Highlights of the Day
Asian Markets
Asian stock markets were in positive territory after U.S. President Donald Trump and Chinese President Xi Jinping agreed to a 90-day truce on their escalating trade war |
U.S. Markets
US stocks rose — despite uncertainty relating to the G20 summit in Argentina — at the end of a week that saw markets react strongly to the speech by Jay Powell. |
Today's News
The US and China have agreed to a 90-day ceasefire in their trade war, giving the sides time to continue negotiations, in a move that will likely be welcomed by markets and farmers. The announcement followed talks between US President Donald Trump and Chinese leader Xi Jinping in Argentina at the close of the G20 summit. The meeting lasted more than two hours.
UK Prime Minister Theresa May has been warned she is on course for a “historic constitutional row” unless the government releases its full legal advice on the Brexit deal. Labour said it is ready to combine with other opposition parties to start proceedings for contempt of Parliament unless the legal opinion of Attorney General Geoffrey Cox is published in full.
Stobart Group said it had decided to cut its dividend after conducting a capital review. The fourth quarter dividend would be reduced to 1.5p per share, bringing dividends for the full financial year to 15p, down from 16.5p on-year.
AstraZeneca said it had completed an agreement to sell the prescription medicine rights to its acid reflux treatment in Europe, and the global rights to its arthritis treatment to Grunenthal for combined total of $815m.
Drax said it had reached agreement with Iberdrola on revised terms for the acquisition of Scottish Power’s portfolio of pumped storage, hydro and gas-fired generation at the previously agreed price of £702m in cash.
A Babcock International Group joint venture has been awarded a AU$1.5bn contract by the Australian Defence Force to manage and maintain the largest vessels in the Royal Australian Navy. Naval Ship Management (NSM), a 50/50 joint venture between Babcock and UGL, has been awarded the contract is for an initial five year period with the expectation of two further five year extensions, the engineering services company said in a statement.
RPC Group said takeover talks with private equity firm Apollo Global Management remain ongoing but it has “mutually agreed to terminate discussions” with Bain Capital. Both Apollo and Bain had until 1700 GMT on Monday to either announce a firm intention to make an offer or walk away from the deal.
GlaxoSmithKline announced the divestment of Horlicks and other consumer healthcare nutrition brands to Unilever and the merger of GSK Consumer Healthcare Limited with Hindustan Unilever Limited for a total consideration valued at approximately £3.1bn
Spirax-Sarco Engineering said it had agreed to sell its HygroMatik GmbH unit to Carel Industries for €59mln. HygroMatik, headquartered near Hamburg Germany, is one of the leading manufacturers and brands in premium commercial and industrial air humidification equipment in Europe.
Several current and former Ted Baker employees have accused the fashion retailer’s Founder & Chief Executive Ray Kelvin of behaviour that amounts to harassment, Sky News reported on Sunday.
Coca-Cola HBC said it intends to buy back up to 7.5m shares, worth £225m, with the majority of the shares expected to be cancelled. The soft-drinks bottling company said the purpose of the share purchase programme is to avoid dilution resulting from the issue of stock options and meet the requirements of its employee incentive scheme.
Oil Prices rose sharply after the United States and China agreed to a 90-day truce in their trade war, and ahead of a meeting this week by producer club OPEC that is expected to result in a supply cut.
Gold Prices hit a more than three-week high on a weaker dollar, as a trade ceasefire between the United States and China revived investor demand for riskier assets.
Companies Reporting this week
Day |
Companies |
Monday: |
No Companies Reporting |
Tuesday: |
Ferguson |
Wednesday: |
Stagecoach * Saga |
Thursday: |
DS Smith * Legal & General * St Modwen Properties * Ted Baker |
Friday: |
Berkeley Group * John Laing |
Early Market Movements
Market |
Index |
Change |
% Change |
UK 100 |
7,112.1 |
+131.9 |
+1.9% |
UK 250 |
18,728.7 |
+247.9 |
+1.3% |
GER 30 |
11,552.4 |
+295.2 |
+2.6% |
FRA 40 |
5,109.4 |
+105.5 |
+2.1% |
US 30 |
25,538.46 |
+199.62 |
+0.8% |
US 500 |
2,760.17 |
+22.41 |
+0.8% |
Oil (Brent) |
62.41 |
+2.95 |
+5.0% |
GOLD |
1,231.30 |
+10.78 |
+0.9% |
UK Risers & Fallers (8:15am)
Company |
Price |
Change |
% Change |
Anglo American |
1672.4 |
+106.2 |
+6.8% |
Glencore |
309.4 |
+19.25 |
+6.6% |
Allied Mind |
75.85 |
+11.35 |
+17.6% |
United Utilities |
759.2 |
-1.2 |
-0.2% |
National Grid |
832.3 |
-0.6 |
-0.1% |
Grainger |
232.2 |
-21 |
-8.3% |
Latest Broker Views
Company |
Broker |
Recommendation |
Price |
Target |
Standard Life Aberdeen |
Berenberg |
Hold |
265.4 |
312 |
Melrose Industries |
JPMorgan |
Overweight |
176.6 |
245 |
Halma |
Goldman Sachs |
Neutral |
1372 |
1400 |
Wood Group |
Bernstein |
Outperform |
635 |
1000 |
Forthcoming Economic Data
Time/Date |
Previous |
Forecast |
Outcome |
10.30am: U.K. Manufacturing PMI |
51.1 |
51.6 |
– |
4.00pm: U.S. ISM Manufacturing PMI |
57.7 |
57.5 |
– |
Sources
https://markets.businessinsider.com/news/stocks/asian-markets-in-positive-territory-on-u-s-china-trade-truce-1027773334
https://www.ft.com/content/ef4f0e08-f43f-11e8-ae55-df4bf40f9d0d
https://uk.reuters.com/article/uk-global-oil/oil-surges-on-u-s-china-trade-truce-plans-to-cut-output-idUKKBN1O10V7
https://www.reuters.com/article/global-precious/precious-gold-scales-over-3-week-peak-as-dollar-slips-idUSL4N1Y81SY
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1543825787512817700.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1543821919332541300.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1543824383452749200.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1543819388432271700.html
https://www.londonstockexchange.com/exchange/news/alliance-news/detail/1543743051002057400.html
http://www.stockmarketwire.com/article/6229011/Stobart-trims-dividend-to-divert-capital-to-investment-opportunities.html
http://www.stockmarketwire.com/article/6228989/AstraZeneca-agrees-to-offload-rights-for-two-drugs-to-Grunenthal-for-815m.html
http://www.stockmarketwire.com/article/6229014/Drax-revises-terms-with-Iberdrola-for-UK-power-generation-portfolio.html
https://www.bbc.co.uk/news/live/business-46396878
https://www.proactiveinvestors.co.uk/companies/news/210357/babcock-jv-wins-au15bn-australian-defence-contract-210357.html
https://www.proactiveinvestors.co.uk/companies/news/210360/spirax-sarco-sells-air-humidification-unit-for-59mln-210360.html