Highlights of the Day
Asian Markets
Asian markets continued to rebound, getting a fresh lift as North Korea pulled back its threat to attack Guam. |
U.S. Markets
U.S. stocks gained with the U.S.500 rising 1% for the first time in three months as the verbal standoff between the U.S. and North Korea cooled for now. |
Today's News
The UK has set out the “ambitious new customs arrangement” it wants to secure with the EU after Brexit. Ministers said the plans would mean the “freest and most frictionless possible trade” with the rest of Europe. This could include a “temporary customs union” after Brexit to prevent border problems as the UK leaves the EU. Businesses have called for clarity since the UK said it was leaving the customs union – the EU’s tariff-free trading area – as part of Brexit.
Hargreaves Lansdown’s assets under administration rose by 28% to £79.2bn in the year to the end of June. Pre-tax profits rose by 21% to £265.8m and the group has declared a dividend of 29.0p per share – up 20%. The total dividend of 29p is down 15% on last time. Chief executive Chris Hill said: “We have had a good year for gathering new clients and assets as a result of our relentless focus on the exceptional service we provide.
Sainsbury’s is shelving making a £130m bid for convenience chain Nisa until the UK’s competition watchdog has ruled on Tesco’s £3.7bn takeover of Booker in late October, according to insiders. It is understood the supermarket ended exclusive talks with Nisa last Friday following increasing concerns about how the Competition and Markets Authority (CMA) was assessing rival Tesco’s swoop on Booker.
Germany’s economy expanded at a slightly slower pace in the second quarter, Destatis reported. Gross domestic product grew 0.6% sequentially in the second quarter, slightly slower than the 0.7% expansion seen in the first quarter. The growth rate was expected to remain at 0.7%. While domestic demand and capital formation showed positive contributions, foreign trade had a downward effect on growth. On a yearly basis, GDP expanded by working-day adjusted 2.1%, following a 2% growth logged in the previous quarter. This was also faster than the expected 1.9%.
Millions of rail users in the UK are bracing themselves for news of an increase in regulated rail fares from January 2018. Train operators are allowed to raise fares by as much as the Retail Prices Index (RPI) figure for July, expected to be in the region of 3.5%. The exact figure will be published later this morning. Passenger groups said commuters would be worst-hit, and suggested that the RPI measure should be scrapped.
The UK Competition and Markets Authority said John Wood Group has put forward proposals which “might be acceptable” to remedy competition concerns relating to its takeover of Amec Foster Wheeler PLC. The CMA earlier in August determined that John Wood’s £2.20bn acquisition of Amec Foster Wheeler gives rise to competition concerns. The regulator cited concerns over the supply of engineering and construction services and operation and maintenance services on the UK continental shelf.
Riverstone Energy said it has received $14.0m from SM Energy Co as part of the payment for the 100% membership interests in Rock Oil Holdings LLC. In October 2016, Riverstone Energy had closed the deal to sell its membership interests in Rock Oil Holdings for $230.0m. A payment of $216.0m was received on the closing of the deal, with the remaining $14.0m to be released following a nine-month escrow period.
Oil prices steadied as a stronger U.S. dollar and a drop in Chinese refining runs hit the market.
Gold prices fell in early trade as easing tensions between the United States and North Korea saw investors seek riskier assets like equities.
Companies Reporting this week
Day |
Companies |
Today: |
Hargreaves Lansdown |
Tomorrow: |
Admiral Group * Balfour Beatty |
Thursday: |
Allied Minds * Hikma Pharmaceuticals * Kaz Minerals |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,366.7 |
+12.8 |
+0.2% |
UK 250 |
19,707.6 |
+15.1 |
+0.1% |
GER 30 |
12,209.5 |
+44.4 |
+0.4% |
FRA 40 |
5,141.2 |
+19.5 |
+0.4% |
U.S. 30 |
21,993.71 |
+135.39 |
+0.6% |
U.S. 500 |
2,465.8 |
+24.5 |
+1% |
OIL (BRENT) |
50.77 |
+0.04 |
+0.1% |
GOLD |
1,275.47 |
-6.68 |
-0.5% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Standard Life Aberdeen |
436 |
+12 |
+2.8% |
Sirius Minerals |
28.27 |
+0.47 |
+1.7% |
BAE Systems |
590 |
+9.5 |
+1.6% |
Petrofac |
421.95 |
-18.05 |
-4.1% |
Next |
4268 |
-127 |
-2.9% |
Fresnillo |
1514 |
-33 |
-2.1% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
BAE Systems |
Goldman Sachs |
Conviction Buy |
590 |
750 |
Rio Tinto |
Goldman Sachs |
Neutral |
3370 |
3000 |
St James’s Place |
HSBC |
Buy |
1185 |
1350 |
Direct Line |
Bernstein |
Underperform |
390.2 |
320 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9:30am: U.K. CPI y/y |
2.6% |
2.7% |
– |
9:30am: U.K.PPI Input m/m |
-0.4% |
0.4% |
– |
9:30am: U.K. RPI y/y |
3.5% |
3.5% |
– |
1:30pm: U.S. Core Retail Sales m/m |
-0.2% |
0.3% |
– |
1:30pm: U.S. Retail Sales |
-0.2% |
0.3% |
– |
Sources
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1502779880306349200.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1502778082016269000.html
http://www.stockmarketwire.com/article/5627191/Hargreaves-Lansdown-AuA-up-28pct.html
http://www.telegraph.co.uk/business/2017/08/14/sainsburys-delays-nisa-deal-tesco-booker-concerns/
http://www.bbc.co.uk/news/business-40922861
http://www.foxbusiness.com/features/2017/08/14/asia-markets-asian-markets-bounce-back-as-north-korean-threat-recedes.html
http://www.marketwatch.com/story/dow-futures-flirt-with-100-point-gain-as-north-korea-fears-put-on-back-burner-2017-08-14
https://www.reuters.com/article/us-global-oil-idUSKCN1AV04M
https://uk.reuters.com/article/global-precious-idUKL4N1L106Q