| | | | | | | Banking Sector Outlook for 2017 In the first of a two-part series, this report covers the sector and its main players ahead of a barrage of full year results releases. We take an in-depth look at how US & UK Banks fared during 2016, reporting dates and forecasts for 2017, and what early US results have shown us. Get your copy of the Banking Sector Outlook for 2017 today! Losses can exceed deposits | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks nudge higher as investors sift through corporate news London stocks inched higher in early trade as investors sifted through a slew of corporate releases, with Brexit in focus after the House of Commons gave Prime Minister Theresa May the green light to begin the formal process.
At 0830 GMT, the FTSE 100 index was up 0.1% to 7,194.02. Meanwhile, West Texas Intermediate was up 0.9% to $52.79 a barrel and Brent crude was 0.8% firmer at $52.76.
Spreadex's Connor Campbell said: "Once again the FTSE struggled to break through 7200 with any substance, the index hampered by a positive start from the pound. Sterling likely wasn't overjoyed at the news that the Article 50 bill cleared the Commons last night; however, anything that moves things into slightly less uncertain territory Brexit-wise, even if that might be pound-negative, has recently been taken well by sterling, allowing it to jump 0.2% against both the dollar and the euro as the day got underway."
In corporate news, Aviva edged higher after announcing the sale of its 50% stake in life insurance joint venture Antarius to Sogecap, a subsidiary of French bank Socit Gnrale, for 425m (€500m).
Fund manager Ashmore surged after it said pre-tax profit in the six months to the end of December rose 94% to 121.5m, while net revenue increased 24% to 144.1m. Net management fees pushed up to 114.9m from 98.7m, benefiting from a stronger US dollar, while performance fees rose to 21.6m from 8.6m the year before.
Tate & Lyle gained ground after saying it now expects full-year trading to be modestly ahead of its previous expectations following a solid performance in the third quarter.
Water utility Pennon rose as it said it expects to deliver a full year trading performance in line with its previous guidance.
RPC Group made gains as it announced the acquisition of US plastics manufacturer Letica Group for up to 511m.
On the downside, medical devices group Smith & Nephew retreated as it reported full year sales in line with forecasts and earnings that beat consensus despite declining sales in the fourth quarter.
BHP Billiton ticked lower after saying its board has approved expenditure of $2.2bn for its share of the development of the Mad Dog Phase 2 project in the Gulf of Mexico.
Thomas Cook was under the cosh as it reported a narrowing of losses for the first quarter but sounded a cautious note on the outlook.
Dairy Crest was in the red after saying it expects year-end net debt to be "somewhat" higher than last year on the back of rising UK prices for milk and cheese.
There are no major UK data releases due, but in the US, initial jobless claims are at 1330 GMT and wholesale inventories at 1500 GMT. |
| Market Movers
FTSE 100 (UKX) 7,194.02 0.07%
FTSE 250 (MCX) 18,623.79 0.10%
techMARK (TASX) 3,314.15 -0.14%
FTSE 100 - Risers
Aviva (AV.) 499.50p 1.11%
Barclays (BARC) 227.10p 0.96%
Prudential (PRU) 1,582.00p 0.93%
RSA Insurance Group (RSA) 598.50p 0.84%
DCC (DCC) 6,820.00p 0.81%
National Grid (NG.) 964.90p 0.75%
Centrica (CNA) 231.70p 0.74%
BP (BP.) 459.30p 0.73%
Hargreaves Lansdown (HL.) 1,374.00p 0.73%
Schroders (SDR) 3,013.00p 0.70%
FTSE 100 - Fallers
Smith & Nephew (SN.) 1,161.00p -3.33%
Sage Group (SGE) 628.00p -1.80%
Whitbread (WTB) 3,980.00p -1.66%
easyJet (EZJ) 921.00p -1.34%
WPP (WPP) 1,836.00p -1.13%
Old Mutual (OML) 205.20p -0.63%
Sainsbury (J) (SBRY) 266.00p -0.52%
Pearson (PSON) 654.00p -0.46%
Paddy Power Betfair (PPB) 8,615.00p -0.40%
Associated British Foods (ABF) 2,487.00p -0.40%
FTSE 250 - Risers
Ashmore Group (ASHM) 337.40p 5.77%
Pennon Group (PNN) 841.50p 3.06%
Aberdeen Asset Management (ADN) 257.60p 1.78%
Tullow Oil (TLW) 284.20p 1.75%
RPC Group (RPC) 1,075.00p 1.51%
Ibstock (IBST) 195.90p 1.50%
Kennedy Wilson Europe Real Estate (KWE) 972.50p 1.35%
Bankers Inv Trust (BNKR) 725.00p 1.19%
Tate & Lyle (TATE) 729.00p 1.18%
Sophos Group (SOPH) 283.20p 1.18%
FTSE 250 - Fallers
Thomas Cook Group (TCG) 86.90p -5.59%
Centamin (DI) (CEY) 170.40p -2.18%
Countryside Properties (CSP) 225.00p -2.09%
Allied Minds (ALM) 385.00p -2.06%
Aberforth Smaller Companies Trust (ASL) 1,150.00p -2.04%
P2P Global Investments (P2P) 806.00p -2.01%
Mitchells & Butlers (MAB) 258.70p -1.97%
Dairy Crest Group (DCG) 606.00p -1.70%
Henderson Group (HGG) 213.30p -1.66% |
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| | UK Event Calendar | | Thursday 09 February
INTERIMS
Ashmore Group, Frontier Developments, InnovaDerma
INTERIM EX-DIVIDEND DATE
Conviviality, Daejan Holdings, Gateley (Holdings) , Murgitroyd Group, Rank Group, Stagecoach Group
QUARTERLY EX-DIVIDEND DATE
IBM Corp., JPMorgan Claverhouse Inv Trust, Picton Property Income Ltd, Unilever
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Continuing Claims (US) (13:30)
Current Account (GER) (07:00)
Initial Jobless Claims (US) (13:30)
Wholesales Inventories (US) (15:00)
FINALS
Bank Pekao SA GDS (Reg S), Smith & Nephew
SPECIAL EX-DIVIDEND DATE
Aberforth Smaller Companies Trust
EGMS
Datang International Power Generation Co Ltd.
AGMS
easyJet, Enterprise Inns, Paragon Group Of Companies, Premier Asset Management Group, Thomas Cook Group
FINAL DIVIDEND PAYMENT DATE
Aberdeen Asset Management, Euromoney Institutional Investor, ZPG Plc
FINAL EX-DIVIDEND DATE
Aberforth Smaller Companies Trust, JPMorgan Russian Securities, Polar Capital Global Financials Trust, Sage Group
|
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks nudge up as bank earnings flow in European stocks nudged up in early trade, underpinned by some well-received corporate news and a rebound in oil prices.
At 0900 GMT, the benchmark Stoxx Europe 600 index, Germany's DAX and France's CAC 40 were all up 0.1%.
Meanwhile, West Texas Intermediate was up 0.9% to $52.79 a barrel and Brent crude was 0.8% firmer at $52.76, having suffered heavy losses in the previous session.
David Morrison, senior market strategist at SpreadCo, said: "The major European stock indices and US index futures are modestly firmer in early trade this morning, following a mixed close on Wall Street last night. The positive tone has been helped along by a rebound in crude oil after a sharp sell-off earlier in the week. Both WTI and Brent are trading around the respective mid-points of trading ranges which have been in place since early December. Sentiment has also been lifted by some better-than-expected earnings from European banks including SocGen, Commerzbank and Mediobanca."
In corporate news, Societe Generale was in the black after it posted a smaller-than-expected drop in fourth-quarter net profit.
Mediobanca edged higher after the Italian lender said net profit in its fiscal second quarter almost doubled thanks to a jump in revenue in all business streams.
Oil giant Total gushed higher as it reported a better-than-expected profit for the fourth quarter, thanks in part to a rebound in crude prices.
Fund manager Ashmore surged after it said pre-tax profit in the six months to the end of December rose 94% to 121.5m, while net revenue increased 24% to 144.1m.
Ont the downside, Commerzbank was weaker despite reporting better-than-expected fourth-quarter earnings, while Thyssenkrupp declined despite saying it swung to a net profit in the first quarter of its fiscal year 2017.
Elsewhere, Publicis slumped after its fourth-quarter sales missed estimates.
Medical devices group Smith & Nephew retreated as it reported full year sales in line with forecasts and earnings that beat consensus despite declining sales in the fourth quarter.
Thomas Cook was under the cosh as it reported a narrowing of losses for the first quarter but sounded a cautious note on the outlook. |
| | US Market Report | | US close: Stocks end mostly higher as oil prices reverse course US stocks ended mostly a little firmer on Wednesday, recouping earlier losses as oil prices settled higher.
The S&P 500 rose 0.1% to 2,294.67 and the Nasdaq edged up 0.2% to a record 5,682.45. The Dow Jones Industrial Average fared less well, finishing the session 0.2% lower at 20,054.34, with financials such as Goldman Sachs and JP Morgan Chase weighing on the index amid falling yields.
Oil prices settled higher, recovering from earlier losses, with West Texas Intermediate up 0.4% to $52.40 a barrel and Brent crude 0.2% higher at $55.17.
The Energy Information Administration said crude inventories rose by 13.8m barrels to 508.6m in the week ended 3 February. Analysts had estimated a build of 2.5m barrels.
But traders said investors chose to focus instead on an unexpected drop in gasoline stocks. According to the EIA, gasoline declined by 869,000 last week, compared to estimates for it to rise by more than a million barrels.
Prices had been under pressure after figures on Tuesday from the American Petroleum Institute showed a 14.2m barrel build in its crude oil inventory last week, compared to a 5.8m barrel rise the week before and expectations for a 2.5m build.
CMC Markets' Michael Hewson said: "Oil prices have slid quite sharply over the past couple of days. A huge 14.2m build in API inventories would appear to suggest that the potential for further significant gains in the oil price appear limited at this time. US EIA inventories also posted a huge build coming in at 13.83m barrels, well above expectations of 2.5m barrels, however a surprise draw on gasoline inventories, may well limit the downside in the short - term."
On the corporate front, botox maker Allergan ended in the black after it beat profit estimates and remained upbeat in its forecast for 2017.
Time Warner nudged up as JK Rowling's Fantastic Beasts speared the media giant to beat revenue and profit expectations, while Disney closed flat despite Star Wars: The Force Awakens helping the film studio top earnings estimates late on Tuesday.
Nordstrom rallied as President Trump criticised the retailer for its decision to drop his daughter Ivanka's fashion brand.
Restaurant chain Panera Bread surged as it said it expects sales to continue to accelerate this year.
Microchip Technology racked up solid gains after its quarterly results topped forecasts and Alaska Air Group advanced after the company posted a quarterly double-digit surge in revenue.
On the downside, property website Zillow Group slumped after saying late on Tuesday that it expects a wider loss for the year than the market had been expecting.
S&P 500 - Risers
Microchip Technology Inc. (MCHP) $73.80 +6.00%
Cognizant Technology Solutions Corp. (CTSH) $56.45 +4.95%
Kohls Corp. (KSS) $40.84 +4.32%
Xerox Corp. (XRX) $7.36 +4.10%
Nordstrom Inc. (JWN) $44.53 +4.09%
Pioneer Natural Resources Co. (PXD) $181.68 +3.85%
Allergan plc (AGN) $241.17 +3.68%
O'Reilly Automotive Inc. (ORLY) $271.66 +3.61%
Fidelity National Information Services Inc. (FIS) $79.84 +3.29%
Dollar General Corp (DG) $75.07 +3.12%
S&P 500 - Fallers
Akamai Technologies Inc. (AKAM) $63.55 -10.64%
Gilead Sciences Inc. (GILD) $66.83 -8.61%
Csra Inc. (CSRA) $30.30 -6.91%
Assurant Inc. (AIZ) $90.45 -6.75%
Intercontinental Exchange Inc (ICE) $57.04 -4.82%
Jacobs Engineering Group Inc. (JEC) $56.63 -3.69%
Citizens Financial Group, Inc. (CFG) $35.35 -3.39%
Southwestern Energy Co. (SWN) $8.88 -3.37%
Archer-Daniels-Midland Co. (ADM) $43.46 -2.53%
Western Digital Corp. (WDC) $77.08 -2.49%
Dow Jones I.A - Risers
Nike Inc. (NKE) $53.88 +2.03%
Wal-Mart Stores Inc. (WMT) $67.81 +1.38%
Home Depot Inc. (HD) $137.88 +0.90%
3M Co. (MMM) $177.07 +0.75%
Verizon Communications Inc. (VZ) $48.37 +0.69%
Apple Inc. (AAPL) $132.04 +0.39%
Procter & Gamble Co. (PG) $88.33 +0.36%
Coca-Cola Co. (KO) $42.02 +0.29%
Pfizer Inc. (PFE) $32.14 +0.19%
Merck & Co. Inc. (MRK) $64.32 +0.19%
Dow Jones I.A - Fallers
Boeing Co. (BA) $163.81 -1.62%
Exxon Mobil Corp. (XOM) $81.48 -1.56%
International Business Machines Corp. (IBM) $176.17 -1.28%
JP Morgan Chase & Co. (JPM) $85.96 -0.88%
Visa Inc. (V) $85.09 -0.80%
Goldman Sachs Group Inc. (GS) $237.73 -0.79%
United Technologies Corp. (UTX) $110.40 -0.76%
Cisco Systems Inc. (CSCO) $31.27 -0.57%
General Electric Co. (GE) $29.43 -0.44%
Caterpillar Inc. (CAT) $92.91 -0.43%
Nasdaq 100 - Risers
Microchip Technology Inc. (MCHP) $73.80 +6.00%
Cognizant Technology Solutions Corp. (CTSH) $56.45 +4.95%
Incyte Corp. (INCY) $122.73 +3.85%
O'Reilly Automotive Inc. (ORLY) $271.66 +3.61%
NetEase Inc. Ads (NTES) $265.52 +2.90%
eBay Inc. (EBAY) $33.25 +2.53%
Biomarin Pharmaceutical Inc. (BMRN) $90.90 +2.24%
Paypal Holdings Inc (PYPL) $40.88 +2.15%
Sba Communications Corp. (SBAC) $106.86 +1.98%
Ross Stores Inc. (ROST) $67.67 +1.97%
Nasdaq 100 - Fallers
Akamai Technologies Inc. (AKAM) $63.55 -10.64%
Gilead Sciences Inc. (GILD) $66.83 -8.61%
Western Digital Corp. (WDC) $77.08 -2.49%
Liberty Global Plc Lilac Class C (LILAK) $21.88 -2.41%
Activision Blizzard Inc. (ATVI) $39.19 -2.15%
Liberty Global Plc Lilac Class A (LILA) $22.55 -2.00%
Autodesk Inc. (ADSK) $82.93 -1.86%
Discovery Communications Inc. Class C (DISCK) $26.78 -1.72%
Discovery Communications Inc. Class A (DISCA) $27.53 -1.64% |
| | Newspaper Round Up | | Thursday newspaper round-up: Waitrose, Greece, Brexit, energy suppliers Waitrose is planning to close six stores and remove a level of management in its supermarkets, putting 600 jobs at risk. The upmarket grocer began consulting with staff at the six stores - in Hertford, Staines, Leek, Huntingdon, Cardiff Queen Street and Palmers Green in north London - on Monday ahead of planned closures later this year. The company said it hoped to replace the Palmers Green store with a new outlet in nearby Winchmore Hill. - Guardian
McLaren Automotive is to open a 50m manufacturing plant in Sheffield that will create more than 200 jobs. The McLaren composites technology centre will build carbon-fibre chassis for future McLaren sports cars. Full production will begin at the site by 2020. - Guardian
The Greek crisis intensified on two fronts as the likely US ambassador to the EU said the eurozone might break up, and the Netherlands warned it will not take part in another bailout if the International Monetary Fund drops out of the process. Ted Malloch, President Donald Trump's pick as the US representative in Brussels, said there is a question mark over the survival of the euro. - Telegraph
British politicians have "lost touch" with voters and elitist bids to suppress the EU debate made the referendum on membership that led to the Brexit vote "inevitable", Mervyn King has said. The former governor of the Bank of England said he "resent[ed]" suggestions by friends and acquaintances that Britons who "even contemplated" voting for Brexit were "ignorant" or "racist". - Telegraph
New energy suppliers could face strict financial checks and existing companies could be subjected to stress tests, under a regulatory shake-up being considered by Ofgem. The energy watchdog is expected to announce today that it will carry out a review of the rules governing suppliers, amid growing concern that they can be set up too easily and that more could go bust after the demise of GB Energy Supply last year. - The Times
An influential consultancy that advises institutional shareholders on whether to veto company bonus schemes has triggered concern by touting a service to boards to help them to sidestep investor revolts in the coming AGM season. Institutional Shareholder Services, the world's biggest proxy voting agency, has told UK-listed company boards that it can identify potential problem pay schemes and suggest tweaks and favourable language to ensure that they win shareholder approval. - The Times | | | | To advertise in the Euro Markets Bulletin please contact [email protected] |
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