Highlights of the Day
Asian Markets
Asian shares were mostly lower, on investor jitters shaken up by a North Korean nuclear test over the weekend that raised fears about risks to regional stability. |
U.S. Markets
U.S. stocks closed higher on Friday as Wall Street assessed the likelihood of tighter monetary policy following a weaker-than-expected jobs report. |
Today's News
Any threat to the US or its allies will be met with “massive” retaliation, US Defence Secretary James Mattis warned yesterday, after North Korea claimed to have tested a hydrogen bomb. Pyongyang said earlier Sunday it had tested a hydrogen bomb that can be loaded onto an intercontinental ballistic missile, shocking its regional neighbours – particularly South Korea and Japan – and provoking worldwide condemnation. The test at 12:30 pm local time was a “perfect success,” according to North Korean state media. If confirmed, it would be the most powerful device ever tested by North Korea, and mark a significant step forward in the secretive regime’s nuclear capability.
Four of Reckitt Benckiser Group’s top 10 executives are quitting the group, as the company absorbs its $18bn acquisition of Mead Johnson and recovers from a crippling cyber attack in June. Reckitt had confirmed the departures of the heads of IT, human resources, marketing, and developing markets from a 10-member executive committee headed by Chief Executive Rakesh Kapoor.
Dechra Pharmaceuticals said they are trading in line with expectations for their financial year, as it reported a near doubling in profit for its recently ended year and lifted its dividend 16%. For the year that ended in June, Dechra reported pretax profit of £28.6m, up from £14.5m the prior year, on revenue of £359.3m, up 45% from £P247.6m the year before, helped by the weak pound. At constant exchange rates, revenue growth was still 28%. Dechra highlighted “solid” growth from its core portfolio in the European Union and “excellent” growth in North America. Meanwhile, new geographic territories performed well.
Acacia Mining said it intends to reduce operational activity at the Bulyanhulu mine in Tanzania, due to unsustainable cash outflows following a government ban on concentrate and operating environment. In March, an export ban was imposed on gold and copper concentrate, affecting the Tanzania-focused gold miner’s year to date group production by 35%, along with a build-up of $265m of concentrate inventory in Tanzania, based on current prices. Although the group has taken action to reduce operating and capital costs, the loss in revenue and $65m in taxes and costs has led to a cash outflow of $210m in the year to date.
Wizz Air reported a 24.4% jump in passenger numbers in August as the load factor ticked higher. Passenger numbers rose to 2.9m from 2.3m in July, as the load factor – which gauges how full the planes are – rose to 95.4% from 93%. On a rolling 12-month basis, passenger numbers were up 22.4% to 26.3m and the load factor increased to 91.1% from 88.5%. Meanwhile, the company continued to expand its network, operations and customer offering, with seventeen new routes announced to/from Romania, Poland, Hungary, Czech Republic, Lithuania and Latvia.
Victrex said its full-year tax rate will be significantly reduced, and separately announced that Jakob Sigurdsson has started at the company as chief executive-designate. Victrex said that, based on recently-granted UK patents, and following discussions with Her Majesty’s Revenue & Customs relating to the UK’s Patent Box legislation, the company’s UK tax rate is now expected to be “materially lower” than previous guidance. Patent Box legislation was introduced in April 2013 and is intended to encourage growth in UK companies through a competitive tax regime by supporting research and development.
Oil prices fell after a powerful North Korean nuclear test explosion triggered a flight of investors away from crude markets and into gold futures, which are seen as a safe haven.
Gold prices hit their highest in nearly 10 months after North Korea’s latest and most powerful nuclear test drove investors towards safe-haven assets.
Companies Reporting this week
Day |
Companies |
Today: |
Dechra Pharmaceuticals * Amryt Pharma * Biome Technologies * Curtis Banks Group * Highland Gold Mining Ltd. * Johnson Service Group * Michelmersh Brick Holdings * Tax Systems |
Tomorrow: |
A&J Mucklow Group * Craneware * Mattioli Woods * 888 Holdings * Alpha Fx Group * Cairn Homes * Dalata Hotel Group * EU Supply * Gamma Communications * Lighthouse Group * Spectra Systems Corporation * Stadium Group * Vipera * Halfords Group |
Wednesday: |
Barratt Developments * Diurnal Group * McCarthy & Stone * Everyman Media Group * Faron Pharmaceuticals Oy (DI) * Harworth Group * Loopup Group * PPHE Hotel Group Ltd * Somero Enterprises Inc. (DI) * Vectura Group * WANdisco * Xaar |
Thursday: |
Ashmore Group * CPL Resources * Frontier Developments * Go-Ahead Group * Mcbride * Redde * Biffa * Brady * Centralnic Group * Filta Group Holdings * Gama Aviation * Hunters Property * International Public Partnerships Ltd * Molins * ProPhotonix (DI) * Sanne Group * Dixons Carphone |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,431.7 |
-6.8 |
-0.1% |
UK 250 |
19,738.5 |
-47.7 |
-0.2% |
GER 30 |
12,052.4 |
-90.3 |
-0.7% |
FRA 40 |
5,092.5 |
-30.8 |
-0.6% |
U.S. 30 |
21,987.56 |
+39.46 |
+0.2% |
U.S. 500 |
2,476.6 |
+4.9 |
+0.2% |
OIL (BRENT) |
52.30 |
-0.45 |
-0.9% |
GOLD |
1,336.47 |
+11.24 |
+0.9% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Victrex |
2149 |
+104 |
+5.1% |
Randgold Resources |
8065 |
+155 |
+2.0% |
Fresnillo |
1645 |
+28 |
+1.7% |
Acacia Mining |
192 |
-15.1 |
-7.3% |
Taylor Whimpey |
199 |
-2.7 |
-1.3% |
Barclays |
190 |
-2.15 |
-1.1% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
BP |
Deutsche Bank |
Buy |
443.9 |
520 |
HSBC |
Jeffries |
Buy |
744.8 |
920 |
Royal Dutch Shell B |
Deutsche Bank |
Buy |
2150 |
2450 |
Virgin Money |
RBC Capital |
Outperform |
267.1 |
400 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:30am: U.K. Construction PMI |
51.9 |
52.1 |
– |
9:30am: European Sentix Investor Confidence |
27.7 |
27.4 |
– |
10:00am: European PPI m/m |
-0.1% |
0.1% |
– |
Sources:
https://www.cnbc.com/2017/09/01/us-stocks-jobs-report-disappoints.html
http://abcnews.go.com/Business/wireStory/asian-shares-dip-jitters-north-korea-nuclear-test-49604709
https://www.digitallook.com/news/news-and-announcements/wizz-air-passenger-numbers-jump-24-in-august–2840631.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1504508518964967900.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1504508627744971400.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1504508994154983700.html
http://www.reuters.com/article/us-global-oil/brent-crude-oil-falls-after-north-korea-nuclear-test-idUSKCN1BF03P
https://www.reuters.com/article/global-precious/precious-gold-hits-10-mth-high-in-wake-of-n-korea-nuclear-test-idUSL4N1LL14D