Highlights of the Day

Asian Markets

Japanese stocks rebounded as the yen pulled back after inflation ticked higher, though many global investors remain on the sidelines ahead of key comments at a central-banking conclave in the U.S.

U.S. Markets

U.S. Markets closed slightly lower, after a session of switching between small gains and losses, The market had received a brief boost in afternoon trade after House Speaker Paul Ryan  expressed confidence in passing a tax-overhaul package this year and raising the debt ceiling.

Today's News

Provident Financial announced changes to the management team of its home credit business, as the doorstep lender’s executive chair starts a review of the business. Provident said it has appointed Chris Gillespie as managing director of the home credit business, replacing Andy Parkinson with immediate effect.

 

Vodafone Group announced the launch of a share buyback programme of up to 729.1 million shares. The telecoms giant said the purpose of the buyback is to reduce its issued share capital in order to avoid any change in its share capital when the first tranche of its mandatory convertible bond matures this month. The two-tranche convertible bond was issued in February 2016. In order to satisfy the redemption of the first tranche of the convertible bond, Vodafone will issue a maximum of 729.1 million shares at £1.9751 each.

 

Computacenter’s adjusted pre-tax profits rose to £41.9m in the six months to the end of June – 65.6% up on last time – and on track for a record full-year performance. Revenues were 15% higher at £1,700.3m and statutory pre-tax profits more than doubled to £47.5m from £23.6m. The group declared an dividend of 7.4p per share up from 7.2p a year ago. Chief executive Mike Norris said: The majority of our profit growth in the first half came from improved operational performance, with some help from currency movements.

 

Aviva said Aviva Italia Holding SpA has exercised its option to sell its entire 50% shareholding in its joint venture in Italy. Aviva will sell its holding in Avipop Assicurazioni SpA and its wholly-owned subsidiary Avipop Vita SpA to Banco BPM SpA, the other joint venture partner, for an undisclosed amount. The JV distributes life and general insurance products in Italy through Banco BPM’s bank branch network.

 

Investors dumped food and grocery stocks after Amazon said it would complete its takeover of Whole Foods on Monday and immediately embark on price cuts. The news drove losses at retailers including Walmart, Target and Costco and helped push US markets lower.

 

Oil prices rose as the U.S. petroleum industry prepared for potential output disruptions as Hurricane Harvey headed for the heart of the nation’s oil industry in the Gulf of Mexico.

 

Gold prices were unchanged, with investors awaiting directional clues from the Jackson Hole speeches.

Companies Reporting this week

Day Companies
Today: Henry Boot * ITM Power

Early Market Movements

Market Index Change % Change
UK 100 7,420.5 +13.4 +0.2%
UK 250 19,726.0 +15.7 +0.1%
GER 30 12,198.3 +17.5 +0.1%
FRA 40 5,119.3 +6.2 +0.1%
U.S. 30 21,783.40 -28.69 -0.1%
U.S. 500 2,439.0 -5.1 -0.2%
OIL (BRENT) 52.56 +0.52 +1.0%
GOLD 1,286.63 +0.23 +0.0%

UK Risers & Fallers (8:15am)

Company Price Change % Change
Computacenter 1012.5 +131.5 +14.9%
Provident Financial 784 +36 +4.8%
Standard Life Aberdeen 444.3 +8 +1.8%
Restaurant Group 330.6 -9.8 -2.9%
WPP 1440 -22 -1.5%
Tesco 185.4 -2.05 -1.1%

Latest Broker Views

Company Broker Recommendation Price Target
Balfour Beatty Berenberg Buy 271.15 350
CRH Societe Generale Buy 2797 3400
PageGroup Goldman Sachs Sell 494.2 426
Shire Kepler Cheuvreux Buy 3757 4600

Forthcoming Economic Data

Time/Date Previous Forecast Outcome
9:00am: German Ifo Business Climate 116.0 115.5
1:30pm: U.S. Durable Goods Orders m/m 0.1% 0.4%
5:00pm: U.S. Fed Chair Yellen Speaks
8:00pm: ECB President Draghi Speaks

 

 

 

Sources

http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503645626816962900.html

http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503643702526903000.html

http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503644332646918100.html

http://www.stockmarketwire.com/article/5640577/Vodafone-reveals-details-of-share-buy-back-programme.html

http://www.stockmarketwire.com/article/5640575/Computacenter-pre-tax-profits-more-than-double.html

http://www.marketwatch.com/story/us-stock-futures-perk-up-before-central-bankers-take-center-stage-in-wyoming-2017-08-24

https://www.reuters.com/article/us-global-oil-idUSKCN1B503E

http://www.marketwatch.com/story/nikkei-nudges-up-as-asian-markets-take-wait-and-see-approach-to-jackson-hole-2017-08-24

https://uk.reuters.com/article/global-precious-idUKL4N1LB15I

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