Market News - Thursday 15th November 2012

The sell off continues with both the UK and US benchmark indices closing below their 200 day moving average as investors move away from riskier assets and place their investments in money market funds and bonds. The macro economic situation continues to be improving though, with good employment numbers from the UK yesterday and this morning both French and German GDP, which combined account for half of the EU economy, beat expectations at +0.2%. However, it is the political factors of the US ‘Fiscal Cliff’ and the Eurozone debt crisis that are dominant and will continue to be for the foreseeable future, and when markets and politics mix, uncertainty and volatility usually prevail.

Corporate News

• BP has confirmed it is "advanced discussions" with the DoJ and the SEC, and is expected to pay a record U.S. criminal penalty and plead guilty to criminal misconduct in the 2010 Deepwater Horizon disaster -0.8%

• Centrica said it expects to deliver year on year earnings growth in 2012, in line with market expectations as its residential division saw an average 9%  rise in consumption per household but business demand was weaker as firms looked to cut costs -0.4%

• National Grid reported a 21% rise in H1 profit to £1.15B and estimated that the costs associated with hurricane Sandy would be £100M -1.4%

• Antofagasta reported earnings up 13% for the first 9 months of the year -0.3%

• Amlin reported its sales rose 11% in the first 10 months of 2012 and was "well placed" to absorb claims from Hurricane Sandy, but did not provide an estimate of how much it will have to pay out. +0.4%

• Rexam said that the group's overall performance is broadly in line with expectations and beverage cans volumes are up 6% in Q3 -1.6%

• Britvic raised to Buy at Societe Generale UNCH

• Balfour Beatty raised To Buy From Add At Numis +1.1%

• AG Barr Raised To Overweight From Equalweight At Barclays -0.6%

Economic Data Releases

• 0930 United Kingdom-Retail sales (Oct)

• 1000 Euro zone Q3 GDP

• 1330 United States-CPI and real earnings

• 1500 United States-Philly Fed New - Philly Fed business indx

Market News - Wednesday 14th November 2012

Yesterday was a rollercoaster ride for the FTSE 100, bouncing back in the afternoon from a 2 month low in the morning on hopes that Spain may finally request a bailout and some strong buying on Wall Street. However, after Europe had closed the bears returned in the States and the Dow closed down 59 points as concerns over Washington’s ability to form a  political consensus before the enforced tax rises and spending cuts of the ‘Fiscal Cliff’ simmered back to the surface. This morning sees the release of the UK unemployment rate which is expected to remain at 7.9%, which although is high and the same as the USA, when compared to Spain 25%, Portugal 16% and Italy at 11% puts the problems in Southern Europe into perspective.

Corporate News

• Sainsbury’s beat forecasts with a 5.4% rise in H1 profits, helped by the development of its online and convenience stores business. It also raised its H1 dividend 6.7% to 4.8p -1.2%

• Amec said that it was on track to deliver double-digit underlying revenue growth for the full year with an order book of £3.6B up 0.3B from 2011 +1.8%

• Tullow Oil reported that it was on track to meet its annual production targets and that its Jubilee field production capacity has been enhanced and is expected to exceed 90,000 bopd -0.7%

• Carphone Warehouse posted a 1.6% rise in underlying sales at its core European unit and Group pre tax profit is up 30% to 8.6m +4.7%

• ICAP reported a 25% drop in H1 profits as trading volumes fell significantly across nearly all asset classes as Investment banks cut back their trading activity -7.7%

• Fidessa Raised To Buy From Hold at Jefferies +2.8%

• Tui Travel Raised To Overweight From Neutral at JP Morgan UNCH

• Weir Group Raised To Neutral From Reduce at Nomura +1.3%

Economic Data Releases

• 0930 United Kingdom-Unemployment (Sep)

• 1330 United States-Retail Sales

• 1500 United States-Business inventories

Market News - Tuesday 13th November 2012

 

After a flat day on the markets yesterday the declines have continued this morning as miners and Vodafone drag the FTSE 100 lower with falling commodity prices and poor corporate earnings respectively. The meeting between the IMF and EU to discuss Greece's next tranche of bailout money ended without a decision apart from to delay for another week, further adding to uncertainty in the market.

 

Corporate News

• Vodafone has written down the value of its Spanish and Italian businesses by £5.9B and announced it has reduced its full year outlook as it reported a fall in its organic service revenue -3.1%
 
• ITV reported a 4% rise in total revenue to £1.57B and flat net advertising revenues which has outperformed the wider market. Its cost saving plans of £30M in 2012 is also ahead of target. +5.4%
 
• Capita said it was on track for 3% organic growth in 2012 and had acquired 14 companies so far this year. It is also confident the outsourcing market in the UK will remain buoyant and anticipates further strong progress in 2013 +0.2%
 
• Afren reported a Q3 profit of £411M and was on track for its 2012 production guidance -1.65%
 
• Synergy Health reported a 10.5% rises in H1 revenue which is slightly ahead of the boards expectations -0.9%
 
• De La Rue issued a profits warning after a few key orders were pushed back beyond the reporting period -6.6%
 
• Aveva cut to Sell From Neutral at UBS -0.4%

Economic Data Releases

• 0930 UK CPI and RPI
 
• 1000 GER ZEW Survey

Market News - Monday 12th November 2012

It’s a new week but it’s the same stories that are making the headlines. Greece has managed to pass its 2013 budget to help try and secure the next tranche of funds from its International lenders, and the ‘Fiscal Cliff’ in the United States continues to keep the bulls out of the market. The main concern is that the sell off seen last week may be the start of another wave of deleveraging as Americans off load assets before anticipated capital gains tax increases are announced to try and fill the multi trillion dollar hole in their finances.

Corporate News

• Cobham said it expected its revenues to fall by "low-to-mid single digits" in 2013 due to increasing pressures on the defence budgets of the United States -5.5%

• Wincanton reported it had swung back into the black with H1 pre tax profit of £13M +4%

• Taylor Wimpey reported sales rates in H2 are similar to 2011 and are confident of delivering full year performance in line with expectations +0.7%

• Cape warned that its full-year operating profit would be significantly below expectations, and that its Finance Director Richard Bingham would leave the company with immediate effect -31%

• Ryanair cut to Neutral at Citi -0.1%

• Shanks cut to Hold at Jefferies -1.4%

 

Economic Data Releases

• No Data Releases

Market News - Monday 5th November 2012

 

Not even a better than expected US employment report on Friday could stop the Dow Jones falling 139 points on as uncertainty about the winner of the presidential election tomorrow returns. From a purely economic perspective, the thought of Mitt Romney getting into office and replacing Ben Bernanke at the Federal Reserve, potentially bringing an end to unlimited QE3, is the major talking point. As a result the FTSE 100 has started the week lower but remains in the middle of its range that it has now been stuck in for the last 3 months.

Corporate News

• Lloyds Banking Group hopes to raise 1 billion pounds through the sale of its 60 percent stake in wealth management firm St James's Place according to the  Sunday Times -1.1%

• Weir Group reported  it is on track to deliver full-year profit in line with expectations although conditions remained mixed across the group's end markets, impacted by increasing global macro-economic uncertainty +4.5%

• Inmarsat reported  Q3 revenues of $322 million generating earnings before interest, taxes depreciation and amortisation of $161 million which was in line with expectations -2.2%

• Hiscox said it was well-placed to absorb any financial hit from Sandy thanks to a comparative absence of catastrophe claims during the first nine months of the year -0.3%

• Telecity Group The web hosting group said trading remained robust across its markets and the full-year outlook remains in line with expectations -3.7%

• Millennium & Copthorne Cut to Neutral at Credit Suisse -1.7%

• William Hill Cut To Neutral at UBS -2.2%

 

Economic Data Releases

• 1500 United States-ISM - non man

Market News - Friday 2nd November 2012

 

As earning season continues the news seems to be as mixed as ever. Yesterday however was a day for the Bulls, with the FTSE 100 rallying 79 points on the back of strong earnings from BskyB and BT Group backed up with strong economic data from the states in the afternoon. This morning the European markets are clinging onto their gains with all eyes looking towards 1230 when the US Non-farm payroll numbers are released. After a strong number last month analysts are expecting another 125K jobs to have been created but a rise in the unemployment rate to 7.9% is also anticipated, which does not bode well for Obama on Tuesday.

Corporate News

• RBS reported an operating profit of £1B but an overall loss of £1.38B as it put aside another £400M for PPI and re-valued its debt down by £1.5B +1%

• Admiral Group saw an 8% growth in Vehicle count and said UK claims trends continue to be encouraging and was on track to meet 2012 expectations -2.45%

• Direct Line Group, spun off by RBS last month, reported a 4% fall in operating profit in Q3 but said it was halfway towards achieving its £100M cost cutting target UNCH

• Millennium & Copthorne Hotels reported a 21% fall in revenue and a 45% fall in profit in Q3 -1.8%

• Meggitt the aircraft parts supplier, forecast mid-single digit revenue growth in 2013 after reporting solid Q3 trading due to strong growth in its energy business -0.7%

• Morrison Cut To Underweight at Morgan Stanley -0.9%

• Micro Focus Cut To Neutral at UBS -0.3%

Economic Data Releases

• 1230 United States-Employment Situation - Non-farm payrolls

• 1400 United States-Factory Orders - Durable goods

Market News - Thursday 1st November 2012

 

Positive Chinese manufacturing data gave Asian markets a boost overnight as concerns of a hard landing in China subsided. Over here the FTSE 100 held steady this morning with some robust corporate earnings after yesterdays sell off as volume returned to the market. With a slew of economic data out later today from the US providing some indicators for tomorrows Non-Farm Payrolls number, and with the US election next week, it looks set to be a volatile few sessions due to the large degree of unknown factors just around the corner.

 

Corporate News

 

• Lloyds Banking Group reported a another £1B provision for mis-sold PPI claims taking the total to £5.3B but its provision for bad debts for the year was down 1.2B to 6B +3.6%

• Royal Dutch Shell suffered a 15%  fall in current cost of supply profits in the third quarter as the impact of lower crude prices and charges outweighed stronger margins in refining +1.2%

• Legal and General reported a rise in Q3 sales by nearly a third, boosted by strong demand for protection policies as more companies and individuals seek cover against financial risk 1.8%

• BT Group reported a 9% fall in revenue but a 7% rise in profits as it cut costs by 10% +5%

• BSkyB reported Q1 profits up 16% as it raised prices and cross sold additional products to their subscribers. Growth was still positive as it added a net 20K TV customers in the quarter +3.8%

 

Economic Data Releases

• 1215 United States-ADP - ADP National Employment

• 1230 United States-Jobless claims - Initial Claims

• 1400 United States-Consumer confidence - Consumer confidence