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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: BP drags stocks into the red after posting annual loss The FTSE 100 dropped on Tuesday, led by BP after the oil major reported its worst annual loss in 20 years amid a slump in oil prices.
BP's shares tumbled after it posted a full year loss of $6.5bn (£4.53bn), reflecting write-downs and restructuring charges. Fourth-quarter underlying profits fell to $196m (£136m), compared with $2.2bn for the same period the previous year. Yet BP held its quarterly dividend at 10 cents a share.
The company dragged shares of other oil producers into the red including Royal Dutch Shell, BHP Billiton and Tullow Oil.
"This morning's results from BP have added to the gloom surrounding the sector...," said Michael Hewson, chief market analyst at CMC Markets.
"As it stands BP had already announced 4,000 job losses earlier this year, with 600 in the North Sea as well as further capital expenditure cuts in an attempt to ride out the storm, but there is a worry that with a dividend yield of 7.3% and a dividend cover of 0.5 it could be susceptible to a cut in the coming months, particularly given how bad this morning's results are."
Fuelling the weak sentiment in the sector, oil prices continued to decline in morning trade with Brent crude down 1.3% to $33.78 per barrel and West Texas Intermediate down 1.7% to $31.07 per barrel.
In economic data, German unemployment fell 20,000 in January, compared to analysts' estimates of 8,000 and the previous month's 16,000 decrease. The unemployment rate unexpectedly fell to 6.2% from 6.3%.
At 0930 GMT the UK construction purchasing managers' index will be released by Markit/CIPS. It will otherwise be a quiet day of economic reports.
Among corporate stocks, Ocado Group's shares gained after it reported double-digit revenue growth for the year in the face of fierce competition.
Sainsbury's advanced after agreeing a deal to buy Home Retail for about £1.3bn.
St Modwen declined as the developer announced the retirement of long-time chief executive Bill Oliver. |
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| | Market Movers
FTSE 100 (UKX) 5,983.62 -1.26%
FTSE 250 (MCX) 16,401.57 -0.53%
techMARK (TASX) 3,151.29 -0.58%
FTSE 100 - Risers
Hikma Pharmaceuticals (HIK) 2,086.00p 2.81%
Sainsbury (J) (SBRY) 247.60p 1.23%
TUI AG Reg Shs (DI) (TUI) 1,204.00p 1.18%
Sports Direct International (SPD) 420.00p 0.86%
Relx plc (REL) 1,235.00p 0.57%
Merlin Entertainments (MERL) 415.20p 0.36%
Admiral Group (ADM) 1,772.00p 0.23%
Smith & Nephew (SN.) 1,153.00p 0.00%
SSE (SSE) 1,432.00p 0.00%
InterContinental Hotels Group (IHG) 2,344.00p -0.04%
FTSE 100 - Fallers
BP (BP.) 341.50p -6.94%
BHP Billiton (BLT) 649.80p -4.17%
Royal Dutch Shell 'B' (RDSB) 1,463.00p -2.47%
Standard Chartered (STAN) 448.80p -2.43%
Rolls-Royce Holdings (RR.) 541.50p -2.43%
Old Mutual (OML) 163.00p -2.40%
Aviva (AV.) 464.60p -2.29%
Rio Tinto (RIO) 1,658.50p -2.21%
Smiths Group (SMIN) 919.00p -2.13%
Royal Dutch Shell 'A' (RDSA) 1,464.50p -2.01%
FTSE 250 - Risers
TalkTalk Telecom Group (TALK) 235.00p 7.85%
Ocado Group (OCDO) 274.40p 4.22%
Allied Minds (ALM) 313.40p 3.74%
Nostrum Oil & Gas (NOG) 279.90p 2.53%
UDG Healthcare Public Limited Company (UDG) 556.00p 2.02%
Brown (N.) Group (BWNG) 314.50p 1.85%
Barr (A.G.) (BAG) 545.00p 1.77%
Woodford Patient Capital Trust (WPCT) 89.80p 1.76%
Polypipe Group (PLP) 325.00p 1.28%
Riverstone Energy Limited (RSE) 759.50p 1.27%
FTSE 250 - Fallers
Weir Group (WEIR) 829.50p -4.38%
Tullow Oil (TLW) 165.00p -3.62%
Rotork (ROR) 163.50p -3.54%
Petrofac Ltd. (PFC) 765.00p -3.41%
Ophir Energy (OPHR) 87.00p -3.33%
Essentra (ESNT) 709.00p -3.14%
Victrex plc (VCT) 1,503.00p -2.78%
Aveva Group (AVV) 1,287.00p -2.72%
Amec Foster Wheeler (AMFW) 400.70p -2.48%
Just Eat (JE.) 350.60p -2.42% |
| | UK Event Calendar | | Tuesday 02 February
INTERIMS
Aberforth Geared Income Trust, Alumasc Group, Mattioli Woods, NWF Group
INTERIM DIVIDEND PAYMENT DATE
Johnson Matthey, Vianet Group, Workspace Group
FINALS
Low & Bonar, Ocado Group, St. Modwen Properties
ANNUAL REPORT
Aberforth Smaller Companies Trust
SPECIAL DIVIDEND PAYMENT DATE
Johnson Matthey
AGMS
Dewhurst, Dewhurst (Non-Voting), Ground Rents Income Fund, UDG Healthcare Public Limited Company
TRADING ANNOUNCEMENTS
UDG Healthcare Public Limited Company
FINAL DIVIDEND PAYMENT DATE
Baring Emerging Europe, JPMorgan Chinese Inv Trust |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks in the red as BP, UBS slump European stocks fell in early trade, with investors digesting disappointing results from BP and UBS as oil prices slid.
At 0910 GMT, the benchmark Stoxx Europe 600 index was down 1.6%, France's CAC 40 was 1.7% lower and Germany's DAX was off 1.3%.
"Equity markets on the back foot this morning, with a backtracking in the oil price (yes equities and oil still excessively correlated) and weak China/US macro data weighing on the recent stock market recovery," said Mike van Dulken, head of research at Accendo Markets.
"Weak results from BP are weighing on the energy sector, adding to S&P's cuts yesterday evening to ratings and outlook on several major commodities names."
BP fell sharply after the oil giant reported a fourth quarter loss of $3.31bn, with underlying profits down a whopping 91% to $196m. The company posted an annual loss of $6.5bn, which was its worst in 20 years.
The Stoxx 600 oil and gas index was 3.3% weaker in early trade.
Swiss bank UBS was also firmly under the cosh after pre-tax profit at its investment bank came in weaker than expected.
Alfa Laval AB slumped after the Swedish engineering group's fourth-quarter pre-tax profit fell short of expectations.
German chip maker Infineon Technologies was also in the red after its first quarter results disappointed.
On the upside, Danske Bank A/S advanced after the Danish lender lifted its dividend and announced a share buyback plan.
Supermarket retailer Sainsbury's rose after it agreed an offer with Home Retail that values the FTSE 250 group at about £1.3bn. Home Retail shares edged higher on the announcement. |
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| | US Market Report | | US close: Stocks mixed after raft of economic data US stocks were little changed on Monday as investors sifted through mixed economic data and weighed remarks from a Federal Reserve policymaker on interest rates.
The Dow Jones Industrial Average finished down 0.11%, the Nasdaq rose 0.13% and the S&P 500 closed flat.
Markets had started in negative territory after weak Chinese manufacturing data added to worries about the slowdown in the world's second largest economy.
The official purchasing managers' index for China manufacturing fell to 49.7 in January from 49.7 the previous month, missing analysts' expectations for a reading of 49.6 and below the 50 level that separates a contraction from an expansion in sector activity.
The private PMI from Caixin on China manufacturing also registered a contraction in January at 48.4. However it was better than December's 48.2 and analysts' estimates of 48.1.
Oil prices also weighed on markets, falling again on dimming prospects of a deal on a production cut by global oil producers to address the supply glut. West Texas Intermediate crude fell 7.1% to $31.37 per barrel and Brent crude dropped 5.7% to $34.04 per barrel at 0936 GMT.
Equities were given a boost later in the session after Fed Vice Chairman Stanley Fischer suggested that expectations that the central bank will barely raise interest rates this year could be correct.
Last month Fischer said the Fed believed estimates at the time for two rate increases this year were "too low" .
However, the policymaker changed his tune on Monday, pointing to worries about the impact of the global market selloff .
"At this point, it is difficult to judge the likely implications of this volatility. If these developments lead to a persistent tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States," he said.
US data
Markit's final US manufacturing PMI rose to 52.4, up a touch from December's 38-month low of 51.2 but still the second-lowest reading since October 2013 and weaker than the flash estimate of 52.7. Analysts had forecast 52.6 in December.
ISM's manufacturing data showed another contraction in sector activity. The index increased to 48.2 in January from 48.0US construction spending nudged up 0.1% to $1.12trn in December compared with a downwardly-revised 0.6% decline the previous month, missing expectations for a 0.6% increase.
US construction spending nudged up 0.1% to $1.12trn in December compared with a downwardly-revised 0.6% decline the previous month, missing expectations for a 0.6% increase.
US personal spending was unchanged in December, missing expectations for a 0.1% increase and following November's 0.4% gain, according to the Commerce Department. Personal income increased 0.3% in December, slightly higher than forecasts for 0.2% growth and after a 0.5% rise in November.
Google's Alphabet reports solid Q4 results
Alphabet reported fourth quarter sales, excluding the costs of acquiring traffic, rose to $17.3bn from $14.5bn, beating estimates of $16.9bn. Adjusted profits came in at $8.67 a share, ahead of forecasts of $8.08 a share.
Aetna advanced as it reported a 38% jump in fourth quarter profits as medical costs fell.
Questar Corp. surged on news that utility company Dominion Resources Inc. plans to buy it for $4.4bn.
The dollar was down against major currencies, falling 1.35% against the pound, 0.57% against the euro and 0.15% versus the yen.
S&P 500 - Risers
Sysco Corp. (SYY) $43.15 +8.39%
CONSOL Energy Inc. (CNX) $8.39 +5.67%
Seagate Technology Plc (STX) $30.41 +4.68%
AutoNation Inc. (AN) $45.14 +4.37%
Chipotle Mexican Grill Inc. (CMG) $472.64 +4.34%
Centerpoint Energy Inc. (CNP) $18.62 +4.20%
Signet Jewelers Ltd (SIG) $120.62 +3.98%
United States Steel Corp. (X) $7.26 +3.71%
Air Products & Chemicals Inc. (APD) $131.26 +3.59%
Alliance Data Systems Corp. (ADS) $206.56 +3.39%
S&P 500 - Fallers
Roper Technologies Inc (ROP) $163.73 -6.80%
Devon Energy Corp. (DVN) $26.06 -6.59%
Cimarex Energy Co (XEC) $87.23 -6.20%
Murphy Oil Corp. (MUR) $18.40 -6.17%
Transocean Ltd. (RIG) $9.79 -6.05%
ONEOK Inc. (OKE) $23.44 -5.90%
Chesapeake Energy Corp. (CHK) $3.21 -5.31%
Range Resources Corp. (RRC) $28.26 -4.40%
Southwestern Energy Co. (SWN) $8.50 -4.39%
Apache Corp. (APA) $40.82 -4.04%
Dow Jones I.A - Risers
American Express Co. (AXP) $54.70 +2.24%
Nike Inc. (NKE) $63.16 +1.85%
Wal-Mart Stores Inc. (WMT) $67.50 +1.72%
Verizon Communications Inc. (VZ) $50.76 +1.58%
Boeing Co. (BA) $121.56 +1.19%
E.I. du Pont de Nemours and Co. (DD) $53.30 +1.02%
Caterpillar Inc. (CAT) $62.70 +0.74%
McDonald's Corp. (MCD) $124.61 +0.67%
Unitedhealth Group Inc. (UNH) $115.89 +0.63%
Home Depot Inc. (HD) $126.51 +0.60%
Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $76.29 -2.00%
General Electric Co. (GE) $28.64 -1.58%
3M Co. (MMM) $148.73 -1.50%
Chevron Corp. (CVX) $85.29 -1.36%
Cisco Systems Inc. (CSCO) $23.48 -1.30%
Goldman Sachs Group Inc. (GS) $159.65 -1.18%
JP Morgan Chase & Co. (JPM) $58.86 -1.08%
Pfizer Inc. (PFE) $30.17 -1.05%
Apple Inc. (AAPL) $96.43 -0.93%
Walt Disney Co. (DIS) $95.15 -0.70%
Nasdaq 100 - Risers
Seagate Technology Plc (STX) $30.41 +4.68%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $47.06 +3.72%
Tesla Motors Inc (TSLA) $196.94 +3.00%
Broadcom Limited (AVGO) $137.68 +2.97%
Incyte Corp. (INCY) $72.58 +2.86%
Facebook Inc. (FB) $115.09 +2.57%
Charter Communications Inc. (CHTR) $175.75 +2.56%
Western Digital Corp. (WDC) $49.19 +2.52%
Netflix Inc. (NFLX) $94.09 +2.45%
Check Point Software Technologies Ltd. (CHKP) $80.63 +2.31%
Nasdaq 100 - Fallers
Mattel Inc. (MAT) $26.76 -3.01%
Amazon.Com Inc. (AMZN) $574.81 -2.08%
Tractor Supply Company (TSCO) $86.72 -1.80%
JD.com, Inc. (JD) $25.59 -1.69%
Alexion Pharmaceuticals Inc. (ALXN) $143.50 -1.67%
Ctrip.Com International Ltd. Ads (CTRP) $41.97 -1.66%
Cognizant Technology Solutions Corp. (CTSH) $62.33 -1.55%
Vimpelcom Ltd Ads (VIP) $3.24 -1.52%
Kraft Heinz Co. (KHC) $77.01 -1.35% |
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| | Newspaper Round Up | | Tuesday newspaper round-up: North Sea, Alphabet, easyFoodstore, Matalan As many as 50 North Sea oil and gasfields could cease production this year after a collapse in crude prices to 12-year lows, industry experts have warned. This would accelerate the North Sea's decline, potentially bringing forward billions of pounds in spending on decommissioning. Dozens of smaller fields with high production costs that are approaching the end of their lives have been identified by energy consultants Wood Mackenzie as prime candidates to be shut. Halting output is the first step towards abandonment. - Financial Times
Alphabet, the holding company for Google, looks set to become the world's most valuable company when stock market trading begins on Tuesday, following the revelation that it poured $3.6bn last year into "moonshot" projects such as driverless cars. A surge in mobile advertising in the final months of last year, along with the first insight into the full costs of side bets designed to cement the Alphabet's long-term leadership in the tech world, extended Wall Street's recent enthusiasm for the company's stock. - Financial Times
The founder of easyJet has opened a discount food store that is selling everyday groceries for 25p each. Sir Stelios Haji-Ioannou has launched easyFoodstore in an attempt to take advantage of the fast-growing discount market in the UK, which is led by Aldi and Lidl. The venture could eventually be another threat to the "big four" supermarket chains - Tesco, Asda, Sainsbury's and Morrisons. - Guardian
About 100 jobs are at risk after Ben Sherman, the British clothing brand worn by rock stars in the 70s and 80s, was sold through a pre-pack administration deal. Marquee Brands, a US company backed by a private equity firm, has sold off the UK operations of Ben Sherman just six months after buying the brand. It has been bought by BMB Clothing Limited, a Leeds-based company that runs Jeff Banks and Suit Direct shops. - Guardian
EasyJet passengers could be served waste water produced by their plane's fuel system, after the airline unveiled plans to trial zero-emission hydrogen technology. The FTSE 100 carrier is planning to become the first airline in the world to test a so-called hybrid plane, which uses hydrogen fuel cells that could potentially cut the company's fuel bill by as much as $35m. - Telegraph
Even successful bosses should spend no more than half a decade in charge of any one business, according to Sir David Walker, the former chairman of Barclays and a city grandee who has served on a swathe of major boards. Chief executives must be accountable and open to challenges from staff and directors, he said, and must not become so entrenched that their decisions cannot be questioned. - Telegraph
One of Britain's biggest retailers has gone into its bank's special measures division for struggling businesses as fears grow over the deterioration in its trading. The Times understands that Matalan has been placed in Lloyds Banking Group's business support unit, which was set up to help troubled companies. - The Times | | |
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