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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: UK stocks fall as Greek optimism fades, corporate earnings mixed UK stocks declined on Thursday as newsflow from Greece prompted an element of caution on financial markets, as the FTSE 100 continued to retreat from a five-month high. London's blue chip index was down 0.4% at 6,836 early on, with updates from a number of blue chips receiving a mixed reaction from investors.
Stocks have fallen for two straight sessions since the UK index settled at 6,871.80 on Tuesday, its highest close since early September 2014.
The European Central Bank (ECB) said in a statement late on Wednesday that it will lift the waiver on using Greek government bonds as collateral for lending to its banks. It said the decision was "based on the fact that it is currently not possible to assume a successful conclusion of the [bailout] programme review".
The comments came as the newly-elected Greek government seeks to ease the terms of its €240bn bailout with its creditors.
Greek banks will still be able to access funding via the Enhance Liquidity Assistance (ELA) programme run by its central bank, though at a much higher cost.
"We interpret this decision by ECB's Governing Council to force Greek banks to access more expensive funding (via ELA) as a "nudge" to the Greek government to speed up negotiations with the EU and announce soon an agreement on a programme," said analysts at Barclays.
On Thursday's agenda, investors will be awaiting a policy decision by the Bank of England at midday, along with Eurozone retail figures, UK car registrations, US jobless claims and US trade balance data.
Corporate updates come in mixed
BT was leading the risers after confirming reports it has settled on terms of its acquisition of EE from Deutsche Telekom and Orange, saying it will be spending £12.5bn on the UK mobile network. The deal will be financed by new debt and a £1bn placing of its shares and will result in Deutsche Telekom and Orange taking 12% and 4% stakes in BT, respectively.
After a year of accelerating investment in its drug pipeline, Astrazeneca's earnings per share fell more than expected in the fourth quarter to drag the full-year number short of the market's target, causing shares to drop.
Catering company Compass was higher as it reported a good start to its new financial year, with organic revenue up more than expected in the first quarter.
Smith & Nephew rose after seeing a 6% increase in annual revenue as weak results at its advanced wound management business were offset by a strong performance at its US hip and knee implants division.
Vodafone dialed in a smaller-than-expected 0.4% decline in organic service revenues in the third quarter thanks to a steady recovery in Europe and a return to growth in the UK, though the stock was flat early on.
Easyjet fell after saying that passenger numbers were flat at the budget airline in January, while planes were not as full as they were a year earlier. The carrier flew just over 4.02m customers last month, representing no change from January 2014.
Electronics group Premier Farnell sank after warning that annual operating profits will be lower than last year's. |
| | Market Movers
techMARK 3,095.11 +0.39%
FTSE 100 6,835.89 -0.35%
FTSE 250 16,528.14 -0.26%
FTSE 100 - Risers
BT Group (BT.A) 438.90p +3.76%
Compass Group (CPG) 1,172.00p +2.27%
GlaxoSmithKline (GSK) 1,503.50p +1.86%
GKN (GKN) 380.40p +1.41%
Smith & Nephew (SN.) 1,184.00p +1.37%
Severn Trent (SVT) 2,143.00p +1.32%
ARM Holdings (ARM) 1,081.00p +1.12%
Hargreaves Lansdown (HL.) 976.00p +1.04%
Shire Plc (SHP) 4,942.00p +0.84%
Carnival (CCL) 2,945.00p +0.82%
FTSE 100 - Fallers
Weir Group (WEIR) 1,758.00p -2.87%
AstraZeneca (AZN) 4,567.00p -2.58%
Glencore (GLEN) 260.85p -2.30%
BG Group (BG.) 910.70p -2.29%
BHP Billiton (BLT) 1,494.00p -2.16%
Smiths Group (SMIN) 1,147.00p -2.05%
Royal Dutch Shell 'B' (RDSB) 2,206.00p -1.76%
Royal Dutch Shell 'A' (RDSA) 2,121.50p -1.65%
Tullow Oil (TLW) 390.00p -1.49%
Coca-Cola HBC AG (CDI) (CCH) 1,084.00p -1.45%
FTSE 250 - Risers
Rexam (REX) 475.60p +6.26%
Croda International (CRDA) 2,679.00p +1.29%
Inmarsat (ISAT) 874.50p +1.27%
Rightmove (RMV) 2,425.00p +1.21%
Cable & Wireless Communications (CWC) 53.55p +1.13%
Hikma Pharmaceuticals (HIK) 2,424.00p +1.08%
Brown (N.) Group (BWNG) 453.20p +1.03%
Cineworld Group (CINE) 431.20p +1.03%
Evraz (EVR) 172.90p +0.99%
De La Rue (DLAR) 522.00p +0.97%
FTSE 250 - Fallers
Premier Farnell (PFL) 150.40p -11.22%
Afren (AFR) 10.10p -9.01%
Ocado Group (OCDO) 415.10p -3.76%
Premier Oil (PMO) 155.20p -3.66%
Soco International (SIA) 287.70p -3.13%
Rank Group (RNK) 180.00p -2.96%
CLS Holdings (CLI) 1,528.00p -2.68%
Victrex plc (VCT) 2,039.00p -2.53%
Hunting (HTG) 445.30p -2.39% |
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| | UK Event Calendar | | Thursday February 05
INTERIMS
Avanti Communications Group, Mcbride
INTERIM DIVIDEND PAYMENT DATE
Hayward Tyler Group, Tongaat-Hulett Ltd.
INTERIM EX-DIVIDEND DATE
Cohort, CPL Resources, Daejan Holdings, Ingenious Entertainment VCT 1 'D' Shares, Ingenious Entertainment VCT 1 E Shares, Ingenious Entertainment VCT 1 F Shares, Ingenious Entertainment VCT 1 G Shs, Ingenious Entertainment VCT 1 H Shs, Ingenious Entertainment VCT 2 'D' Shares, Ingenious Entertainment VCT 2 E Shares, Ingenious Entertainment VCT 2 F Shares, Ingenious Entertainment VCT 2 G Shs, Ingenious Entertainment Vct 2 H Shs, Latchways, Mattioli Woods, Stagecoach Group
QUARTERLY EX-DIVIDEND DATE
JPMorgan Claverhouse Inv Trust, Unilever
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (US) (13:30)
Continuing Claims (US) (13:30)
Factory Orders (GER) (11:00)
Initial Jobless Claims (US) (13:30)
PMI Construction (GER) (08:30)
PMI Retail (EU) (09:10)
PMI Retail (GER) (09:10)
Productivity (US) (13:30)
Q4
AstraZeneca, Smith & Nephew
FINALS
AstraZeneca, Fusionex International, Smith & Nephew
IMSS
Vodafone Group
SPECIAL EX-DIVIDEND PAYMENT DATE
Victrex plc
AGMS
Compass Group, Dunedin Smaller Companies Inv Trust, Enterprise Inns, Frontera Resources Corporation (DI), Patisserie Holdings , Sunrise Resources , Tertiary Minerals
UK ECONOMIC ANNOUNCEMENTS
BoE Interest Rate Decision (12:00)
FINAL DIVIDEND PAYMENT DATE
Edinburgh Worldwide Inv Trust, Scottish Inv Trust
FINAL EX-DIVIDEND DATE
Chrysalis VCT, CVC Credit Partners European Opportunities Ltd EURO, CVC Credit Partners European Opportunities Ltd GBP, JPMorgan Russian Securities, Terra Capital, Urban&Civic , Victrex plc |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide as ECB restricts loans and Greece sticks to anti-austerity demands European stocks declined as investors weighed Greece's plans to stick to its anti-austerity demands and awaited the Bank of England's latest policy decision.
Greece stuck to its guns to roll back austerity as the European Central Bank (ECB) restricted loans to its financial system.
The ECB's decision to limit loans will raise financing costs for Greek banks.
Greek finance minister Yanis Varoufakis will meets his German counterpart Wolfgang Schaeuble in Berlin at 12:30. Prime minister Alexis Tsipras has promised to reverse five years of spending cuts while retreating from demands for a debt writedown.
In other euro-area news, a report showed German factory orders rose 3.4% in December after a 0.4% drop a month earlier. Analysts had expected a 0.7% gain.
Markit's construction purchasing managers' index fell to 49.5 in January from 50.5 a month earlier. A reading above 50 signals expansion while below that level indicates a contraction.
In the UK, the Bank of England's Monetary Policy Committee (MPC) is expected to announce at 12:00 GMT that it will keep its policy unchanged with interest rates at 0.5% and asset purchases at £375bn.
"With deflation imminent, quantitative easing (QE) underway in the Eurozone and sterling rising, a case could be made for the MPC to restart its own asset purchase programme," according to Capital Economics.
"But recent falls in market interest rates mean that the economy is already receiving more monetary stimulus. And while QE might be needed if sterling rose a lot further or near-zero inflation proved to be sticky, neither development seems likely."
BT gains on EE deal
BT Group advanced after agreeing to buy EE for £12.5bn. EE owners Orange SA and Deutsche Telekom AG slumped.
BNP Paribas SA edged lower as the French bank said its earnings will be hurt by new rules and higher taxes.
Sanofi climbed after the French drugmaker said it sees profit "stable to slightly growing" this year.
AstraZeneca dropped after its fourth-quarter earnings and sales fell short of analysts' estimates.
The euro rose 0.26% to $1.1374. |
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| | US Market Report | | US close: Stocks fluctuate after ECB's decision and disappointing economic data as oil prices plunge US stocks fluctuated on Wednesday in the wake of the European Central Bank's decision to lift its waiver on using Greek government debt as collateral, while oil prices plunged. The Dow Jones Industrial Average closed up 6.62 points at 17,673.02, while the S&P 500 and the Nasdaq lost 0.42% and 0.23% respectively.
Oil prices tumbled on Wednesday, bringing a four-session rally to an end, as US crude prices fell over 8%, their biggest one-day drop since November.
US crude inventories reached a record high, rising by 6.3m barrels last week to 413.06m barrels, the highest level since records began in 1982 and the fourth consecutive week the index has risen.
West Texas Intermediate futures settled down 8.7%, at $48.45 a barrel, registering its largest one-day percentage drop since 28 November, having closed 7% up on Tuesday. Brent crude was $4 lower at $54 a barrel, having traded as high as $59 a barrel on Tuesday.
The European Central Bank on Wednesday said it is lifting the waiver on using Greek government debt as collateral.
"The governing council decision is based on the fact that it is currently not possible to assume a successful conclusion of the programme review and is in line with existing Eurosystem rules," the ECB said in a statement.
US employers added 213,000 jobs in January, missing forecasts of 220,000. December's gain was revised up to 253,000 from 241,000, which Capital Economics said was "extraordinary for the ADP because its revisions usually magically bring its estimates into line with the official non-farm payroll tally".
The Labor Department's non-farm payrolls report is due on Friday and is forecast to show a 230,000 increase in January after a 252,000 gain a month earlier.
Economists are looking for a moderation in the pace of employment growth following strong hiring in recent quarters and the January ADP report was broadly supportive of this view.
Meanwhile, US mortgage applications increased 1.3% in the week to 30 January after a 3.2% fall in December, the Mortgage Bankers Association said.
Among corporates on the rise, Whirlpool was spun 6.87% higher after posting better-than-expected sales, while General Motors gained 5.44% after pledging to lift its dividend 20% to 36 cents a share.
Walt Disney advanced 7.63% after earnings beat forecasts, while JM Smucker Company jumped 5.87% after announcing late on Tuesday it planned to buy Big Heart Pet Brands for $3.2bn excluding debt.
Going the other way, Chipotle Mexican Grill declined 6.97% after reporting late on Tuesday that sales missed estimates.
Staples plunged 11.99% after announcing it would buy Office Depot for $6.3bn, while Gilead Sciences dropped 8.16% after reporting that it expects price discounts for its hepatitis C drugs to double in 2015.
Gold futures rose 0.33% to $1,264.50, while the dollar fell 0.4% against the pound and the yen but rose 0.7% against the euro.
S&P 500 - Risers
Walt Disney Co. (DIS) $101.28 +7.63%
Whirlpool Corp. (WHR) $214.88 +6.87%
Kohls Corp. (KSS) $66.87 +6.35%
Edwards Lifesciences Corp. (EW) $134.85 +6.18%
J. M. Smucker Co. (SJM) $112.10 +5.87%
Cognizant Technology Solutions Corp. (CTSH) $57.89 +5.06%
Western Digital Corp. (WDC) $104.04 +3.33%
Hormel Foods Corp. (HRL) $53.96 +3.27%
Southwest Airlines Co. (LUV) $44.64 +3.21%
Peabody Energy Corp. (BTU) $7.28 +2.82%
S&P 500 - Fallers
Ralph Lauren Corp (RL) $139.71 -18.22%
Staples Inc. (SPLS) $16.73 -11.99%
Gilead Sciences Inc. (GILD) $98.43 -8.16%
Fastenal Co. (FAST) $42.22 -7.78%
AbbVie Inc (ABBV) $56.91 -7.69%
Chipotle Mexican Grill Inc. (CMG) $676.00 -6.97%
CH Robinson Worldwide Inc (CHRW) $70.50 -6.29%
Wynn Resorts Ltd. (WYNN) $146.05 -6.26%
PVH Corp. (PVH) $106.96 -5.96%
United States Steel Corp. (X) $24.23 -5.72%
Dow Jones I.A - Risers
Walt Disney Co. (DIS) $101.28 +7.63%
Visa Inc. (V) $264.89 +1.96%
Home Depot Inc. (HD) $108.41 +1.09%
Travelers Company Inc. (TRV) $106.73 +0.65%
E.I. du Pont de Nemours and Co. (DD) $73.74 +0.56%
Microsoft Corp. (MSFT) $41.83 +0.55%
Wal-Mart Stores Inc. (WMT) $86.65 +0.53%
AT&T Inc. (T) $34.41 +0.20%
Pfizer Inc. (PFE) $32.07 +0.16%
McDonald's Corp. (MCD) $94.05 +0.14%
Dow Jones I.A - Fallers
Merck & Co. Inc. (MRK) $59.05 -3.23%
Caterpillar Inc. (CAT) $81.95 -2.35%
Cisco Systems Inc. (CSCO) $26.69 -1.59%
General Electric Co. (GE) $24.16 -1.27%
Chevron Corp. (CVX) $108.35 -1.08%
Johnson & Johnson (JNJ) $101.36 -1.07%
International Business Machines Corp. (IBM) $156.96 -0.95%
United Technologies Corp. (UTX) $117.79 -0.93%
Nike Inc. (NKE) $92.54 -0.87%
Exxon Mobil Corp. (XOM) $91.46 -0.86%
Nasdaq 100 - Risers
Cognizant Technology Solutions Corp. (CTSH) $57.89 +5.06%
Western Digital Corp. (WDC) $104.04 +3.33%
Charter Communications Inc. (CHTR) $163.04 +3.21%
Broadcom Corp. (BRCM) $43.76 +2.78%
Autodesk Inc. (ADSK) $56.44 +2.77%
Comcast Corp. (CMCSA) $56.90 +2.69%
Discovery Communications Inc. Class A (DISCA) $30.11 +1.83%
Monster Beverage Corp (MNST) $118.73 +1.77%
Fiserv Inc. (FISV) $75.80 +1.76%
Automatic Data Processing Inc. (ADP) $86.58 +1.69%
Nasdaq 100 - Fallers
Staples Inc. (SPLS) $16.73 -11.99%
Gilead Sciences Inc. (GILD) $98.43 -8.16%
Fastenal Co. (FAST) $42.22 -7.78%
Vimpelcom Ltd Ads (VIP) $4.37 -6.42%
CH Robinson Worldwide Inc (CHRW) $70.50 -6.29%
Wynn Resorts Ltd. (WYNN) $146.05 -6.26%
Keurig Green Mountain Inc (GMCR) $121.20 -3.88%
Mylan Inc. (MYL) $53.22 -2.51%
F5 Networks Inc. (FFIV) $110.10 -2.00% |
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| | Newspaper Round Up | | Thursday newspaper round-up: BT buys EE, Starbucks profits, Rising wages BT has finalised a £12.5bn deal to purchase EE from Deutsche Telecom and Orange, according to The Telegraph. Talks have been taking place since December and reports claim an agreement was reached Wednesday night.
Starbucks reported a profit in Britain for the first time in 17 years, wrote The Times. The coffee company unveiled a pre-tax profit of £1.06m for the year to September compared to a £20.5m loss for the same period prior.
British families will experience a huge rise in spending power for more than a decade as the impact of low inflation and rising wages sets in, The Telegraph reported. There will be an average rise of £417 in take home pay, the paper added.
UBS is being investigated for tax evasion, according to the Financial Times, six years after the Swiss bank paid a $780m penalty for alike allegations.
Ministers have claimed middle-class workers will save £100,000 over their lifetime thanks to a new ban on overzealous pension fees, The Telegraph reported. Charges that exceed 0.75% a year will be banned from April.
Hundreds of thousands of families will lose child benefits and face higher taxes after the next general election as rising wages push them out of the current welfare and tax thresholds, according to The Times. More than 1m parents have already had their benefits cut or removed, the paper noted.
The Guardian reported that anti-semitism has reached an all-time high in Britain. Reports of violence, property damage, abuse and threats against the Jewish population more than doubled in 2014, the paper said. | | |
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