US Bank Stress Test Info

Location: United States

Date: 14/03/2013

Time: 21:30 - 22:30

Strength: 3/3

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Notes: Bank Stress Test result released by the Board of Governors of the Federal Reserve System presents a result of a bank stress test for the largest U.S. banking organizations. The test is conducted to determine their reactions to different financial situations. The result would affect the stance of monetary policy, and assess the risks to its long-run goals of price stability and sustainable economic growth. A high reading is seen as bullish (or postive) for the USD, whereas a low reading is seen as bearish (or negative).

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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

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