| | | | | | | | Metro Bank IPO: What you need to know In just a couple of weeks, Metro is due to launch its IPO. It’s following in the footsteps of smaller rivals, Aldermore and Shawbrook, who listed last year. Both performing strongly in the months following their IPOs.
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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: Stocks jump after China sets higher value for the yuan Stocks jumped out of the gate after China's central bank set a higher daily reference value for the country's currency and after that country's central bank chief, Zhou Xiaochuan, talked about the need for patience in balancing reform, growth and stability, as well as China's need to remain a responsible economic power.
The People's Bank of China set the daily fixing for the country's currency, the yuan, 0.3% higher at 6.5118 - its loftiest level since November.
On the back of Xiaochuan's remarks, Deutsche Bank's chief economist Zhiwei Zhang lowered his estimate on the odds for a large renminbi devaluation from 15% to 10%.
As of 09:04 Britain's top flight index was 96.32 points higher at 5,803.46 but Shanghai Stock Exchange's Composite Index closed 0.63% lower to 2,746.20.
Japan's Nikkei-225 on the other hand rocketed 7.16% to 16,022 as weaker than expected data on gross domestic product stoked weakness in the Japanese yen, in turn buoying the country's stockmarkets.
US equity markets were scheduled to remain closed on Monday in observance of Presidents' Day.
Weak data out of Asia
Chinese exports and imports weakened substantially in January, with exports 11.2% weaker year-on-year in US dollar terms (consensus: -1.8%) and imports off by 18.8% (consensus: -3.6%).
However, economists cautioned the data had likely been distorted by the impact of the Lunar New Year holidays.
"It is arguably too early to jump to conclusions and we'll have to wait until we get the February data and can iron out some of the seasonal volatility before we can get a clearer idea of how trade is performing," Capital Economics wrote in a research note sent to clients on Monday morning.
Japanese gross domestic product shrank by 0.4% quarter-on-quarter in the last three months of 2015 (consensus: -0.2%).
All eyes will now turn to European Central Bank president Mario Draghi's quarterly testimony before the European Parliament, at 14:00GMT.
Citing conversations with policymakers, Reuters reported on 12 February there was "firm support" within the governing council for a deposit rate cut at the ECB's next meeting, in March.
Nonetheless, "appetite for more radical action is still limited" the newswire said.
HSBC to stay put in London
Banking giant HSBC said it had decided to retain its headquarters in the UK, adding that it was dropping its three-yearly review of where it is based. The bank said the board's decision was unanimous and comes after HSBC had threatened to move to Hong Kong in retaliation for stricter UK regulation. In a statement, HSBC said the UK was "an important and globally connected economy. It has an internationally respected regulatory framework and legal system, and immense experience in handling complex international affairs," HSBC said.
Reckitt Benckiser saw broad growth in the year to 31 December, despite a year of mixed market conditions, with the company reporting its full year results on Monday. The FTSE 100 consumer goods giant saw total net revenue grow 5% on a constant currency basis to £8.87bn, and like-for-like revenue grow 6%, which exceeded company targets. Reckitt's gross margin expanded during the year by 140 basis points to 59.1%, which the company's board said was driven by mix, commodity costs and cost optimisation initiatives.
Defence group BAE Systems has appointed Charles Woodburn to the newly-created role of chief operating officer. Woodburn will report to chief executive Ian King, and will be appointed to the BAE Systems board as an executive director in the second quarter of this year. King said: "As a highly qualified engineer with considerable international business experience, Charles will strengthen and broaden the strategic and operational capabilities of the business as a welcome and valuable addition to the leadership team."
Fidessa confirmed its dividends as it posted flat pre-tax profit but a rise in revenue, as it continues with its investment programme. In its preliminary results for the year to the end of December, Fidessa reported flat pre-tax profit of £39.1m, although revenue rose 7% to £295.5m, beating consensus expectations of £290m.
Acacia Mining remained confident in a low gold price environment at the end of 2015, with the company reporting muted full year numbers on Monday, but an ongoing cost cutting plan to ensure sustainability. The FTSE 250 mining firm saw revenue dip 7% in the 12 months to 31 December to $868m (£597.71m), which it blamed on the 8% lower average gold price during the year.
United Arab Emirates-based healthcare provider Al Noor Hospitals' merger with South Africa's Mediclinic has been completed. |
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| Market Movers
FTSE 100 (UKX) 5,803.13 1.67%
FTSE 250 (MCX) 15,714.28 1.83%
techMARK (TASX) 2,981.71 2.02%
FTSE 100 - Risers
Reckitt Benckiser Group (RB.) 6,263.00p 4.98%
International Consolidated Airlines Group SA (CDI) (IAG) 502.00p 4.63%
Prudential (PRU) 1,206.00p 4.19%
Anglo American (AAL) 388.60p 3.92%
Old Mutual (OML) 165.90p 3.62%
Hargreaves Lansdown (HL.) 1,170.00p 3.54%
GKN (GKN) 264.30p 3.48%
Legal & General Group (LGEN) 214.60p 3.32%
London Stock Exchange Group (LSE) 2,361.00p 3.24%
CRH (CRH) 1,733.00p 3.15%
FTSE 100 - Fallers
Fresnillo (FRES) 858.50p -4.29%
Randgold Resources Ltd. (RRS) 5,945.00p -3.41%
Rio Tinto (RIO) 1,811.50p -1.95%
Rolls-Royce Holdings (RR.) 598.50p -1.24%
Royal Dutch Shell 'B' (RDSB) 1,513.50p -0.82%
BHP Billiton (BLT) 692.60p -0.57%
Royal Dutch Shell 'A' (RDSA) 1,519.50p -0.39%
SABMiller (SAB) 4,152.50p 0.11%
Glencore (GLEN) 98.77p 0.31%
Antofagasta (ANTO) 434.80p 0.35%
FTSE 250 - Risers
IP Group (IPO) 177.50p 6.73%
Fidessa Group (FDSA) 1,871.00p 5.65%
Virgin Money Holdings (UK) (VM.) 297.90p 5.64%
BGEO Group (BGEO) 1,707.00p 5.50%
Atkins (WS) (ATK) 1,220.00p 5.35%
Hays (HAS) 123.10p 4.94%
Mitchells & Butlers (MAB) 271.80p 4.54%
NCC Group (NCC) 272.40p 4.33%
Enterprise Inns (ETI) 77.45p 4.31%
Nostrum Oil & Gas (NOG) 283.10p 4.23%
FTSE 250 - Fallers
Acacia Mining (ACA) 228.60p -6.58%
Centamin (DI) (CEY) 78.25p -2.43%
Polymetal International (POLY) 605.50p -1.54%
Tullow Oil (TLW) 164.50p -0.84%
Allied Minds (ALM) 302.10p -0.76%
Dechra Pharmaceuticals (DPH) 1,007.00p -0.59%
Amec Foster Wheeler (AMFW) 361.30p -0.50%
Polypipe Group (PLP) 293.70p -0.37%
Shawbrook Group (SHAW) 257.70p -0.35% |
| | UK Event Calendar | | Monday 15 February
INTERIMS
City of London Investment Group
Q4
OJSC Magnitogorsk Iron & Steel Works GDR (Reg S)
FINALS
Amino Technologies, Fidessa Group, Hammerson, OJSC Magnitogorsk Iron & Steel Works GDR (Reg S), Societatea Nationala De Gaze Naturale Romgaz S.A. GDR (Reg S)
SPECIAL DIVIDEND PAYMENT DATE
Independent Inv Trust
FINAL DIVIDEND PAYMENT DATE
Income & Growth VCT , Paragon Group Of Companies |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks rally on strong Asian cues; IAG flies higher on upgrade European stocks kicked the week off on an upbeat note, taking their cue from a strong session in Asia, despite the release of disappointing Chinese and Japanese data.
At 0840 GMT, the benchmark Stoxx Europe 600 index was up 2.8%, Germany's DAX was up 2.7% and France's CAC 40 was 2.9% firmer.
Data released earlier showed China's exports fell 11.2% in January from the previous year, while imports dropped 18.8%.
Meanwhile, figures from Japan showed the economy contracted at a seasonally-adjusted annual rate of 1.4% in the final quarter of last year, which was significantly weaker than the 0.8% contraction expected by economists.
Still, with the exception of the Shanghai Composite, stocks in the region rallied following the heavy sell off last week and amid hopes that the weak data would prompt further monetary easing from Beijing.
Japan's Nikkei 225 rocketed 7.2%, while the Hang Seng index gained 3.3%.
"Stocks have soared in Asia, rebounding aggressively after last week's falls and providing further impetus for European markets.. Recent moves have seen markets lurching from anticipation to despair, sometimes on the same day - so the hope is that this sharp move higher will set a more positive tone for investors, rather than just be seen as an opportunity to sell the rally," said Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor.
"Global Central banks are yet again in the spotlight, with the People's Bank of China intervening to boost the renminbi and Mario Draghi widely expected to discuss further support during his testimony this afternoon."
On the corporate front, HSBC was higher after the bank said it would keep its London headquarters rather than move to Hong Kong.
London-listed consumer goods company Reckitt Benckiser rallied after its fourth quarter sales beat analysts' expectations.
Property heavyweight Hammerson was in the black after posting a rise in full year pre-tax profit amid strong UK demand.
BAE Systems advanced after the defence firm said it has appointed Charles Woodburn to the newly-create role of chief operating officer, following weekend reports that it was lining him up to be the next chief executive.
Hennes & Mauritz shares popped higher after the Swedish retailer said sales in January rose 7% from the same month last year.
International Consolidated Airlines flew higher after Bank of America Merrill Lynch double upgraded the stock to 'buy'. |
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| | US Market Report | | US close: JP Morgan spearheads gains in bank shares Shares on Wall Street registered a sharp bounce on Friday - breaking a five session string of losses - ahead of the long weekend Stateside, as bank shares and crude oil futures rocketed amid better than expected figures on US retail sales.
The Dow Jones Industrials was up by 2.0% at the close of trading to 15,973.84, alongside a 1.95% advance for the S&P 500 to 1,864.78.
Friday's gains on the S&P 500 allowed the benchmark to pare its losses for the week to 15.27 points.
Crude futures rallied 12% from a 12-year low to end atop $29 a barrel on NYMEX; some market observers attributed the gains to remarks from Oil Minister Suhail al-Mazrouei on Sky News Arabia that the country was willing to cooperate with other producers to bring stability to the market.
Data out at the start of the session appeared to point to solid spending by households going forward, with their sentiment holding up as the recent drop in oil prices offset volatility in capital markets.
The KBW bank index notched up gains of 5.36% to 59.54 after news broke that JP Morgan Chase chief executive Jamie Dimon purchased 500,000 shares in the lender for $26m on Thursday, sending the share price up 7% in pre-market trade.
The NYSE Arca Biotech gauge was 4.09% higher to 2,70.71.
Gains on Wall Street were led by the following industrial groups: non-ferrous metals (13.09%), gambling (9.9%) and platinum (7.96%), as the Chicago Board of Trade's volatility index sank 9.74% to 25.40 points.
Retail sales volumes Stateside advanced 0.2% month-on-month in January (consensus: 0.1%), thanks to a boost from non-store sales.
"This morning's release supports our expectation that consumption growth will rebound in Q1. [...] On net, we begin our tracking of Q1 GDP growth at 2.5%, with our estimate of real consumption growth in line with our published forecast at 3.0%," Barclays's Jesse Hurwitz said in a research report sent to clients.
Consumer sentiment more or less held up at the start of February according to a preliminary reading on the University of Michigan's confidence gauge, dipping from 92.0 in January to 90.7 (consensus: 92.3).
"Note the expectations index remains consistent with solid 3% growth in real consumption. We expect little change in the sentiment numbers next month too, with the latest drop in stocks likely to be offset by a 12%-plus collapse in gas prices in February compared to January," said Ian Sheperdson, chief economist at Pantheon Macroeconomics.
Another red Friday in Asia
Elsewhere, Asian markets sank on Friday, as investors continued their week-long run for cover and offloaded their riskier assets.
Investors were still turning to safe havens, in particular gold, government bonds, and the ever-popular yen. The currency had enjoyed a surge in recent days as its popularity increased, which was bad news for large firms in the island nation as the price of exports has jumped.
"There's obviously a series of worries out there, perhaps the biggest of which is that - aside from China - central banks are pushing around the end of a piece of string and then enter negative interest rates," Salt Funds Management managing director Matthew Goodson told New Zealand's National Business Review on the state of the region.
"What we're seeing in this current sell-off is a loss of faith in risk markets and central banks, and their ability to keep bailing markets out. You've driven risk-free rates even lower, but the risk premium investors demand has gone up."
European equities racked up healthy gains on Friday, rebounding from heavy losses in the previous session as investors cheered results from the likes of Commerzbank and Rolls-Royce.
S&P 500 - Risers
Wynn Resorts Ltd. (WYNN) $69.14 +15.83%
Freeport-McMoRan Inc (FCX) $5.53 +13.09%
Southwestern Energy Co. (SWN) $8.93 +9.57%
Qorvo, Inc. (QRVO) $37.55 +8.75%
United States Steel Corp. (X) $7.40 +8.35%
JP Morgan Chase & Co. (JPM) $57.49 +8.33%
Regions Financial Corp. (RF) $7.60 +7.34%
Citigroup Inc. (C) $37.54 +7.32%
Bank of America Corp. (BAC) $11.95 +7.08%
SunTrust Banks Inc. (STI) $33.53 +6.92%
S&P 500 - Fallers
Chesapeake Energy Corp. (CHK) $1.59 -10.67%
Activision Blizzard Inc. (ATVI) $28.12 -7.86%
Mosaic Company (MOS) $22.91 -7.43%
Dentsply International Inc. (XRAY) $54.73 -3.15%
L Brands Inc (LB) $81.87 -2.54%
Consolidated Edison Inc. (ED) $70.72 -1.98%
TripAdvisor Inc. (TRIP) $59.90 -1.92%
Diamond Offshore Drilling Inc. (DO) $16.92 -1.80%
Raytheon Co. (RTN) $120.24 -1.59%
Northrop Grumman Corp. (NOC) $181.25 -1.45%
Dow Jones I.A - Risers
JP Morgan Chase & Co. (JPM) $57.49 +8.33%
Goldman Sachs Group Inc. (GS) $146.13 +3.87%
Travelers Company Inc. (TRV) $107.49 +3.58%
E.I. du Pont de Nemours and Co. (DD) $58.40 +3.14%
American Express Co. (AXP) $52.66 +3.03%
General Electric Co. (GE) $28.26 +2.95%
Chevron Corp. (CVX) $85.43 +2.94%
Visa Inc. (V) $70.42 +2.85%
Caterpillar Inc. (CAT) $63.15 +2.83%
International Business Machines Corp. (IBM) $121.04 +2.71%
Dow Jones I.A - Fallers
Nasdaq 100 - Risers
Baidu Inc. (BIDU) $152.73 +8.16%
Whole Foods Market Inc. (WFM) $30.65 +5.95%
Charter Communications Inc. (CHTR) $167.75 +5.15%
Broadcom Limited (AVGO) $121.66 +4.60%
Sba Communications Corp. (SBAC) $88.79 +4.51%
Liberty Global plc Series A (LBTYA) $32.83 +4.45%
Vertex Pharmaceuticals Inc. (VRTX) $83.23 +4.42%
Incyte Corp. (INCY) $68.36 +4.35%
Alexion Pharmaceuticals Inc. (ALXN) $141.11 +4.25%
Dish Network Corp. (DISH) $43.31 +4.24%
Nasdaq 100 - Fallers
Activision Blizzard Inc. (ATVI) $28.12 -7.86%
TripAdvisor Inc. (TRIP) $59.90 -1.92%
Twenty-First Century Fox Inc Class A (FOXA) $24.55 -0.53%
Liberty Interactive Corporation QVC Group (QVCA) $23.17 -0.39%
Twenty-First Century Fox Inc Class B (FOX) $24.67 -0.16% |
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| | Newspaper Round Up | | Monday newspaper round-up: UK wages, Tata Steel, UK banks, IAG Employers' expectations for UK wage growth have fallen to the lowest level in more than two years, according to a survey that will reinforce the Bank of England's arguments for holding interest rates at record lows. The median expectation in the CIPD's quarterly labour market outlook was for a basic pay increase of 1.2 per cent in the 12 months to December 2016, compared with 2 per cent in the previous report by the association for human resources professionals. More than a fifth of employers planned to freeze pay and a falling number expected to give pay awards of 3 per cent or more. - Financial Times
The chief architect of the UK's retail banking reforms has attacked the Bank of England for watering down his recommendations over strengthening buffers at Britian's biggest banks. Writing in the Financial Times, Sir John Vickers, who as head of the Independent Commission on Banking proposed rules to ringfence banks' retail operations, argues that recent BoE plans for the largest lenders to build an extra buffer of capital do not go far enough. - Financial Times
Tata Steel's European boss will join thousands of steelworkers on Monday in a protest against "unfair" practices by Chinese firms, amid rising diplomatic tension with the People's Republic. Karl Koehler will take to the streets in Brussels as part of a demonstration against what Tata Steel called a "flood of unfairly traded imports into Europe". - Guardian
Rising house prices across much of England mean a government scheme to help buyers of newbuild property may have made more than £200m for the Treasury in its first two-and-a-half years. The help-to-buy equity loan scheme gives buyers an interest-free loan for five years in return for a percentage stake in their property. When the home is sold, the buyer returns the same percentage of the sale price, meaning that any fall or rise in house prices affects the return. - Guardian
The Chancellor's tax assault on UK business risks undermining the economic recovery, the Confederation of British Industry has warned. Britain's biggest business group said the apprenticeship levy, living wage and the rising burden of business rates amounted to a £29bn raid on companies over the next five years. Unveiling the CBI's Budget submission, Carolyn Fairbairn, director-general, warned the onslaught of taxes in the Summer Budget and Autumn Statement had pushed the economy to a "tipping point". - Telegraph
The boss of British Airways has urged governments to back a United Nations plan to cut greenhouse gases produced by the aviation industry and revealed the company hopes to reduce its own carbon dioxide emissions by 8.5pc. Willie Walsh, the boss of BA parent International Airlines Group, has called on governments and carriers to support a proposal by the UN's International Civil Aviation Organisation (ICAO) for a global deal to reduce carbon dioxide (CO2) emissions by the industry. - Telegraph
The Treasury may be orchestrating a convoluted staff placement scheme at the Bank of England to keep two of its top civil servants on the career fast track. Speculation has been gathering about plans to make John Kingman chief executive of the Prudential Regulation Authority, a role that would elevate him to deputy governor of the Bank of England, to clear the way for Tom Scholar to take over from Sir Nicholas Macpherson as the Treasury's permanent secretary. - The Times
Companies have reported their fastest growth for two years, but supermarkets and the oil and gas industries weighed heavily on an otherwise encouraging performance, according to analysis by the Share Centre. Consumers bought new homes and booked holidays, boosting airlines, travel companies, housebuilders and estate agents. - The Times | | |
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