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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: Focus shifting from Greece to central banks Bank Rate might be headed higher sooner than markets expect, Bank of England Governor Mark Carney told an audience last night at Lincoln Cathedral. The central bank chief said: "In my view, the decision as to when to start such a process of adjustment will likely come into sharper relief around the turn of this year."
Those remarks weighed on the Footsie at the start of the session despite strong gains overnight on Wall Street, with the technology-heavy Nasdaq-100 setting a fresh 15-year record closing high. In parallel, oil futures Stateside moved even lower to approach the $50 per barrel mark.
As 08:42 the FTSE 100 was lower by 5.09 points lower at 6,791.09.
The focus on Friday was expected to be the vote in Germany's parliament which might clear the way for the start of negotiations with Greece for a third bailout package.
Lawmakers were expected to give their support to such a move, but opposition to further aid for Greece was rising. In a test vote on Thursday 48 members of Chancellor Angela Merkel's own conservative party voted against new negotiations, up from the 29 who opposed an extension of the current rescue package back in February.
"The final bailout agreement and the way it was reached has probably raised more questions than it's solved for the long-term future of Europe. In the short-term though, with Greece fixed, or at least plastered over, market attention is shifting back to the central bank outlook and corporate earnings," Jasper Lawler, Market Analyst at CMC Markets, wrote in a research note e-mailed to clients.
M&S's Dixon to step down
Online gambling company 888 Holdings has agreed to buy Bwin.party Digital Entertainment in a cash and stock deal worth around £898.3m, beating a rival offer from GVC. Bwin shareholders will receive 39.45p and 0.404 new 888 shares for each share they own. The offer represents a value of around 104.9p per Bwin share, which is a premium of approximately 16.4% cent to the closing price of Bwin on 14 May, which is the last business day before Bwin announced talks about a possible tie-up.
Marks & Spencer said John Dixon, the executive director of its general merchandise division, will step down from the board with immediate effect and leave the company on a day to be agreed, to pursue other career opportunities. Steve Rowe will take on responsibility for the general merchandise business, while Andy Adcock, who is trading director of the food division, will step up to be the director of Food.
IAG moved closer on Thursday to clinching a takeover of Aer Lingus after receiving the US regulator's go-ahead and the Irish carrier's shareholders backed special resolutions linked to the deal.
Russian mining company Evraz said crude steel output was down 14% quarter on quarter, at 3.4mt. Evraz blamed the fall on the deconsolidation of its South African producer and repair and maintenance at Russian mills.
HomeServe is trading in line with its expectations and expects to deliver good growth in 2016. In a trading update for 1 April to 17 July, the home emergency business said that in line with the strategy it previously outlined, it continues to invest for customer growth across its international business and, as in prior years, the majority of marketing activity will be weighted towards the second half.
RBC Capital Markets upgraded GKN to 'sector perform' from 'underperform' but trimmed its target to 320p from 330p. It noted that GKN shares have underperformed sector peers year-to-date and are now trading at a relatively untesting multiple, even on the bank's consensus forecasts. |
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| | Market Movers
techMARK 3,186.75 -0.18%
FTSE 100 6,780.55 -0.23%
FTSE 250 17,739.56 -0.15%
FTSE 100 - Risers
Intertek Group (ITRK) 2,443.00p +1.41%
ARM Holdings (ARM) 1,026.00p +0.79%
Pearson (PSON) 1,272.00p +0.71%
Weir Group (WEIR) 1,672.00p +0.66%
Sage Group (SGE) 538.00p +0.56%
GKN (GKN) 313.70p +0.42%
Rolls-Royce Holdings (RR.) 785.00p +0.38%
Hikma Pharmaceuticals (HIK) 2,109.00p +0.38%
United Utilities Group (UU.) 885.50p +0.34%
Morrison (Wm) Supermarkets (MRW) 182.10p +0.33%
FTSE 100 - Fallers
Barratt Developments (BDEV) 636.00p -1.24%
Marks & Spencer Group (MKS) 539.50p -1.19%
Taylor Wimpey (TW.) 188.90p -1.05%
BHP Billiton (BLT) 1,240.50p -1.00%
GlaxoSmithKline (GSK) 1,369.50p -0.94%
Royal Dutch Shell 'A' (RDSA) 1,820.50p -0.82%
AstraZeneca (AZN) 4,304.50p -0.74%
Mondi (MNDI) 1,505.00p -0.73%
Antofagasta (ANTO) 654.00p -0.68%
Royal Dutch Shell 'B' (RDSB) 1,844.00p -0.62%
FTSE 250 - Risers
Zoopla Property Group (WI) (ZPLA) 248.20p +3.12%
B&M European Value Retail S.A. (DI) (BME) 346.30p +1.85%
Aldermore Group (ALD) 251.50p +1.82%
Just Eat (JE.) 434.10p +1.66%
Shawbrook Group (SHAW) 346.00p +1.62%
Vedanta Resources (VED) 473.70p +1.37%
Petra Diamonds Ltd.(DI) (PDL) 148.00p +1.37%
Rotork (ROR) 218.00p +1.11%
Card Factory (CARD) 324.40p +0.96%
Polar Capital Technology Trust (PCT) 597.50p +0.93%
FTSE 250 - Fallers
Restaurant Group (RTN) 665.50p -3.13%
Nostrum Oil & Gas (NOG) 572.50p -2.80%
Telecom Plus (TEP) 1,120.00p -2.10%
Halfords Group (HFD) 539.00p -1.73%
CLS Holdings (CLI) 1,810.00p -1.63%
Ocado Group (OCDO) 457.60p -1.59%
Polymetal International (POLY) 491.50p -1.50%
Jimmy Choo (CHOO) 157.50p -1.44%
WH Smith (SMWH) 1,584.00p -1.37% |
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| | UK Event Calendar | | Friday 17 July
INTERIMS
Kcell Joint Stock Co GDR (Reg S)
INTERIM DIVIDEND PAYMENT DATE
Hargreave Hale AIM VCT 1, Innovation Group, Northern Venture Trust
QUARTERLY PAYMENT DATE
Alpha Real Trust Ltd.
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Building Permits (US) (13:30)
Consumer Price Index (US) (13:30)
Housing Starts (US) (13:30)
U. of Michigan Confidence (Prelim) (US) (14:55)
SPECIAL DIVIDEND PAYMENT DATE
Greggs, Northern 3 VCT, Northern Venture Trust
EGMS
Samsung C&T Corp. GDR
AGMS
DCC, Homeserve, JPMorgan Japan Smaller Companies Trust, Proteome Sciences, Templeton Emerging Markets Inv Trust
TRADING ANNOUNCEMENTS
B&M European Value Retail S.A. (DI), Record
FINAL DIVIDEND PAYMENT DATE
Capital Gearing Trust, First Derivatives, Maven Income & Growth VCT, New Century AIM VCT 2, Northern 3 VCT, Telford Homes, Value and Income Trust, Vislink, Wynnstay Properties |
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks little changed ahead of German vote on Greek bailout European equity markets were little changed in early trade, with investors pausing for breath following healthy gains in the previous session, ahead of a German vote on Greece's bailout deal. By 0900 BST, the benchmark Stoxx Europe 600 index was up 0.1%, France's CAC 40 was down 0.1% and Germany's DAX was off 0.2%. Spain's IBEX 35 was 0.1% lower while Italy's FTSE MIB was down 0.3%.
In currency markets, the euro nudged up 0.2% to $1.0900.
German lawmakers are due to vote on the terms of Greece's third bailout later on Friday in the Bundestag and their approval will be the next key step before any formal talks can begin.
"Today's vote in the Bundestag on giving Greece the actual bailout money should pass through almost as easily as the vote to accept the bailout conditions did in the Hellenic Parliament," said Jonathan Sudaria, a dealer at London Capital Group.
"It's been a wild few weeks, what with a Grexit almost in sight after the referendum, but it looks as though Alex Tsipras and his anti-austerity have been put to the sword, so now it's back to the rather less thrilling exploits of economic data and company earnings."
The agreement is also yet to be approved by a number of other member nations.
Investors breathed a sigh of relief on Thursday after the European Central Bank said it would extend its emergency funding to Greek banks by €900m over a week, while Eurozone ministers agreed to give the country a €7bn bridging loan to keep it afloat until the bailout is approved.
Early on Friday, International Monetary Fund director Christine Lagarde said the Fund would participate in the Greek bailout plan if it includes debt restructuring and reforms.
On the earnings front, Swedish telecom equipment maker Ericsson rose after its second-quarter revenue and operating profit came in above expectations thanks to a solid performance in its networks business.
Appliance maker Electrolux was also on the front foot after better-than-expected second-quarter profit, while Swiss fragrance business Givaudan rallied after posting an 11% increase in first-half net profit.
In London, investors sank their teeth into M&A as online gambling company 888 Holdings agreed to buy Bwin.party Digital Entertainment in a cash and stock deal worth around £898.3m, beating a rival offer from GVC.
Elsewhere, shares in Marks & Spencer fell into the red after it said John Dixon, the head of General Merchandise, will step down from the board with immediate effect and leave the company to pursue other career opportunities.
With no major Eurozone data releases due, market participants will turn their attention to the US, where housing starts and CPI are at 1330 BST and University of Michigan consumer confidence is at 1500 BST. |
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| | US Market Report | | US close: Stocks edge higher amid Greece-fuelled momentum US equities edged higher on Thursday feeding off the momentum generated by European equities after Greece's parliament approved austerity measures in return for financial aid. The Dow Jones Industrial Average closed up 70 points to 18,120.05, while the S&P 500 and the Nasdaq gained 17 and 67 points respectively.
Greece boost
European shares pushed higher on Thursday as investors welcomed news that Greek lawmakers have approved the austerity measures needed for Athens to enter formal negotiations over its third bailout.
The plan will now need to be approved by the Eurozone members, with Germany's Bundestag set to vote on Friday, while the French national assembly has already voted in favour.
"With the debate about debt restructuring well and truly opened, with the Greek government in chaos and with implementation of the terms of the bailout far harder than agreeing to them in Parliament, the uncertainty which can weaken the euro won't go away any time soon," analysts at Societe Generale said in a note.
"Secondly, all of this uncertainty will require the ECB to maintain super-easy policies for even longer than was the case already."
Mario Draghi, the ECB president, said he remained confident Greece would pay its debt on 20 July, as he announced the decision to increase ELA to Greek banks by €900m over the next week,
Despite the rally among European equities, the euro lost 0.57% against the dollar, which gained 0.17% against the yen.
The greenback was flat against the pound, while gold futures dropped 0.31% to $1,143.90 an ounce.
Elsewhere, Asian stocks closed mostly up, while oil prices were mixed, with West Texas Intermediate losing 0.90% to $50.95 a barrel and Brent rising 0.83% to $57.53 a barrel.
Earnings in focus
In company news, tobacco giant Philip Morris climbed 3.17% after posting better-than-expected second quarter profit and sales early on Thursday.
Netflix surged 17.9% after analysts at JP Morgan, Cantor Fitzgerald and Pacific Crest raised their target on the stock.
The internet TV network said late Wednesday it added a better-than-expected 3.28m streaming subscribers in the June quarter.
Tech giant Intel climbed 0.57% despite announcing late Wednesday that its second-quarter profit fell 3.2% to amid an ongoing slump in the personal-computer market.
Goldman Sachs shed 0.87% after posting a sharp decline in second quarter earnings as it took a hit from weaker revenue and litigation costs, while Citigroup rose 3.77% after posting better-than-expected results.
eBay rose 3.44% despite reporting earlier on Thursday that profit plunged in the second quarter despite a moderate rise in revenues.
Google jumped over 5% in after hour trading after reporting after the closing bell that profit beat estimates.
Thursday data
Unemployment claims fell by 15,000 in the week ending on 11 July to reach 281,000, according to the Department of Labour, falling below the reading of 290.000 analysts had expected. The four-week moving average increased by 3,250 to hit 282,500.
The Philadelphia Fed index dropped to 5.7 in July from 15.2 in June, well below forecast of a 12.5 reading.
However, there was more positive news from the homebuilding sector, as a gauge of confidence among home builders remained at 60 in July, the strongest reading since late 2005, according to National Association of Home Builders/Wells Fargo data.
S&P 500 - Risers
Netflix Inc. (NFLX) $115.81 +18.02%
TECO Energy Inc. (TE) $21.48 +15.61%
Tesoro Corp. (TSO) $102.76 +5.17%
Citigroup Inc. (C) $58.60 +3.79%
Micron Technology Inc. (MU) $19.60 +3.76%
Google Inc. Class C (GOOG) $579.85 +3.50%
Valero Energy Corp. (VLO) $67.46 +3.48%
eBay Inc. (EBAY) $65.59 +3.39%
Charles Schwab Corp. (SCHW) $34.76 +3.30%
Altria Group Inc. (MO) $52.90 +3.26%
S&P 500 - Fallers
Peabody Energy Corp. (BTU) $1.41 -7.84%
Sherwin-Williams Co. (SHW) $261.33 -7.38%
Garmin Ltd. (GRMN) $43.10 -7.12%
Denbury Resources Inc. (DNR) $4.88 -5.24%
PPG Industries Inc. (PPG) $111.83 -4.40%
Harman International Industries Inc. (HAR) $108.29 -4.12%
KLA-Tencor Corp. (KLAC) $52.58 -3.98%
CONSOL Energy Inc. (CNX) $18.20 -3.86%
Borg Warner Inc. (BWA) $51.79 -3.78%
Applied Materials Inc. (AMAT) $17.87 -3.77%
Dow Jones I.A - Risers
Microsoft Corp. (MSFT) $46.66 +1.97%
International Business Machines Corp. (IBM) $171.00 +1.47%
Apple Inc. (AAPL) $128.51 +1.33%
E.I. du Pont de Nemours and Co. (DD) $59.77 +1.31%
Boeing Co. (BA) $148.46 +1.07%
Verizon Communications Inc. (VZ) $47.83 +1.06%
Merck & Co. Inc. (MRK) $58.83 +1.06%
General Electric Co. (GE) $27.03 +0.97%
Travelers Company Inc. (TRV) $103.31 +0.87%
Coca-Cola Co. (KO) $41.48 +0.85%
Dow Jones I.A - Fallers
McDonald's Corp. (MCD) $97.87 -1.21%
Goldman Sachs Group Inc. (GS) $211.11 -0.87%
Unitedhealth Group Inc. (UNH) $124.92 -0.75%
Home Depot Inc. (HD) $114.72 -0.74%
Caterpillar Inc. (CAT) $83.73 -0.51%
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $115.81 +18.02%
Vimpelcom Ltd Ads (VIP) $5.17 +4.87%
Micron Technology Inc. (MU) $19.60 +3.76%
Google Inc. Class C (GOOG) $579.85 +3.50%
eBay Inc. (EBAY) $65.59 +3.39%
Stericycle Inc. (SRCL) $138.87 +3.20%
Amazon.Com Inc. (AMZN) $475.48 +3.10%
Google Inc. (GOOGL) $601.78 +3.05%
Discovery Communications Inc. Class A (DISCA) $34.80 +2.59%
Celgene Corp. (CELG) $134.69 +2.51%
Nasdaq 100 - Fallers
Garmin Ltd. (GRMN) $43.10 -7.12%
KLA-Tencor Corp. (KLAC) $52.58 -3.98%
Applied Materials Inc. (AMAT) $17.87 -3.77%
Dish Network Corp. (DISH) $66.72 -3.37%
Mylan Inc. (MYL) $68.43 -2.33%
Check Point Software Technologies Ltd. (CHKP) $78.65 -1.72%
Mattel Inc. (MAT) $25.15 -1.72%
Nxp Semiconductors Nv (NXPI) $91.79 -1.17%
Maxim Integrated Products Inc. (MXIM) $31.91 -1.05% |
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| | Newspaper Round Up | | Friday newspaper round-up: Mark Carney, Google, Greece Interest rates could rise as early as the turn of the year, Bank of England Governor Mark Carney has hinted, adding that any increase in borrowing costs will be gradual and will stop at a level lower than in the past. - Financial Times After years of big spending on risky projects that chief executive Larry Page proudly hailed as "moonshots", there are indications Google may be showing signs of financial discipline. The search giant's shares jumped 11pc in after-hours trading after it ended a run of six consecutive quarters in which earnings have missed analyst estimates. - The Daily Telegraph
German MPs are expected to give grudging approval to the Greek bailout proposal in an emergency vote today despite an outburst from Wolfgang Mr Schäuble, the finance minister, that Grexit might be a better option. The Bundestag debate is set to be especially bad-tempered after Mr Schäuble, who proposed a temporary exit from the euro as one option during bailout talks at the weekend, also admitted publicly for the first time that Greece might need a debt write-off. - The Times
China's biggest state-owned banks have lent a combined RMB1.3tn ($209bn) to the country's margin finance agency in recent weeks to staunch a free-fall in the stock market, casting doubt on whether the recent equities rebound is sustainable without government support. - Financial Times | | |
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