Highlights of the Day
Asian Markets
Asian stock markets fell after the Trump administration announced it plans to slap tariffs on a further $200 billion of Chinese imports. |
U.S. Markets
U.S. stocks marked a fourth straight finish firmly in the green as Wall Street shifted from consternation over global trade disputes to enthusiasm over coming second-quarter earnings results following a string of strong economic data that has refreshed investor optimism. |
Today's News
The Trump administration raised the stakes in its trade dispute with China, threatening 10% tariffs on a list of $200 billion worth of Chinese imports, sending stocks lower and prompting Beijing to warn it would be forced to respond. China’s commerce ministry said on Wednesday it was “shocked” and would complain to the World Trade Organisation, but did not immediately say how it would retaliate. In a statement, it called the U.S. actions “completely unacceptable”.
PageGroup expects to beat analysts’ estimates for full-year profit after posting a 14.5% year-on-year rise in gross profit in the second-quarter, helped by stronger hiring in its international markets. The recruitment firm said on Wednesday it expects operating profit for 2018 to be slightly ahead of a company-compiled consensus of analysts’ estimates of £134m. The consensus in turn was up from a previous figure of £132m.
NEX Group reported a 7% rise in first quarter revenue on a constant currency basis. The company, set to be taken over by U.S. exchange operator CME Group in the second half of 2018, pointed to some periods of increased volatility on financial markets as driving revenues.
Indivior said its 2018 revenue and adjusted net income would come in below its forecast, hurt by the launch of generic versions of its bestselling opioid addiction treatment in the United States. India’s Dr.Reddy’s Laboratories and U.S.-based Mylan NV received approval from the Food and Drug Administration (FDA) last month to launch a generic version of Suboxone Film, which generates 80% of Indivior’s revenue.
Burberry reported a 3% rise in underlying sales in its first quarter, showing growth in line with forecasts ahead of the launch of the first collection from its new designer Riccardo Tisci in September. Tisci, a former Givenchy star, was appointed in March as the successor to Christopher Bailey, who helped turn the British trench coat maker into a global brand.
Micro Focus International swung to a first-half loss, driven by problems integrating its purchase of HP’s software division. Pre-tax losses for the six months through April amounted to $68.5m, compared to a $83.1m profit a year earlier. On a statutory basis, revenue almost tripled to $1.97bn, but on a pro-forma and constant currency basis, revenue slipped 8%.
Barratt Developments, said its full-year pretax profit is expected to have risen 9% as it sold more homes and prices rose 5% on average. Barratt said total unit completions rose 1.1% to 17,579 for the year ended June 30, while average selling price rose to £289,000 from £275,200 a year earlier.
Sainsbury’s, the British supermarket group that has agreed to take over rival Asda, said its next chairman will be Martin Scicluna, who currently holds the same role at insurer RSA. Scicluna, who is also chairman of property firm Great Portland Estates, will join Sainsbury’s board as chairman-designate and non-executive director on Nov. 1 and succeed David Tyler as non-executive chairman in March 2019 or soon after. Tyler has held the role since 2009.
Oil Prices fell, with Brent dropping by more than $1 at one point, after U.S. President Donald Trump threatened to levy new trade tariffs on China.
Gold Prices were lower as the as trade war tensions persued with Trump raising the stakes in a trade dispute with China.
Companies Reporting this week
| Monday: |
Centamin |
| Tuesday: |
Ocado Group, Kier Group |
| Wednesday: |
Micro Focus, Burberry Group, Barratt Developments |
| Thursday: |
Dart Group, ASOS, Premier Oil, Dunelm Group |
| Friday: |
Experian, Workspace Group |
Early Market Movements
| UK 100 |
7,634.6 |
-57.5 |
-0.8% |
| UK 250 |
20,745.3 |
-106.3 |
+0.5% |
| GER 30 |
12,499.8 |
-110.0 |
-0.9% |
| FRA 40 |
5,391.8 |
-42.6 |
-0.8% |
| US 30 |
24,919.66 |
+143.07 |
+0.6% |
| U.S. 500 |
2,793.84 |
+9.67 |
+0.4% |
| OIL (Crude) |
78.20 |
-0.66 |
-0.8% |
| GOLD |
1,252.56 |
-2.98 |
-0.2% |
UK Risers & Fallers (8:15am)
| Barratt Developments |
496.4 |
+13.4 |
+2.8% |
| Next |
6016 |
+36 |
+0.6% |
| Wetherspoon (JD) |
1285.5 |
+41.5 |
+3.3% |
| Burberry Group |
2000 |
-101 |
-4.8% |
| Antofagasta |
938.8 |
-30.6 |
-3.2% |
| Indivior |
271.35 |
-106.35 |
-28.1% |
Latest Broker Views
| Ocado |
Goldman Sachs |
Buy |
1087 |
1170 |
| Royal Mail |
Société Générale |
Hold |
487.6 |
490 |
| Next |
Credit Suisse |
Neutral |
6016 |
6000 |
| HSBC |
JP Morgan |
Neutral |
700.1 |
780 |
Forthcoming Economic Data
| 8.00am: ECB President Draghi Speaks |
– |
– |
– |
| 3.00pm: US Crude Oil Inventories |
1.2m |
-4.1m |
– |
| 4.35pm: UK BOE Gov Carney Speaks |
– |
– |
– |
Sources:
https://uk.reuters.com/article/uk-sky-m-a-fox/murdochs-fox-agrees-32-5-billion-bid-for-sky-idUKKBN1K10KW?il=0
https://uk.reuters.com/article/uk-pagegroup-outlook/pagegroup-says-full-year-profit-to-beat-estimates-idUKKBN1K10MG?il=0
https://uk.reuters.com/article/uk-nex-group-outlook/nex-group-says-first-quarter-revenue-rose-7-percent-idUKKBN1K10LS?il=0
https://uk.reuters.com/article/uk-indivior-outlook/indivior-says-2018-revenue-net-income-to-come-in-below-expectations-idUKKBN1K10M4?il=0
https://uk.reuters.com/article/uk-barratt-dev-outlook/barratt-sees-9-percent-full-year-pretax-profit-growth-idUKKBN1K10LE?il=0
https://uk.reuters.com/article/uk-sainsbury-s-moves-chairman/sainsburys-says-martin-scicluna-to-be-next-chairman-idUKKBN1K10L6?il=0