Highlights of the Day
Asian Markets
Most Asian markets closed mixed as investors kept an eye on political developments in the U.S. after a government shutdown began last week. |
U.S. Markets
Stock futures fell as the U.S. government remained shut down. |
Today's News
Bookies are bracing themselves for their profits to be slashed ¬after it emerged that the Government is set to cut the maximum stake on fixed odds betting terminals to just £2. Following a 12-week consultation which closes, Matt Hancock, the new Culture Secretary, is expected to impose the lowest ¬maximum bet suggested by the review into the “crack cocaine” of the gambling sector. At present, gamblers can bet up to £100 in a single 20-second flutter but the Government has decided that the maximum punt on FOBTs will be cut to between £2 and £50.
Having rejected a £7bn hostile bid from Melrose Industries last week, GKN sought to highlight its potential as a standalone entity on Monday, lifting sales forecasts for its electric driveline (eDrive) business. The engineer said it now expects sales in the unit to increase over eight-fold to £275m in 2020, up from a previous forecast of £200m and £33m in 2017. In 2022, the group expects eDrive dales to reach £500m.
Dixons Carphone said it has appointed Alex Baldock as chief executive effective from April. Baldock will succeed Sebastian James, who intends to step down around the end of the financial year, at the end of April, after six years in the role. James will be joining Walgreens Boots Alliance later this year. Baldock is currently chief executive of Shop Direct, the UK’s second largest pure-play online retailer, according to Dixons, a position which he has held since 2012. The change at the top comes less than two weeks after Dixons Chief Financial Officer Humphrey Singer left the firm to take up the same role at Marks & Spencer.
Ocado said it has signed an agreement with Sobeys to develop an online grocery business in Canada using the Ocado Smart Platform. Sobeys is Canada’s second largest food retailer, Ocado said, operating more than 1,500 stores across the country, and generating sales of CAD23.8 billion in 2017. Sobeys and Ocado will develop their first customer fulfilment centre in the greater Toronto area. The build is expected to take approximately two years. In addition to the initial CFC, the firms will consider developing other CFCs in Canada’s dense urban areas.
Smiths Group has agreed to sell its John Crane’s Bearings business to private Austrian company Miba AG for an enterprise value of $35m. Smiths said the divestment is part of the ongoing corporate programme to concentrate the portfolio on scalable market leading positions in the company’s chosen markets, and the proceeds will be reinvested in “attractive growth opportunities”.
Workspace Group said it had agreed to acquire five of the Centro Buildings in Camden, London for £109m. A former furniture depository, the buildings have been converted to provide office accommodation but retain attractive warehouse design features, Workspace Group said. The acquisition would include Centro Blocks three, four and five, as well as Atelier House and Selous House.
Computacenter said adjusted pretax results for 2017 are anticipated to be ahead of the board’s expectations. Revenue increased by 17% in 2017 at actual currency rates, with Services revenue rising 11% and Supply Chain revenue up 19%. UK revenue increased by 9% for the year, with Services revenue increasing by 6% and Supply Chain revenue increasing by 10%. The fourth quarter was particularly strong, the firm said, with Services revenue up 9%, Supply Chain up 18% with an overall revenue growth of 16%, “the best fourth quarter growth we have seen in the UK for a number of years”.
AVEVA said it performed “strongly” in the first nine months of its financial year, with the improving growth trend seen in the first half continuing into the third quarter. The improved performance was driven by a sharp focus on sales execution, the firm said, combined with a stabilisation of conditions in its Oil & Gas and Marine end-markets. As a result AVEVA said it is performing ahead of the board’s previous revenue expectations for this stage of the financial year, “albeit with the final and most significant quarter of the year yet to complete”.
Gold inched down on Monday as the dollar regained strength after slipping earlier on a U.S. government shutdown, with investors on wait-and-watch mode.
Oil Prices climbed, pushed higher by comments from Saudi Arabia that cooperation between oil producers who are currently withholding supplies would continue beyond 2018.
Companies Reporting this week
Day |
Companies |
Today: |
No Companies Reporting |
Tomorrow: |
IG Group Holdings |
Wednesday: |
Crest Nicholson Holdings |
Thursday: |
Diageo * Renishaw * Sky |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,713.8 |
-17.0 |
-0.2% |
UK 250 |
20,688.6 |
+35.3 |
+0.2% |
GER 30 |
13,440.1 |
+5.7 |
+0.0% |
FRA 40 |
5,515.4 |
-11.1 |
-0.2% |
U.S. 30 |
26,071.72 |
+53.91 |
+0.2% |
U.S. 500 |
2,810.3 |
+12.3 |
+0.4% |
OIL (BRENT) |
68.80 |
+0.19 |
+0.3% |
GOLD |
1,331.21 |
-0.63 |
-0.1% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Ocado |
450.25 |
+37.25 |
+9.0% |
Shire |
3512 |
+51 |
+1.5% |
Barclays |
202.6 |
+2.05 |
+1.0% |
William Hill |
290.15 |
-46.15 |
-13.7% |
Relx |
1589 |
-57.5 |
-3.5% |
Paddy Power Betfair |
8270 |
-180 |
-2.1% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
BP |
JP Morgan |
Overweight |
510.7 |
560 |
Shell |
JP Morgan |
Overweight |
2517 |
2950 |
Unilever |
Barclays |
Overweight |
4090.5 |
4560 |
Schroders |
Barclays |
Underweight |
3702 |
3380 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
All Day: Eurogroup Meetings |
– |
– |
– |
Sources:
https://www.cnbc.com/2018/01/21/stock-futures-government-shutdown-trump-democrats.html
https://www.cnbc.com/2018/01/21/asia-markets-currencies-us-government-shutdown-and-central-banks-in-focus.html
https://uk.webfg.com/news/news-and-announcements/gkn-lifts-edrive-sales-forecasts-as-it-fends-off-melrose-bid–3086962.html
https://uk.webfg.com/news/news-and-announcements/smiths-group-to-sell-john-cranes-bearings-business–3086960.html
http://www.stockmarketwire.com/article/5824153/Workspace-acquires-London-properties-for-pound109m.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1516606735126837400.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1516603106566574300.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1516603013766571400.html
https://www.reuters.com/article/us-global-oil/oil-rises-as-saudi-arabia-says-producers-will-cooperate-beyond-2018-idUSKBN1FB03Q
https://uk.reuters.com/article/global-precious/precious-gold-inches-down-as-dollar-recovers-after-u-s-govt-shutdown-idUKL4N1PH1EK