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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 100 rises as AstraZeneca jumps - AstraZeneca jumps as Pfizer confirms interest
- Pharma stocks outweigh weakness in basic resource shares
- Japanese retail sales surge, but analysts still cautious
- BG Group drops after CEO exit, update
techMARK 2,780.12 +1.17%
FTSE 100 6,700.83 +0.23%
FTSE 250 15,848.32 -0.25%
UK markets edged higher on Monday morning as a surge in the share price of AstraZeneca and gains from other pharmaceutical stocks offset weakness in the resources sector.
AstraZeneca was up as much as 15% early on after US pharma giant Pfizer confirmed that it had made a "preliminary, non-binding indication of interest" regarding a possible merger in January. The proposal, rejected by AstraZeneca's board, valued the company at 4,661p a share, around £60bn, a 30% premium to its closing price at the time.
The FTSE 100 was trading 0.2% higher at 6,701 in early trading.
With little economic data due out today, analysts a Danske Bank said they expect a "quiet start to a very busy week" ahead of the Federal Reserve policy meeting on Wednesday, US ISM manufacturing data on Thursday and the all-important non-farm payrolls figures on Friday.
"We generally see upside risks to both ISM and non-farm payrolls and for the Fed to taper another $10bn and nod to the latest improvement in data," they said.
Stocks in Asia fell overnight despite Japanese retail sales growth coming in at a 17-year high in March. Sales rose at an annual rate of 11% last month, up from 3.6% the month before. However, the figure was in line with analysts' expectations as shoppers rushed to stores ahead of the planned increase in the national sales tax which began at the start of April.
Analysts are now concerned that the strong sales growth acceleration in March will lead to a decline in consumer spending in April. "The April number, when released next month, will highlight this perfectly and is likely to be woeful, with spending drying up significantly following the spree in March," said Market Analyst Craig Erlam from Alpari UK.
AstraZeneca jumps on potential Pfizer offer
After Pfizer's initial proposal was rejected and AstraZeneca declined to engage in further talks this month, the US group said it is "currently considering its options". Pfizer said that any potential transaction would offer AstraZeneca's shareholders a "highly compelling opportunity to realise a significant premium" to the recent share price and would include a "substantial" cash payment.
Other companies in the pharmaceutical sector were also performing well this morning as a result, including Shire, GlaxoSmithKline and Dechra Pharmaceuticals.
Heading the other way was natural gas producer BG Group after delivering a double blow to investors as it announced the departure of Chief Executive Chris Finlayson and warned its 2014 production levels would be at the lower end of expectations due to challenges in Egypt.
Sector peers BP and Shell were also in the red, along with mining groups Rio Tinto, BHP Billiton and Glencore Xstrata.
Ophir Energy fell after saying that Premier Oil has rejected a merger proposal and it is "no longer considering making an offer". Ophir believed that merging the two companies will provide the "potential to create a well-funded, re-focussed, full-cycle exploration and production company". |
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| FTSE 100 - Risers
AstraZeneca (AZN) 4,636.50p +13.64%
Shire Plc (SHP) 3,271.00p +1.90%
British Land Co (BLND) 693.00p +1.76%
William Hill (WMH) 345.60p +1.65%
Tullow Oil (TLW) 852.00p +1.49%
GlaxoSmithKline (GSK) 1,673.00p +1.09%
Resolution Ltd. (RSL) 296.90p +0.85%
Smith & Nephew (SN.) 922.00p +0.77%
Unilever (ULVR) 2,616.00p +0.73%
SABMiller (SAB) 3,148.50p +0.56%
FTSE 100 - Fallers
BG Group (BG.) 1,103.50p -3.62%
Rio Tinto (RIO) 3,213.00p -2.00%
Ashtead Group (AHT) 850.00p -1.51%
Anglo American (AAL) 1,514.50p -1.21%
G4S (GFS) 239.30p -1.12%
BHP Billiton (BLT) 1,903.50p -1.07%
Royal Mail (RMG) 514.00p -1.06%
Royal Bank of Scotland Group (RBS) 300.00p -1.06%
Standard Chartered (STAN) 1,280.50p -1.00%
Persimmon (PSN) 1,305.00p -0.99%
FTSE 250 - Risers
Ladbrokes (LAD) 145.00p +4.54%
Perform Group (PER) 238.00p +4.39%
Worldwide Healthcare Trust (WWH) 1,258.00p +2.53%
Mitchells & Butlers (MAB) 446.50p +2.24%
Cairn Energy (CNE) 174.60p +2.17%
African Barrick Gold (ABG) 258.00p +1.61%
Hikma Pharmaceuticals (HIK) 1,563.00p +1.23%
Monks Inv Trust (MNKS) 376.50p +1.21%
Fidelity European Values (FEV) 1,529.00p +1.12%
Drax Group (DRX) 667.00p +0.98%
FTSE 250 - Fallers
RPS Group (RPS) 292.10p -2.60%
Spirent Communications (SPT) 98.75p -2.52%
Renishaw (RSW) 1,853.00p -2.11%
Polymetal International (POLY) 582.50p -1.52%
Beazley (BEZ) 244.30p -1.49%
Countrywide (CWD) 595.00p -1.49%
Tate & Lyle (TATE) 693.50p -1.49%
Telecity Group (TCY) 632.50p -1.48%
Evraz (EVR) 90.95p -1.46% |
| | UK Event Calendar | | Monday April 28th INTERIMS
AB Dynamics
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
GFK Consumer Confidence (GER) (07:00)
Pending Homes Sales (US) (15:00)
GMS
Peer TV, Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)
FINALS
Dillistone Group, SimiGon Ltd. (DI), Verona Pharma
AGMS
Access Intelligence, Acencia Debt Strategies Ltd., AimShell Acquisitions, Boeing Co, DP World Limited, Globaltrans Investment GDR (Reg S), Greencoat UK Wind, Microgen, Personal Group Holdings, TXO
Q1
X5 Retail Group NV GDR (Reg S) |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks start the day slightly higher - Sanctions against some Russian firms expected
- Healthcare stocks lead gains
- Siemens moves to block GE bid for Alstom power unit
- Euro moves higher, towards 1.3870
FTSE-100: 0.25%
Dax-30: 0.28%
Cac-40: 0.19%
FTSE Mibtel 30: 0.38%
Ibex 35: 0.34%
Stoxx 600: 0.24%
European stocks began the week with slight gains on the heels of a raft of news on the mergers and acquisitions front.
Nevertheless, traders were cautious, given the risk that new sanctions against Russia might be announced in due course. As well, of course, the possibility existed of reciprocal actions from Russia.
White House officials had indicated that the US and European governments were planning to step up their sanctions against Russia this week. The measures were said to target those in Russian President Vladimir Putin’s inner circle and their business interests.
Healthcare stocks lead gains
From a sector standpoint, and within the DJ Stoxx 600, the largest gains were being seen in the following industry groups: Healthcare (1.84%), Chemicals (1.21%) and Food and Beverage (0.45%).
Back on the corporate front, US drugs giant Pfizer this morning confirmed a previous $99bn proposal to ‘merge’ with UK peer AstraZeneca. The American firm also indicated that it was still interested in a possible tie-up.
Over the weekend German industrial conglomerate Siemens moved to block General Electric’s attempt to make away with French rival Alstom’s power unit.
French authorities postponed a meeting with GE Chief Executive Jeffery Immelt while the rival proposals are evaluated.
Euro/dollar moves clearly higher
The euro/dollar was clearly higher overnight, up by 0.21% to 1.3870.
Front-month Brent crude futures were moving lower by 0.30% to the $109.92/barrel mark on the ICE. |
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| | US Market Report | | US close: Nasdaq down sharply as Amazon.com plummets - US stocks finish lower on tensions with Russia
- Mixed economic data
- Amazon.com, Visa, Ford drop
Dow Jones: -0.85%
Nasdaq: -1.75%
S&P 500: -0.81%
US stocks finished the Friday session noticeably lower as traders reacted to the negative news-flow out on Russia and took some money off the table ahead of the release of the latest monthly non-farm payrolls report and US Federal Reserve Policy meeting this week.
President Obama was expected to consult with key European leaders on 'deepening' sanction against Russia. Ratings agency Standard & Poor's also cut its foreign and local currency rating for Russia's long-term debt on the back of recent capital outflows and warned that additional sanctions could result in a further downgrade. Earlier in the day the Russian central bank surprised analysts by hiking its main policy rate in a bid to staunch those flows.
Amazon.com pumelled
Online retail merchant Amazon.com was a standout faller, with its stock dropping 9.88%, as traders continued to question its valuation. Earnings were in line with expectations but the company warned that spending on investments will probably result in a second-quarter operating loss.
Credit card group Visa also moved lower after missing analysts' estimates for second-quarter revenues and profits. As well, Putin warned that it and Mastercard will lose market share in his country as a result of the current situation.
Visa stated that a strong US dollar and tough comparatives from last year due to non-recurring items weighed on growth.
Shares of Ford also declined, following the carmaker's latest set of quarterly results. The manufacturer reported a drop in profits worse than expected, as it blamed safety recalls and weather-related costs.
Gold miners, insurance brokers and multiutilities outperformed as traders headed for the relative safety of these sectors.
Consumer sentiment rises, PMIs fall
The Thomson Reuters/University of Michigan's consumer confidence index jumped to 84.1 in April, revised higher from the preliminary reading of 82.6 and March's final figure of 80. Analysts had expected a smaller rise to 83.
However, Markit's US services purchasing managers' index (PMI) declined from 55.3 to 54.2 in April, surprising analysts who had expected a small rise to 55.5.
This pushed the composite PMI, which measures both the services and manufacturing sectors, down to 54.9 from 55.7 the month before.
Oil slips lower
West Texas Intermediate futures were down $1.33 at $100.60 a barrel on the NYMEX.
The yield on a 10-year Treasury was down three basis points at 2.65%.
S&P 500 - Risers
Tenet Healthcare Corp. (THC) $46.12 +9.13%
Newmont Mining Corp. (NEM) $26.45 +3.77%
Diamond Offshore Drilling Inc. (DO) $53.50 +3.50%
Mylan Inc. (MYL) $52.10 +3.48%
Aon plc (AON) $84.95 +3.36%
Principal Financial Group (PFG) $46.29 +3.35%
Weyerhaeuser Co. (WY) $29.52 +2.71%
VF Corp. (VFC) $61.44 +2.21%
Family Dollar Stores Inc. (FDO) $58.31 +2.21%
Reynolds American Inc. (RAI) $55.10 +2.17%
S&P 500 - Fallers
Amazon.Com Inc. (AMZN) $303.83 -9.88%
Masco Corp. (MAS) $20.78 -7.44%
TripAdvisor Inc. (TRIP) $77.39 -7.30%
KLA-Tencor Corp. (KLAC) $62.91 -7.13%
Netflix Inc. (NFLX) $322.08 -6.39%
FLIR Systems Inc. (FLIR) $35.05 -5.75%
Wynn Resorts Ltd. (WYNN) $201.49 -5.46%
Cerner Corp. (CERN) $49.51 -5.30%
Leggett & Platt Inc. (LEG) $31.97 -5.25%
Facebook Inc. (FB) $57.71 -5.19%
Dow Jones I.A - Risers
McDonald's Corp. (MCD) $100.73 +0.89%
Coca-Cola Co. (KO) $41.01 +0.76%
General Electric Co. (GE) $26.60 +0.53%
Exxon Mobil Corp. (XOM) $100.41 +0.40%
Wal-Mart Stores Inc. (WMT) $78.62 +0.40%
Procter & Gamble Co. (PG) $81.41 +0.32%
Pfizer Inc. (PFE) $30.75 +0.13%
Microsoft Corp. (MSFT) $39.91 +0.13%
Dow Jones I.A - Fallers
Visa Inc. (V) $198.93 -5.00%
Intel Corp. (INTC) $26.26 -1.83%
Walt Disney Co. (DIS) $78.23 -1.71%
Goldman Sachs Group Inc. (GS) $158.24 -1.62%
United Technologies Corp. (UTX) $117.21 -1.49%
Cisco Systems Inc. (CSCO) $23.00 -1.41%
Unitedhealth Group Inc. (UNH) $75.66 -1.21%
Nike Inc. (NKE) $72.70 -0.94%
Boeing Co. (BA) $128.66 -0.92%
JP Morgan Chase & Co. (JPM) $55.70 -0.87%
Nasdaq 100 - Risers
Mylan Inc. (MYL) $52.10 +3.48%
Baidu Inc. (BIDU) $162.91 +1.98%
Intuit Inc. (INTU) $75.34 +1.59%
Staples Inc. (SPLS) $12.29 +1.53%
Mattel Inc. (MAT) $37.99 +0.82%
Stericycle Inc. (SRCL) $113.96 +0.75%
Apple Inc. (AAPL) $571.98 +0.74%
Group Plc ADS (VOD) $36.67 +0.69%
Celgene Corp. (CELG) $142.06 +0.57%
Starbucks Corp. (SBUX) $71.45 +0.51%
Nasdaq 100 - Fallers
Amazon.Com Inc. (AMZN) $303.83 -9.88%
Illumina Inc. (ILMN) $139.71 -7.89%
TripAdvisor Inc. (TRIP) $77.39 -7.30%
KLA-Tencor Corp. (KLAC) $62.91 -7.13%
Netflix Inc. (NFLX) $322.08 -6.39%
Vimpelcom Ltd Ads (VIP) $8.19 -5.54%
Wynn Resorts Ltd. (WYNN) $201.49 -5.46%
Cerner Corp. (CERN) $49.51 -5.30%
Facebook Inc. (FB) $57.71 -5.19%
Nxp Semiconductors Nv (NXPI) $58.87 -5.05% |
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| | Newspaper Round Up | | Monday newspaper round-up: Russian sanctions, Reckitt, Kiev BP and Shell are facing an extremely delicate situation as the G7 prepares to launch another wave of sanctions against Russia. They may be forced to reduce their operations or freeze certain commercial ties with the country. Those new measures may come as soon as Monday unless the Kremlin takes immediate steps to defuse the situation. The G7 is now holding back "stage three" sanctions such as those imposed against Iran, which could be brought to bear against the entire Russian banking system, mining industry, or the oil and gas nexus, according to The Daily Telegraph.
Reckitt Benckiser may know as soon as this week whether or not it has been successful in its $13.5bn offer for the healthcare division of US pharmaceuticals giant Merck & Co.. That comes on the heels of a flurry of merger and acquisitions news over the weekend. The British firm has refused to comment on the speculation but is thought to have already submitted a bid. On previous occasions its Chief Executive Officer has identified consumer health as one of the main engines for growth in the company, The Times reports.
The stakes in the conflict between Kiev and Moscow were raised a notch over the weekend as pro-Russian rebels paraded Western military observers as hostages and showed off images of who they said were three Ukrainian intelligence officers who had been detained. What increasingly looks like an armed conflict zone around the city of Slovyansk clashes with the Kremlin's description of the activists in the east as everyday "citizens driven to desperation", The Wall Street Journal Europe reports.
During three unprecedented consecutive days of questioning this week the cream of the City of London will be hauled before a parliamentary inquiry at the Palace of Westminster on the privatisation of the Royal Mail. Starting today the Business Select and Public Accounts Committees will likely accuse ministers and mandarins of being gulled by City bankers into selling off the nation's postal network too cheaply, The Times reports.
Greene King, the brewer of Old Speckled Hen and Abbot Ale, has lost an appeal against an adverse HMRC ruling on its tax avoidance scheme for a second time. The scheme, which was originally designed by Ernst and Young, the firm's auditors, has been described by MP Richard Bacon, a member of the Public Accounts Committee, as "purely artificial". Initially dubbed as "Project Sussex", the arrangement was meant to protect the firm against taxation linked to a £300m internal loan. On Sunday it was not clear whether the company would take its appeal to a higher court, The Guardian says.
Less than a day after business lobby group CBI Scotland announced that it had formally registered as a 'no' campaigner with the Electoral Commission ahead of the Scottish independence referendum, its Director, Iain McMillan, announced he would retire. The group said however that the timing of his retirement had already been agreed in January and his intention to do so been known since two years ago, The Guardian writes. | | |
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