Highlights of the Day
Asian Markets
Asia-Pacific stock markets were relatively quiet following a late-week pullback in U.S. equities. There were more indexes with declines than gains in morning trade, but moves in either direction were almost all within 0.3%. |
U.S. Markets
U.S. stocks closed lower, with major indexes slumping in a broad decline. While Wall Street posted a second straight positive week, the selloff heavily eroded the week’s gains. |
Today's News
UK household finances deteriorated at the start of the second quarter, survey data from IHS Markit showed Monday. The household finance index remained unchanged at 43.2 in April. A score below 50 suggests a moderate deterioration in household finances with the rate of decrease broadly in line with that seen over the last 12 months. Nonetheless, improving labor market and a fall in inflationary pressures provided some welcome news to families.
Glencore said it believes subsidiary Katanga Mining Ltd “has options” to sort out capital deficiencies in its joint venture with the state-owned mining company in the Democratic Republic of the Congo. Glencore made the announcement in response to the start of legal proceedings by the parastatal Gecamines to wind up the Kamoto Copper Co joint venture.
BHP Billiton said a court in Brazil has granted a 66-day extension for discussions over a settlement for the Samarco dam failure. BHP, is talking to federal prosecutors from Brazil’s 12th Federal Court alongside Samarco Mineracao SA and Vale SA.
Stars Group said it has agreed to acquire Sky Betting & Gaming from CVC Capital Partners and Sky in a cash and stock transaction valued at $4.7bn. As per the terms of the acquisition agreement and based on the closing price of Stars Group’s on Friday, the transaction has an enterprise value of about $4.7bn, of which $3.6bn is payable in cash and the remainder is payable in approximately 37.9 million newly-issued common shares. The new shares will represent about 20% of Stars Group’s shares after the transaction and the anticipated acquisitions of CrownBet and William Hill Australia.
Clarkson warned that profits for both the first half and the full year are expected to be materially below those of last year following a challenging environment in shipping and offshore capital markets. ‘The challenging environment in shipping and offshore capital markets has led to transactions being pushed back within the financial segment and has compounded a quiet period in sale and purchase activity for the group across shipping and offshore,’ the firm said.
Capita launched a £701m rights issue to repair its balance sheet as losses continued to widen in the year to end of December. The rights issue was said to form a key component of a transformation plan to ‘provide Capita with a sustainable capital base to support its clients and operations.’
Tristel said the US Environmental Protection Agency had registered its Duo foam-based chlorine dioxide product. The registration enabled Tristel to market Duo to clean and disinfect hard, non-porous surfaces, the company said. The federal registration would be followed by state-by-state approvals which the company said it expected to complete by the end of 2018.
Petra Diamonds boosted third-quarter revenue by 44% after it produced and sold more gems. Revenue rose to $172.0m from 1,373,771 carats sold, up from 1,069,886 carats on-year. Production jumped 20% to a record quarterly volume of 1,194,947 carats. ‘Petra has recorded strong results in both production and sales, as well as a continued improvement in our safety performance,’ chief executive Johan Dippenaar said.
NMC Health said it would issue $450m worth of convertible bonds as part of a loan restructuring. Due in 2025, the bonds were convertible into NMC Health shares, the company said. They would be marketed with a fixed coupon of 1.875% and an initial exchange price set at a 50-60% premium to the reference share price.
Hikma Pharmaceuticals said its wholly-owned US subsidiary West-Ward Pharmaceuticals launched an injection to reduce the incidence and severity of cardiomyopathy, a chronic heart disease, in certain women with breast cancer. West-Ward launched Dexrazoxane for injection, the generic equivalent to Zinecard.1, reducing the shortage of the product in the U.S. market.
Gold Prices slipped to their lowest level in nearly two weeks in range-bound trade, as the dollar rose on the back of climbing U.S. Treasury yields and as global political concerns eased.
Oil Prices dipped as a rising U.S. rig count implied further increases in output, marking one of the few factors tamping back crude in an otherwise bullish environment.
Companies Reporting this week
Day |
Companies |
Monday: |
None of Note |
Tuesday: |
None of Note |
Wednesday: |
Whitbread |
Thursday: |
Capita Group |
Friday: |
None of Note |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,367.8 |
-0.4 |
-0.0% |
UK 250 |
20,240.7 |
+19.9 |
+0.1% |
GER 30 |
12,518.2 |
-22.3 |
-0.2% |
FRA 40 |
5,402.0 |
-10.8 |
-0.2% |
U.S. 30 |
24,462.94 |
-201.95 |
-0.8% |
U.S. 500 |
2,670.1 |
-23.0 |
-0.9% |
OIL (BRENT) |
73.93 |
-0.13 |
-0.2% |
GOLD |
1,333.82 |
-2.54 |
-0.2% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Whitbread |
4302 |
+67 |
+1.6% |
Imperial Brands |
2428.5 |
+26 |
+1.1% |
Capita Group |
178.6 |
+18.8 |
+11.8% |
Reckitt Benckiser |
5422 |
-203 |
-3.6% |
NMC Health |
3626 |
-62 |
-1.7% |
Clarkson |
2152.5 |
-952.5 |
-30.7% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Imperial Brands |
Societe Generale |
Buy |
2402.2 |
3000 |
NMC Health |
Barclays |
Overweight |
3688 |
4250 |
Glencore |
Credit Suisse |
Outperform |
380.65 |
470 |
AB Foods |
RBC Capital |
Sector Perform |
2631 |
2800 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
8.30am: German Flash Maufacturing PMI |
58.2 |
57.6 |
– |
9.00am: European Flash Manufacturing PMI |
56.6 |
56.6 |
– |
3.00pm: U.S. Existing Home Sales |
5.54m |
5.55m |
– |
Sources
https://www.marketwatch.com/story/asian-markets-get-off-to-a-slow-start-2018-04-22
https://www.marketwatch.com/story/us-stocks-slump-in-broad-decline-apple-shares-tumble-2018-04-20
https://www.reuters.com/article/us-global-oil/oil-dips-as-u-s-drilling-tempers-otherwise-bullish-sentiment-idUSKBN1HU01V
https://uk.reuters.com/article/global-precious/precious-gold-slips-to-2-wk-low-as-rising-bond-yields-support-dollar-idUKL3N1S017M
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1524464875168645100.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1524465032118656900.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1524461907898438900.html
http://www.londonstockexchange.com/exchange/news/alliance-news/detail/1524461468688421800.html
http://www.stockmarketwire.com/article/5942466/Clarkson-issues-profit-warning-amid-challenging-environment.html
http://www.stockmarketwire.com/article/5942461/Capita-launches-pound701m-rights-issue-to-shore-up-finances-as-losses-widen.html
http://www.stockmarketwire.com/article/5942493/Tristel-wins-US-EPA-approval-for-foam-based-cleaning-product.html
http://www.stockmarketwire.com/article/5942439/Glencores-Katanga-mulls-capital-raise-for-Kamoto.html
http://www.stockmarketwire.com/article/5942446/Petra-Diamonds-third-quarter-revenue-up-44pct-as-production-grows.html
http://www.stockmarketwire.com/article/5942430/NMC-Health-launches-450m-bond-offer-to-pay-down-bridging-loan.html
http://www.stockmarketwire.com/article/5940919/Hikma-launches-injection-to-reduce-severity-of-cardiomyopathy.html