Highlights of the Day
Asian Markets
Asian stocks markets were mixed after muted moves in the U.S. and Europe overnight. The Nikkei started lower, hampered by a further uptick for the yen, but Chinese stocks advanced despite rising trade tensions. |
U.S. Markets
U.S. markets closed little changed after the unveiling of new Chinese tariffs on U.S. goods. The technology index closed marginally higher, notching its longest winning streak since March |
Today's News
BHP said it had reached $50m settlement related to Samarco dam disaster with plaintiffs who had purchased American depositary receipts. Under the terms of the agreement, BHP had agreed to pay the plaintiffs US$50 million, with no admission of liability. The agreement is subject to approval by the District Court.
Randgold Resources is on track to meet its production guidance in 2018 amid a “record quarter” at its Kibali mine. This comes despite a 12% drop in profit for the second quarter of 2018 to $58.4m as increased profit from mining was offset by higher depreciation and costs.
Legal & General produced a first-half operating profit that was ahead of City forecasts and, although the life insurer’s earnings were down due to investment performance, an “exceptionally busy” second half is anticipated.
TUI AG reiterated its annual earnings guidance as it posted a 27% drop in third-quarter pretax profit. The Anglo-German travel operator also said that summer bookings for the current year are up 4%, with 86% of the programme sold, in line with prior year.
Card Factory has also warned on profits because of “the weather impact and continuing uncertainty around the UK consumer environment”. It said it expects full-year underlying profit of between £89m and £91m “dependent on the key fourth quarter trading period”. It had been expected to report a £93.5m annual profit.
Evraz said that first-half pretax profit surged on growing revenue as it benefited from higher steel prices as well as cost-cutting initiatives. The steel maker said that profit before tax for the six months ended June 30 was $1.54 billion, compared with $294 million the previous-year period. Revenue rose 24% to $6.34 billion.
Coca-Cola HBC has reported solid sales and profit growth in the first half, boosted by the hot summer weather and the world cup period. The bottler of Coca-Cola brand beverages reported an operating profit (EBIT) for the first half of €303.9mln, up 14.1% on the same period a year ago, while net sales revenue inched up 0.5% to €3.22bn.
G4S reported that underlying revenues were up 0.2 per cent to £3.6bn, while adjusted profits before interest, tax and amortisation (PBITA) fell 3.2 per cent to £212m. Earnings were flat at £115m for the six months to 30 June. The troubled firm won new contracts worth £700m in the period.
Cineworld Group said its first-half profit almost trebled thanks to the acquisition of US group Regal Entertainment and solid sales growth in the UK and Ireland. The group, which completed the £2.5bn purchase of Regal earlier this year, reported adjusted earnings (EBITDA) of $413.6mln in the six months to the end of June – up from $107.5mln a year ago – on sales of $1.86bln.
Savills reported a 12% drop in Group underlying profit in the first half of 2018 to £42.4m as investment expenditure and reduction in activity on key commercial markets weighed, but anticipated that full-year performance would still be in line with expectations.
Oil Prices eked out gains on concerns about Iranian crude supplies as the U.S. hit Tehran with renewed sanctions
Gold Prices rose slightly, after gaining for two straight sessions, supported by a slightly weaker dollar versus the yen in Asian trade.
Companies Reporting this week
Day |
Companies |
Monday: |
HSBC * Ultra Electronics * Synthomer * easyJet * Wizz Air * Vedanta |
Tuesday: |
Hargreaves Lansdown * Intercontinental Hotels * Domino’s Pizza * Intertek * Meggitt * Rotork *TP ICAP * Walt Disney * |
Wednesday: |
Glencore * Prudential * Interserve * Page Group * Liberty Global * Bellway |
Thursday: |
G4S * Legal and General * Randgold Resources * Cineworld * Evraz * Card Factory |
Friday: |
No Companies Reporting |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,740.8 |
-35.9 |
-0.5% |
UK 250 |
20,763.2 |
-7.4 |
-0.0% |
GER 30 |
12,619.8 |
-13.7 |
-0.1% |
FRA 40 |
5,482.8 |
-19.1 |
-0.4% |
US 30 |
25,583.75 |
-45.16 |
-0.2% |
U.S. 500 |
2,857.70 |
-0.75 |
-0.0% |
OIL (Crude) |
72.52 |
+0.24 |
+0.3% |
GOLD |
1,213.95 |
+0.07 |
+0.0% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Next |
5740 |
+62 |
+1.1% |
Glencore |
329.85 |
+3.3 |
+1.0% |
Cineworld |
291.5 |
+15.1 |
+5.5% |
TUI AG |
1494.5 |
-88 |
-5.6% |
G4S |
267.05 |
-14.95 |
-5.3% |
Card Factory |
193 |
-17.8 |
-8.4% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Glencore |
HSBC |
Buy |
326.55 |
420 |
BP |
Goldman Sachs |
Conviction Buy List |
576.7 |
730 |
Inmarsat |
Goldman Sachs |
Neutral |
553 |
500 |
Capita Group |
Jefferies |
Buy |
128.3 |
180 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
1.30pm: U.S. PPI m/m |
0.3% |
0.2% |
– |
1.30pm: U.S. Core PPI m/m |
0.3% |
0.2% |
– |
1.30pm: U.S. Unemployment Claims |
218k |
220k |
– |
Sources
https://www.marketwatch.com/story/asian-markets-mixed-as-drop-in-oil-prices-weighs-on-energy-stocks-2018-08-08
https://www.cnbc.com/2018/08/08/us-markets-corporate-earnings-and-trade-tensions-on-the-agenda.html
https://www.investing.com/news/commodities-news/oil-prices-rebound-slightly-after-heavy-declines-over-trade-dispute-1566944
https://uk.reuters.com/article/global-precious/precious-gold-nudges-up-as-dollar-hits-2-week-low-vs-yen-idUKL4N1V01KD
http://www.stockmarketwire.com/article/6085153/Saville-sees-12pct-drop-in-underlying-profit-as-investment-expenditure-reduced-activity-weigh.html
http://www.stockmarketwire.com/article/6085168/Derwent-hikes-dividend-10pct-despite-reporting-modest-net-rental-income-growth.html
http://www.stockmarketwire.com/article/6085201/BHP-pays-50m-to-settle-US-case-amid-ongoing-Brazil-dam-talks.html
http://www.stockmarketwire.com/article/6085211/Randgold-on-track-to-meet-2018-guidance-despite-challenges.html
http://www.stockmarketwire.com/article/6084401/WPP-acquires-Chicago-based-e-commerce-specialist-Gorilla.html#
https://uk.webfg.com/news/market-live-email/market-live–3435374.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1533796167806392400.html
https://www.bbc.co.uk/news/live/business-45082930
http://www.cityam.com/290509/card-factory-warns-profits-after-extreme-weather-first-half
https://www.marketwatch.com/story/evraz-profit-grows-buoyed-by-steel-prices-2018-08-09-24855812
http://www.cityam.com/290510/g4s-profits-slip-but-hails-step-change-revenue-growth
http://www.proactiveinvestors.co.uk/companies/news/202558/coca-cola-hbc-sees-first-half-sales-boosted-by-hot-weather-and-world-cup-period-202558.html
http://www.proactiveinvestors.co.uk/companies/news/202550/cineworld-profits-soar-following-regal-entertainment-deal-202550.html