The Morning Call - Greene King reports strong summer numbers

Highlights of the Day

Asian Markets

Selling continued in Asia-Pacific stocks, with Japanese equities hit by an overnight jump in the yen. The Japanese market was pressured by President Donald Trump’s comments about turning an eye toward Japan next on trade.

U.S. Markets

Weakness in technology shares hurt the U.S.500 for the third straight session, with worries about regulation and trade continuing to hang over the market’s best-performing sector.

Today's News

Shoppers took a holiday from the high street this summer, with sales in August at their worst in three years, according to an accountancy and business advisory firm. UK high street sales fell by 2.7% year-on-year ? the worst August decline for three years, BDO’s high street sales tracker said. The report also said it was one of the worst Augusts seen since records started in 2006.

Greene King said a prolonged spell of sunny weather and the World Cup had kept the booze flowing at its Pub Company driving above-market sales growth during the summer period. For the 18 weeks to 2 September, Pub Company’s like-for-like sales rose 2.8%, beating a 1.2% rise in the broader market. Like-for-like net profit fell 0.4% after 16 weeks, impacted by the timing of higher overhead costs, the company said.

Furious British Airways customers have been left having to cancel their credit cards after a 15-day data breach compromised around 380,000 card payments. The airline admitted “criminal activity” had compromised the personal and financial details of customers who made bookings on its website or app from just before 11pm on August 21 until 9.45pm on Wednesday.

Playtech said it had sold its entire 10% holding in online broker Plus500 for around £176m. The company sold the shares at £15.50 each. Playtech said sale proceeds would be used for general corporate purposes and to cut debt.

AstraZeneca said the US Food and Drug Administration had granted a priority review of its severe asthma treatment. The development came after trial data showed the treatment, tezepelumab, significantly reduced the annual asthma exacerbation rate compared with a placebo in a broad population of patients.

Ashmore reported lower annual profits despite growing assets under management by more than a quarter amid record net inflows. For the year ended 30 June, statutory profit before tax fell to £191.3m from £206.2m a year earlier, and net revenue increased to £276.3m from £257.6m.

Oil Prices held steady, as the market balanced a fall in U.S. crude inventories to the lowest levels since 2015, with Sino-American trade tensions and economic weakness from emerging markets.

Gold Prices rose as the dollar fell against the yen on fears that U.S. President Donald Trump would take up trade issues with Japan as the markets braced for another round of U.S. tarriffs on China.

Companies Reporting this week

Day	Companies
Monday:	Dechra Pharmaceuticals
Tuesday:	Redrow * WPP * DS Smith * Ryanair * Halfords
Wednesday:	Barratt Developments * Berkeley Group * IAG (3.00pm)
Thursday:	Go-Ahead Group * Bovis Homes * Just Group * Dixons Carphone * McCarthy & Stone * Easyjet
Friday:	Greene King

Early Market Movements

Market	Index	Change	% Change
UK 100	7,320.9	+1.9	+0.0%
UK 250	20,288.5	+5.0	+0.0%
GER 30	11,958.6	+3.3	+0.0%
FRA 40	5,249.0	+5.1	+0.1%
US 30	25,995.87	+20.88	+0.1%
U.S. 500	2,878.05	-10.55	-0.4%
OIL (Crude)	76.52	+0.02	+0.0%
GOLD	1,200.56	+0.58	+0.1%

UK Risers & Fallers (8:15am)

Company	Price	Change	% Change
DCC	6885	+150	+2.2%
BAE Systems	616.4	+6.4	+1.1%
Greene King	536.7	+61.7	+13.0%
IAG Group	657.6	-23.6	-3.5%
Shire	4271	-60.5	-1.4%
Go-Ahead Group	1789.5	-40.5	-2.2%

Latest Broker Views

Company	Broker	Recommendation	Price	Target
Admiral Group	Barclays	Underweight	2028	1997
Legal and General	Barclays	Overweight	254.3	317
Melrose Industries	JPMorgan	Overweight	230	285
Centrica	HSBC	Reduce	150.55	142

Forthcoming Economic Data

Time/Date	Previous	Forecast	Outcome
1.30pm: U.S. Average Hourly Earnings m/m	0.3%	0.2%	–
1.30pm: U.S. Non-Farm Employment Change	157k	191k	–
1.30pm: U.S. Unemployment Rate	3.9%	3.8%	–