Highlights of the Day
Asian Markets
Slight gains seen during the U.S. session failed to translate into an advance in Asian stocks on Tuesday, with major markets in the region trading below the flat line. |
U.S. Markets
US Stocks rose with main index notching its eighth consecutive day of gains as investors digested signs of easing trade tensions between the U.S. and China. |
Today's News
Vodafone Group said chief executive Vittorio Colao would be replaced in October by current chief financial officer Nick Read, as the company also swung to an annual profit. Net profit for the year through March amounted to €2.79bn, compared to a loss a year earlier of €6.08bn that included a large tax expense. Operating profit rose 15.4% to €4.3bn, as revenue fell 2.2% to €46.6bn, mostly due to the deconsolidation of Vodafone Netherlands and FX movements.
Land Securities, posted a slight fall in full-year adjusted net asset value per share, hurt by the cost of refinancing bonds, and said it named Cressida Hogg as new chairwoman. The developer reported a 1% fall in adjusted diluted net asset value – a measure of a developer’s buildings – to 1,403 pence for the year to March 31.
Patisserie Valerie reported a rise in revenue and profits for the first half of its current financial year. Birmingham-headquartered Patisserie Holdings posted a revenue of £60.5m for the six months to 31 March 2018, up from £55.5m during the same period in 2017. Pre-tax profits have also increased, rising from £9.7m to £11.1m.
DCC reported a 11.1% rise in full-year operating profit, driven by strong growth across all its divisions. DCC, whose services range from distributing oil to making The Body Shop’s body butters, said adjusted operating profit from continuing operations rose to £383.4m in the year ended March 31, from £345m a year earlier.
EazyJet posted a narrower half-year pretax loss and guided that it expected revenue per seat to be positive in the second half of the year. The company posted a pretax loss of £68m for the six months ended March 31, an improvement on the £236m loss it made in the same period last year. However Revenues edged up 19.5% to £2.18bn as easyJet reported a 3m increase in the number of passengers to 36.8m. This saw its load factor rise to 91.1% from 89.7% last year.
Allianz said it was on track to meet its 2018 goals as it posted a forecast-beating 6.8% in first quarter net profit, lifted by higher investment results and lower tax rates. Net profit of €1.939bn euros (£1.7bn) was better than the €1.787bn forecast by analysts in a Reuters poll and above the €1.816bn earned during the same period last year.
Hargreaves Lansdown said that total assets rose 3.1% in the year to end-April as inflows of fresh client money more than offset market losses. The company said it took in £3.3bn of net new business during the first four months of the year, more than offsetting losses of £600m and helping total assets under administration hit £88.8bn.
Oil Prices were flat on Tuesday as ongoing production cuts by OPEC and looming U.S. sanctions against Iran tightened the market amid signs of ongoing strong demand.
Gold Prices inched lower on Tuesday on safe-haven buying, but upside potential for the metal was capped by a firm dollar and outlook for further interest rate hikes in the United States.
Companies Reporting this week
| Monday: |
– |
| Tuesday: |
DCC * Vodafone * Land Securities Group |
| Wednesday: |
Burberry Group |
| Thursday: |
3i Group * British Land * National Grid * Royal Mail * Sophos Group |
| Friday: |
– |
Early Market Movements
| UK 100 |
7,695.2 |
-15.8 |
-0.2% |
| UK 250 |
20,789.0 |
-12.0 |
-0.1% |
| GER 30 |
12,940.0 |
-37.7 |
-0.3% |
| FRA 40 |
5,528.0 |
-12.7 |
-0.2% |
| U.S. 30 |
24,899.41 |
+68.24 |
+0.3% |
| U.S. 500 |
2,730.13 |
+2.41 |
+0.1% |
| OIL (BRENT) |
78.21 |
-0.02 |
-0.0% |
| GOLD |
1,311.84 |
-1.66 |
-0.1% |
UK Risers & Fallers (8:15am)
| EazyJet |
1740 |
+55 |
+3.3% |
| Taylor Wimpey |
199.45 |
+4.35 |
+2.2% |
| Ascential |
429.8 |
+9.8 |
+2.3% |
| Vodafone Group |
200.6 |
-6.6 |
-3.2% |
| Anglo American |
1800 |
-40.8 |
-2.2%
|
| BTG |
633 |
-29.5 |
-4.5% |
Latest Broker Views
| British American Tobacco |
Goldman Sachs |
Buy |
3811 |
5350 |
| Vodafone |
JP Morgan |
Overweight |
207.2 |
280 |
| Indivior |
Citigroup |
Neutral |
457.7 |
500 |
| Greggs |
Barclays |
Equal Weight |
1025 |
1030 |
Forthcoming Economic Data
| Time/Date |
Previous |
Forecast |
Outcome |
| 9:30am: UK Average Earnings Index 3m/y |
2.8% |
2.7% |
– |
| 9:30pm: UK Unemployment Rate |
4.2% |
4.2% |
– |
| 10:00am: EUR Flash GDP q/q |
0.4% |
0.4% |
– |
Sources:
http://www.stockmarketwire.com/article/5970978/EasyJet-first-half-losses-narrow-as-revenue-jumps-nearly-20pct.html
https://www.insidermedia.com/insider/midlands/Half-year-success-for-Patisserie-Valerie-owner
http://www.stockmarketwire.com/article/5970654/Vodafone-swings-to-profit-CEO-Vittorio-Colao-to-be-replaced-by-CFO-Nick-Read.html
https://uk.reuters.com/article/uk-land-secs-group-results/land-securities-full-year-nav-dips-on-refinancing-costs-names-new-chairwoman-idUKKCN1IG0PT?il=0
https://uk.reuters.com/article/uk-dcc-results/dcc-posts-11-1-percent-rise-in-full-year-profit-idUKKCN1IG0PN?il=0
https://uk.reuters.com/article/uk-allianz-results/allianz-first-quarter-profit-up-6-8-percent-on-investments-lower-taxes-idUKKCN1IG0I2?il=0