Highlights of the Day
Asian Markets
Asian stocks wavered after data showed both hot and cold patches in the Chinese economy, but losses were limited as investors turned their focus to corporate earnings from Syria. |
U.S. Markets
U.S. stocks moved notably higher over the course of the trading session with the major averages added to the strong gains posted last week |
Today's News
Melrose Industries said it had received acceptances for its takeover bid from around 82% of GKN shareholders. The cancellation of the listing of GKN shares on the London Stock Exchange was expected to take place on around 21 May, the company said. Melrose said it expected the offer to become wholly unconditional by no later than 19 April.
Associated British Foods reported a 1% fall in first-half profit, with a resilient performance at its Primark fashion business offset by a previously flagged reduction in sugar revenues. For the six months to March 3 AB Foods, which also owns major ingredients and grocery businesses, made adjusted operating profit of £648m. That compares with company guidance of a “flat” outcome and £652m made in the first half of its 2016-17 year.
Netflix Inc revealed earnings for its first quarter that increased 63% from the same period last year. The video streaming company’s profit totaled $290.12m, or $0.64 per share. This compares with $178.22m, or $0.40 per share, in last year’s first quarter. Analysts had expected the company to earn $0.64 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
HSBC Holdings has restructured its private banking operation by combining the UK and Switzerland units into a single European entity. Chris Allen, who runs HSBC’s private bank in the UK, Channel Islands, France and Germany will become the head of private banking for Europe, the Middle East and Africa, and the head of the Switzerland private bank Franco Morra will leave the group, according to the newspaper.
Tullow Oil said it had appointed Dorothy Thompson as its new chairman to succeed founder Aidan Heavy at a conclusion of a broad meeting in July. Thompson had served as chief executive of power company Drax Group for 12 years.
Intu Properties reported “record” levels of retailer demand for its shopping centres, with footfall increasing excluding the impact of snow. Intu said it agreed 60 long-term leases from the start of 2018 to Tuesday, worth £10m of annual rent, compared to 42 leases in the first quarter of 2017 for £6m annual rent. Occupancy was high, it said, at 96.1% compared to 95.8% in March 2017.
Anglo American said the value of rough diamond sales for De Beers’ third sales cycle of 2018, totalled $520m supported by continued rough demand. That was lower than the $586m value of rough diamond sales for De Beers’ third sales cycle of 2017.
JD Sports Fashion said headline profit before tax rose 26% to £307.4m for the 53 weeks ended 3 February, as like-for-like store sales grew 3% supported by strong digital sales growth. Total revenue increased by 33% in the year to £3,161.4m from £2,378.7m. Sales from its Sports Fashion division was £2,180m, while sales from its outdoor division was £198.1m.
Gold Prices were flat after a top Federal Reserve official said four rate hikes are possible if inflation continues to pick up.
Oil Prices rose amid worries there could be a high risk of disruptions to supply, especially in the Middle East.
Companies Reporting this week
| Day |
Companies |
| Monday: |
None of Note |
| Tuesday: |
AA * JD Sports |
| Wednesday: |
Tesco |
| Thursday: |
Saga |
| Friday: |
None of Note |
Early Market Movements
| Market |
Index |
Change |
% Change |
| UK 100 |
7,199.6 |
+1.4 |
+0.0% |
| UK 250 |
19,794.8 |
+23.3 |
+0.1% |
| GER 30 |
12,440.1 |
+48.7 |
+0.4% |
| FRA 40 |
5,323.3 |
+10.3 |
+0.2% |
| U.S. 30 |
24,573.04 |
+121.90 |
+0.9% |
| U.S. 500 |
2,677.8 |
+21.5 |
+0.8% |
| OIL (BRENT) |
71.73 |
+0.31 |
+0.4% |
| GOLD |
1,348.52 |
+2.59 |
+0.2% |
UK Risers & Fallers (8:15am)
| Company |
Price |
Change |
% Change |
| Associated British Foods |
2667 |
+84 |
+3.3% |
| WPP |
1134 |
+23 |
+2.1% |
| JD Sports |
375.65 |
+22.75 |
+6.5% |
| Reckitt Benckiser |
5846 |
-151 |
-2.5% |
| Micro Focus |
1233.5 |
-18.5 |
-1.5% |
| Vectura |
101.8 |
-2.7 |
-2.6% |
Latest Broker Views
| Company |
Broker |
Recommendation |
Price |
Target |
| Rio Tinto |
Goldman Sachs |
Neutral |
3730 |
3750 |
| St James’s Place |
JP Morgan |
Overweight |
1072.5 |
1329 |
| Auto Trader Group |
Deutsche Bank |
Hold |
340.1 |
355 |
| Tesco |
Bernstein |
Outperfrom |
233.7 |
290 |
Forthcoming Economic Data
|
8:30am: UK Average Earnings Index 3m/y
|
3.0% |
2.8% |
– |
8:30am: UK Unemployment Rate
|
4.3% |
4.3% |
– |
12.30pm: U.S. Building Permits
|
1.33m |
1.30m |
– |
Sources:
http://www.stockmarketwire.com/article/5935105/JD-Sports-profit-swells-as-revenue-jumps-33pct.html
http://www.stockmarketwire.com/article/5935086/Anglo-American-reports-lower-rough-diamond-sales-for-De-Beers-third-sales-cycle.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1523909911010037200.html
https://uk.reuters.com/article/uk-ab-foods-results/primark-owner-ab-foods-first-half-profit-held-back-by-sugar-idUKKBN1HO0M6?il=0
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1523946459320389900.html