| | | | | | | "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 flat as investors eye BoE rate announcement London stocks were steady in early trade as investors refrained from making any bold moves ahead of the Bank of England's latest policy announcement and quarterly inflation report, and the release of some key manufacturing data.
At 0830 BST, the FTSE 100 was flat at 7,383.30, while the pound was up 0.1% versus the dollar at 1.2945.
Manufacturing and industrial production figures are at 0930 BST, along with the goods trade balance. The BoE's inflation report and policy announcement are at 1200 BST.
FXTM chief market strategist Hussein Sayed said although market participants are confident that interest rates will be left on hold, there seems to be divided opinion on what messages the market will receive due to the mixed economic data releases in the past couple of weeks.
"On the positive side, unemployment is at its lowest levels in twelve years, economic activity is improving based on PMI's, and inflationary pressures are building with consumer prices above 2%," he said.
"On the downside, GDP came well below expectations in Q1, consumers are hesitant to spend, wage growth is not keeping pace with inflation, and housing activity is heading south. The central bank will also take into consideration the political hurdles of the snap general election on 8 June and UK's negotiations with the EU."
"Overall, I think there's little reason for the BOE to shift expectations one way or the other. The base case scenario is to wait and see until we get more clarity on both the economic and political outlook."
Investors were digesting the latest survey from the Royal Institution of Chartered Surveyors, with the main house price index holding steady at +22 in April from March, which was the lowest reading since September. Economists had expected a drop to +20.
Meanwhile, RICS's measure of how prices will perform in the next three months fell to +4 from +11, marking the softest reading since July 2016 and suggesting contributors anticipate a slower rate of house price inflation ahead.
In corporate news, BT Group was in the red as it posted a big drop in annual profits, as expected, an announced it was stepping up its cost cutting programme by axing 4,000 jobs, while also revealing it was trimming executive pay after a challenging year.
Hikma Pharmaceuticals and Vectura tumbled after US regulators decided not to approve their generic copy of GlaxoSmithKline's lung drug Advair due to "major" issues with its application.
Coca-Cola HBC edged lower despite reporting a rise in net sales revenue for the first quarter.
Paper and packing group Mondi was under pressure after it said first-quarter underlying operating profit fell 6% to €252m as strong sales volume growth was more than offset by a significantly lower forestry fair value gain, inflationary cost pressures and lower average selling prices.
SuperGroup also retreated despite reporting a rise in full-year sales and revenues thanks to the weaker pound, while Rathbone Brothers ticked just a touch lower as it said total funds under management rose 4.7% in the first quarter.
Hill & Smith fell despite saying that trading from 1 January to the end of April was in line with its expectations, with revenue up 7% on an organic basis, while insurer Beazley lost ground as it reported a 2% drop in gross premium written in the three months to the end of March.
Centrica, Sainsbury's, Admiral, Merlin, BP, Carillion, Saga, Ibstock and Aberdeen Asset Management were all weaker as their stock went ex-dividend.
On the upside, interdealer broker TP ICAP advanced as it posted a rise in revenue for the first four months of the year, while challenger bank Aldermore nudged up after saying first-quarter lending grew 6% compared to the previous quarter.
SIG was a little firmer as the building products distributor posted a rise in revenue for the period from 1 January to the end of April but said it expects its first half performance to be lower than that achieved in the same period a year ago. |
| Market Movers
FTSE 100 (UKX) 7,383.30 -0.03%
FTSE 250 (MCX) 19,847.64 -0.15%
techMARK (TASX) 3,545.56 -0.27%
FTSE 100 - Risers
Antofagasta (ANTO) 775.50p 1.97%
Rio Tinto (RIO) 3,021.50p 1.46%
Standard Chartered (STAN) 743.00p 1.17%
CRH (CRH) 2,914.00p 1.15%
Anglo American (AAL) 1,052.00p 1.01%
Fresnillo (FRES) 1,444.00p 0.91%
Convatec Group (CTEC) 295.10p 0.79%
Burberry Group (BRBY) 1,637.00p 0.74%
BHP Billiton (BLT) 1,172.50p 0.73%
HSBC Holdings (HSBA) 675.20p 0.64%
FTSE 100 - Fallers
Hikma Pharmaceuticals (HIK) 1,802.00p -7.87%
Centrica (CNA) 191.60p -5.71%
Mondi (MNDI) 1,955.00p -3.88%
Sainsbury (J) (SBRY) 264.20p -2.76%
Admiral Group (ADM) 2,053.00p -2.52%
Merlin Entertainments (MERL) 499.70p -1.34%
BP (BP.) 455.30p -1.14%
SSE (SSE) 1,449.00p -1.02%
Smurfit Kappa Group (SKG) 2,172.00p -0.73%
Informa (INF) 644.00p -0.69%
FTSE 250 - Risers
Ascential (ASCL) 344.10p 2.14%
Kaz Minerals (KAZ) 450.00p 2.02%
Vesuvius (VSVS) 602.00p 1.86%
Vedanta Resources (VED) 637.00p 1.76%
Mitchells & Butlers (MAB) 279.40p 1.64%
Tritax Big Box Reit (BBOX) 144.50p 1.47%
Electrocomponents (ECM) 542.50p 1.40%
Ferrexpo (FXPO) 165.60p 1.28%
Petrofac Ltd. (PFC) 822.50p 1.11%
Renishaw (RSW) 3,530.00p 1.09%
FTSE 250 - Fallers
Vectura Group (VEC) 131.20p -9.45%
Carillion (CLLN) 210.60p -4.96%
TalkTalk Telecom Group (TALK) 162.80p -3.55%
Hill & Smith Holdings (HILS) 1,342.00p -3.24%
Supergroup (SGP) 1,599.00p -3.15%
Saga (SAGA) 206.50p -3.05%
Ibstock (IBST) 228.00p -2.52%
Aberdeen Asset Management (ADN) 292.20p -2.40%
Hiscox Limited (DI) (HSX) 1,181.00p -2.15% |
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| | Thursday 11 May
INTERIMS
On The Beach Group
INTERIM DIVIDEND PAYMENT DATE
Photo-Me International, SCS Group
INTERIM EX-DIVIDEND DATE
Aberdeen Asset Management, Blancco Technology Group, Focusrite, Lok'n Store Group, Sage Group
QUARTERLY EX-DIVIDEND DATE
BP, Ediston Property Investment Company, Honeycomb Investment Trust, Picton Property Income Ltd
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
Producer Price Index (US) (13:30)
Retail Sales (US) (13:30)
FINALS
3i Infrastructure, BT Group, Stobart Group Ltd.
SPECIAL DIVIDEND PAYMENT DATE
888 Holdings
SPECIAL EX-DIVIDEND DATE
Admiral Group, Fidessa Group, ICG-Longbow Senior Secured UK Property Debt Investments Ltd
EGMS
Industrial Mlulti Propety Trust
AGMS
Communisis, Convatec Group , Direct Line Insurance Group, Dunedin Enterprise Investment Trust, Hochschild Mining, John Laing Group , Keller Group, Lloyds Banking Group, Melrose Industries, Mondi, Petrofac Ltd., Phoenix Group Holdings (DI), Plant Health Care, Rathbone Brothers, Robinson, Royal Bank of Scotland Group, Serco Group, SIG, Starwood European Real Estate Finance Ltd, TechFinancials (DI), Thalassa Holdings Ltd. (DI), Unite Group
TRADING ANNOUNCEMENTS
Coca-Cola HBC AG (CDI), Hansard Global, Mondi
UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)
BoE Interest Rate Decision (12:00)
Industrial Production (09:30)
Manufacturing Production (09:30)
FINAL DIVIDEND PAYMENT DATE
888 Holdings, Dairy Farm International Holdings Ltd. (Singapore), Hongkong Land Holding Ltd. (Sing.Reg), Jardine Matheson Holdings Ltd (Singapore Reg), Jardine Strategic Holdings Ltd. (Singapore), Mandarin Oriental International (Singapore), Property Franchise Group
FINAL EX-DIVIDEND DATE
AA , Admiral Group, Barr (A.G.), BBGI SICAV S.A. (DI), Carillion, Centaur Media, Central Asia Metals, Centrica, Computacenter, Epwin Group, Fidessa Group, Frenkel Topping Group, Hiscox Limited (DI), Ibstock , Integrated Diagnostics Holdings, Macfarlane Group, Merlin Entertainments , NMC Health, North Midland Construction, Ocean Wilsons Holdings Ltd., Quixant, Saga , Sainsbury (J), SDL, Share plc, SQS Software Quality Systems AG, Trinity Mirror, Weiss Korea Opportunity Fund Ltd
Q1
Coca-Cola HBC AG (CDI), Sampo OYJ |
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| | Europe Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: All eyes on BoE rate decision, MPC vote count European stocks are trading on a mixed note, with investors expected to focus on an interest rate decision from the Bank of England at noon in an otherwise light day in terms of economic events.
As of 0905 BST the benchmark Stoxx 600 was down by 0.26% to 395.45, alongside a fall of 0.07% in Germany's Dax to 12,747.18 although Milan's FTSE Mibtel was higher by 0.19% at 21,594.24.
In parallel, front mont Brent crude futures were higher by 0.91% to $50.69 per barrel on the ICE while euro/dollar is gaining 0.19% to 1.0888.
The BoE's Monetary Policy Committee was expected by analysts to keep all its key policy levers at their same setting but a recent speech from Michael Saunders had led some observers to speculate whether he might not join Kristin Forbes in voting for a rise in Bank Rate.
Forbes was scheduled to exit the MPC on 30 June.
"Earlier this year the Bank of England upgraded its growth forecast for 2017 to 2%, and in the process brought it almost back to where it was just prior to last year's June Brexit vote. For that reason alone UK policymakers would do well to leave well alone when they update the markets on the outlook for the UK economy later today, given that in the last two years GDP in Q1 has started on a weak note only to pick up later in the year.
"As it is the Bank's forecasting ability has taking an absolute hammering in the last 12 months, having been too pessimistic in the lead-up to, and in the aftermath of last year's vote. The one thing they have got correct is the fact that prices would go up, as the effects of a weaker pound exacerbated an effect which was already starting to push prices up across the world as commodity prices rebounded," said Michael Hewson, chief market analyst at CMC Markets UK.
First quarter net profits at Unicredit beat analysts' forecasts.
Adidas announced it was to sell its TaylorMade unit to buyout group KPS Capital Partners for $425.0m.
Shares in Deutsche Post fell after the German postal and logistics firm confirmed its 2017 profit target, |
| | US Market Report | | US close: Disney dents Dow, but Nvidia invigorates Nasdaq Wall Street waxed and waned on Wednesday, with the Dow Jones dipping but the S&P 500 and Nasdaq inching higher after investors tried to make sense of President Trump's firing of FBI director James Comey amid another rebound for oil prices.
Alongside a rise in the dollar index, the Dow closed down almost 33 points to 20,943.11 due to big falls from Walt Disney and Boeing.
Even though the House of Mouse sketched out better earnings than expected after hours on Tuesday, the stock dropped on concerns about sports broadcasting arm ESPN, where subscriber numbers declined and programming costs climbed to dent profits at the longtime cash cow.
This overshadowed the success of the Beauty and the Beast live action remake, which has become the country's highest-grossing PG-rated movie of all time, and a new theme park in Shanghai that has approached the 10m-visitor mark faster forecast.
Boeing shares were hit as the aeroplane maker temporarily suspended flights of its 737 Max jetliners due to an engine problem that comes not long before its first commercial deliveries are due later this month.
The S&P rose almost nine points to 6,129.14 and the Nasdaq nearly three points to 2,399.63, with both led by barnstorming performances from tech groups Nvidia Corp and Electronic Arts Inc, up almost 18% and 13% respectively after each issued strong first quarter results.
Nvidia, a computer games graphics specialist that is emerging as a key datacentre provider in the artificial intelligence space, printed revenue of $1.94bn that were up 48% and led to earnings per share more than doubling to $0.79, which trod all over analysts forecasts of $1.9bn and $0.66.
Chief executive office Jensen Huang gave guidance that the second quarter was likely to see similar levels of revenue as he said the AI "revolution" continued to accelerate.
"Our Datacenter GPU computing business nearly tripled from last year, as more of the world's computer scientists engage deep learning. One industry after another is awakening to the power of GPU deep learning and AI, the most important technology force of our time," he said.
Games maker Electronic Arts rose to a new all-time high as revenue hopped nearly 17% to $1.53bn and earnings per share of $0.85 were well ahead of the Wall Street consensus of US$0.75.
Coming to terms with Comey
Earlier in the session all three indices had stumbled lower in the aftermath of the sacking of the FBI chief Comey.
Spreadex analyst Connor Campbell said: "While Comey's shock dismissal doesn't technically have any immediate consequences for the market, it is another reminder of the unpredictable and irresponsible nature of Trump's governance."
In an unexpected announcement late on Tuesday, the White House confirmed that Comey had been removed from his position due, apparently, to his handling of the inquiry into Hillary Clinton's email server, though Comey was also leading the bureau's investigation into whether members of Trump's campaign team colluded with Russia in the run up to last year's election.
News that US oil stockpiles dropped sharply last week sent front month West Texas Intermediate crude oil futures higher by more than 3% to $47.34 a barrel on the NYMEX.
The Energy Information Administration reported a 5.2m barrel drop in US commercial crude oil inventories for the week ending on 5 May.
Acting as a backdrop, overnight Robert Kaplan, the president of the Federal Reserve bank of Dallas, told an audience that three interest rate hikes in 2017 continued to be his baseline scenario.
His remarks weighed on longer-term US government yields, with those on the benchmark 10-year US Treasury note slipping by two basis points to 2.38%.
Dow Jones - Risers
Chevron Corp. (CVX) $106.50 1.35%
Caterpillar Inc. (CAT) $100.36 1.08%
Merck & Co. Inc. (MRK) $63.93 1.03%
JP Morgan Chase & Co. (JPM) $87.43 0.78%
Travelers Company Inc. (TRV) $120.69 0.62%
Goldman Sachs Group Inc. (GS) $224.88 0.50%
Microsoft Corp. (MSFT) $69.31 0.39%
Home Depot Inc. (HD) $158.13 0.29%
Visa Inc. (V) $92.30 0.27%
American Express Co. (AXP) $78.62 0.27%
Dow Jones - Fallers
Walt Disney Co. (DIS) $109.66 -2.15%
Boeing Co. (BA) $183.18 -2.00%
Pfizer Inc. (PFE) $33.03 -1.05%
Intel Corp. (INTC) $36.01 -0.99%
General Electric Co. (GE) $28.70 -0.80%
3M Co. (MMM) $196.64 -0.67%
Nike Inc. (NKE) $54.54 -0.60%
International Business Machines Corp. (IBM) $151.18 -0.57%
Exxon Mobil Corp. (XOM) $81.91 -0.49%
Apple Inc. (AAPL) $153.26 -0.47%
S&P 500 - Risers
Nvidia Corp. (NVDA) $121.29 17.83%
Electronic Arts Inc. (EA) $108.16 12.65%
Chesapeake Energy Corp. (CHK) $5.75 6.48%
Cabot Oil & Gas Corp. (COG) $24.88 4.45%
Tenet Healthcare Corp. (THC) $18.16 3.77%
Newfield Exploration Co (NFX) $35.29 3.61%
Vulcan Materials Co. (VMC) $130.63 3.58%
Kroger Co. (KR) $30.04 3.41%
Eog Resources Inc. (EOG) $94.56 3.16%
Hess Corp. (HES) $49.23 2.93%
S&P 500 - Fallers
Frontier Communications Co. (FTR) $1.32 -7.69%
Priceline Group Inc (PCLN) $1,824.77 -4.52%
Allergan plc (AGN) $229.72 -3.69%
Viacom Inc. Class B (VIAB) $34.95 -3.53%
TEGNA Inc (TGNA) $23.31 -3.08%
News Corp Class A (NWSA) $12.71 -3.05%
Alexion Pharmaceuticals Inc. (ALXN) $120.95 -3.01%
Signet Jewelers Ltd (SIG) $63.01 -2.94%
News Corp Class B (NWS) $13.05 -2.61%
Pentair plc (PNR) $65.99 -2.58%
Nasdaq 100 - Risers
Nvidia Corp. (NVDA) $121.29 17.83%
Electronic Arts Inc. (EA) $108.16 12.65%
Microchip Technology Inc. (MCHP) $78.51 2.69%
NetEase Inc. Ads (NTES) $279.05 2.63%
Activision Blizzard Inc. (ATVI) $55.99 2.51%
Symantec Corp. (SYMC) $33.14 2.38%
JD.com, Inc. (JD) $39.32 2.05%
Applied Materials Inc. (AMAT) $42.87 1.97%
Netflix Inc. (NFLX) $160.28 1.79%
Micron Technology Inc. (MU) $29.32 1.77%
Nasdaq 100 - Fallers
Priceline Group Inc (PCLN) $1,824.77 -4.52%
Viacom Inc. Class B (VIAB) $34.95 -3.53%
Norwegian Cruise Line Holdings Ltd. - Ordinary Shares (NCLH) $54.07 -3.07%
Alexion Pharmaceuticals Inc. (ALXN) $120.95 -3.01%
Liberty Global plc Series C (LBTYK) $29.67 -2.27%
Discovery Communications Inc. Class C (DISCK) $25.45 -2.12%
Liberty Global Plc Lilac Class C (LILAK) $21.07 -2.09%
Discovery Communications Inc. Class A (DISCA) $26.11 -2.06%
Liberty Global plc Series A (LBTYA) $30.22 -2.04% |
| | Market Analysis 11/05/2017 Today’s highlights: Gains seen around the world - Nasdaq breaks another record: Despite the other main indices on Wall Street zigzagging this week, the Nasdaq has shown steady gains, notching another all-time high when markets closed yesterday. The S&P 500 also closed in the green, while the Dow Jones registered losses.
- Snap Inc. drops 25%: The social network shared its first earnings report since its IPO, showing a loss of $2.2 billion, resulting in its share dropping by 25% in after-hour trading.
- Oil prices jump 3%: Following a statement by Saudi Arabia saying it will cut production further, and a significant weekly drop in US stockpiles, the black gold had its highest single-day price increase in a year.
- British Pound could be volatile today: The Bank of England will be sharing its Inflation Report, Monetary Policy Summary, and Official Bank Rate at...
Read More... |
| | Newspaper Round Up | | Thursday newspaper round-up: RICS, Sky-21st Century Fox, AkzoNobel The UK housing market is continuing to slow down, with falling property sales, "stagnant" buyer demand and general election uncertainty all adding up to one of the most downbeat reports issued by surveyors since the financial crash. In its latest monthly snapshot of the market, the Royal Institution of Chartered Surveyors (Rics) said momentum was "continuing to ebb," with no sign of change in the near future. - Guardian
Dramatic increases in the minimum wage planned by Labour and the Conservatives after the general election will put the jobs of low income workers in danger, a leading tax and spending thinktank has warned. The Institute for Fiscal Studies said accelerating the pace of rises in the minimum wage and the "national living wage" (NLW) for the rest of the decade could price workers out of a job, with young people the worst affected. - Guardian
Murdoch-owned 21st Century Fox said it is confident that its proposed £11.7bn merger with Sky will receive approval by the end of 2017. Fox, which is controlled by the Murdoch empire, already owns 39pc of Sky, but is hoping to gain full control. The deal got the green light from the European Commission last month, with the anti-trust watchdog saying the transaction would raise no competition concerns in Europe. - Telegraph
Paris-based investment firm AEW is to float a new UK real estate business on the London Stock Exchange, with plans to raise up to £150m. The company will release a notice of its intention to list its UK Long Lease Real Estate Investment Trust (REIT) on Thursday morning, selling shares for £1 each. - Telegraph
Another top shareholder in Akzo Nobel has launched a damning assault on the Dulux paints owner for its refusal to support a €27 billion takeover of the group. In the most excoriating of attacks in a string of increasingly personal criticisms of Akzo Nobel's chairman and chief executive by leading shareholders, Tweedy, Browne, a US investor, has increased the onslaught over three refusals by the company to bow to a takeover by American arch-rival PPG. - The Times | | | | To advertise in the Euro Markets Bulletin please contact [email protected] |
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