Highlights of the Day
Asian Markets
Asian markets rose after a positive performance by U.S. markets earlier in the day. |
U.S. Markets
U.S. Stocks rose after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral. |
Today's News
US Federal Reserve Chairman Jerome Powell said that interest rates are at near neutral levels, suggesting that rate increases will be slowed. Powell’s statement during a speech at the Economic Club of New York marked a departure from his comments in October, when he said that the Fed was a “long way” from neutral.
Large parts of the British economy are not ready for a no-deal Brexit, Bank of England governor Mark Carney has said. Fewer than half of businesses have initiated contingency plans, Mr Carney told BBC Radio 4’s Today programme. He said the UK would need a transition period to adapt to whatever form of departure from the EU Parliament chose.
All seven British banks and building societies in this year’s Bank of England stress test passed, indicating they could withstand a disorderly Brexit without having to curb lending.
Intu Properties remained “confident” of its prospects despite a consortium announcing it does not intend to make a formal £2.85bn offer for the London and Johannesburg-listed shopping mall owner amid ongoing market uncertainty. However, the retail property investor said it intends to reduce its dividend payment, starting with its final payout for 2018.
Thomas Cook reported a £163m annual pre-tax loss compared to a £9m profit last year. Earlier this week, it warned that its underlying profit would miss forecasts which it blamed on hot summer weather in the UK and disruption to flights. However, revenue rose to £9.5bn from £9bn.
Greene King said Christmas bookings were well ahead of last year after reporting first-half profits rose modestly on ‘strong’ performance in Pub Company and Brewing & Brands. For the six months to 14 October, profit before tax rose 3.2% to £127.7 and group revenue was £1.1bn, up 1.9% from a year earlier.
Go-Ahead Group said that it was on track during its first quarter of the year and that revenues continued to outpace growth in passenger numbers. In a trading update for the July 1 to November 28 period the company said revenues from its regional bus operation grew 3 per cent against 1.5 per cent growth in passenger journeys.
Phoenix Group said it delivered £664m of cash generation in 2018 (2017: £653m). In a trading update, the group delivered £1.3bn cash generation in 2017 and 2018, exceeding the upper end of its cash generation target of £1bn – £1.2bn for this period.
Unilever announced CEO Paul Polman has decided to retire from the company. Alan Jope, currently President, Beauty & Personal Care, was appointed to the position, effective 1 January 2019, with Polman supporting the transition process during the first half of the year.
Britvic’s annual revenues rose 5% to £1.5bn, while pre-tax profits were up 4.9% to £117m. Boss Simon Litherland described it as “another strong performance” underpinned by its low sugar portfolio.
Rio Tinto announced it will develop its most technologically advanced mine following the full approval of a $2.6bn (A$3.5 bn) investment in the Koodaideri iron ore mine in Western Australia.
Oil Prices rose, but an increase in U.S. crude inventories and uncertainty in the run to an OPEC meeting next week kept markets under pressure.
Gold Prices were steady, with the dollar easing on dovish comments from Federal Reserve Chair Jerome Powell.
Companies Reporting this week
Day |
Companies |
Monday: |
No Companies Reporting |
Tuesday: |
Shaftesbury * Topps Tiles * Cranswick * Pennon * Pets at Home * Intertek |
Wednesday: |
Brewin Dolphin * RPC * Senior * Daejan Holdings * On The Beach |
Thursday: |
Thomas Cook * Greene King * Go-Ahead * Phoenix Group * Britvic |
Friday: |
|
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,037.10 |
+32.58 |
+0.5% |
UK 250 |
18,703.11 |
+63.38 |
+0.3% |
GER 30 |
11,386.2 |
+87.3 |
+0.8% |
FRA 40 |
5,034.3 |
+51.0 |
+1.0% |
US 30 |
25,366.43 |
+617.70 |
+2.5% |
US 500 |
2,743.79 |
+61.62 |
+2.3% |
Oil (Brent) |
58.79 |
+0.03 |
+0.1% |
GOLD |
1,226.65 |
+5.42 |
+0.4% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Mediclinic |
360.6 |
+11.3 |
+3.2% |
Fresnillo |
783 |
+24 |
+3.2% |
Allied Mind |
47.625 |
+3.075 |
+6.9% |
Hammerson |
396 |
-25 |
-5.9% |
Land Securities |
849.2 |
-26.2 |
-3.0% |
Intu Properties |
122.59 |
-69.975 |
-36.3% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
British American Tobacco |
RBC |
Sector Perform |
2737 |
2700 |
BP |
JPMorgan |
Overweight |
523.6 |
575 |
Royal Dutch Shell B |
JPMorgan |
Overweight |
2383 |
2800 |
Cranswick |
Berenberg |
Buy |
2780 |
3550 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
9.00pm: ECB President Draghi speaks |
– |
– |
– |
10.30am: U.K. Net Lending to Individuals |
4.7bn |
4.5bn |
– |
5.45pm: U.K. BOE Governor Carney Speaks |
– |
– |
– |
Sources
https://www.marketwatch.com/story/asian-markets-roll-along-on-powells-comments-nikkei-up-for-5th-straight-day-2018-11-28
https://www.cnbc.com/2018/11/28/stock-market-wall-street-looks-to-fed-chair-speech-and-trade-news.html
https://uk.reuters.com/article/uk-global-oil/oil-prices-climb-but-oversupply-concerns-weigh-opec-meeting-in-focus-idUKKCN1NY060
https://www.nasdaq.com/article/preciousgold-prices-firm-as-dollar-eases-on-cautious-fed-speech-20181128-01245
http://www.stockmarketwire.com/article/6225352/Greene-King-touts-busy-festive-period-as-profits-grow-3pct.html
http://www.stockmarketwire.com/article/6225348/Phoenix-Group-delivers-strong-trading-update.html
http://www.stockmarketwire.com/article/6225337/Unilever-CEO-Paul-Polman-to-retire.html
http://www.stockmarketwire.com/article/6224995/Rio-Tinto-to-develop-technologically-advanced-mine-in-Western-Australia.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1543477511237968600.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1543473168037664400.html
https://www.bbc.co.uk/news/business-46377765
https://www.bbc.co.uk/news/live/business-46316146
https://uk.reuters.com/article/uk-britain-eu-banks/british-banks-withstand-disorderly-brexit-in-bank-of-england-test-idUKKCN1NX26C