The Morning Call - Ryanair posts 20% drop in profit - Collins Sarri Statham Investments

Highlights of the Day

Asian Markets

Asian shares dipped while the dollar fell after U.S. President Donald Trump criticized the Federal Reserve’s monetary policy and amid reports Japan’s central bank could wind back its massive fund purchases.

U.S. Markets

U.S. stocks inched lower, ending the week little changed, as White House comments on monetary policy sent the dollar and government bond prices sliding.

Today's News

British households’ finance outlook turned positive for the first time since March 2016, while their financial pressures softened in July, results of a survey by IHS Markit and financial information provider Ipsos Mori revealed. The seasonally adjusted Household Finance Index, or HFI, rose to 44.6 in July from 43.6 in June.

Acacia Mining said it expected full-year gold production at the top end of its guidance range but reported a 15% slump in first-half revenue as it sold and produced less gold. For the six month to 30 June, revenue fell 15% to $333.4m as the company sold and produced less gold amid ongoing disruptions at Bulyanhulu and North Mara, which continued to be impacted by the Tanzanian government’s ban on metal concentrate exports.

IWG said the Takeovers and Mergers Panel had agreed to push back the deadline for the trio of companies pursuing a takeover deal for the company. The deadline for Starwood, TDR and Terra Firma to make an offer for IWG or walk away had been extended to 7 August 2018 at 5.00 p.m., from 21 July 2018 at 5.00 p.m.

BHP Billiton said it intended to defend a claim against the company in Australia relating to the Samarco dam failure. This comes after confirmed that it had been served with a class action proceeding filed in the Federal Court of Australia in Victoria.

Ryanair posted a 20% fall in first-quarter profit after traffic growth was offset by falling ticket prices and higher fuel costs. Net profit, excluding exceptional items, fell to €319m, even as revenue rose 9% to €2.08bn.

Hammerson said on it has sold two UK retail parks for a combined £164m. The first is the Imperial retail park in Bristol, and the second is the Fife Central park in Kirkcaldy, Scotland, with both being sold to real estate firm Capreon. Hammerson said the sales price represents an initial net yield of 7%, and a discount of around 10% to its December book value.

Ascential said first-half revenue grew 14% amid strong growth in digital eCommerce subscription products. For the six months to 30 June, reported revenue rose 14% to £188.9m, operating profit fell 10.9% to £28.7m, and adjusted earnings (EBITDA) rose 2% to £60.8m.

Paragon Banking Group said it boosted lending volumes in the first nine months of the year, while sticking to its full-year guidance. In the nine months through June, the company said mortgage lending grew to £1.13bn, up from £1.06bn on-year, with volumes reaching £409.4m in the most recent quarter.

Oil Prices fell amid increasing concerns about fuel demand after finance ministers and central bank governors from the G20 warned that global economic growth risks have increased amid rising trade and geopolitical tensions.

Gold Prices were near their highest since July 17 as the dollar eased to its lowest in nearly two weeks after U.S. President Donald Trump criticised the Federal Reserve’s interest rate tightening policy.

Companies Reporting this week

Day	Companies
Monday:	Ryanair * Alphabet
Tuesday:	PZ Cussons * Hammerson * Drax *
Wednesday:	GlaxoSmithKline * ITV * Tullow Oil * Indivior * Croda International * Deutsche Bank * Coca-Cola * Facebook * General Motors * Boeing * Qualcomm * Vodafone * Brewin Dolphin
Thursday:	Sky * Diageo * Anglo American * Astrazeneca * British American Tobacco * Intu * Virgin Money * Shell * Airbus * Nestle * Daimler * Amazon * Tate & Lyle
Friday:	Reckitt Benckiser * BT Group * Pearson * Aon * ExxonMobil * Twitter *

Early Market Movements

Market	Index	Change	% Change
UK 100	7,650.9	-27.9	-0.4%
UK 250	20,859.8	-65.9	-0.3%
GER 30	12,504.4	-57.0	-0.5%
FRA 40	5,376.6	-21.7	-0.4%
US 30	25,058.12	-6.38	-0.0%
U.S. 500	2,801.83	-2.66	-0.1%
OIL (Crude)	72.94	-0.13	-0.2%
GOLD	1,230.94	+1.41	+0.1%

UK Risers & Fallers (8:15am)

Company	Price	Change	% Change
GlaxoSmithKline	1562	+12.2	+0.8%
WPP	1161.5	+6.5	+0.6%
Euromoney Institutional Investor	1376	+36	+2.7%
Easyjet	1573.5	-41.5	-2.6%
Untied Utilities	709.2	-14.8	-2.0%
Petra Diamonds	48.07	-1.93	-3.9%

Latest Broker Views

Company	Broker	Recommendation	Price	Target
Carnival	Barclays	Overweight	4417	5530
Marks & Spencer	RBC	Outpeprform	311.2	330
Merlin Entertainments	Barclays	Overweight	404.3	435
Babcock International	Goldman Sachs	Buy	728.6	1020