The Market Close - TUI ships holding in Hapag-LLoyd AG for strategic objectives - Collins Sarri Statham Investments

Today's Closing Update

U.S. shares slipped as investors weighed the possibility of higher sovereign bond yields.

European and U.K. shares drifted lower as gains in shares deemed more sensitive to economic growth were not enough to offset losses in those seen as relatively immune.

Standard & Poor’s thinks the UK economy is heading for a soft patch. An S&P report which said that squeezed real wages and uncertainties relating to the manner in which the UK will leave the EU mean that growth will likely be 1.4% this year, and 0.9% in 2018. That represents a pullback from the 1.8% growth in 2016 and is “subject to considerable downside risks, stemming mainly from Brexit uncertainties,” S&P said. The agency does not expect a rise in UK interest rates until mid-2019.

Ofwat is encouraging suppliers to step up their customer service levels and to focus on longer-term plans ahead of deciding the framework the sector will have to work under from 2020, as it also aims to make water more affordable for consumers. UK water and sewage companies are subject to price controls that are reviewed and set by the regulator every five years, with the sector currently working under the framework set for the 2015 to 2020 period that was outlined by Ofwat in 2014. United Utilities, Severn Trent and Pennon Group – will put forward their business plans for the 2020 to 2025 period to Ofwat as part of the review, which the regulator will then scrutinise before deciding to approve individual company plans or whether it needs to step in and intervene.

Ofcom set out the rules for its upcoming auction of spectrum to help meet mobile broadband demand and support the roll-out of 5G networks. Ofcom will auction licences to use 190 megahertz of spectrum in two frequency bands later this year, which it expects to increase the airwaves available for mobile devices by almost one third. 40 megahertz will be auctioned in the 2.3 gigahertz band. These airwaves will be able to be used immediately to provide extra capacity for downloads and browsing for mobile users.

TUI AG has sold its remaining shares in German container shipping firm Hapag-Lloyd AG, as part of its “strategic objective” to achieve a “vertically-integrated tourism group”. TUI’s remaining holding of 8.5m shares were sold in an accelerated bookbuild, at a “guaranteed minimum price” close to Hapag-Lloyd’s share price at the European market close. Hapag-Lloyd is listed on the Hamburg Stock Exchange. TUI has already sold 6m shares in Hapag-Lloyd in individual open market transactions since March. Revenue from the sale will be used for investments in hotels and cruise ships and to strengthen the balance sheet, TUI said.

Wunderman, the leading global digital agency and part of WPP, today announced at Microsoft Inspire the launch of a new division, Wunderman AI Services, to provide enterprise level artificial intelligence solutions for marketers. The new division will develop and deploy enterprise grade artificial intelligence solutions for marketers across customer care, acquisition, product development and customer retention. Wunderman AI Services will be powered by Microsoft Azure and takes advantage of Cortana Intelligence Suite.

Oil prices gave up some of their recent gains as investors awaited U.S. Federal Reserve Janet Yellen’s testimony to Congress this week for cues on the timing of expected interest-rate hikes.

Gold fell as global oversupply encouraged several banks to cut their forecasts for crude for this year and 2018.

Market Close

Market	Index	Change	% Change
UK 100	7329.8	-40.3	-0.6%
UK 250	19,215.4	-142.0	-0.7%
GER 30	12,433.5	-12.4	-0.1%
FRA 40	5,138.9	-26.8	-0.5%
U.S. 30	21,333.11	-75.41	-0.4%
U.S. 500	2,420.2	-7.2	-0.3%
OIL (BRENT)	47.32	+0.44	+0.9%
GOLD	1,214.65	+0.29	+0.0%

UK Risers & Fallers

Company	Price	Change	% Change
Galliford Try	1260.5	+94	+8.1%
Glencore	307.5	+6.45	+2.1%
Anglo American	1084.5	+16.5	+1.5%
Carillion	77.925	-39.2	-33.5%
Pearson	655	-35.5	-5.1%
Marks and Spencer	323.1	-15.9	-4.7%

Reported Economic Data

Time/Date	Previous	Forecast	Outcome
2:30pm: U.K. CB Leading Index m/m	-0.3%	–	-0.1%
3:00pm: U.S. JOLTS Job Openings	6.04m	5.98m	5.67m
5:30pm: U.S. FOMC Member Brainard Speaks	–	–	–