Highlights of the Day
Asian Markets
Asian shares were mixed as investors noted hard word against North Korea by president Trump speaking before the South Korea parliament, warning Pyongyang against a “miscalculation.” |
U.S. Markets
U.S. equities dipped after a disappointing profit forecast from Priceline and as investors fretted that a Republican plan to cut corporate taxes could be watered down. |
Today's News
SSE has agreed to de-merge its retail business and combine it with Innogy’s npower business. SSE also booked an expected fall in first-half profit but raised its dividend. The shares of the merged company will be admitted to the London Stock Exchange, though the deal remains subject to regulatory approval. SSE expects the transaction to be completed by the last quarter of 2018 or the first quarter of 2019. SSE’s adjusted profit before tax fell 13.9% to £409.6m, while reported pre-tax profits slipped 40.4% to £402.2m.
Marks & Spencer posted a 5.3% fall in pre-tax profit and held its dividend steady. Adjusted pre-tax profit, the company’s preferred measure, fell to £219.1m, from £231.3m the previous year. Bottom line net profit jumped to £84.6m, from £15.9m. Revenue rose 2.6% to £5.13b, though UK revenue fell 0.3% on a like-for-like basis. “We have made good progress in remedying the immediate and burning issues at M&S I outlined last year,” chief executive Steve Rowe said.
Sky has said that it could shut down Sky News if its ownership of the channel proves to be an obstruction to the company’s £11.7bn takeover by Rupert Murdoch’s Twenty-First Century Fox Inc. Fox’s £10.75 a share bid to acquire the 61% of Sky that it does not already own is being investigated by the UK Competition & Markets Authority, which is examining whether the takeover would have an adverse impact on the country’s plurality of media ownership and broadcasting standards.
Esure has lifted its guidance for the full year following a record third quarter thanks to a strong performance in the motor division. In a trading update for the nine months to 30 September, the insurer said gross written premiums rose 25.4% to £625.8m, helped along by a 30% rise in premiums in the motor business to £561.5m. However, premiums in the home division were down 6% at £64.3m. Chief executive officer Stuart Vann said the motor business continues to see the benefits of the company’s proven underwriting expertise and footprint expansion programme, which enable it to offer more and more customers access to its “excellent” products and services.
Workspace posted a jump in interim pre-tax profit and net rental income amid good customer demand. In the period from 1 April to 30 September, pre-tax profit rose to £123.7m from £7.1m at the same time a year ago, with net rental income up 21% to £46.1m. Meanwhile, the interim dividend was lifted 30% to 8.84p. During the period, the company saw a good, consistent level of customer demand with enquiries averaging 1,047 per month. The total rent roll was up 17.1% to £104.8m, while the like-for-like rent roll was 4.1% higher at £63.5m and LFL occupancy was at 92.4%, up 1.5%.
JD Wetherspoon has made a positive start to its financial year and like-for-like sales for the 13 weeks to 29 Oct increased by 6.1% while total sales rose by 4.3%. The underlying operating margin, excluding property gains, was 8.6%, although one-off items increased that number in the quarter. The group’s expectations for the full year operating margin are unchanged. Chairman Tim Martin said: ‘A key issue for investors and the public is the impact of Brexit on the economy.
OneSavings Bank raised its loan book growth expectations for the full year as it focused on bigger, professional landlords, even as the broader market lost its sheen for amateur landlords due to tax and regulatory changes. The company said it now expects loan book growth of about 20 percent for the full year, from its previous growth expectation in the high teens. The group grew its loan book by 16% to 5.9 billion pounds in 2016. Kent-based OneSavings said it had increased its market share, helped by its focus on professional landlords.
Tullow Oil upgraded its annual production guidance following a strong operating performance from assets in West Africa. Output is now expected at 85,000-to- 89,000 bopd, up from previous guidance of 78,000-to-85,000 bopd. “The business is generating free cash flow which is enabling us to continue to reduce our debt,” chief executive Paul McCade said.. “In East Africa, both our projects are making steady progress towards final investment decisions with our Kenyan business beginning the important shift from exploration and appraisal to development.”
Gold nudged higher, as the dollar slipped following a media report that suggested a delay in the implementation of a major corporate tax cut under a crucial U.S. tax reforms plan.
Oil Prices fell as Chinese crude imports slipped to their lowest level in a year, although traders said the overall market remains well supported on the back of OPEC-led supply cuts.
Companies Reporting this week
Day |
Companies |
Today: |
BowLeven * Tracsis * JZ Capital Partners Ltd * Marks & Spencer Group * Schroder Real Estate Investment Trust Ltd * Sophos Group * SSE * Wizz Air Holdings * Workspace Group * Bank Pekao SA GDS (Reg S) * OneSavings Bank |
Tomorrow: |
Gattaca * Auto Trader Group * Burberry Group * Dairy Crest Group * Flybe Group * Halfords Group * National Grid * Prime People * Renewi * Sainsbury (J) Wincanton * Aldermore Group * Arrow Global Group * AstraZeneca * Coca-Cola HBC AG (CDI) * Inmarsat * Informa |
Friday: |
Castings * Volex * Grupo Clarin SA GDR (Reg S) |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,532.0 |
+18.9 |
+0.3% |
UK 250 |
20,324.6 |
+17.4 |
+0.1% |
GER 30 |
13,407.4 |
+28.2 |
+0.2% |
FRA 40 |
5,492.1 |
+11.5 |
+0.2% |
U.S. 30 |
23,557.23 |
+8.81 |
+0.0% |
U.S. 500 |
2,590.6 |
-0.5 |
-0.0% |
OIL (BRENT) |
63.43 |
-0.26 |
-0.4% |
GOLD |
1,278.56 |
+3.26 |
+0.3% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Indivior |
403.65 |
+22.85 |
+6.0% |
SSE |
1458 |
+48 |
+3.4% |
Imperial Brands Tobacco |
3166.5 |
+66.5 |
+2.2% |
Wizz Air |
3107.5 |
-227.5 |
-6.8% |
Associated British Foods |
3144 |
-74 |
-2.3% |
Persimmon |
2828 |
-46 |
-1.6% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Imperial Brands |
Berenberg |
Buy |
3159.5 |
3780 |
AB Foods |
Barclays |
Equal Weight |
3170.95 |
3290 |
Barclays |
Goldman Sachs |
Sell |
180.5 |
170 |
Lloyds |
Goldman Sachs |
Sell |
66.97 |
55 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
4:30pm: U.S. Crude Oil Inventories |
-2.4m |
-2.5m |
– |
Sources:
https://www.investing.com/news/stock-market-news/asian-shares-mixed-with-shanghai-up-after-trade-data-839970
http://www.reuters.com/article/usa-stocks/us-stocks-wall-street-recedes-priceline-and-banks-weigh-idUSL1N1ND1QM
https://www.digitallook.com/news/news-and-announcements/esure-lifts-guidance-after-record-third-quarter–2960038.html
https://www.digitallook.com/news/news-and-announcements/workspace-interim-profit-net-rental-income-jump-amid-good-demand–2960010.html
http://www.stockmarketwire.com/article/5735046/Tullow-Oil-ups-production-guidance.html
http://www.stockmarketwire.com/article/5734990/SSE-profit-down-announces-npower-merger.html
http://www.stockmarketwire.com/article/5734974/Marks-Spencer-adjusted-profit-down-5-point-3pct.html
http://www.stockmarketwire.com/article/5734726/Wetherspoon-like-for-like-sales-rise.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1510123077332566200.html
https://uk.reuters.com/article/uk-global-oil/oil-falls-on-lower-chinese-crude-imports-overall-market-well-supported-idUKKBN1D8067
https://uk.reuters.com/article/global-precious/precious-gold-up-as-dollar-slips-on-possible-delay-in-u-s-tax-cut-plan-idUKL3N1NE1UU
http://www.reuters.com/article/onesavings-bk-outlook/update-1-onesavings-bank-raises-loan-book-growth-forecast-idUSL5N1NE1WY