Highlights of the Day
Asian Markets
Asian shares slipped tracking an overnight decline on Wall Street. Strong Chinese manufacturing data failed to lift benchmarks in Hong Kong and Shanghai. |
U.S. Markets
U.S. shares fell as technology’s latest drop washed out strong gains from the big banks. |
Today's News
Irish authorities have said they have clinched deals with more than a dozen London-based banks and finance houses to move some of their operations to Dublin in preparation for Brexit. As Dublin continues to battle with Frankfurt, Luxembourg and Paris for the Brexit spoils, the head of international financial services at Ireland’s Industrial Development Authority said definitive decisions had now been taken on an Irish location by these firms.
Consumer confidence in the UK tumbled in June, the latest survey from GfK showed with an index score of -10. That missed expectations for -7 and was down from -5 in the previous month. It’s also the lowest reading in 11 months. “Strong consumer spending has propped up the economy since last June but now the twin pressures of higher prices and sluggish wage growth are squeezing household finances and adding to widespread fears of a Brexit-induced economic slowdown,” Joe Staton, head of market dynamics at GfK, said.
Old Mutual’s affiliated asset management arm, OM Asset Management, announced overnight that Peter Bain was stepping down from his roles as president, chief executive officer and director – positions he had held since 2011 – as of Friday. The firm’s chairman James J. Ritchie would serve as executive chairman and interim CEO, while the board conducted a thorough search for the company’s next CEO.
Amec Foster Wheeler said that, following consultation with John Wood Group, it has opted to retain its European nuclear business, but will still go ahead with the sale of its North American nuclear operations. Amec is close to being acquired by peer John Wood Group, after Amec Foster Wheeler shareholders earlier this month voted in favour of the proposed takeover. The UK Competition & Markets Authority still has to approve the deal and invitations for comments on the deal closed late last month. The court also must sanction the hearing, which is anticipated in the fourth quarter of this year. Amec back in March launched a competitive process to sell its nuclear business, which it said had “created a high level of interest and yielded a number of attractive bids”.
John Laing Group issued a pre-close update for the half-year to 30th June. The company said it had made investment commitments in two of its three geographical regions during the period – Asia Pacific and Europe, with total investment commitments in 2017 to date of £111m.
Hurricane Energy has launched a $520m, comprising a $300m share placing and $220m convertible bond. The new capital will finance the UK offshore moves Hurricane closer to producing from the large, undeveloped Lancaster oil field, in the West of Shetland region. “This Fundraising facilitates the key to unlocking value on the company’s wider portfolio: production and reservoir data that can only be acquired through long term production operation,” said Robert Trice, Hurricane chief executive. “Furthermore, the EPS is anticipated to generate returns at foreseeable oil prices.”
Serco said its FY guidance for revenue of about £3.1bn and underlying trading profit of £65m-£70m is unchanged, although the movement in currency since its last statement in February may, if sustained, have a small negative effect. “We do however reiterate that the potential outcomes for the year remain wider than the stated profit range, both to the upside and the downside,” the company said. This, it added, was due to the sensitivity of the company’s profits to even small percentage changes in either revenues or costs, as well as movements in currency.
Oil prices were on track for their biggest weekly gain since mid-May, ending five weeks of losses with prices underpinned by a decline in U.S. output.
Gold steadied, supported by an easing dollar and falling equities even as comments from global central banks suggested monetary tightening in Europe and Canada.
Companies Reporting this week
Day |
Companies |
Today: |
ECO Animal Health Group * SerVision * TLA Worldwide |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,329.4 |
-20.9 |
-0.3% |
UK 250 |
19,314.7 |
-31.7 |
-0.2% |
GER 30 |
12,410.3 |
-5.9 |
-0.1% |
FRA 40 |
5,153.7 |
-0.7 |
-0.0% |
U.S. 30 |
21,287.03 |
-167.58 |
-0.8% |
U.S. 500 |
2,419.7 |
-21.0 |
-0.9% |
OIL (BRENT) |
47.72 |
+0.30 |
+0.6% |
GOLD |
1,243.91 |
-1.60 |
-0.1% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Clarkson |
12549.5 |
+49.5 |
+2.0% |
International Consolidated Airline Group |
619 |
+11.5 |
+1.9% |
Easyjet |
1368 |
+21 |
+1.6% |
Greene King |
652 |
-36.5 |
-5.3% |
United Utilities |
885 |
-13.5 |
-1.5% |
BP |
444.1 |
-5.8 |
-1.3% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Greene King |
JP Morgan Cazenove |
Neutral |
665.50 |
750.00 |
Tate & Lyle |
Deutsche Bank |
Hold |
660.50 |
725.00 |
United Utilities Group |
Credit Suisse |
Underperform |
880.50 |
850.00 |
Virgin Money Holdings UK |
Credit Suisse |
Outperform |
262.05 |
345.00 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8:30am: U.K. Current Account |
-12.1bn |
-17.2bn |
– |
8:30am: U.K. Final GDP q/q |
0.2% |
0.2% |
– |
9:00am: European CPI Flash Estimate y/y |
1.4% |
1.2% |
– |
Sources:
http://www.sacbee.com/news/business/article158792389.html
http://www.cnbc.com/2017/06/29/us-stocks-fall-tech-banks.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1498801382256742700.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1498756193916545200.html
https://www.digitallook.com/tops/news.html
https://www.digitallook.com/news/press-round-up-short-premium/friday-newspaper-round-up-sky21st-century-virgin-media-brexit–2749006.html
https://www.digitallook.com/news/press-round-up-short-premium/friday-newspaper-round-up-sky21st-century-virgin-media-brexit–2749006.html
https://www.digitallook.com/news/company-news-preview/friday-preview-consumer-confidence-set-to-take-a-dip–2748084.html
http://www.stockmarketwire.com/article/5576781/Serco-updates-on-FY-guidance.html
https://www.reuters.com/article/us-global-oil-idUSKBN19L02Y
https://www.reuters.com/article/global-precious-idUSL3N1JR0YR
http://www.proactiveinvestors.co.uk/companies/news/180077/hurricane-energy-launches-us520mln-funding-process-for-lancaster-oil-field-180077.html