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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: PBoC re-starts lending to policy banks - Strong Chinese PMI data
- PBoC restarts lending to policy banks
- Weak French manufacturing and services MPIs
- Royal Mail lower despite promising results
- SAB Miller buoyed by emerging markets
techMARK 2,734.23 -0.04%
FTSE 100 6,842.65 +0.32%
FTSE 250 15,650.57 +0.30%
Reports that China´s central bank has restarted lending to its main so-called policy banks and what some analysts interpreted as a dovish set of Fed minutes overnight gave a modest boost to London equities on Thursday morning.
The FTSE 100 was trading higher by 19 points at the 6,840.27 point mark as of 09:05.
The HSBC Chinese manufacturing PMI came in at 49.7 for May, notably ahead of the 48.3 that had been expected and above the previous month's reading of 48.1.
That implies a strengthening in sequential growth momentum to 6.8% in annualized termns in the second quarter from the 5.8% seen over the first three months of the year, Barclays Research pointed out.
However, Barclays analysts Serena Zhou and Jian Chiang added that: "We have noted the risks of a property bubble bursting and think the ongoing correction in the property market remains a key to watch for growth and policy response."
Precisely in that regard, 21st Century Business reported overnight that the People´s Bank of China (PBoC), the country´s central bank, has provided between 300-500bn yuan in fresh funds to China Development Bank to be used for the government's public housing program.
Fed rate rise not imminent
US stocks ended higher after the Federal Reserve meeting minutes showed officials forecast a rebound in growth.
The Fed last month decided to taper monthly bond purchases by a further $10bn to $45bn, citing improvements in the economy and in the jobs market.
A European-based strategist from one of Wall Street´s largest brokers highlighted to Sharecast that the minutes main message is that a rate rise is not "imminent". As far as the Fed is concerned maintaining current stimulus so as to lower unemployment does not equate to significant inflation risks down the road.
French PMI undershoots
The latest set of French manufacturing and service sector purchasing managers indices surprised sharply to the downside in May.
Commenting on the numbers Jack Kennedy, senior economist at Markit, said: "France's stuttering economic performance continued in May, with new orders and employment both falling at sharper rates in the latest month, the malaise looks set to persist."
The headline services sector purchasing managers index (PMI) fell to a reading of 49.2 in May, from 50.4 in the month before (consensus: 50.4).
In parallel, the manufacturing gauge slipped to reading of 49.3 from 51 in April (consensus: 51.2).
Emerging markets prop up volumes at SAB Miller
A taste for lager among drinkers in emerging markets helped annual adjusted profits to fizz up by 2% to $5.7bn at brewing group SABMiller, although volumes declined in Europe and North America.
Miners such as Antofagasta and emerging market related issues like Aberdeen Asset Management were performing well in the early going on the heels of the above Chinese manufacturing survey figures.
Royal Mail reported a 2% rise in annual revenue to £9.45bn in its first full-year results since floating on the London Stock Exchange in October 2013. The company said parcel deliveries were the biggest contributor to growth, offsetting a fall in letter delivery revenue. "A promising set of results was eclipsed by the company's clear concerns around Universal Service pricing," Richard Hunter, Head of Equities at Hargreaves Lansdown Stockbrokers, commented.
Unilever has agreed to sell its North America pasta sauces brands, Ragu and Bertolli, for $2.15bn cash to Japan's Mizkan Group. The annual turnover for Ragu and Bertolli is more than $600m.
UK water and wastewater giant United Utilities delivered a strong set of annual results and believes there is scope to deliver further improvements. The group also confirmed it is working closely with Ofwat, ahead of submission of its revised business plan at the end of June. Customers are set to benefit from below inflation growth in average household bills for the decade to 2020, it explained.
Goldman Sachs today upgraded its recommendation on shares of Asos to 'buy' from 'neutral'.
The same broker has taken Prudential off of its 'Conviction Buy' list.
FTSE 100 - Risers
SABMiller (SAB) 3,384.00p +3.82%
British American Tobacco (BATS) 3,620.00p +2.67%
Petrofac Ltd. (PFC) 1,248.00p +2.30%
Antofagasta (ANTO) 787.00p +2.08%
Aberdeen Asset Management (ADN) 437.30p +1.93%
Fresnillo (FRES) 845.00p +1.87%
Rio Tinto (RIO) 3,247.50p +1.82%
Imperial Tobacco Group (IMT) 2,695.00p +1.81%
Royal Dutch Shell 'A' (RDSA) 2,391.50p +1.66%
Glencore (GLEN) 331.40p +1.52%
FTSE 100 - Fallers
Royal Mail (RMG) 540.00p -6.09%
Royal Dutch Shell 'B' (RDSB) 2,500.00p -2.02%
AstraZeneca (AZN) 4,351.00p -1.56%
Prudential (PRU) 1,386.00p -1.18%
Marks & Spencer Group (MKS) 449.40p -0.64%
RSA Insurance Group (RSA) 488.50p -0.59%
Vodafone Group (VOD) 203.65p -0.46%
Friends Life Group Limited (FLG) 305.80p -0.46%
Royal Bank of Scotland Group (RBS) 329.10p -0.42%
GlaxoSmithKline (GSK) 1,628.50p -0.31%
FTSE 250 - Risers
Imagination Technologies Group (IMG) 220.50p +5.35%
Halfords Group (HFD) 464.80p +5.30%
Ferrexpo (FXPO) 141.40p +3.36%
NMC Health (NMC) 484.80p +2.93%
Vedanta Resources (VED) 1,090.00p +2.93%
Ocado Group (OCDO) 328.90p +2.78%
Ladbrokes (LAD) 142.30p +2.74%
Go-Ahead Group (GOG) 1,942.00p +2.64%
Home Retail Group (HOME) 192.90p +2.55%
Evraz (EVR) 102.00p +2.31%
FTSE 250 - Fallers
Electrocomponents (ECM) 274.20p -5.12%
Rank Group (RNK) 153.20p -2.30%
IG Group Holdings (IGG) 590.00p -2.24%
BH Global Ltd. USD Shares (BHGU) 11.5 -1.71%
Beazley (BEZ) 235.10p -1.55%
Genus (GNS) 1,060.00p -1.49%
BH Macro Ltd. USD Shares (BHMU) 18.6 -1.43%
Mitchells & Butlers (MAB) 421.60p -1.24%
ITE Group (ITE) 233.70p -1.23% |
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| | UK Event Calendar | | Thursday May 22
INTERIM EX-DIVIDEND DATE
Impax Asset Management Group
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
HSBC 'flash' manufacturing PMI (China) (10:45)
Bloomberg Consumer Confidence (US) (14:45)
Continuing Claims (US) (13:30)
Existing Home Sales (US) (15:00)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Speech President San Francisco Fed
"Flash" manufacturing PMI (EZ) (08:58)
"Flash" services PMI (EZ) (08:58)
FINALS
Dairy Crest Group, Electrocomponents, Halfords Group, HydroDec Group, Investec, Max Property Group, Mothercare, QinetiQ Group, Royal Mail, SABMiller, United Utilities Group, Mitchells&Butlers, SAB Miller, Young&Co. Brewery
ANNUAL REPORT
BT Group
SPECIAL DIVIDEND PAYMENT DATE
Fresnillo, Hikma Pharmaceuticals
EGMS
Irish Continental Group Units
AGMS
Air China Ltd., Aminex, Amlin, Bwin.party Digital Entertainment, Dunedin Income Growth Inv Trust, Empresaria Group, Ferrexpo, Guinness Peat Group, Henry Boot, Hochschild Mining, Hydro International, Hydrogen Group, Irish Continental Group Units, Keller Group, Noricum Gold Ltd (DI), North Midland Construction, Northern Petroleum, Partnership Assurance Group , ProPhotonix (Reg S), PV Crystalox Solar, Quarto Group Inc., Regal Petroleum, Restore, Revolymer, Safestyle UK , Scisys, SeaEnergy, Skyepharma
IMSS
Amlin, Arrow Global
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
GDP (output, income & expenditure) (09:30)
Index of Services (09:30)
Public Sector Finances (09:30)
FINAL DIVIDEND PAYMENT DATE
Chesnara, Hikma Pharmaceuticals, Mondi, Octopus AIM VCT 2, Prudential, Standard Life
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks mixed after Fed minutes, PMI data - Fed releases meeting minutes
- French and German PMIs released
- Russian troops return to base in June
FTSE 100: 0.27%
DAX: 0.17%
CAC 40: -0.08%
FTSE MIB: -0.40%
IBEX 35: -0.24%
Stoxx 600: 0.19%
European stocks rallied after the US Federal Reserve's meeting minutes showed members saw continued recovery in the world's biggest economy.
The Fed last month decided to taper monthly bond purchases by a further $10bn to $45bn, citing improvements in the economy and in the jobs market.
The minutes from the central bank's April meeting also revealed that members discussed the need to improve their guidance on interest rates.
They agreed that early communication of their exit strategy "would enhance the clarity and credibility of monetary policy".
On today's agenda preliminary data from Markit showed France's services and manufacturing sectors shrank again in May.
The headline services sector purchasing managers index (PMI) fell to a reading of 49.2 in May, from 50.4 in the month before, missing the 50.4 consensus.
The manufacturing gauge slipped to reading of 49.3 from 51 in April, falling short of the 51.2 projection. A reading above 50 signals expansion.
German manufacturing PMI fell to 52.9 in May from 54.1 in April, trailing estimates of 54, while services dropped to 56.4 from 54.7 but beat the 54.5 forecast.
In China, manufacturing PMI rose to 49.7 in May, a five-month high, from 48.1 in April and exceeding the 48.3 estimate.
Eurozone services and manufacturing PMIs will be released at 08:00 GMT.
Later in the session, US reports will be released including initial jobless claims and existing home sales.
European election begins
Europe's election begins today with polls opening in Britain and the Netherland where far-right anti-European Union parties are expected to win votes.
Up to 380m Europeans will vote in 28 countries, choosing 751 deputies to represent them in the European Parliament.
The election is expected to produce a surge in support by those in favour of the UK leaving the European Union as the region continues to suffer a stagnant recovery.
Russia withdraws troops
Russian President Vladimir Putin said he would pull back troops from Ukraine and send them back to bases by June 1st.
Russia's Defense Ministry said soldiers who were on drills in the Rostov, Belgorod and Bryansk regions are returning to their permanent stations.
Royal Mail slides after FY results
Royal Mail slumped after the UK postal service warned of challenges in parcel and letter delivers as it posted its full-year results.
Vivendi advanced after revealing plans to sell 41.5m shares in Activision by May 28th under an existing agreement.
Raiffeisen gained after reporting first-quarter net income that exceeded estimates.
The euro fell 0.07% to $1.3678.
Brent crude futures fell $0.100 to $110.440 per barrel, according to the ICE. |
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| | US Market Report | | US Close: Stocks rise after Fed releases meeting minutes - Fed meeting minutes released
- Yellen speaks on central bank's struggles
- US weekly mortgage lending rises
Dow Jones: 0.97%
Nasdaq: 0.85%
S&P 500: 0.81%
US stocks ended higher after the Federal Reserve meeting minutes showed officials forecast a rebound in growth. The Fed last month decided to taper monthly bond purchases by a further $10bn to $45bn, citing improvements in the economy and in the jobs market.
While the minutes from the central bank's April meeting showed no big surprises, it revealed that members discussed the need to improve their guidance on interest rates.
They agreed that early communication of their exit strategy "would enhance the clarity and credibility of monetary policy".
Fed Chair Janet Yellen today separately addressed the New York University's 2014 graduating class at the Yankee Stadium, where she compared the central bank's efforts to easing the 2008 financial crisis to the struggles of Yankee baseball legends.
"Even (Babe) Ruth, (Lou) Gehrig and (Joe) DiMaggio failed most of the time when they stepped to the plate," Yellen said. "Finding the right path in life, more often than not, involves some missteps. My Federal Reserve colleagues and I experienced this as we struggled to address a financial and economic crisis that threatened the global economy."
In other US news, mortgage lending rose 0.9% in the week ended May 16th following a 3.6% increase a week earlier.
On the company front, Tiffany advanced after reporting a rise in first quarter income that beat analysts' estimates.
eBay slumped as it asked 145m users to change their passwords after discovering hackers stole email addresses, birthdays and other identity information between late February and early March.
The US 10-year yield rose two basis points to 2.53%. Brent crude futures increased $0.715 to $110.480 per barrel, according to the ICE.
S&P 500 - Risers
Lorillard Inc. (LO) $62.63 +10.40%
Tiffany & Co. (TIF) $96.30 +9.15%
Netflix Inc. (NFLX) $390.60 +5.09%
TJX Companies Inc. (TJX) $56.60 +4.91%
Reynolds American Inc. (RAI) $59.77 +4.38%
CBS Corp. (CBS) $59.02 +3.38%
Best Buy Co. Inc. (BBY) $25.35 +2.80%
Amazon.Com Inc. (AMZN) $305.01 +2.78%
Mastercard Inc. (MA) $75.63 +2.69%
TripAdvisor Inc. (TRIP) $88.16 +2.67%
S&P 500 - Fallers
Sears Holdings Corp. (SHLD) $36.56 -7.75%
Frontier Communications Co. (FTR) $5.60 -5.88%
Salesforce.Com Inc. (CRM) $50.19 -5.10%
Dollar Tree Inc (DLTR) $50.00 -3.88%
Hormel Foods Corp. (HRL) $47.14 -2.86%
Bed Bath & Beyond Inc. (BBBY) $61.02 -2.21%
Tyson Foods Inc. (TSN) $39.78 -2.12%
AES Corp. (AES) $13.58 -1.81%
Ross Stores Inc. (ROST) $68.08 -1.63%
Costco Wholesale Corp. (COST) $114.52 -1.59%
Dow Jones I.A - Risers
Goldman Sachs Group Inc. (GS) $159.35 +1.92%
Microsoft Corp. (MSFT) $40.35 +1.69%
United Technologies Corp. (UTX) $114.84 +1.54%
Unitedhealth Group Inc. (UNH) $77.72 +1.38%
Walt Disney Co. (DIS) $82.19 +1.36%
Chevron Corp. (CVX) $124.16 +1.36%
Exxon Mobil Corp. (XOM) $102.03 +1.35%
Caterpillar Inc. (CAT) $102.88 +1.30%
Nike Inc. (NKE) $74.21 +1.30%
Pfizer Inc. (PFE) $29.57 +1.09%
Dow Jones I.A - Fallers
AT&T Inc. (T) $35.27 -0.65%
Wal-Mart Stores Inc. (WMT) $75.66 -0.04%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $390.60 +5.09%
Baidu Inc. (BIDU) $163.97 +4.01%
Liberty Global plc Series A (LBTYA) $45.27 +3.03%
Amazon.Com Inc. (AMZN) $305.01 +2.78%
TripAdvisor Inc. (TRIP) $88.16 +2.67%
Vertex Pharmaceuticals Inc. (VRTX) $67.15 +2.53%
Catamaran Corp (CTRX) $43.82 +2.43%
Priceline Group Inc (PCLN) $1,177.44 +2.36%
Wynn Resorts Ltd. (WYNN) $204.85 +2.32%
Facebook Inc. (FB) $60.49 +2.16%
Nasdaq 100 - Fallers
Dollar Tree Inc (DLTR) $50.00 -3.88%
Dish Network Corp. (DISH) $57.64 -2.90%
Bed Bath & Beyond Inc. (BBBY) $61.02 -2.21%
Ross Stores Inc. (ROST) $68.08 -1.63%
Costco Wholesale Corp. (COST) $114.52 -1.59%
Expeditors International Of Washington Inc. (EXPD) $45.45 -1.58%
Fastenal Co. (FAST) $48.09 -1.27%
Analog Devices Inc. (ADI) $51.33 -1.25%
Intuitive Surgical Inc. (ISRG) $366.33 -1.24% |
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| | Newspaper Round Up | | Thursday newspaper round-up: Google, Ukraine, Insurers Google is amassing an overseas war chest to help it to make foreign purchases worth up to 30bn dollars. Or, at least, that is what it has told regulators. In a filing to the Securities and Exchange Commission, the internet giant defended its decision to hoard so much cash overseas, out of the reach of the United States taxman, by saying that it needed to keep 20bn dollars to 30bn dollars of its earnings offshore "for more foreign acquisitions". This was necessary, it added, because "our global business has expanded into other product offerings like mobile devices, where our competitors and business partners are no longer primarily US-based multinationals." - The Times
For the first time in more than two decades of Ukrainian independence, Konstantin Kaliberda doubts he will be opening his local School No. 17 for a coming election, despite the crucial role Sunday's presidential vote is meant to play in holding the country together. "We've received no instructions and had no meetings. Normally, we'd have the voter lists by now, but the people at the district election commission are scared and not doing anything," said Mr. Kaliberda, a 47-year-old election official who says he has overseen 10 ballots in the town of Khanzhonkove, near the eastern regional capital of Donetsk. - The Wall Street Journal Europe
The governor of the Bank of England warns insurers today that he will hold their top executives to account in the same way that he has cracked down on Britain's errant bankers. Writing exclusively for The Times, Mark Carney makes it clear that "integrity, honesty and skill" in senior managers are not optional, whether they are in charge of insurers, investment banks or building societies. In comments that put the entire industry on alert, Mr Carney says that the Bank, which is in charge of supervising insurers, wants the figures at the top of companies to be held accountable if things go wrong and policyholders lose out. - The Times
Auction site eBay has urged users to change their passwords after suffering what may have been the biggest-ever cyber-attack when hackers broke into a database holding its 233m customers' personal data. EBay said the breach, which was detected two weeks ago, had not given the hackers access to customers' financial information. But it did affect a database holding encrypted passwords as well as customer names, email addresses, physical addresses, phone numbers and dates of birth which were not encrypted. - The Guardian
BP is taking its battle over "absurd" compensation payments to alleged victims of the 2010 Gulf of Mexico disaster to America's Supreme Court. The British oil major said on Wednesday that it would ask the United States' highest court to revise a catch-all compensation deal it struck in 2012, which is being used to award payouts to people "with no apparent connection to the Deepwater Horizon spill". Earlier this week, BP lost an appeal in a lower court in New Orleans, to overturn the controversial deal. - The Daily Telegraph
Lloyds is to close a call centre in Cheshire as part of a plan to cut 645 jobs nationwide as its customers go online rather than phone their bank. The bank said that it was moving 120 jobs from Warrington to a call centre in Speke, Liverpool, where it will create 65 posts but said that the large number of layoffs was necessary because customers were using the phone less. "Telephone banking call volumes are falling as digital banking usage continues to grow, and we are refocusing the business to reflect these changes in our customers' habits," the bank said. - The Times | | |
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