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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: Weak Asian data weighs on Footsie UK stocks began the day slightly lower, weighed down by negative references out overnight from Asia, despite which miners were registering the largest gains early on.
Japan´s GDP contracted at a 1.6% annualised rate in the third quarter, a far weaker outcome than the 2.2% rate of expansion which analysts had expected. Hence, the arhipelago´s economy has now again entered into "technical recession".
Possibly lessening the blow, the country´s Economy Minister, Akira Amari, said there is now "a high chance" of a stimulus package being needed.
"The trading week got off to a woeful start in Asia overnight as news that Japan contracted by 0.4% in the third quarter, leaving the country in a technical recession, drove the Nikkei to near 3% losses and raised serious questions about the planned sales tax hike next year," Alpari UK market analyst Craig Erlam remarked.
In parallel, new local currency credits in China totalled 548bn yuan (60bn pounds) in October, according to figures from the China Banking Regulatory Commission published on 15 November, less than the 626.4bn yuan which markets had been anticipating.
To take note, Bloomberg reported that Communist Party leaders have discussed reducing the country´s target for economic growth next year.
In parallel, first thing on Monday morning US drugs giant Pfizer warned on its full-year profits, which may be weighing on the likes of AstraZeneca. The company now sees full-year adjusted earnings per share (EPS) coming at between $1.40 to $1.49, versus the between $1.50 and $1.59 previously foreseen.
Monday's session was due to be a quiet one, although the release of Eurozone trade balance figures and US October industrial production data were both scheduled for later in the day.
European Central Bank (ECB) President Mario Draghi was also due to testify on monetary policy before the Committee on Economic and Monetary Affairs in Brussels.
"This could be quite a big market event today as not only is Draghi likely to be heavily questioned on the ECB's efforts to avoid deflation thus far, which are showing little sign of working, he's also likely to be pressed on further attempts to lift its balance sheet to €2trn," continued Erlam.
Light day for corporate news
In company news, at actual exchange rates industrial materials engineer Bodycote saw group revenues drop by 3.9% in the four months to 31 October on the back of weakness at its aerospace and defence arms, alongside certain weakness in its automotive business in Western Europe. At actual exchange rates the group´s performance was significantly better, with group revenues up 2.9% over the same period of 2013, in-line with management´s expectations.
Outsourcing group MITIE saw headline revenue growth of 4.8%, ahead of the prior year´s £1,095m (3.9% organic), together with a 3% rise in operating profts to £64.2m. The dividend was increased by 6.1% (5.2p). Net debt at 30 September 2014 stood at £233.8m, while headline cash conversion was at 80.3%, above its target of 80%, broker Investec pointed out.
Reckitt Benckiser Group (RB) unveiled the detailed proposed timetable for the demerger of its RB Pharmaceuticals business, which will have a separate UK listing under the name of Indivior. "The board of RB considers that the demerger is in the best interests of both RB and Indivior and will result in a stronger future for both," the group said.
Mining giant Rio Tinto and China's Sinosteel Corporation announced plans to press ahead with talks for a second extension to the Channar Mining iron ore joint venture in Western Australia's Pilbara region. The original Channar joint venture was signed in 1987 to produce 200m tonnes of iron ore and was extended in 2010 to produce a further 50m tonnes of iron ore. |
| | techMARK 2,835.50 -0.64%
FTSE 100 6,624.01 -0.46%
FTSE 250 15,537.54 -0.68%
FTSE 100 - Risers
ARM Holdings (ARM) 885.50p +1.90%
Anglo American (AAL) 1,378.50p +1.73%
Fresnillo (FRES) 730.00p +1.32%
BHP Billiton (BLT) 1,677.00p +1.15%
Randgold Resources Ltd. (RRS) 4,297.00p +1.01%
Morrison (Wm) Supermarkets (MRW) 181.30p +1.00%
Pearson (PSON) 1,222.00p +0.91%
British Sky Broadcasting Group (SKY) 855.00p +0.89%
Vodafone Group (VOD) 226.80p +0.67%
Carnival (CCL) 2,617.00p +0.65%
FTSE 100 - Fallers
Weir Group (WEIR) 2,039.00p -4.14%
AstraZeneca (AZN) 4,524.50p -2.81%
IMI (IMI) 1,228.00p -2.23%
Standard Chartered (STAN) 937.80p -2.10%
Sainsbury (J) (SBRY) 265.00p -1.89%
International Consolidated Airlines Group SA (CDI) (IAG) 419.80p -1.52%
Admiral Group (ADM) 1,182.00p -1.50%
BG Group (BG.) 1,030.50p -1.48%
Babcock International Group (BAB) 1,089.00p -1.36%
Tesco (TSCO) 192.40p -1.33%
FTSE 250 - Risers
Evraz (EVR) 138.50p +3.05%
Countrywide (CWD) 430.70p +2.06%
Hunting (HTG) 703.00p +1.88%
Polymetal International (POLY) 529.00p +1.05%
Riverstone Energy Limited (RSE) 848.00p +0.95%
Hochschild Mining (HOC) 94.25p +0.80%
Redefine International (RDI) 51.10p +0.79%
Vedanta Resources (VED) 797.50p +0.76%
Wood Group (John) (WG.) 669.50p +0.68%
TSB Banking Group (TSB) 267.70p +0.68%
FTSE 250 - Fallers
Fenner (FENR) 264.90p -8.12%
Mitie Group (MTO) 277.30p -4.77%
Nostrum Oil & Gas (NOG) 626.00p -3.69%
Foxtons Group (FOXT) 155.50p -3.36%
Euromoney Institutional Investor (ERM) 1,000.00p -3.10%
Vesuvius (VSVS) 418.50p -2.99%
Keller Group (KLR) 849.50p -2.86%
Spire Healthcare Group (SPI) 313.00p -2.46%
esure Group (ESUR) 194.10p -2.46%
JD Sports Fashion (JD.) 435.10p -2.40% |
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| | UK Event Calendar | | INTERIMS
Latchways, Mitie Group, Redcentric, ReNeuron Group, Schroder Real Estate Investment Trust Ltd, Software Radio Technology
INTERIM DIVIDEND PAYMENT DATE
Aviva, China Chaintek United Co. Limited
QUARTERLY PAYMENT DATE
Marsh & Mclennan Cos Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Capacity Utilisation (US) (14:15)
Industrial Production (US) (14:15)
GMS
Global Energy Development, MXC Capital
FINALS
Diploma
IMSS
Bodycote, Green Reit, Irish Continental Group Units, Keller Group, Kentz Corporation Ltd.
AGMS
TR European Growth Trust INTERIMS
Latchways, Mitie Group, Redcentric, ReNeuron Group, Schroder Real Estate Investment Trust Ltd, Software Radio Technology
INTERIM DIVIDEND PAYMENT DATE
Aviva, China Chaintek United Co. Limited
QUARTERLY PAYMENT DATE
Marsh & Mclennan Cos Inc.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (EU) (10:00)
Capacity Utilisation (US) (14:15)
Industrial Production (US) (14:15)
GMS
Global Energy Development, MXC Capital
FINALS
Diploma
IMSS
Bodycote, Green Reit, Irish Continental Group Units, Keller Group, Kentz Corporation Ltd.
AGMS
TR European Growth Trust |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide amid concerns on Japanese economy European stocks declined after Japanese gross domestic product (GDP) fell unexpectedly in the third quarter, fuelling concerns about the health of the world's third largest economy.
Japanese GDP dropped an annualised 1.6% in the third quarter, compared to a fall of 7.3% in the previous quarter, surprising analysts who expected 2.2% growth.
"Japan's renewed weakness comes at a time when the global economy is already facing several other headwinds, such as the threat of deflation (especially in the Eurozone), together with the pressures being seen in several emerging markets, such as Russia, Brazil and also China," said chief economist Simon Smith at FX Pro.
Monday's agenda will see the release of Eurozone trade data while European Central Bank (ECB) President Mario Draghi presents his quarterly testimony in Brussels. The market will be watching Draghi's testimony for clues on policy amid pressure on the ECB to enact further stimulus to address the weak economy and dangerously low inflation.
ECB official Peter Praet will speak in London at 13:30 local time while fellow ECB policymaker Benoit Coerure speaks in Frankfurt at 14:45.
In the US, reports on industrial and manufacturing activity will be released in afternoon trading while Federal Reserve official Charles Evans speaks at an agriculture conference.
In company news, Merck KGaA advanced as the German company said it will receive $850m and could receive up to $2bn in regulatory and commercial payments to develop and commercialise a tumour treatment with Pfizer.
Switzerland's Sonova Holding AG declined after the maker of hearing aids posted first-half profit that fell short of analysts' estimates.
The euro fell 0.14% to $1.2507. |
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| | US Market Report | | US close: Stocks fluctuate as retail sales rise US stocks fluctuated on Friday, as the prices of oil rebounded and data showed that domestic retail sales rose by more than expected in October.
The Dow Jones Industrial Average closed 18.05 points down at 17,634.74 , while the S&P 500 rose 0.49 points to 2,039.82 and the Nasdaq ended the day 11.50 points up at 4,224.99
Sales at US retailers rose a seasonally adjusted 0.3% in October, bouncing back from the first decline in eight months and exceeding analysts' estimates of a 0.2% increase.
Analysts believe that fourth quarter consumption growth could be in the region of 2.5% on an annualised basis.
"This measure includes all the new information that flows into real consumption, which could be around 2.5% annualised in the fourth quarter," said Paul Diggle, economist at Capital Economics.
"This isn't big enough to influence third-quarter GDP growth, though. Overall, October's retail sales numbers bode well for the crucial holiday shopping season."
Meanwhile, import prices declined further in October, largely because of lower petroleum prices. Headline import prices fell 1.3%, less than consensus estimates of -1.5%, while non-petroleum import prices fell 0.1% month-on-month.
Imported inflation for headline import prices declined 1.8% year-on-year and rose 0.1% for core prices compared to the corresponding period in 2013.
In corporate news, Twitter rose 4.52% after a near-6% drop in its share price on Thursday after Standard & Poor's gave its debt a 'junk' rating. The agency rated the social media group's recent $1.8bn debt issue as 'BB-'', three notches below investment grade.
Hertz Global Holdings fell 4.58% after announcing it that, in addition to 2011 financial statement, it also needs to restate 2012 and 2013 quarterly and annual financial statements.
Amazon rose 3.72% after ending a dispute with Hachette Book Group, while Newmont Mining advanced 4.99% as the price of gold rose.
The dollar rose against the pound and the yen but fell against the euro, while gold futures advanced to $1,189.20.
Oil prices rebounded after losing over three percentage points on Thursday, with West Texas intermediate crude trading at just under $76 a barrel, while Brent crude was trading at just over $79.5 a barrel.
The yield on the 10-year US Treasury note fell two basis points to 2.32%, while the 30-year note dropped three basis points to 3.05% and the five-year Treasuries shed one basis point to 1.61%.
S&P 500 - Risers
Graham Holdings Co. (GHC) $877.85 +10.66%
Newmont Mining Corp. (NEM) $19.14 +4.93%
Akamai Technologies Inc. (AKAM) $62.92 +4.09%
Noble Energy Inc. (NBL) $56.11 +3.93%
Allegheny Technologies Inc. (ATI) $32.84 +3.66%
Amazon.Com Inc. (AMZN) $327.69 +3.54%
Pioneer Natural Resources Co. (PXD) $170.64 +3.31%
Peabody Energy Corp. (BTU) $11.39 +3.26%
Cimarex Energy Co (XEC) $117.59 +3.19%
CBS Corp. (CBS) $53.41 +2.97%
S&P 500 - Fallers
Biogen Idec Inc. (BIIB) $305.48 -3.93%
Celgene Corp. (CELG) $104.05 -3.15%
Tenet Healthcare Corp. (THC) $46.50 -3.00%
Urban Outfitters Inc. (URBN) $30.85 -2.51%
Alexion Pharmaceuticals Inc. (ALXN) $188.76 -2.49%
Quest Diagnostics (DGX) $62.41 -2.13%
Unum Group (UNM) $34.20 -2.09%
Gilead Sciences Inc. (GILD) $102.06 -2.05%
Amgen Inc. (AMGN) $157.68 -1.97%
Avon Products Inc. (AVP) $10.06 -1.95%
Dow Jones I.A - Risers
Cisco Systems Inc. (CSCO) $26.33 +2.53%
International Business Machines Corp. (IBM) $164.20 +0.87%
Intel Corp. (INTC) $33.95 +0.80%
AT&T Inc. (T) $35.89 +0.79%
McDonald's Corp. (MCD) $96.22 +0.78%
Verizon Communications Inc. (VZ) $51.50 +0.59%
Exxon Mobil Corp. (XOM) $95.09 +0.45%
E.I. du Pont de Nemours and Co. (DD) $70.81 +0.37%
Walt Disney Co. (DIS) $90.82 +0.36%
3M Co. (MMM) $158.88 +0.33%
Dow Jones I.A - Fallers
Visa Inc. (V) $248.78 -0.85%
Johnson & Johnson (JNJ) $108.16 -0.83%
Unitedhealth Group Inc. (UNH) $95.12 -0.81%
Merck & Co. Inc. (MRK) $59.07 -0.79%
Travelers Company Inc. (TRV) $102.44 -0.77%
Home Depot Inc. (HD) $98.25 -0.76%
United Technologies Corp. (UTX) $107.46 -0.63%
Nike Inc. (NKE) $95.52 -0.62%
Procter & Gamble Co. (PG) $88.06 -0.61%
American Express Co. (AXP) $90.68 -0.43%
Nasdaq 100 - Risers
Akamai Technologies Inc. (AKAM) $62.92 +4.09%
Amazon.Com Inc. (AMZN) $327.69 +3.54%
NetApp Inc. (NTAP) $42.27 +2.88%
Tesla Motors Inc (TSLA) $258.68 +2.77%
Cisco Systems Inc. (CSCO) $26.33 +2.53%
Yahoo! Inc. (YHOO) $51.75 +2.48%
Viacom Inc. Class B (VIAB) $72.96 +2.47%
Baidu Inc. (BIDU) $249.73 +2.31%
F5 Networks Inc. (FFIV) $128.90 +2.18%
Discovery Communications Inc. Class A (DISCA) $33.53 +2.04%
Nasdaq 100 - Fallers
Biogen Idec Inc. (BIIB) $305.48 -3.93%
Celgene Corp. (CELG) $104.05 -3.15%
Alexion Pharmaceuticals Inc. (ALXN) $188.76 -2.49%
Illumina Inc. (ILMN) $180.46 -2.45%
Gilead Sciences Inc. (GILD) $102.06 -2.05%
Amgen Inc. (AMGN) $157.68 -1.97%
Regeneron Pharmaceuticals Inc. (REGN) $395.10 -1.87%
Ross Stores Inc. (ROST) $81.38 -1.43%
Mylan Inc. (MYL) $54.05 -1.24% |
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| | Newspaper Round Up | | Monday newspaper round-up: Banker bonuses, Phones 4U, Belgium Banker bonuses tied to corporate takeovers could be banned to prevent them getting in the way of working in a company's best interests. The shadow business secretary wants "huge success payments" linked to big-ticket takeovers of British companies to be looked at in more detail, as well as calling for greater restrictions on "carpetbaggers and speculators". "We need greater transparency on the way people who advise on these transactions are rewarded," Chuka Umunna said. - The Times
The taxpayer stands to lose £78m from the controversial demise of Phones 4U, new documents show. The high street retailer owed £69.2m in VAT and £8.8m in corporation tax when it collapsed in September, and administrators have warned they are only likely to recover a tiny fraction of the debt. The debts to HMRC are part of £168m owed to unsecured creditors by Phones 4U. Less than 0.4% of this will be repaid - the equivalent of £672,000 - according to PwC, the administrators. - The Daily Telegraph
Belgium is creeping back onto the Eurozone's danger list as economic woes spread deeper into the EMU-core, and protracted slump poisons debt dynamics. Fitch Ratings has issued a downgrade alert, warning that the country's primary budget surplus is evaporating. It said public debt will reach 106.9% of GDP next year. New accounting rules known as ESA2010 have revealed that Belgium is poorer than previously thought, lifting the debt ratio by 3.3% of GDP overnight. - The Daily Telegraph
The number of homes being marketed by estate agents has plunged to a record low. The number of houses for sale per estate agency branch has dropped to an average of 60 - the lowest level recorded at this time of year. Rightmove, the property website, said that new home listings in the month to November 14 were down by 15% compared with the previous month. The average asking price of a home coming to the market has dropped by £4,542 in a month and could fall further in the winter. - The Times
David Cameron has issued a stark message that "red warning lights are flashing on the dashboard of the global economy" in the same way as when the financial crash brought the world to its knees six years ago. Writing in the Guardian at the close of the G20 summit in Brisbane, Cameron says there is now "a dangerous backdrop of instability and uncertainty" that presents a real risk to the UK recovery, adding that the eurozone slowdown is already having an impact on British exports and manufacturing. - The Guardian | | |
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