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

Market News - Wednesday 31st October 2012

 

Volumes may have been low yesterday but the FTSE 100 rallied almost 1% on the back of strong corporate earnings especially from BP that also hiked its dividend. The accent continues this morning and with markets coming back on line in the states this afternoon for their first session since Friday, if it can hold these levels on normal volumes the signs are encouraging for a push back to the top of the range.

Corporate News

• Barclays had mixed news as it reported a Q3 operating profit of £1.73 billion, up from 1.34 billion a year ago, thanks to strong profits from investment banking. However, including the already announced £700Million charge for PPI miss selling and a £1.1 billion loss on its own debt  pushed it into a £47 Million loss  -3.3%

• Next reported Q3 sales up 2.7% boosted by its next directory division which saw 5.6% growth and raised its full year guidance marginally -1.25%

• Antofagasta reported Q3 copper output rose almost 9 percent year-on-year +0.7%

• Standard Life reported group assets under administration of £211.9bn and its CEO states that it has performed well and stays confident on its outlook +1%

• St James Place Capital reported total funds under management grew 6 percent to 32.8 billion pounds in Q3, having risen 15 percent since the beginning of 2012 +4.6%

• Volex raised to Buy at Investec -0.8%

Economic Data Releases

• 1000 Euro zone Sept Unemployment - Unemployment rate

• 1345 United States-Chicago PMI - Chicago PMI

• 1430 United States-EIA OIL STOCKS - EIA weekly crude stocks

Market News - Tuesday 30th October 2012

 

After a very quiet day yesterday the European markets have come out this morning with a spring in their step on the back of some strong corporate earnings, including from the banking sector. With the New York exchanges closed for a second day in the aftermath of Hurricane Sandy, the activity could be short lived but with a week full of corporate earnings and the US Non Farm Payroll numbers on Friday, traders will be looking for the market to get out of the range and find some direction.

Corporate News

• Standard Chartered reported a strong performance in Q3, but stays cautious on the macro economic outlook UNCH

• BP reported a Q3 pre-tax profit of $5.43bn up from $5.04bn and raised its dividend by 12.5% +3.5%

• Stagecoach reported that overall profitability has remained good, and there has been no significant change to their expected Group profit -0.2%

• Wolfson Microelectronics reported an increase in Q3 revenue of 32% and swung into a profit from a loss in the previous quarter. -1%

• TT Electronics said Global market conditions have continued to deteriorate in recent weeks and there has been a softening of order intake and deferral of call-offs by some key customers +0.5%

• Marks and Spencer raised to Buy at Societe Generale -0.1%

Economic Data Releases

• 1000 Euro zone October business confidence and economic sentiment

• 1300 United States-Shiller Home Prices

Market News - Monday 29th October 2012

 

With New York City on shut down today closing most trading floors including the NYSE and NASDAQ due to the impending landfall of Hurricane Sandy, combined with very little economic and corporate data, points to a very quiet and low volume day indeed. One sector to keep an eye on though with a potential natural disaster on the way is insurance. One UK insurer Amlin, has already confirmed it has exposure to the North Eastern seaboard where the hurricane is expected to hit and is down 2.5 percent in early trading.

 

Corporate News

• Pearson, the British Publishing group announced that it is to merge its publishing division Penguin, with Random House of Bertelsmann in an attempt to compete with Amazon +0.1%

• F&C Asset Management reported a £3.7 Billion fall in assets under management in Q3 -1.3%

• Daily Mail and General Trust confirmed that it is in talks to sell its regional newspaper division +2.9%

• Sage Raised to Buy at Citigroup +1.2%

• Soco International Raised to Outperform at RBC Capital +1.7%

 

Economic Data Releases

• 0930 United Kingdom-Consumer Credit and M4 (Sep) - Mortgage approvals

• 1230 United States-Personal Income - Core PCE price index mm

Market News - Friday 26th October 2012

 

Thursday saw the release of strong economic data on both sides of the Atlantic. UK GDP expanded 1% for the third quarter lifting the British economy out of recession, and in the States durable goods orders were up 9.9%. However, the FTSE 100 finished flat and the and the S&P 500 faired only slight better as corporate earnings, most notably from Apple, continued to miss expectations. This morning the markets have been dragged lower predominantly by the mining sector as commodity price continue to fall but Anglo American has bucked the trend on the news that their CEO is to step down.

Corporate News

• African Barrick Gold announced the expansion of the bulyanhulu upper east project but reported that FY production will be around 5-10% below the bottom of their previous range of 675,000 - 725,000 ounces -4%

• Elementis reported that operating profit for FY will be adversely impacted by the temporary slowdown in oilfield drilling -6.5%

• Berendsen, the textiles group, reported Q3 trading in line with expectations -0.2%

• ITV cut to equal weight at Morgan Stanley -1.15%

• Reckitt Benckiser cut to equal weight at Morgan Stanley -0.3%

• Asos cut to Hold at Societe Generale -5.4%

 

Economic Data Releases

• 1330 - United States-GDP

• 1455 - United States-Michigan subindexes

Market News -Thursday 25th October 2012

The FSE 100 had a flat day yesterday after the selloff in the previous 2 sessions and has found some support at the 5800 Level again. This morning is no different as all eyes are looking forward to UK GDP data released at 0930, which should signal the official end to the UK’s Recession. General consensus is for 0.6% growth, compared to a 0.4% contraction in the previous quarter, helped by the Olympics which alone is expected to bolster the numbers by 0.3%. In contrast, it is reported that the Spanish Government will formally ask the EU for a €60 Billion bailout package to recapitalise its banks according to sources in the Economy Ministry.

 

Corporate News

• Unilever posted a 5.9% rise in underlying sales in Q3, helped by strong demand for its goods in emerging markets +2.65%

• WPP cut its full-year outlook for like for like growth to 2.5-3% after a slowdown in trading in North America and Continental Europe hit its third quarter -3.9%

• Inchcape reported a 3.2 %t rise in Q3 underlying sales, helped by robust premium and luxury car sales and growth in Asia +0.3%

• ASOS reported a profit of £44.5 Million, up 40% helped by a 64% rise in International sales but saw slowing growth of 10% in its core UK market -6.9%
• Interserve raised to Hold at Panmure -0.3%

• Go-Ahead Group raised to Buy at Jefferies -0.2%

• Whitbread cut to Neutral at Citigroup -1.8%

Economic Data Releases

• 0930 United Kingdom-GDP preliminary (Q3)

• 1330 United States-Jobless claims - Initial Claims

• 1330 United States-Durables - Durable goods orders

• 1500 United States-Pending homes

Market News - Wednesday 24th October 2012

 

After 3 days of drifting sideways the markets finally found a direction yesterday as the FTSE 100 fell over 80 points and closed below 5800. This morning, after a brief rally caused by strong manufacturing data in China, the declines have continued as Q3 corporate earnings continue to disappoint both at home and abroad.

 

Corporate News

 

• Home Retail Group the Argos stores owner posted a 37 percent drop in H1 profit of £18 million and slashed its interim dividend to 1.0 pence from 4.7 pence, with the group planning to reposition Argos for a digital future leading to a total group capital investment of around 525 million pounds for the next 3 Years. +8.4%

• Sports Direct the sporting goods retailer said group total sales for the nine weeks ending September 30 were up 18.0 percent to 402.7 million pounds, with gross profit up 21.7 percent to 167.4 million pounds, and since the end of September trading has remained equally strong. -0.5%

• National Express reported a strong Q3 performance in its UK bus division, reflecting continued investment in fleet and remains on track to deliver its profit expectations for 2012 -0.8%

• Punch Taverns Britain's leased pub group said it was moving closer to defaulting on its debt after it posted a sharp drop in full-year earnings, citing the impact of wet weather and an ongoing asset review. -2.5%

• WPP  cut to neutral at UBS -0.6%

• Aggreko cut to Outperform at RBC Capital -0.6%

 

Economic Data Releases

 

• 11.00 United Kingdom-CBI Industrial Trends Survey

• 15:00 US September New Home Sales

• 19:15 US FOMC Rate Decision

Market News -Tuesday 23rd October 2012

The FTSE 100 drifted lower yesterday and has continued its declines this morning, as although companies earnings are holding up, they are almost all warning that trading conditions remain tough and they are not anticipating any change in the near future. In addition, worries continue about Spain as last night Moody’s cut the debt rating of 5 of its regions due to ‘very limited cash reserves’!

Corporate News

• ARM, the desiginer of chips in Apple and Samsung smartphones, reported a 22% increase in Q3 profit and said its order backlog also indicated another strong quarter for licensing, and it expected dollar revenues for the quarter to be in line with market expectations. +1.9%

• Laird said revenue rose 10% as its wireless systems business benefited from robust demand in the North American automotive market. -1.25%

• Whitbred reported an 11 percent rise in first half profit, boosted by strong sales growth at its key Premier Inn and Costa Coffee brands. -2.3%

• Preimier Foods reported underlying sales were up 2% and that its full-year expectations remain unchanged +3.8%

• Mulbury issued a profits warning blaming both lower-than-expected international retail sales and a shortfall on wholesale revenue -23.1%

• Redrow cut to neutral at UBS -0.6%

Economic Data Releases

• 14.00 Bank of Canada Rate Announcement

• 15.00 United States-Richmond Fed

Market News - Monday 22 October 2012

It’s been a dull start to the week with regards both the markets and the weather. The FTSE 100 after its  120 point rally last week, is off 20 points as weak earnings are starting to put a dampener on market sentiment. In the States only 38% of the S&P 500 companies have beaten their revenue expectations so far in Q3, and with a further 155 reporting this week including Apple, further disappointment could push the markets on both sides of the Atlantic back towards resistance levels at the bottom end of their recent trading range.

 

Corporate News

• Asos is rumoured to have been a potential takeover target for Amazon earlier in the year according to the Sunday Telegraph + 3.4%

• Senior reported the Group's adjusted profit before tax in line with the board's expectations +2.8%

• Telford Homes has seen a significant rise in H1 profit on the back of strong sales +3.7%

• Circle Oil reported positive results from latest well in the Geyad Field in Egypt +2%

• Thomas Cook raised to neutral at BNP Paribas +1.3%

• Go-Ahead Group raised to hold at Shore +1.2%

Economic Data Releases

• 10.00 Eurozone Govt debt.GDP ratio

Market News -Friday 19th October 2012

 

The FTSE 100 ground its way marginally higher yesterday as a rise in mining stocks was offset by the fall in the banking sector as Barclays announced a further provision for PPI. However, this morning any momentum seems to have all but gone as the markets are just drifting sideways and lacking direction. A spark may be ignited at 0930 when the UK government releases its borrowing figures for September allowing the market can see if George Osborne’s austerity plans are on track.

 

Corporate News

 

• Aggreko reported a robust Q3 performance with revenues up 22% and margins similar to last year’s level. However, exchange rates and bad debt provisions will knock 2.5% off anticipated profits -7.3%

 

• William Hill reported its operating profit rose 26 percent in the third quarter and was 17 percent higher in year to date. Unch

 

• Petrofac said it was on track to post net profit growth of at least 15 percent in 2012 and it expected to win new contracts in the coming months as bidding activity in its key Middle East and North African markets picked up +0.4%

 

• Spectris Q3 sales rose 12% and remains well positioned to deliver on its expectations for the year +7%

 

• Rank Group reported a 4% rise in Q3 Revenue but stated that the outlook for the UK consumer is expected to remain challenging Unch

 

• WM Morrison cut to underweight at Barclays -0.7%

 

• Standard Life cut to Sell at Berenberg -0.5%

 

Economic Data Releases

 

• 09.30 United Kingdom-Public Sector Borrowing (Sep)

 

• 15.00 United States-Existing Homes

Market News - 18th October 2012

It’s hard to call it a rally, but with the FTSE 100 climbing for the last 3 days and being all but unchanged this morning, it has buoyed investor confidence after the falls of last week. China was in focus again overnight as it reported Q3 GDP expansion of 7.4% which was ahead of expectations pushing Asian Markets Higher. However, it should also be noted that although this figure seems high compared to Europe and the States, it is the slowest rate of growth in China since Q1 in 2009.

Corporate News

• RBS, 82% owned by the British Government said yesterday that it is preparing for the British government to start selling its shares in the bank in 2014. It has also left the APS saving it £125 million per quarter in insurance fees. +0.3%

• SABMiller reported lager volumes for the first six months that are 4% ahead of the prior year -1.3%

• Man Group the struggling Hedge Fund Manager, saw Q3 net out flows of $2.2 Bln as investors pulled their money out for the 5th consecutive quarter as its flagship fund is only up 0.6% for the year. -3.2%

• Fuller Smith & Turner shares climbed yesterday as reports of  a £10 per share offer from rival Young & Co were reported in the Daily Mail.

• Evraz the Russian steel maker, reported a 3% fall in output in Q3 as it closed it Czech Plant for a month on low demand.  +1.8%

• Informa rated New Buy at Jefferies with a price Target of 474p -0.4%

• Shell cut to Sell at Goldman Sachs -0.5%

Economic Data Releases

• 0930 - United Kingdom-Retail sales

• 1330 - United States-Jobless claims

• 1500 - United States-Leading indicators

Market News - Monday 15th October 2012

 

The FTSE 100 started the week in positive territory but is still only slightly above the 5800 level and looks to be lacking direction once again.  China put some context on how bad things have got in Europe over the last year as it reported that exports to the region had fallen 10%, where as worldwide exports were up 9.9% from the world’s second biggest economy.

Corporate News

• RBS opened lower after Santander pulled out of a deal to buy 316 branches that it was forced to sell as a condition of the bailout it received in 2008. However, reports suggest Virgin Money may be willing to step into Santander’s shoes  -1%

• Fresnilo, the world's largest silver producer, posted a 2.6 percent rise in silver production in Q3 compared to 2011, and said it was on track to meet its 2012 targets -0.4%

• BAE System plans to spend the proceeds of a Saudi arms deal on a share buyback to appease investors following the collapse of its $45 billion merger with EADS last week according to the Sunday Times. +0.1%

• Optos reported revenues are expected to exceed $190M, ahead of market expectations at the retinal Imaging company +6.7%

• Filtrona reported revenues in Q3 up 26% compared to 2011 and overall performance was in line with the board's expectations +1.7%

• Tullow Oil said it would look for oil in Greenland through a partnership deal with Maersk Oil +0.5%

Economic Data Releases

• 1330 - United States-Retail Sales

• 1500 - United States-Business inventories

Market News -Friday 12th October 2012

Shares were slightly lower this morning with the FTSE 100 off slightly but still holding above the 5800 level. With no significant economic data out today, the focus will shift to JP Morgan’s earnings to be released before the opening bell in New York. Consensus estimates for the Quarter of $1.21 per share, which if hit would give it a solid annual growth rate of 19%, despite the unfortunate loss of $4.4 billion by the ‘London Whale’ in its Chief Investment Office earlier in the year.

Corporate News

• Morgan Crucible issued a profits warning stating that group revenue in the third quarter was 10% below H1 average levels and performance for the full year likely to be materially below the board's previous expectations -14%

• Hargreaves Lansdown reported an increase is assets under administration of £2.2 billion in the three months to 30 September to £28.5 billion and record quarterly  revenues of £68.7M +0.7%

• Informa continued its push higher from yesterday as high volumes and  talk of a 550p share from Germanys Axel Springer surfaced +0.5%

• Travis Perkins posted a 3.5 percent decline in underlying sales after poor weather and tough competition crimped trading in its third quarter. -2.8%

• Evraz cut to underperform at Credit Suisse -1.9%

• Antofagasta cut to underweight at HSBC -1.75%

Economic Data Releases

• 10:00 Eurozone August Industrial Production, -0.3% exp. 0.5% previous

• 13:30 US September PPI, 0.7% exp. 1.7% previous

• 14:55 US October University of Michigan Confidence, 77.8 exp. 78.3 previous