| | | | | | | "Renewable energy is about to boom in africa and we need to pay attention to it" (Forbes) - Register your interest | | |
| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks edge lower despite M&A news London stocks edged lower in early trade as investors sifted through corporate releases and considered the prospect of a US rate hike, although deal news failed to provide any sort of inspiration.
At 0830 GMT, the FTSE 100 was down 0.3% to 7,351.60.
Rebecca O'Keeffe, head of investment at stockbroker Interactive Investor, said: "Fed chair Janet Yellen confirmed that this week's US employment numbers are really the only factor that could possibly stand in the way of a March rate rise, so markets are in a wait and see mode and are likely to remain largely range bound until confirmation is delivered on Friday."
The non-farm payrolls report is due at the end of the week.
In corporate news, Standard Life and Aberdeen Asset Management surged after agreeing terms for an £11bn merger, having revealed talks over the weekend.
The deal will see Aberdeen shareholders own roughly a third of the enlarged company and Standard Life's the rest, though the two companies will initially have an equal number of seats on the board.
Budget airline easyJet flew higher after it reported an 8.2% rise in passenger numbers in February and said the load factor - which gauges how full the planes actually are - rose 1.6 percentage points to 92%.
BT Group nudged up after saying it would pay £1.18bn for the rights to broadcast all UEFA Champions League and Europa League football.
Informa was on the front foot after it posted its final results for the 12 months to 31 December, with revenue up 11% to £1.35bn during the year, and adjusted operating profit up 13.8% to £416.1m.
Ultra Electronics rallied as strong cash generation and order intake helped the company drive full-year bottom-line growth despite delays to a small number of export contracts. The defence electronics specialist saw full-year 2016 top-line growth of 8.2% to £785.58m, while underlying profits before tax increased 6.9% to £120.1m.
Challenger bank Shawbrook pushed higher after it announced late on Friday that its private equity backer Pollen Street and BC Partners had teamed up to propose taking it private less than two year after bringing it to market. Under the proposed terms, Shawbrook said its shareholders would receive 330p per ordinary share in cash plus any final dividend in respect of calendar 2016 as long as it is below 3p per share.
Acacia Mining was under the cosh after a downgrade by Jefferies, while Berendsen was hit by a downgrade from HSBC.
Overall, miners were the worst performers, likely weighed down by news over the weekend that China is now targeting growth of 6.5% this year, down a touch from last years' growth rate of 6.7% and from the government's target growth range of 6.5% to 7% in 2016. |
| Market Movers
FTSE 100 (UKX) 7,351.60 -0.31%
FTSE 250 (MCX) 18,896.31 0.07%
techMARK (TASX) 3,444.13 -0.06%
FTSE 100 - Risers
Standard Life (SL.) 410.30p 8.40%
easyJet (EZJ) 973.00p 1.73%
St James's Place (STJ) 1,095.00p 1.39%
Schroders (SDR) 3,096.00p 0.81%
Informa (INF) 678.00p 0.67%
Smurfit Kappa Group (SKG) 2,184.00p 0.65%
International Consolidated Airlines Group SA (CDI) (IAG) 547.00p 0.64%
GKN (GKN) 377.10p 0.59%
Marks & Spencer Group (MKS) 332.70p 0.51%
Standard Chartered (STAN) 749.00p 0.44%
FTSE 100 - Fallers
WPP (WPP) 1,697.00p -3.52%
Anglo American (AAL) 1,251.00p -1.69%
Fresnillo (FRES) 1,391.00p -1.56%
Glencore (GLEN) 334.35p -1.15%
Rio Tinto (RIO) 3,305.50p -1.03%
Antofagasta (ANTO) 812.50p -0.91%
Pearson (PSON) 672.50p -0.88%
Mediclinic International (MDC) 739.50p -0.87%
BHP Billiton (BLT) 1,351.00p -0.84%
Hikma Pharmaceuticals (HIK) 2,109.00p -0.80%
FTSE 250 - Risers
Aberdeen Asset Management (ADN) 308.00p 7.54%
Jupiter Fund Management (JUP) 438.40p 3.64%
Ultra Electronics Holdings (ULE) 2,039.00p 2.88%
Ashmore Group (ASHM) 370.10p 2.83%
Aldermore Group (ALD) 245.00p 2.51%
AO World (AO.) 150.60p 2.38%
Kennedy Wilson Europe Real Estate (KWE) 975.00p 1.88%
Synthomer (SYNT) 460.00p 1.59%
Man Group (EMG) 143.70p 1.55%
Allied Minds (ALM) 419.40p 1.38%
FTSE 250 - Fallers
Acacia Mining (ACA) 437.00p -5.21%
Berendsen (BRSN) 790.00p -4.07%
Wetherspoon (J.D.) (JDW) 965.00p -2.48%
Vedanta Resources (VED) 876.50p -1.68%
Vesuvius (VSVS) 532.00p -1.66%
Brown (N.) Group (BWNG) 203.30p -1.60%
esure Group (ESUR) 211.70p -1.58%
Tullow Oil (TLW) 266.70p -1.48%
Hunting (HTG) 563.50p -1.40% |
| | 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 |
| | UK Event Calendar | | Monday March 06
INTERIMS
Abcam
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Factory Orders (US) (15:00)
FINALS
Devro, Harworth Group, Informa, Irish Continental Group Units, Synthomer, Ultra Electronics Holdings
ANNUAL REPORT
Harworth Group
AGMS
Energiser Investments
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| | US Market Report | | US close: Stocks edge higher as Fed's Yellen flags March rate hike Wall Street finished the last session of the week with slight gains even as Fed chair Janet Yellen and other top US central bank officials flagged the likelihood of another interest rate hike on 15 March, when the country´s rate-setters were next due to meet.
The Dow Jones Industrial Average finished 0.01% higher at 21,005.71, the S&P 500 edged up 0.05% to 2,383.12 and the Nasdaq was 0.16% stronger to 5,870.75.
Meanwhile, oil prices gained with West Texas Intermediate up 1.12% to $53.20 per barrel.
In remarks to the Executives' Club of Chicago, Yellen said "at our meeting later this month (March), the Committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate."
According to Bloomberg data, her remarks saw Fed funds futures move to price in a 96.0% probability of a 25 basis point interest rate hike on 15 March, up from 40% the week before.
To take note of, following earlier gains the yield on both the two and 10-year US Treasury government bonds finished the day flat at 1.31% and 2.48%, respectively.
Speaking before her, both her number two Stanley Fischer and the president of the Federal Reserve bank of Richmond, Jeffrey Lacker, had already joined the chorus of Fed speakers who now appeared to back another hike.
On the data front, Markit's services purchasing managers' index dropped from January's 14-month high of 55.6 to 53.8 in February. This was the lowest reading in five months and below the long-run series average of 55.3.
The Institute for Supply Management's non-manufacturing index rose to 57.6 in February from 56.5 the previous month, above the 56.5 consensus forecast. This was the highest reading since October 2015.
Craig Erlam, senior market analyst at Oanda, said: "The week has already been dominated by the US central bank, with a large number of Fed officials making public appearances ahead of the blackout period - which starts tomorrow - and voicing their support for a rate hike very soon. Investors may have been slow on the uptake to begin with but the last week really has driven home the coordinated message that not only is a rate hike imminent but that it could come at the meeting in two weeks."
In corporate news, Snap surged by another 10.66% following its debut on the New York Stock Exchange on Thursday, when it closed at $24.53 for a 40% rise on its issue price, valuing the company at around $28.4bn.
From a sector stand-point, the best performance was seen in the following industrial groups: Airlines (1.92%), Apparel (1.60%) and Electronic Office Equipment (1.50%).
Michael Hewson, chief markets analyst at CMC Markets, said: "Snap is likely to remain in focus after a solidly positive start to its first day of trading as a public company. The level of enthusiasm for a company that remains a long way from making a profit and has little in the way of assets remains surprising, but is indicative of a market looking for new areas to make a return, with the shares rising strongly for the second day in a row. The company now has a market cap larger than eBay, what can possibly go wrong?"
Caterpillar rose 0.81% after it said on Thursday that a raid by federal authorities was likely due to a tax issue.
Big Lots was up 3.79% after the company beat profit expectations but missed on revenue.
Dow Jones - Risers
Caterpillar Inc. (CAT) $95.12 0.81%
Merck & Co. Inc. (MRK) $66.58 0.76%
Goldman Sachs Group Inc. (GS) $252.89 0.73%
JP Morgan Chase & Co. (JPM) $92.80 0.72%
Apple Inc. (AAPL) $139.78 0.59%
Walt Disney Co. (DIS) $111.24 0.59%
Unitedhealth Group Inc. (UNH) $168.18 0.53%
Microsoft Corp. (MSFT) $64.25 0.37%
Visa Inc. (V) $88.79 0.29%
Verizon Communications Inc. (VZ) $50.08 0.22%
Dow Jones - Fallers
Nike Inc. (NKE) $56.68 -1.90%
Wal-Mart Stores Inc. (WMT) $70.00 -1.03%
Exxon Mobil Corp. (XOM) $82.43 -1.01%
Procter & Gamble Co. (PG) $90.50 -0.45%
Boeing Co. (BA) $182.18 -0.44%
Travelers Company Inc. (TRV) $124.10 -0.31%
United Technologies Corp. (UTX) $112.31 -0.31%
3M Co. (MMM) $189.31 -0.31%
Cisco Systems Inc. (CSCO) $34.29 -0.29%
American Express Co. (AXP) $79.88 -0.27%
S&P 500 - Risers
Tenet Healthcare Corp. (THC) $20.99 9.78%
Micron Technology Inc. (MU) $25.57 3.52%
United Continental Holdings Inc. (UAL) $75.58 3.15%
MetLife Inc. (MET) $54.83 2.62%
American Airlines Group (AAL) $46.82 2.41%
Fastenal Co. (FAST) $51.80 2.31%
TripAdvisor Inc. (TRIP) $41.74 2.25%
Southwest Airlines Co. (LUV) $58.86 2.24%
Universal Health Services Inc. (UHS) $125.58 2.24%
Frontier Communications Co. (FTR) $2.87 2.14%
S&P 500 - Fallers
Macy's Inc. (M) $31.77 -4.36%
Costco Wholesale Corp. (COST) $170.26 -4.34%
Perrigo Company plc (PRGO) $72.76 -3.71%
Kroger Co. (KR) $29.63 -3.39%
Urban Outfitters Inc. (URBN) $26.06 -3.23%
Diamond Offshore Drilling Inc. (DO) $16.63 -2.98%
Staples Inc. (SPLS) $8.99 -2.81%
Transocean Ltd. (RIG) $13.53 -2.66%
First Solar Inc. (FSLR) $34.61 -2.56%
Whole Foods Market Inc. (WFM) $29.70 -2.50%
Nasdaq 100 - Risers
Micron Technology Inc. (MU) $25.57 3.52%
Incyte Corp. (INCY) $136.91 3.09%
American Airlines Group (AAL) $46.82 2.41%
Fastenal Co. (FAST) $51.80 2.31%
TripAdvisor Inc. (TRIP) $41.74 2.25%
CSX Corp. (CSX) $49.48 1.89%
PACCAR Inc. (PCAR) $68.63 1.86%
Western Digital Corp. (WDC) $77.54 1.65%
T-Mobile Us, Inc. (TMUS) $63.56 1.63%
Alexion Pharmaceuticals Inc. (ALXN) $134.99 1.54%
Nasdaq 100 - Fallers
Costco Wholesale Corp. (COST) $170.26 -4.34%
Autodesk Inc. (ADSK) $85.32 -2.29%
Discovery Communications Inc. Class A (DISCA) $27.89 -2.11%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $50.11 -1.71%
Discovery Communications Inc. Class C (DISCK) $27.20 -1.66%
Ross Stores Inc. (ROST) $67.07 -1.09%
Xilinx Inc. (XLNX) $58.74 -1.03%
Walgreens Boots Alliance, Inc. (WBA) $85.89 -0.98%
Marriott International - Class A (MAR) $86.79 -0.83% |
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| | Newspaper Round Up | | Monday newspaper round-up: China GDP, SL-Aberdeen cuts, ITV, Budget China has cut its growth target to around 6.5 percent for 2017, as Beijing focuses on stability ahead of a sensitive political gathering later this year. The Chinese economy slowed to a growth rate of 6.7 per cent last year, the lowest since 1990 as Beijing acts to transform its export-driven economy to a more stable, consumer-led model. - Telegraph
As many as 1,000 jobs could be at risk as Standard Life and Aberdeen Asset Management pursue their £11 billion all-share mega-merger, prompting the Scottish government and local MPs to demand urgent clarity from both sides. With both companies running multiple offices in Aberdeen, Edinburgh and London, staff holding duplicate jobs in IT, marketing and administration are likely to be among the first to go as informed sources suggest that the merged group will target cost savings of at least £200 million. - The Times
ITV has scored a court victory over services that retransmit its broadcasts without permission, setting the scene for a battle this summer with its biggest shareholder, Liberty Global, the owner of Virgin Media. The broadcaster took TVCatchup.com to the European Court of Justice to stop it offering ITV's channels for free streaming online. Channel 4 and Channel 5 also backed the challenge. - Telegraph
Philip Hammond is expected to use Wednesday's budget to announce that tax revenues will be used to build up a reserve to deal with uncertainties arising from Brexit, rather than increase spending on the health service. The chancellor has indicated that some extra money will be allocated for social care. The shadow chancellor, John McDonnell, has warned that £12bn should be immediately redirected to the NHS, warning that "the crisis is happening now". - Guardian
More than 600 NHS quango chiefs are now on six-figure salaries, with a doubling in the number earning more than the Prime Minister, new figures show. Many of the highest earners have made repeated demands on Government to increase NHS funding as it battles against its worst financial deficit in history. - Telegraph
Germany's largest lender has announced plans to raise €8 billion through a share sale and selling part of its asset management business. Deutsche Bank's fundraising plans come less than two years into a restructuring by John Cryan, the lender's chief executive who had said that he wanted to avoid selling shares in a fundraising that risked diluting existing shareholders. - The Times
Two financial watchdogs face the threat of a legal challenge over their handling of payment protection insurance amid claims that thousands of people are missing out on redress after the scandal. Claims management company We Fight Any Claim is preparing to ask the High Court for leave to bring judicial reviews against the Financial Conduct Authority and the Financial Ombudsman. - The Times
A former top City fund manager with a reputation for unearthing accounting problems at listed companies has criticised the regulator for failing to intervene in the bookkeeping practices at Mitie. In an outspoken opinion piece, Tim Steer claims that the Financial Reporting Council was aware of potentially "significant problems" with accounting at the troubled contractor as far back as May 2015 but failed to act. - The Times |
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