Highlights of the Day
Asian Markets
Many Asia-Pacific stocks were down modestly midday, with markets getting little direction from European and U.S. activity overnight after what has been a choppy trading week. |
U.S. Markets
U.S. stocks were mixed as a report emerged that U.S. Special Counsel Robert Mueller had issued a subpoena for documents related to U.S. President Donald Trump’s businesses |
Today's News
JD Wetherspoon said profit rose significantly in the first half of its financial year, though remained cautious on its outlook for the remainder of the year due to higher costs. Like-for-like sales in the 26 weeks ended January 28 rose 6.1%, as revenue rose 3.6% to £830.4m from £801.4m a year earlier. Pretax profit, before exceptional items, rose 21% to £62.0m. After exceptional items, pretax profit rose 36% to £54.3m.
Old Mutual said it has agreed to sell its Latin American businesses to CMIG International, a financial holding company based in Singapore. The transaction is subject to usual regulatory approvals and customary closing conditions, the company said.
Berkeley Group reported a resilient level of house sales in the past four months and was confident enough about the “compelling” fundamentals of the London and South East housing market to maintain profit and dividend guidance. Although sales in the second half have been above business plan level, the housebuilder blamed its inability to increase production beyond this level due to factors outside its control.
Glencore has entered a deal to sell a third of its cobalt production over three years to Chinese battery recycler GEM Co Ltd, Reuters reported. Under the terms of the deal, Glencore will sell 52,800 tonnes of cobalt hydroxide to GEM from 2018 to 2020. Of this, 13,800 tonnes will be bought by GEM in 2018, 18,000 tonnes in 2019 and 21,000 in 2020.
Cobham said that it has completed the sale of its AvComm and Wireless test and measurement businesses to Viavi Solutions for US$455m. This comes after the firm first announced details of the sale in February.
National Grid said it had received final approval from the New York Public Service Commission for a three-year rate plan settlement for the Niagara Mohawk electric and gas distribution utility. Effective from 1 April, the plan has approved significant capex of $2.5bn and an allowed return on equity of 9% for the utility over the next three years, National Grid said.
Mitie Group said it had notched ‘modest’ growth in sales in the year through December and expected its operating profit to be ‘mildly’ below the previous year. Revenue growth was expected to be in the range of 2.0-to-2.5% at around £2.2bn. Growth was driven by ‘strong’ project work volumes in engineering services, increasing technology content in security and new business wins in care & custody, Mitie said.
UK electronic trading firm Nex Group confirmed today that it had received an approach from US-based derivatives trader CME. A statement from the Nex board said that it “has received a preliminary approach by CME Group regarding a potential acquisition of Nex.
Gold Prices held firm as tensions between the United Kingdom and Russia and renewed U.S. political concerns offset worries about a possible U.S. rate hike next week.
Oil Prices were set to fall this week, with both benchmarks dropping slightly, on concerns among investors about rising supply from the U.S. and other nations threatening to undermine efforts by OPEC and other producers to tighten the market.
Companies Reporting this week
Day |
Companies |
Monday: |
Clarkson |
Tuesday: |
Antofagasta * Computacenter * Fevertree Drinks |
Wednesday: |
Morrisons * Prudential * Hikma Pharmaceuticals * Balfour Beatty |
Thursday: |
Old Mutual * Cineworld * OneSavings Bank |
Friday: |
None |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,136.8 |
-3.0 |
-0.0% |
UK 250 |
19,879.1 |
+50.7 |
+0.3% |
GER 30 |
12,345.6 |
– |
– |
FRA 40 |
5,264.1 |
-3.2 |
-0.1% |
U.S. 30 |
24,873.66 |
+115.54 |
+0.5% |
U.S. 500 |
2747.3 |
-2.2 |
-0.1% |
OIL (BRENT) |
65.15 |
+0.03 |
+0.1% |
GOLD |
1,318.47 |
+2.37 |
+0.2% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Nex Group |
887.5 |
+217 |
+32.4% |
Pearson |
771.2 |
+7 |
+0.9% |
United Utilities |
699 |
+4.8 |
+0.7% |
Berkeley Group |
3708 |
-215 |
-5.5% |
Tesco |
209.6 |
-4.4 |
-2.1% |
Inmarsat |
395.45 |
-4.95 |
-1.2% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Old Mutual |
Deutsche Bank |
Buy |
253 |
270 |
Greencore |
Berenberg |
Buy |
128 |
225 |
PZ Cussons |
JPMorgan |
Neutral |
231.8 |
260 |
Inmarsat |
Deutsche Bank |
Buy |
455.6 |
575 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
12.30pm: U.S. Building Permits |
1.38m |
1.32m |
– |
12.30pm: U.S. Housing Starts |
1.33m |
1.29m |
– |
1.15pm: U.S. Industrial Production m/m |
-0.1% |
0.3% |
– |
1.15pm: U.S. Capacity Utilization Rate |
77.5% |
77.5% |
– |
Sources
https://www.marketwatch.com/story/asian-markets-in-the-red-after-giving-up-early-gains-2018-03-15
https://uk.reuters.com/article/usa-stocks/us-stocks-sp-turns-lower-on-news-of-mueller-subpoena-idUKL1N1QX1UX
https://www.reuters.com/article/us-global-oil/oil-prices-set-for-weekly-drop-as-concerns-about-rising-supply-weigh-idUSKCN1GS04C
https://uk.reuters.com/article/global-precious/precious-gold-steady-as-political-concerns-offset-rate-hike-fears-idUKL3N1QY17X
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521183063469035200.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521186609629315200.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1521186097519297900.html
https://uk.webfg.com/news/news-and-announcements/berkeley-group-maintains-profit-and-dividend-guidance–3195221.html
http://www.stockmarketwire.com/article/5895770/Cobham-completes-sale-of-AvComm-Wireless-businesses-to-Viavi-Solutions.html
http://www.stockmarketwire.com/article/5895447/National-Grid-gets-electricity-rates-approval-from-New-York-regulator.html
http://www.stockmarketwire.com/article/5895721/Mitie-forecasts-mild-fall-in-operating-profit-as-revenue-rises-around-2pct.html
http://www.bbc.co.uk/news/live/business-43345509
http://www.cityam.com/282381/uk-trading-tech-firm-nex-group-confirms-approach-us