Highlights of the Day
Asian Markets
Asian shares gained after Wall Street managed to weather a fresh twist in the controversy over U.S. President Donald Trump’s alleged connection with Russia, while investors looked ahead to Federal Reserve Chair Janet Yellen’s comments. |
U.S. Markets
U.S. Shares ended little changed in a session marked by knee-jerk reactions to events in Washington that drove investors to first worry then hope about prospects for the Trump administration’s economic agenda. |
Today's News
A top Bank of England official sounded a relatively ‘dovish’ note in remarks to the media. In an interview, the Monetary Policy Committee’s Ben Broadbent said he was not ready to vote for a hike in Bank Rate yet. “In my opinion, it is a bit tricky at the moment to make a decision. I am not ready to do it yet. “There is reason to see the committee moving in that direction – but there are still a lot of imponderables,” he said.
Micro Focus International has posted a FY pretax profit of $196.3m, up from $195.4m. Its dividend for the 12 months was 88.06 cents a share, up from 66.68 cents. “This has been a significant year for Micro Focus with the announcement of the combination with HPE Software to create one of the world’s largest pure play software companies,” said executive chair Kevin Loosemore. “The transaction is on track to complete on 1st September when Micro Focus will list the consideration shares on the London market and the American Depositary Shares on the New York Stock Exchange.”
Burberry’s retail revenue rose to £478m in the three months to the end of June – up 3% on an underlying and 13% at reported exchange rates – with comparable sales up 4%. It said the timing of store footprint changes in the quarter resulted in lower average space year-on-year, reducing revenue by 1%. Strength in Mainland China drove improved, mid single-digit percentage growth in Asia Pacific. High single-digit percentage growth in EMEIA, led by strength in the UK. Americas delivered a low single-digit percentage decline. Beauty on track to transition to strategic partnership with Coty in October
The Serious Fraud Office has launched an investigation into Amec Foster Wheeler over the engineer’s work with consultant Unaoil and possible related bribery and corruption offences. The company insisted it did not expect the probe to have an impact on its takeover by John Wood Group, which it said was still expected to take place in the fourth quarter of this year. For its part, Wood said “it is not possible to estimate reliably what effect the outcome of this matter may have on Amec Foster Wheeler”.
Barratt Developments expects its pre-tax profits for the year ended 30th June to increase to around £765m – up from £682.3m last time and ahead of market forecasts. Barratt said total completions including joint ventures rose to 17,395, the highest level of completions in nine years. The group said it expected to deliver the financial targets set in 2014 of 20% gross profit margin and 25% return on capital employed for FY17. It said the year end net cash balance of c. £720m, was ahead of guidance and driven by strong performance and the timing of land and working capital payments.
JD Wetherspoon’s like-for-like sales for the 11 weeks to 9th July increased by 5.3% and total sales increased by 3.6%. In the year to date (50 weeks to 9 July) like-for-like sales increased by 3.9% and total sales increased by 1.9%. It said the full-year operating margin before exceptional items and before a £1.6m gain on property was expected to be between 7.6% and 7.8% for the 53-week period, compared to 6.9% last year. The company said it had opened 9 new pubs since the start of the financial year and had sold or closed 38.
Hochschild has reiterated its full-year output and cost forecasts after a strong and steady first half. The group said H1 attributable production was in line with expectations with output of 8.9 million ounces of silver; 121,430 ounces of gold; 17.9 million silver equivalent ounces and 242,208 gold equivalent ounces. The group said it was on track to deliver overall 2017 production target of 37m silver equivalent ounces.
Oil prices rose more than 1.5%, extending gains from the previous day as the U.S. government cut its crude production outlook for next year and as fuel inventories plunged.
Gold edged up for a third day on a weaker U.S. dollar while investors awaited testimony from U.S. Federal Reserve Chair Janet Yellen and central bank officials expressed caution about further interest rate hikes.
Companies Reporting this week
Day |
Companies |
Today: |
Micro Focus International * The Fulham Shore |
Tomorrow: |
AdEPT Telecom * Dart Group |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,376.0 |
+46.2 |
+0.6% |
UK 250 |
19,326.4 |
+111.0 |
+0.6% |
GER 30 |
12,472.7 |
+35.7 |
+0.3% |
FRA 40 |
5,160.7 |
+20.1 |
+0.4% |
U.S. 30 |
21,409.07 |
+0.55 |
+0.0% |
U.S. 500 |
2,425.5 |
-1.9 |
-0.1% |
OIL (BRENT) |
48.21 |
+0.69 |
+1.5% |
GOLD |
1,218.04 |
+0.32 |
+0.0% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Cairn Energy |
176.75 |
+7.65 |
+4.5% |
Burberry |
1652 |
+72 |
+4.6% |
Kingfisher |
308.8 |
+6.8 |
+2.3% |
Amec Foster Wheeler |
433.7 |
-21.3 |
-4.7% |
Pearson |
620 |
-35 |
-5.3% |
Micro Focus International |
2151 |
-47 |
-2.1% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Barclays |
HSBC |
Buy |
206.90 |
250.00 |
Direct Line Insurance Group PLC |
Credit Suisse |
Outperform |
368.40 |
410.00 |
esure Group |
Credit Suisse |
Neutral |
292.80 |
315.00 |
Kingfisher |
Morgan Stanley |
Overweight |
308.70 |
380.00 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:30am: U.K. Average Earnings Index 3m/y |
2.1% |
1.8% |
– |
9:30am: U.K. Unemployment Rate |
4.6% |
4.6% |
– |
3:00pm: U.S. Fed Chair Yellen Testifies |
– |
– |
– |
3:30pm: U.S. Crude Oil Inventories |
-6.3M |
-3.2M |
– |
Sources:
https://www.reuters.com/article/us-usa-stocks-idUSKBN19W17J
https://www.reuters.com/article/us-global-markets-idUSKBN19X03O
https://www.digitallook.com/news/news-and-announcements/amec-foster-wheeler-under-investigation-by-serious-fraud-office–2765492.htm
https://www.digitallook.com/news/news-and-announcements–/mpcs-broadbent-strikes-relatively-dovish-note–2765522.html
http://www.stockmarketwire.com/article/5584175/Barratt-FY-to-be-ahead-of-forecasts.html
http://www.stockmarketwire.com/article/5584187/Hochschild-on-track-after-strong-and-steady-H1.html
http://www.stockmarketwire.com/article/5584177/Wetherspoon-sales-boosted-by-good-weather.html
http://www.stockmarketwire.com/article/5584176/Micro-Focus-Intl-improves-FY-pretax-profit.html
http://www.stockmarketwire.com/article/5584179/Burberry-retail-revenues-up.html
http://www.reuters.com/article/us-global-oil-idUSKBN19X075?il=0
http://af.reuters.com/article/africaTech/idAFL4N1K31K9