the three months through September, which is expected to confirm that the economy expanded by 0.8%, compared with the 0.7% growth recorded in the second quarter. The figures are due out at 09:30 in London.
"This is still a very strong figure for the UK and confirms it as one of the fastest growing Western economies," said Market Analyst Craig Erlam from Alpari.
However, he highlighted that the data is likely to show that momentum has slowed, with 0.8% growth representing only a slight pick-up from the preceding quarter.
"It will now be a big test for the UK to maintain these growth rates and set itself on course for a sustainable recovery, even when the eurozone is stagnating and the US constantly tripping itself up," Erlam said.
Economic data on the other side of the Pond will also be closely watched this afternoon, with reports on durable goods orders, mortgage applications, initial jobless claims, manufacturing and University of Michigan confidence all due out.
United Utilities, Compass gain after results
Water group United Utilities rose after saying it will be discounting bills next year as it reported a 9% rise in underlying operating profits in the first half. The company is discounting bills by £20m for customers, offsetting the allowed price increases for 2014/15, meaning that bills will go up by no more than inflation.
Sector peers Centrica, National Grid and Severn Trent were also in demand this morning.
Compass, the world's largest catering group, was also higher after reporting full-year revenue growth of 4.3%, driven by strong performances in North America and Fast Growing & Emerging.
AMEC was a heavy faller today after going ex-dividend, meaning that from today investors will no longer qualify for the engineering firm's latest payout. Others in the FTSE 350 including Johnson Matthey, Vedanta Resources, Lancashire Holdings, 3i Infrastructure, UDG Healthcare, Telecom Plus and Dunelm also went ex-div this morning.
Banknote printer De La Rue was in the red this morning, pulling back after a strong rise the day before after its first-half report. The stock was being weighed down this morning by Citigroup which downgraded its rating from 'buy' to 'hold'.
Ophir Energy edged higher after saying it has begun test drilling at its Mlinzi Mbali-1 well in its Block 7 offshore Tanzania. The 80%-owned block is estimated to contain prospective resources of roughly 10trn cubic feet (TCF) of oil. |
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| | FTSE 100 - Risers
Compass Group (CPG) 945.50p +2.05%
United Utilities Group (UU.) 668.00p +1.67%
Centrica (CNA) 340.90p +1.28%
Aviva (AV.) 430.20p +1.25%
ITV (ITV) 188.80p +1.07%
Sports Direct International (SPD) 715.00p +1.06%
Royal Bank of Scotland Group (RBS) 332.80p +0.88%
Mondi (MNDI) 999.50p +0.86%
WPP (WPP) 1,358.00p +0.82%
British Sky Broadcasting Group (BSY) 823.00p +0.73%
FTSE 100 - Fallers
Amec (AMEC) 1,145.00p -2.14%
Babcock International Group (BAB) 1,301.00p -0.76%
Bunzl (BNZL) 1,386.00p -0.72%
Wolseley (WOS) 3,328.00p -0.63%
Tesco (TSCO) 343.20p -0.62%
Rolls-Royce Holdings (RR.) 1,231.00p -0.57%
Johnson Matthey (JMAT) 3,203.00p -0.53%
Antofagasta (ANTO) 775.00p -0.51%
ARM Holdings (ARM) 998.00p -0.50%
Whitbread (WTB) 3,526.00p -0.45%
FTSE 250 - Risers
NMC Health (NMC) 422.00p +10.91%
Hochschild Mining (HOC) 134.30p +5.75%
Electra Private Equity (ELTA) 2,367.00p +2.91%
Centamin (DI) (CEY) 43.84p +2.81%
Shaftesbury (SHB) 629.50p +2.36%
BTG (BTG) 534.00p +2.30%
African Barrick Gold (ABG) 167.80p +2.01%
Essar Energy (ESSR) 84.60p +1.93%
Essentra (ESNT) 808.00p +1.76%
Kenmare Resources (KMR) 18.80p +1.68%
FTSE 250 - Fallers
De La Rue (DLAR) 873.50p -4.64%
Lancashire Holdings Limited (LRE) 795.00p -3.05%
Dunelm Group (DNLM) 863.50p -2.43%
3i Infrastructure (3IN) 127.10p -2.38%
UDG Healthcare Public Limited Company (UDG) 305.40p -2.30%
Telecom Plus (TEP) 1,888.00p -2.13%
Mitie Group (MTO) 308.40p -1.85%
Daejan Holdings (DJAN) 4,194.00p -1.53%
Bwin . party Digital Entertainment (BPTY) 127.60p -0.78% |
| | UK Event Calendar | | Wednesday November 27
INTERIMS
Findel, First Property Group, Hogg Robinson Group, Immunodiagnostic Systems Holdings, Omega Diagnostics Group, Real Estate Credit Investments PCC Ltd, Royal Mail, Telford Homes, United Utilities Group
INTERIM DIVIDEND PAYMENT DATE
Downing Planned Exit VCT 2 'C' Shares, Downing Planned Exit VCT 2 'D' Shares , Downing Planned Exit VCT 2 'F' Shares, Downing Planned Exit VCT 2 'G' Shares, Downing Planned Exit VCT 3 'C' Shares, Downing Planned Exit VCT 3 'D' Shares , Downing Planned Exit VCT 3 F Shares, Toyota Motor Corp., Zhejiang Expressway Co 'H' Shares
INTERIM EX-DIVIDEND DATE
3i Infrastructure, Amec, Anglo Pacific Group, Castings, E2V Technologies, Hansa Trust, Hansa Trust 'A' Non Voting Shares, Johnson Matthey, Mckay Securities, Northern 2 VCT, Northern 3 VCT, Record, Telecom Plus, Vedanta Resources, Victoria, Wynnstay Properties, Young & Co's Brewery 'A' Shares, Young & Co's Brewery (Non-Voting)
QUARTERLY EX-DIVIDEND DATE
Canadian General Investments Ltd., Duet Real Estate Finance Ltd, Energy XXI (Bermuda) (DI), Premier Energy & Water Trust
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Italian Senate votes on Berlusconi expulsion (07:00)
Bloomberg Consumer Confidence (US) (14:45)
Chicago PMI (US) (13:45)
Continuing Claims (US) (13:30)
Crude Oil Inventories (US) (15:30)
Durable Goods Orders (US) (13:30)
GFK Consumer Confidence (GER) (07:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
MBA Mortgage Applications (US) (12:00)
Personal Consumption Expenditures (US) (13:30)
Personal Income (US) (13:30)
Personal Spending (US) (13:30)
U. of Michigan Confidence (Final) (US) (15:00)
Q2
Real Estate Credit Investments PCC Ltd
GMS
Throgmorton Trust
FINALS
Shaftesbury
IMSS
Punch Taverns
SPECIAL EX-DIVIDEND PAYMENT DATE
Lancashire Holdings Limited, Ludgate Environmental Fund Ltd.
EGMS
Great Western Mining Corporation, Meikles Ltd., The Commercial Bank of Qatar (Q.S.C) GDR (Reg S)
AGMS
Baillie Gifford Japan Trust, Black Mountain Resources Ltd, Helphire Group, Impact Holdings, K3 Business Technology Group, Paragon Resources, Punch Taverns, Pure Wafer, Victoria Oil & Gas
UK ECONOMIC ANNOUNCEMENTS
CBI Distributive Trades Surveys (11:00)
Q3 GDP, second estimate (output, income & expenditure) (09:30)
Index of Services (09:30)
FINAL DIVIDEND PAYMENT DATE
AIREA, Kier Group
FINAL EX-DIVIDEND DATE
A&J Mucklow Group, Daily Mail and General Trust A (Non.V), Diploma, Dunelm Group, GCP Infrastructure Investments Ltd, Goldplat, JPMorgan Japanese Inv Trust, Northern Venture Trust, Renewable Energy Generation Ltd., Sherborne Investors (Guernsey) 'B' (Reg S), Smart (J) & Co., St Ives, Tristel, UDG Healthcare Public Limited Company, Utilitywise
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rise Italy and Germany make political headway - Merkel agrees terms for coalition
- Letta wins confidence vote
- UK GDP released
- Batch of US data out
FTSE 100: 0.22%
DAX: 0.16%
CAC 40: 0.22%
FTSE MIB: 0.62%
IBEX 35: 0.14%
Stoxx 600: 0.21%
European stocks rallied as German Chancellor Angela Merkel agreed terms for a coalition and as Italian Prime Minister Enrico Letta won a confidence vote on the 2014 budget.
Merkel's conservatives reached a late-night deal with the centre-left Social Democratic Party (SPD) to form a coalition, two months after the Chancellor's Christian Democrats fell short of a majority to win the national election.
The breakthrough came after 17 hours of negotiations by SPD leaders with the Christian Democrats and allied CSU.
The final coalition deal will go to a ballot of SPD members to be signed off, with the result expected in mid-December.
Elsewhere in Europe, Italy's Letta won a confidence vote on next year's budget, a day before the Senate is expected to ban centre-right leader Silvio Berlusconi from parliament over a tax fraud conviction.
Berlusconi's Forza Italia party is now moving into opposition days after a split in the centre-right group he led since 2007.
Berlusconi was convicted of tax fraud in October 2012 over deals his firm Mediaset made to purchase TV rights to US films. The verdict was upheld in August.
A vote on Berlusconi's exclusion from the Senate will be held today.
Turning to Wednesday's agenda will be the release of UK gross domestic product (GDP) figures, and US reports on durable goods orders, mortgage applications data, initial jobless claims figures, Chicago NAPM manufacturing data and the University of Michigan's consumer confidence survey.
The UK economy grew by 1.5% in the third quarter, in line with the previous three months, according to consensus estimates ahead of the GDP data.
The report comes after Bank of England Governor Mark Carney stressed that the central bank was in no hurry to raise the record-low benchmark interest rate even if unemployment fell to the 7% threshold at which the central bank would consider tightening monetary policy.
Addressing members of the Treasury Committee in Britain's lower house of parliament yesterday, he faced questions over a possible hike in interest rates, given the stronger-than-expected pick-up in economic growth and the labour market.
Vivendi, Accor
Vivendi advanced after saying shareholder Vincent Bollore will replace Chairman Jean-Rene Fourtou when it completes a separation of telecommunications business from media assets.
Accor declined as Europe's largest hotel operator said it will reorganise its business into two separate units including HotelServices, which will operate about 460,000 hotel rooms under 14 brands, and HotelInvest, which will act as the owner and investor in hotels.
Ophir Energy rallied after announcing that drilling operations have started on the Mlinzi Mbali-1 well in Block 7, Tanzania.
Other asset classes climb
The euro rose 0.11% to $1.3587.
Brent crude jumped $0.171 to $111.070 per barrel, according to ICE data. |
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| | US Market Report | | US close: Stocks pare gains but Nasdaq ends at 13-year high - Nasdaq closes above 4,000
- Stocks pull back sharply ahead of MSCI rebalancing
- Consumer confidence slips, housing permits shoot higher
- Goldman sees S&P 500 at 1,900 before end of 2013
Dow Jones: 0.00%
Nasdaq: 0.58%
S&P 500: 0.02%
US stocks closed flat to slightly higher on Tuesday but had pared gains by the close as investors adopted a cautious approach ahead of the end of a shortened week on Wall Street with markets celebrating the Thanksgiving holidays.
Upside was being capped by an unexpected fall in consumer confidence in November, offsetting earlier reports that showed a surge in housing permits and house prices.
Meanwhile, there was also sharp pull-back in the final minutes of trade with stocks being sold to reflect the rebalancing of the MSCI indices that took affect after the close.
While the Dow Jones Industrial Average and S&P 500 both finished little changed on the previous session, the Nasdaq Compositie Index closed up 0.58% at 4,017.75, its first time above 4,000 for the first time in 13 years.
Nevertheless, Goldman Sachs strategists have reportedly forecast the S&P 500 to end this year at 1,900 points - compared with Tuesday's close of 1,802.75 - but thereafter fall by 10% over the following 12 months.
Consumer confidence slips, housing permits shoot higher
The Conference Board's consumer sentiment index unexpectedly fell from 71.2 to 70.4 in November, below the rise to 72.6 expected.
Despite the fall, analyst Cooper Howes from Barclays said that consumer confidence is still on an "upward trend despite the month-to-month volatility caused in part by several negative policy shocks in recent years".
In other economic news, Case-Shiller's index tracking home prices in 20 US cities rose at its fastest pace since early 2006. The index increased at an annual rate of 13.29% in September, up from a revised 12.8% gain in August and ahead of the 13% forecast.
New housing permits in the US rose 6.2% to an annualised rate of 1.034m in October, according to the latest figures published by the Department of Commerce, its highest level in over five years. This came in much higher than the consensus estimate for 935,000.
Housing starts data was scheduled for release today but has been delayed due to ongoing effects of the government shutdown. The figures for September, October and November will be released on December 18th.
Tiffany gains after quarterly results
Tiffany rallied as the luxury jeweller reported a rise in net income in the quarter ended October 31st that beat analysts' expectations. Net income increased to 73 cents a share in its third quarter from 49 cents previously. Meanwhile the firm lifted its full-year profit target range by 15 cents to $3.65-3.75 per share.
Ligand advanced as the drugmaker was added to the S&P Smallcap 600 index, replacing SHFL on the gauge from tomorrow.
Nuance declined as the maker of speech-recognition software forecast full-year 2014 adjusted revenue that exceeded consensus.
Freeport-McMoRan Copper & Gold Inc slumped as Goldman Sachs lowered its rating on the US miner to 'neutral' from 'buy'.
S&P 500 - Risers
Tiffany & Co. (TIF) $88.02 +8.68%
Hormel Foods Corp. (HRL) $44.95 +5.91%
Lennar Corp. Class A (LEN) $36.05 +5.07%
D. R. Horton Inc. (DHI) $19.93 +4.62%
PulteGroup Inc. (PHM) $18.95 +4.41%
Time Warner Cable Inc. (TWC) $136.56 +3.44%
Coach Inc. (COH) $56.36 +3.30%
Cablevision Systems Corp. (CVC) $15.77 +3.07%
Monster Beverage Corp (MNST) $58.80 +2.76%
Micron Technology Inc. (MU) $20.31 +2.27%
S&P 500 - Fallers
Centerpoint Energy Inc. (CNP) $23.58 -5.19%
Newmont Mining Corp. (NEM) $24.72 -3.17%
Integrys Energy Group Inc. (TEG) $53.78 -2.70%
Intuitive Surgical Inc. (ISRG) $374.51 -2.60%
Biogen Idec Inc. (BIIB) $289.20 -2.26%
Health Care REIT Inc. (HCN) $56.18 -2.01%
Sears Holdings Corp. (SHLD) $64.55 -1.90%
Bristol-Myers Squibb (BMY) $51.88 -1.84%
Allegheny Technologies Inc. (ATI) $32.94 -1.82%
AutoZone Inc. (AZO) $457.28 -1.81%
Dow Jones I.A - Risers
Walt Disney Co. (DIS) $71.18 +2.06%
Boeing Co. (BA) $134.78 +1.34%
Visa Inc. (V) $203.52 +0.79%
Home Depot Inc. (HD) $80.35 +0.75%
3M Co. (MMM) $132.15 +0.70%
Nike Inc. (NKE) $79.60 +0.59%
American Express Co. (AXP) $85.09 +0.59%
United Technologies Corp. (UTX) $110.94 +0.57%
Wal-Mart Stores Inc. (WMT) $80.68 +0.31%
General Electric Co. (GE) $26.78 +0.19%
Dow Jones I.A - Fallers
International Business Machines Corp. (IBM) $177.31 -0.91%
Procter & Gamble Co. (PG) $84.64 -0.90%
Exxon Mobil Corp. (XOM) $94.27 -0.86%
Goldman Sachs Group Inc. (GS) $168.04 -0.85%
JP Morgan Chase & Co. (JPM) $57.17 -0.83%
Pfizer Inc. (PFE) $31.89 -0.78%
Chevron Corp. (CVX) $122.78 -0.78%
Microsoft Corp. (MSFT) $37.35 -0.77%
McDonald's Corp. (MCD) $98.20 -0.73%
Johnson & Johnson (JNJ) $95.06 -0.60%
Nasdaq 100 - Risers
Baidu Inc. (BIDU) $163.03 +4.07%
Monster Beverage Corp (MNST) $58.80 +2.76%
Facebook Inc. (FB) $45.89 +2.39%
Avago Technologies Ltd. (AVGO) $44.75 +2.38%
Micron Technology Inc. (MU) $20.31 +2.27%
Liberty Media Corporation - Class A (LMCA) $154.41 +1.95%
Apple Inc. (AAPL) $533.40 +1.84%
Sandisk Corp. (SNDK) $67.02 +1.78%
Liberty Global plc Series A (LBTYA) $84.27 +1.69%
Priceline.Com Inc. (PCLN) $1,177.98 +1.62%
Nasdaq 100 - Fallers
Nuance Communications Inc. (NUAN) $13.10 -18.07%
Green Mountain Coffee Roasters Inc. (GMCR) $64.16 -5.10%
Intuitive Surgical Inc. (ISRG) $374.51 -2.60%
Biogen Idec Inc. (BIIB) $289.20 -2.26%
Sears Holdings Corp. (SHLD) $64.55 -1.90%
Activision Blizzard Inc. (ATVI) $17.10 -1.78%
Randgold Resources Ltd. Ads (GOLD) $68.05 -1.68%
Symantec Corp. (SYMC) $22.72 -1.65%
Staples Inc. (SPLS) $15.32 -1.16%
Cerner Corp. (CERN) $57.68 -0.96% |
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| | Newspaper Round Up | | Wednesday newspaper round-up: Amec, RBS, German coalition Amec is stalking its American rival Foster Wheeler with a view to potentially pulling off a deal to create a 5bn pound energy services group. Weeks after walking away from a £700m hostile takeover approach for Kentz, Amec is understood to be taking a serious look at a bigger transaction with the acquisition of a competitor that has long had a strong presence in the Scottish oil and gas industry. It is understood that Goldman Sachs investment bankers have been appointed to advise on a potential deal, The Times reports.
Royal Bank of Scotland is facing the prospect of a criminal investigation into claims that it defrauded hundreds of small companies by forcing them out of business. The Serious Fraud Office said last night: "We are aware of the situation and we are monitoring it." The fraud agency is understood to have interviewed some businessmen who had contact with RBS's Global Restructuring Group, its controversial division that has been accused of profiteering from distressed businesses, according to The Times.
Trucking down the M6 yesterday were rumours that plans to float Manchester-based online fashion retailer Boohoo.com had run into problems due to investors baulking at the potential £500m-plus price tag. Private equity outfit Zeus Capital, which helped mastermind the successful £64m flotation of bargain booze chain Conviviality Retail, was hired in June to explore strategic options. A flotation was deemed the best way forward, considering the London market's renewed enthusiasm for thriving entrepreneurial businesses, according to The Daily Mail.
German Chancellor Angela Merkel's conservative alliance on Wednesday struck a deal to form a coalition government with its arch-rival, the centre-left SPD, after weeks of negotiations culminating in an all-night session. But the agreement, which Ms Merkel and her partners will announce later on Wednesday, will not end the country's political uncertainty as the accord now must be put to a referendum of SPD members, the Financial Times reports.
Standard & Poor's, the credit rating agency, estimates the banks, including JPMorgan Chase and Bank of America, may need to pay between $56.5bn and $104bn on legacy mortgage settlements with investors and counterparties. Payments at the upper end of the estimates would wipe out about two-thirds of the $154.9bn litigation buffer estimated to be held by the banks but would not cut into their regulatory capital, the Financial Times writes.
Banks may be ordered to hold more capital in the event of a crisis after the Chancellor asked the Bank of England to consider granting itself new powers to regulate lenders. George Osborne said the Bank should decide whether its Financial Policy Committee (FPC) be given control of the so-called "leverage ratio" that would require lenders to hold a greater amount of capital against their assets, The Daily Telegraph says. | | |
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