Highlights of the Day
Asian Markets
Asian shares eased in the Asia-Pacific region after overnight declines in the U.S. and Europe on worries the European Central Bank would reduce monetary stimulus. |
U.S. Markets
U.S. shares closed lower as large-cap technology shares fell more than 1%, while a Senate vote delay raised heighten policy uncertainty. |
Today's News
A massive cyber attack has hit Europe, spreading to U.S. and Asia, affecting businesses and government systems with ransom demands. The new ransomware attack, in a possible reprise of a widespread WannaCry assault in May, is said to be caused by the virus linked to malware called Petrwrap or Petya. The affected users are told to pay $300 in cryptocurrency per infected computer to unlock their systems. The organizations in Russia and the Ukraine were the most affected. Kaspersky Lab analysts reportedly said that about 2,000 users had been attacked in North America. Russian oil giant Rosneft PJSC, advertiser WPP and Ukrainian government ministries were all hit by the attacks. The site of the former Chernobyl nuclear power plant was also hit, forcing scientists to monitor radiation levels manually.
The Bank of England has increased the capital buffer on UK lenders amid concerns about spiralling consumer borrowing. The counter-cyclical capital buffer limits the amount of debt that private banks can use to fund their balance sheets on top of their normal regulatory buffers. It was cut to zero in the wake of last June’s Brexit vote in order to encourage lending to continue to flow and to help support the wider economy. The Bank’s Financial Policy Committee said that it will raise the CCB from zero to 0.5% and signalled that it expects to increase it again to 1% in November. The move, with which lenders will have 18 months to comply, effectively increases the aggregate capital requirement of UK banks by £11.4bn
Tullow Oil said it continues to make good progress despite tough market conditions. “Our recent Rights Issue and free cash flow from our low cost, producing assets have resulted in a significant reduction in our debt and provided the Group with greater financial and operational flexibility,” said CEO Paul McDade. “I have reviewed our medium-term plans and remain satisfied that we are making the right investment decisions with regard to our producing, development and exploration portfolio.
Dixons Carphone reports a strong performance for the year to 29th April with like-for-like revenues up 4% and headline pre-tax profits up 10%. Group headline revenue increased 3% on a local currency basis and 9% in sterling terms to £10.5bn like-for-like revenue growth was 4%, reflecting growth across all divisions. Headline EBIT was up 8% to £517m. Headline profit before tax was £501m, with a reduced year-on-year interest charge.
Stagecoach advises that it sees its FY 2017/18 EPS broadly unchanged. For the year to 29th April, its adjusted EPS was 24.4p a share, down from 27.7p a year earlier but in line with internal expectations. Basic EPS was 5.5p, from down from 17.1p as a result of exceptional charges. Stagecoach’s dividend for the year was 11.9p, up from 11.4p. “We continue to manage the business with a focus on sustainable growth over the long-term,” said CEO Martin Griffiths.
Kier Group expects full-year underlying profits to be in line with forecasts. The group’s pre-close trading statement said that net debt was anticipated to be c£150m, at the lower-end of market forecasts. The group said its two-year portfolio simplification programme was nearing conclusion and it was well-placed for FY2018, with growing order books of approximately £9bn and 85% secured revenue position for FY2018. Looking ahead, it said: “Our Property and Residential pipelines continue to improve and our robust Construction and Services order books total approximately £9bn, providing an 85% secured revenue position for next year and giving us a strong foundation to deliver growth in 2018.
Oil prices were steady to lower after a report of rising U.S. fuel and crude inventories underscored concerns that a three-year supply glut is far from over.
Gold firmed as the dollar struggled and shares weakened after a vote on U.S. healthcare reforms was postponed and European Central Bank President Mario Draghi hinted the ECB could trim its stimulus this year.
Companies Reporting this week
Day |
Companies |
Today: |
Creightons * Dixons Carphone * Hansa Trust * Hayward Tyler Group * IMImobile * NextEnergy Solar Fund Limited Red * Stagecoach Group * Xafinity |
Tomorrow: |
Cohort * Greene King * Purplebricks Group * Redcentric * ReNeuron Group * Smith (DS) |
Friday: |
ECO Animal Health Group * SerVision * TLA Worldwide |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,404.4 |
-29.9 |
-0.4% |
UK 250 |
19,447.1 |
-79.7 |
-0.4% |
GER 30 |
12,581.1 |
-89.9 |
-0.7% |
FRA 40 |
5,230.1 |
-28.5 |
-0.5% |
U.S. 30 |
21,310.66 |
-98.89 |
-0.5% |
U.S. 500 |
2,419.4 |
-19.7 |
-0.8% |
OIL (BRENT) |
46.59 |
-0.06 |
-0.1% |
GOLD |
1,250.43 |
+3.25 |
+0.3% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Bunzl |
2401 |
+92 |
+4.0% |
William Hill |
258.4 |
+7.7 |
+3.1% |
Tesco |
170.7 |
+1.7 |
+1.0% |
Petra Diamonds |
104.65 |
-8.75 |
-7.7% |
Hargreaves Lansdown |
1300 |
-37 |
-2.8% |
St James Place Wealth Management |
1169 |
-16 |
-1.4% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Inmarsat |
Deutsche Bank |
Buy |
768.00 |
1,020.00 |
Marks & Spencer Group |
Deutsche Bank |
Hold |
336.60 |
360.00 |
Shire |
Goldman Sachs |
Conviction Buy |
4,520.00 |
6,400.00 |
Virgin Money Holdings UK |
Barclays Capital |
Overweight |
272.00 |
380.00 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8:00am: European M3 Money Supply y/y |
4.9% |
5.0% |
– |
1:30pm: U.K. BOE Gov Carney Speaks |
– |
– |
– |
1:30pm: ECB President Draghi Speaks |
– |
– |
– |
2:30pm: U.S. Crude Oil Inventories |
-2.1m |
-2.5m |
– |
Sources:
http://www.marketwatch.com/story/asian-stocks-pull-back-on-us-tech-declines-eurozone-worries-2017-06-27
http://www.cnbc.com/2017/06/27/us-stocks-tech-falls-google.html
http://www.londonstockexchange.com/exchange/news/alliance-news/archive.html?&page=2
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1498629528182754800.html
http://www.stockmarketwire.com/
http://www.stockmarketwire.com/article/5574885/Tullow-Oil-continues-to-make-good-progress.html
http://www.stockmarketwire.com/article/5574882/Dixons-Carphone-headline-pre-tax-profits-up-10pct.htm
http://www.stockmarketwire.com/article/5574881/Stagecoach-sees-FY-2017-18-EPS-broadly-unchanged.html
http://www.stockmarketwire.com/article/5574886/Kier-on-course.html
http://uk.reuters.com/article/global-precious-idUKL3N1JP1K6
https://www.reuters.com/article/us-global-oil-idUSKBN19J01P
http://www.independent.co.uk/news/business/news/bank-of-england-capital-requirements-uk-lenders-a7809856.html