Highlights of the Day
Asian Markets
Asian stocks were slightly higher after a sluggish start, while the dollar held most of the gains it made overnight on strong U.S. economic data as some risk appetite returned despite caution over political turbulence in the United States. |
U.S. Markets
U.S. stocks closed higher, following the previous session’s brutal selloff, as positive data offered a glimmer of optimism and technology provided an additional fillip to the market. |
Today's News
Hikma Pharmaceuticals said it expects revenue in 2017 to be in the range of $2.bn and $2.1bn, up from$1.95bn in 2016 but down from the $2.2bn that Hikma had guided in March at its 2016 results. The pharmaceutical group said its guidance reflects a change in the outlook for its Generics business, after last week revealing it no longer expects the launch of its generic version of GlaxoSmithKline PLC’s Advair Diskus to be approved this year. In addition, Hikma said it is experiencing “increased price erosion” on its Generics marketed products and an “intensifying competitive environment” in the US. Hikma now expects Generics revenue to be $670.0m in 2017, up from $604.0m in 2016, and expects a “slight improvement” in Generics profitability.
Legal & General Group said it has estimated its current Solvency II surplus capital to increase to£7bn. Based on current market conditions, Legal and General expects its Solvency II surplus to reach £7.0bn, with eligible own funds of £14.9bn and a Solvency Capital Requirement of £7.9bn, giving a shareholder basis coverage ratio of 188%. This is an increase from the£5.7bn reported at year-end 2016, on a coverage of 171%
Germany’s producer prices increased at the fastest pace since late 2011, figures from Destatis showed. Producer prices grew by more-than-expected 3.4% year-on-year in April, faster than the 3.1% rise in March. This was the biggest increase since December 2011. Economists had forecast 3.2% increase. On a monthly basis, producer prices climbed 0.4% after staying flat in March. Prices were forecast to rise 0.2%. Excluding energy, producer prices gained 0.3% from March and advanced 2.8% from the previous year. Among main industrial groups, energy prices climbed 4.6%. Prices of intermediate goods grew 4.3% and that of non-durable consumer goods by 3.2%.
Entertainment One announced the start of production on a new series of Peppa Pig. The company said the show’s award-winning animation studio, Astley Baker Davies, would be producing the new series which will bring the total number of Peppa Pig episodes to 381. It said the 117 new episodes are scheduled to launch on air globally from Spring 2019 and secure a pipeline of Peppa Pig content over the following four years.
Grainger hiked its interim dividend 10% after a first half where it secured half of its investment target and cut costs in a market where the proportion of privately rented homes is at its highest levels since records began in 1980. Net rental income of £20.0m was generated in the six months ended 31 March 2017, up 11% on the same period last year, with profit before tax up 13% to £41.2m. The dividend was hiked 10% to 1.60p per share.
Close Brothers reported “solid” loan book growth in its banking division in the third quarter to the end of April, as it said it remains confident of delivering a good result for the full year. The loan book in the banking division was up 2.3% in the quarter and is up 4.1% year-to-date at £6.7bn, with continued strong returns. Meanwhile, the property finance business saw a particularly strong performance, with good loan book growth and strong profitability, the company said.
Petrofac chief executive Ayman Asfari made a donation to the Conservative party ahead of June’s general election, despite being under investigation by the Serious Fraud Office. Theresa May’s party received the cash donation from the oil services firm’s boss just days before it was revealed that Petrofac and Asfari were being investigated over suspected bribery, corruption and money laundering.
Just Eat’s £200m plan to take over rival food delivery service Hungryhouse faces a hurdle. The proposed deal has been referred for an in-depth investigation by the Competition and Markets Authority (CMA). Both companies take online orders from customers and act as delivery middle men between them and restaurants. However, the CMA is worried that the combination of the two companies could mean worse terms for the restaurants. The probe will run until November this year.
There will be intense focus Brazilian markets today after stocks yesterday saw their worst day since the height of the financial crisis, while the Brazilian real slumped 8%. The crisis comes amid allegations about a tape in which President Michel Temer condones a bribe payment.
Oil prices rose, on the heels of a strong session. As investors shows some optimism about what will come out of next week’s meeting of OPEC
Gold prices snapped a six-session winning streak on to settle lower as a rebound in U.S. stocks dampened buying interest in safe-haven assets.
Companies Reporting this week
Today: |
Hikma Pharmaceuticals |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,465.2 |
+28.7 |
+0.4% |
UK 250 |
19,793.6 |
+102.0 |
+0.5% |
GER 30 |
12,628.7 |
+38.7 |
+0.3% |
FRA 40 |
5,311.9 |
+22.1 |
+0.4% |
U.S. 30 |
20,663.02 |
+56.09 |
+0.3% |
U.S. 500 |
2,365.7 |
+8.7 |
+0.4% |
OIL (BRENT) |
52.86 |
+0.35 |
+0.7% |
GOLD |
1,250.46 |
+3.39 |
+0.3% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Senior |
231.95 |
+9.75 |
+4.4% |
Rolls-Royce |
865 |
+14.5 |
+1.7% |
WPP |
1725 |
+27 |
+1.6% |
Hikma |
1625 |
-75 |
-4.4% |
Thomas Cook |
91.8 |
-3.4 |
-3.6% |
Johnson Matthey |
3010 |
-70 |
-2.3% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Burberry Group |
Beaufort Securities |
Buy |
1,725.00 |
1,920.00 |
John Wood Group |
Deutsche Bank |
Buy |
773.00 |
850.00 |
Moss Bros |
Peel Hunt |
Buy |
108.63 |
140.00 |
SIG |
Peel Hunt |
Buy |
136.20 |
175.00 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
10:00am: CBI Industrial Order Expectations |
4 |
4 |
– |
2:00pm: E.U. Consumer Confidence |
-4 |
-3 |
– |
Sources
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1495177734866993400.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1495177452426985200.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1495176174366943400.html
https://www.digitallook.com/news/market-live-email/eone-to-make-more-peppa-pig-hikma-updates-guidance–2680290.html
https://www.digitallook.com/news/news-and-announcements/close-bros-reports-solid-q3-loan-book-growth–2680322.html
https://www.digitallook.com/news/news-and-announcements/petrofac-boss-asfari-makes-50000-donation-to-tories-ahead-of-election–2679428.html
http://www.marketwatch.com/story/optimism-ahead-of-opec-meeting-drives-further-gains-for-oil-2017-05-19
http://www.marketwatch.com/story/gold-snaps-six-day-winning-streak-2017-05-18