Highlights of the Day
Asian Markets
Asian shares rose after modest gains on Wall Street, while robust metals prices underpinned some regional markets even as investors remained wary ahead of the annual central banking conference in Jackson Hole later this week. |
U.S. Markets
U.S. shares ended up, with each of the three major indexes posting their best one-day percentage gains in over a week, as lawmakers’ comments on tax reform and the debt ceiling boosted investor optimism. |
Today's News
Tesco said it has opened its compensation scheme for shareholders who purchased shares amid its accounting scandal in 2014. Tesco agreed a deferred prosecution agreement with the UK Financial Conduct Authority in March this year, under which Tesco will not be prosecuted for false accounting of Tesco Stores Ltd between February and September 2014 provided it fulfil certain requirements, including the payment of a £129m financial penalty. At that time, Tesco also agreed with the FCA to a finding of market abuse in relation to its trading statement on 29th August, 2014, whereby it overstated the expected profits of the group at that time, as a result of the accounting errors.
WPP reported slightly weaker than expected top line growth at the half year stage. At £7.4bn for the latest six-month stretch, which was 13.3% ahead of the prior year period, the company fell slightly short of the consensus forecast for £7.5bn. Revenues were 1.9% higher on a constant currency basis but 0.3% lower on a like-for-like basis, below the company’s target for 2% growth. Its reported net sales margins on the other hand improved by 0.2 points to 13.9%.
Vodafone is in discussions with BT owned Openreach about a groundbreaking joint investment in new ultrafast fibre-optic broadband for British cities. The two companies are in what are described by industry sources as “early but serious” discussions about combining their financial strength to build large-scale new infrastructure to replace ageing copper telephone lines.
Lloyds Banking Group former chief executive, Eric Daniels, is suing the bank for as much as £500,000 in unpaid bonuses due in 2012. Daniels filed legal claims with the UK High Court against the bank this month. Daniels and his colleagueTate are understood to be disputing a decision not to pay them part of a bonus due in 2012 towards the end of their stint with the bank. Daniels was chief executive of the company when it was bailed out with taxpayer money during the 2008 financial crisis.
Anglo Pacific Group said it made a “very strong” start to the year after free cash flow and royalty income surged in the first half. The mining royalty business reported a 300% jump in free cash flow to £18.9mln in the six months ended 30 June, compared to the same period a year earlier, including an impact of the Denison financing arrangement of £3.3bn. Royalty income shot up 295% to £16.1mn with a record performance at the Maracás Menchen project in Brazil due to strong production and a significant improvement in vanadium prices to an average of $5.46 per pound from $3.15 last year. Anglo has a 2% net smelter return royalty on all mineral products sold from the project to which the royalty interest relates.
Playtech has agreed to buy technology, intellectual property and certain customer assets from UK-based B2B market maker, dealer and broker Alpha – also known as ACM – for up to $150m as it continues to enhance its financials division’s B2B offering. The company also said on Wednesday that its financials division will now be known as TradeTech Group to better reflect the full capabilities of the businesses within the division and align its brand recognition throughout the industry. As a result of the acquisition of the assets a team from Alpha will join the TradeTech Group and the brand TradeTech Alpha will be created to deliver a bespoke risk management and trading solution to B2B customers.
Costain is on track to meet full-year forecasts after a strong first half performance with a 34% growth in underlying operating profit and a 10% interim dividend increase. Revenue, including its share of joint ventures and associates, increased to £874.5m while underlying operating profits rose to £21.2m. The group said the order book stood at £3.7bn, of which over 90% continued to be repeat business, and tendering levels remained high. It said over £1.5bn of revenue had been secured for FY2017 at 30th June.
Oil prices fell, weighed down by concerns of oversupply as Libyan output improves and as U.S. gasoline inventories rose despite the peak summer driving season.
Gold prices inched up as the dollar slipped after remarks by U.S. President Donald Trump raised fears of a government shutdown, while investors awaited further direction from a key annual central banking conference this week.
Companies Reporting this week
Day |
Companies |
Today: |
Ashley (Laura) Holding * Anglo Pacific Group * Candover Investments * Costain Group * Hansteen Holdings * NMC Health * WPP |
Tomorrow: |
Avocet Mining * Camellia * CRH * Hunting * John Laing Group * Macfarlane Group * OneSavings Bank * Phoenix Group Holdings (DI) * Playtech * Premier Oil * Sportech |
Friday: |
Henry Boot * ITM Power |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,374.0 |
-7.7 |
-0.1% |
UK 250 |
19,759.6 |
+8.4 |
+0.0% |
GER 30 |
12,252.0 |
+22.6 |
+0.2% |
FRA 40 |
5,129.6 |
-2.3 |
-0.0% |
U.S. 30 |
21,899.89 |
+196.14 |
+0.9% |
U.S. 500 |
2,452.5 |
+24.1 |
+1.0% |
OIL (BRENT) |
51.70 |
-0.17 |
-0.3% |
GOLD |
1,286.32 |
+1.24 |
+0.1% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
NMC Health |
2490 |
+70 |
+2.9% |
Convatec |
289.4 |
+3.4 |
+1.2% |
Micro Focus |
2306 |
+15 |
+0.7% |
WPP |
1453 |
-141 |
-8.8% |
Tullow Oil |
158.3 |
-2.0 |
-1.2% |
Pearson |
614.5 |
-7.0 |
-1.1% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Antofagasta |
Deutsche Bank |
Sell |
968 |
800 |
Cairn Energy |
Credit Suisse |
Outperform |
178.9 |
260 |
Provident Financial Group |
JP Morgan |
Neutral |
589 |
1200 |
Meggit |
Jeffries |
Buy |
509 |
600 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8:00am: ECB President Draghi Speaks |
– |
– |
– |
3:30pm: U.S. Crude Oil Inventories |
-8.9M |
-3.3M |
– |
Sources:
http://www.reuters.com/article/global-markets-idUSL4N1L805Y
https://www.reuters.com/article/us-usa-stocks-idUSKCN1B218U
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503467793483902300.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1503470065374076700.html
https://www.digitallook.com/news/news-and-announcements/wpp-misses-interim-sales-forecasts–2825490.html
https://www.digitallookcom/news/press-round-up-short-premium/wednesday-newspaper-round-up-identity-theft-vodafoneopenreach-provident-financial–2825485.html
https://www.digitallook.com/news/news-and-announcements/playtech-to-buy-b2b-market-maker-acm-for-up-to-150m–2825505.html
http://ww.stockmarketwire.com/article/5637294/Costain-on-track-after-strong-first-half.html
http://www.proactiveinvestors.co.uk/companies/news/182846/anglo-pacific-group-posts-first-half-jump-in-royalty-income-and-free-cash-flow-182846.ht
http://uk.reuters.com/article/uk-global-oil-idUKKCN1B303C
https://uk.reuters.com/article/global-precious-idUKL4N1L917F