Global financial Markets Update

More finance information here.

The FTSE 100 is called to open 40 points lower at 6363.

UK Gilt 10 Year Yield 1.83%, Spot Gold $1139.40 +5.11, Brent Crude $46.89. -0.57.

A tumble in oil prices Wednesday prompted investors to sell shares of energy companies, weighing on the broader stock market. Stocks had briefly pared losses to trade near the flatline after the minutes from the Federal Reserve's July meeting showed no clear sign that officials are ready to raise interest rates next month. The Dow Jones Industrial Average fell 162.61 points, or 0.9%, to 17348.73, capping a turbulent session. The blue-chip index had dropped as much as 229 points and briefly recouped all losses in the wake of the Fed minutes. The S&P 500 declined 17.31 points, or 0.8%, to 2079.61 and the Nasdaq Composite lost 40.30 points, or 0.8%, to 5019.05

PRESS COMMENTARY  

China's stock markets swung wildly on Wednesday as the authorities battled to restore investor confidence; shares on China’s main market - the Shanghai Composite - ended the day 1.2% higher having earlier plunged by as much as 5%, Telegraph.

Britain’s banks and finance firms performed surprisingly well in the credit crunch and its aftermath because the industry is enormous, with good links to countries all around the world, according to analysis from leading academics, Telegraph

COMPANY NEWS

U.K. gambling group Rank Group PLC (RNK.LN) said full-year profit rose and lifted the dividend by a quarter.

Royal Ahold NV, reported second-quarter profit that topped analysts’ estimates as the company revamped U.S. stores and online sales grew in the Netherlands.

Primary Health Properties PLC (PHP.LN), said the net asset value rose 6.3% in the first half, with earnings also showing year-on-year gains.

KAZ Minerals PLC (KAZ.LN)  swung to a first-half net loss as the copper price tumbled to multi-year lows. The company also reaffirmed its full-year copper output guidance despite a delay to the commissioning of one of its projects as a result of a fire last week.

WH Smith PLC (SMWH.LN) reported that fiscal 2015 outcome is expected to be slightly ahead of the consensus of analysts' expectations due to a strong second half performance in the travel division.

Sportech PLC (SPO.LN)  reported a fall in first half pretax profit, mainly due to the absence of any large exceptional gains in the period, and said that it remains confident in the underlying strength of the business.

Bank of Georgia Holdings PLC (BGEO.LN) reported a rise in interim net profit and said it expects a strong second half performance.

DNO Posts 2Q Net Loss; CWI Production Rises to 99.6kboe/d

Premier Oil PLC (PMO.LN) swung to an interim pretax loss as low oil prices hit revenues and kept its full year production guidance at 55,000 barrels of oil equivalent per day.

Straumann forecasts 2015 organic rev. growth in mid- to higher-single-digit range, saw growth in mid-single- digit range; sees 2015 adj. Ebit margin target in “low twenties,” saw at least 20% (organic).

Meggitt PLC (MGGT.LN) said that it has won a three-year fuel cell contract worth up to $39.8 million from the U.S. Defense Department.

Stock Spirits Group PLC (STCK.LN)  reported a massive fall in first half pretax profit due to ongoing market disruption in Poland and said that 2015 earnings, before interest, taxes, depreciation and amortization, is anticipated to be between 60 million Euros ($66.32 million) and EUR68 million.

Source Quilter Cheviot

Financial Markets Update 19/08/2015

www.finance-spain.com

The FTSE 100 is called to open 29 points lower at 6497.

UK Gilt 10 Year Yield 1.875%, Spot Gold $1119.20 +1.45, Brent Crude $48.86. -0.05.

U.S. stocks fell Tuesday, as a slump in consumer and energy shares snapped the Dow's three-session winning streak. The Dow Jones Industrial Average fell 33.84 points, or 0.2%, to 17511.34. The S&P 500 lost 5.52 points, or 0.3%, to 2096.92. The Nasdaq Composite dropped 32.35 points, or 0.6%, to 5059.35. Shares of Wal-Mart Stores Inc. led the Dow lower, losing $2.43, or 3.4%, to $69.48, the lowest closing price since February 2013. The move shaved 16.2 points off the Dow. Earlier Tuesday, the retailer cut its earnings guidance for the year to between $4.40 and $4.70 a share from its previous forecast of $4.70 to $5.05 a share. For the period ended July 31, Wal-Mart said profit fell to $3.48 billion, or $1.08 a share, from $4.09 billion, or $1.26 a share, a year earlier. Shares of T.J. Maxx and Marshalls operator TJX Companies, Inc., however, soared 7.2% to a record settlement price of $76.78 after the company reported a 6.1% increase in quarterly earnings. Ross Stores Inc. shares rose $2.03, or 3.7%, to $56.53, a record closing price.

PRESS COMMENTARY

The Guardian: Britain’s inflation rate ticked higher last month, heating up the debate over when Bank of England policymakers will start raising interest rates; the Office for National Statistics says falling food and fuel costs failed to offset pick up in prices caused by higher clothing costs and dearer air fares.

Financial Times: A surge of capital gushing out of emerging markets has risen toward $1 trillion over the past 13 months, roughly double the amount that fled during the financial crisis amid slumping confidence in the world’s developing economies.

COMPANY NEWS

Admiral Group said pretax profit ticked up 1% in the first half, helped by solid gains in the U.K. and a turnaround in its Italian business. Pretax profit for the six months to June 30, stripping out Admiral's minority stakes in other ventures, rose to GBP186.1 million ($291.6 million) from GBP184.9 million. "The U.K. business turned in a very solid result helped by positive claims cost development, with modest growth accompanying price increases," said Chief Executive Henry Engelhardt as U.K. car insurance profits climbed 6%.

Imperial Tobacco Group said that it remains on track to achieve its fiscal 2015 targets, as it reported a 4% fall in tobacco revenue for the first nine months of the year. The company said net underlying tobacco revenue for the nine months to June-end totaled 4.44 billion pounds ($6.93 billion), down from GBP4.63 billion in the year ago period. Volumes for the company's growth brands grew 15% in the period.

Glencore Plc, the commodity trader and miner headed by billionaire Ivan Glasenberg, reported a 56 percent slump in first-half profit as raw-material prices slid. Adjusted net income declined to $882 million in the six months to June 30, from $2.01 billion a year ago, the Baar, Switzerland-based company said in a statement Wednesday. That beat the $711 million average of seven analyst estimates compiled by Bloomberg. The company will pay a dividend of 6 cents a share.

Carlsberg A/S, the world’s fourth-biggest brewer, reported second-quarter profit that missed analysts’ estimates and said it expects 2015 organic operating profit to drop as western Europe and Russia weighed on sales. Earnings before interest, taxes and one-time items were 2.92 billion Danish kroner ($432 million), the Copenhagen-based company said in a statement Wednesday.

Roche says Massachusetts-based Kapa Biosystems is a provider of genomic tools in the life sciences sector, no financials disclosed.

Swisscom 2Q net CHF433m vs est. CHF411.4m. 2Q Ebitda of CHF1.08b in line with ests. 2Q rev. CHF2.87b vs est. CHF2.89b. Sees slightly higher targets for 2015 because of euro adjusted rate to CHF1.05 from parity

Source Quilter Cheviot

FINANCIAL MARKETS UPDATE 18/08/15

International Wealth Management 

The FTSE 100 is called to open 7 points higher at 6557.

UK Gilt 10 Year Yield 1.873%, Spot Gold $1119.40 +1.80, Brent Crude $48.57. -0.25.

U.S. stocks rose, following last week’s gain in the Standard & Poor’s 500 Index, with homebuilders pacing the advance amid light volume before further clues from the Federal Reserve on the path for interest rates. The S&P 500 gained 0.5 percent to 2,102.44 at 4 p.m. in New York, climbing above its average price for the past 100 days. The Dow Jones Industrial Average climbed 67.78 points, or 0.4 percent, to 17,545.18. The Nasdaq Composite Index jumped 0.9 percent. About 5.5 billion shares changed hands on U.S. exchanges, 15 percent below the three-month average.

PRESS COMMENTARY

Financial Times: Global banks are facing billions of pounds-worth of civil claims in London and Asia over the rigging of currency markets, following a landmark legal settlement in New York.

COMPANY NEWS

Cairn Energy reported a widened pretax loss for the first half, and said that it has entered into an agreement with the Senegal government for an extensive evaluation and survey of its oil discoveries in the country. The Scottish oil and gas exploration company said pretax loss for the six months ended June 30 totaled $234.7 million, compared with a pretax loss of $119.7 million in the year ago period. The company attributed the widened loss to a $177.1 million impairment charge.

U.K. housebuilder Persimmon reported a 31% increase in pretax profit in the first half, with sales volumes and prices both rising, and said demand has held up well in the quieter summer period. Pretax profit in the six months to June 30 rose to GBP272.8 million ($425.1 million) from GBP208.9 million. Sales gained 11% to GBP1.33 billion after Persimmon sold 6,855 homes, a 7% increase from last year, at a 4% higher average price of GBP194,378.

Energy services company John Wood Group reported a fall in interim profit as the low oil price hit demand but said its full-year outlook remains unchanged. Net profit for the six months ended June 30 fell to $116.8 million from $140.5 million over the same period last year, on revenue from continuing operations down to $2.66 billion from $3.22 billion.

Amec Foster Wheeler PLC (AMFW.LN) on Tuesday said it has been awarded an extension to its existing project management consultancy contract for the UZ750 project in the Upper Zakum field, located 84 kilometers north-west of Abu Dhabi. The value of the contract has not been announced.

BMW has diverted shipment to Shanghai ~2,000 vehicles a week that otherwise would have gone via Tianjin, Reuters reports, citing an unidentified co. spokesman. BMW unable to estimate how many of its cars Tianjin were damaged; the damage is covered by insurance. BMW said its plant in Shenyang is operating normally

Source Quilter Cheviot

Pat Macdonald - IFA at Blacktower

patrick.macdonald@blacktowerfm.com

 

Financial Markets NEWS - 14/08/2015

Financial Markets NEWS - 14/08/2015

www.finance-spain.com

The FTSE 100 was called to open 2 points higher at 6570.

UK Gilt 10 Year Yield 1.835%, Spot Gold $1115.29 +0.32, Brent Crude $42.52. -0.10.

U.S. stocks closed lower, after fluctuating throughout the day, as anxiety over China eased while investors focused on economic data and the pace of any Federal Reserve interest-rate increases. The Standard & Poor’s 500 Index ran out of steam after yesterday staging its biggest intraday recovery in three years. Stocks held in the tightest trading range since 1927, after China earlier this week roiled global markets with a shock currency devaluation. Labor and sales data today bolstered the case for higher interest rates as soon as next month. The S&P 500 slipped 0.1 percent to 2,083.46 at 4 p.m. in New York, after ranging between a 0.3 percent gain and falling as much as 0.4 percent. The Dow Jones Industrial Average rose 5.74 points to 17,408.25, and the Nasdaq Composite Index added 0.4 percent. About 6.2 billion shares traded hands on U.S. exchanges today, 5 percent below the three-month average.

PRESS COMMENTARY

(Bloomberg) -- ITV may become focus of attention after Time Warner CFO says will look at M&A internationally, Liberum says in note; shares up as much as 3% today vs SXMP’s +1.9%.

Financial Times: The European institutions overseeing Greece’s bailout have expressed “serious concerns” over the sustainability of the country’s debt, bringing them into line with the more pessimistic assessment of the International Monetary Fund.

The Daily Telegraph: China's central bank has dismissed claims that it is trying to engineer a 10% fall in the yuan as "groundless", just days after it devalued its currency for the first time in over 20 years.

COMPANY NEWS

Swiss Life Holding AG, Switzerland’s biggest life insurer, reported an increase in first-half profit that beat analyst estimates, led by higher premium income. Net income rose to 490 million Swiss francs ($505 million) from 484 million francs a year earlier, the Zurich-based company said on Friday.

Shire Plc, weighing whether to increase its $30 billion bid for Baxalta Inc., wants a better understanding of the U.S. drugmaker’s growing optimism over its sales projections, according to a person familiar with the matter.

Schindler 1H Rises Y/y, Sees ’Limited’ Growth in Mkt in 2015. Schindler sees 2015 net income CHF700m to CHF750m. Cuts 2015 revenue growth in local FX view to 6-8%; had seen 7% to 9%. Sees global elevator and escalator market to show limited growth in 2015. China: At most expected to achieve minimal growth this yr. Other markets in Asia-Pacific and India likely to achieve continued good growth in 2H.

Stuttgart prosecutors won’t file charges against Porsche SE Chairman Wolfgang Porsche and other members of the automaker’s 2008 supervisory board in a long-running probe over a failed attempt to take over Volkswagen AG, three people with knowledge of the matter said.

Eni May Delay Goliat Field Production Start, Upstream Reports. Remaining work plan will not allow startup until well into autumn, Upstream reports citing unidentified people.

Lamprell said Chief Executive James Moffat plans to retire and leave the board on June 30, 2016 after two years with the company.

BHP Billiton Says Anita Frew Appointed as Nonexecutive Director, Carlos Cordeiro to Retire From Board, Shriti Vadera Appointed Senior Independent Director.

Source - Quilter Cheviot

Pat Macdonald
International Financial Adviser
Patrick.macdonald@blacktowerfm.com

 

 

MARKET UPDATE 12 August 2015

from  The Financial Adviser in Spain

The FTSE 100 is called to open 44 points lower at 6620.

UK Gilt 10 Year Yield 1.914%, Spot Gold $1112.20 -3.34, Brent Crude $49.43 -0.23.

U.S. stocks slid, following equities’ biggest gain since May, as China’s currency devaluation sparked concern across global markets that the world’s second-largest economy is headed for a deeper slowdown. Companies that rely heavily on exports to China, including auto and luxury goods makers, retreated. General Motors Co. and Tiffany & Co. lost more than 2.1 percent. Apple Inc. sank 5.2 percent. Commodity producers from Freeport-McMoRan Inc. to Dow Chemical Co. fell at least 2.9 percent amid concerns about China’s growth. Google Inc. advanced 4.1 percent after saying it will reorganize into a holding company called Alphabet Inc. The Standard & Poor’s 500 Index declined 1 percent to 2,084.07 at 4 p.m. in New York, holding above its average price during the past 200 days. The Dow Jones Industrial Average slumped 212.33 points, or 1.2 percent, to 17,402.84, its worst drop in a month. The Nasdaq Composite Index decreased 1.3 percent. About 7.1 billion shares traded hands on U.S. exchanges, 9 percent above the three-month average.

PRESS COMMENTARY

Financial Times: Google investors welcomed the promise of more openness about the profitability of its core business, after the technology group said it would in future report separately results from its experimental ventures, such as self-driving cars.

COMPANY NEWS  

U.K. outsourcing and security group G4S said first-half pretax profit fell by 12.5%, reflecting restructuring charges and one-off costs, but increased the dividend and reported "strong momentum" in the period. Profit before tax in the six months to June 30 fell to GBP70 million ($109 million) from GBP80 million as revenue ticked up 1% to GBP3.41 billion. Stripping out one-off items, underlying earnings rose 10.5% to GBP95 million. G4S increased the first-half dividend by 5% to 3.59 pence.

EON SE, Germany’s largest utility, said first-half profit fell 21 percent on lower wholesale power prices. Underlying net income decreased to 1.17 billion euros ($1.3 billion) from 1.48 billion euros a year earlier, the Dusseldorf- based company said in a statement on Wednesday. That beat the 1.15 billion-euro average of seven estimates compiled by Bloomberg.

Balfour Beatty says 1H underlying revenue GBP4.09b vs GBP4.07b y/y, order book stable at GBP11.3b vs GBP11.4b at end-2014. 1H total underlying loss GBP135m vs GBP37m profit y/y, includes GBP152m shortfall from historic Construction issues, in line with indicated range of July update.

Henkel AG, the maker of Schwarzkopf shampoo and Loctite glue, reported a 14 percent jump in second-quarter profit as a series of deals last year and the dollar’s strength against the euro boosted earnings.

Tullow Co. says Jubilee field gas exports restarted Aug. 3 as FPSO Kwame Nkrumah gas compressor work completed; exports resumed before mid-Aug. forecast. Oil production increased; now returned to previous levels. Says Spari-1 well on offshore block 31, Suriname, had no significant hydrocarbon shows; being plugged, abandoned. Salander well on Norway’s PL650 encountered no hydrocarbons; to be plugged, abandoned.

Geberit says 1H net sales increase 20.1% to CHF1.31b, organic sales in local FX ex-Sanitec up 2.5%, positive sales development in all regions. 2Q sales CHF670.9m vs CHF677.8m est. 2Q Ebit CHF116m vs CHF113.8m est.

Bilfinger says 2Q output volume rises 7% to EU1.64b, orders received up 48% to EU1.87b. 2Q adj. Ebita -5% to EU53m. 2Q adj. net profit from cont ops -23% to EU31m.

Interserve reported a 29% rise in first-half pretax profit, but warned that the rise in the national minimum wage announced in the recent budget will hit the U.K. support services segment 10 million pounds ($15.58 million) to GBP15 million in 2016.

ScS Group reported the resignation of its finance head Ron Turnbull and said that results for fiscal 2015 are expected to be in line with market expectations due to recovery in sales in the final quarter of the period. 

Source: Quilter Cheviot

Pat Macdonald - International Financial Adviser at Blacktower Financial Management.
Contact: patrick.macdonald@blacktowerfm.com
 

Nexus Fund Range and Market update

At Blacktower Financial Management we have a range of funds exclusive to our clients aimed at capital protection and increasing wealth. Managed on our behalf by Quilter Cheviot - one of the oldest Fund Management companies in London - The Nexus Range is something we are really proud of. Here is the latest update from award winning David Miller - the head of the team.

Pat Macdonald. International IFA at Blacktower Financial Management Group

Global Financial Markets update 7th August 2015

MARKET COMMENTARY

The FTSE 100 is called to open 43 points lower at 6709. UK Gilt 10 Year Yield 1.96%, Spot Gold $1083.8 -0.18%, Brent Crude $49.73 +0.28%. US equities closed mostly in positive territory amid a weaker ADP employment report, better ISM services index and another round of earnings receiving attention today. Tech and consumer staples topped gains, while consumer discretionary and energy were the only major sectors trading lower. China is continuing from yesterday afternoons selling pressure the with CSI-300 down almost 2% at the open. The DOW closed 17540.47 -10.22pts, S&P 2099.84 + 6.52pts, NASDAQ 5139.95 +34.40pts.

PRESS COMMENTARY

Saudi Arabia is returning to the bond market with a plan to raise $27 billion by the end of the year, FT.
Sterling was up against the dollar and the euro – hitting $1.5650 and €1.4386 at one point – amid speculation rates will rise in late 2015 or early 2016, Telegraph.

COMPANY NEWS

Aggreko PLC (AGK.LN) cautioned Thursday that trading will remain difficult through 2016 as it posted a dip in first-half earnings.
Old Mutual PLC (OML.LN) reported a rise in interim net profit amid a strong performance in the U.K. and South Africa.
Munich Re, the world’s biggest reinsurer, raised its profit target for the year after quarterly net income beat analyst estimates on lower catastrophe claims.
Rio Tinto Group, reported a 43 percent drop in first-half profit after iron ore prices collapsed because of a global glut and a slowdown in China’s steel industry.
RSA Insurance Group Plc, reported a jump in second-half profit that beat analyst estimates and restored the interim dividend.
Inmarsat PLC (ISAT.LN) said the launch of a satellite that was delayed due to a launch failure has been rescheduled for the end of August as it reported a dip in first-half earnings.
Aviva Plc, reported a 9 percent increase in first-half profit, boosted by its life business.
Deutsche Telekom AG reported second-quarter sales and profit that topped analysts’ estimates, helped by customer additions in Germany and a weaker euro, which increased earnings from its T-Mobile US Inc. unit.
Enterprise Inns PLC (ETI.LN) said its trading performance has been in line with expectations with comparable income from its estate of leased and tenanted pubs growing by 0.6% in the 44 weeks ended August 1.
Zurich Insurance Group AG said that it may return capital to shareholders if it doesn't buy U.K.-based RSA Insurance Group PLC, while reporting that second-quarter profit was pressured by losses at its biggest business unit.
Deutsche Post 2Q Profit Misses Est; 2015 Ebit Forecast Cut.
Cobham 1H EPS Misses Est., Says FY Trading In Line.
Metro AG, Germany’s largest retailer, agreed to buy Classic Fine Foods Group, a supplier of gourmet products in Asia, and reported third-quarter profit slightly below analysts’ estimates as the decline of the ruble eroded revenue from Russia.
Savills PLC (SVS.LN) advisor Thursday said first-half pretax profit rose 7% as uncertainty over the outcome of the U.K.'s election was outweighed by gains elsewhere.
Adidas AG reported profit that missed analysts’ estimates as the maker of Lionel Messi soccer cleats couldn’t match demand spurred by last summer’s World Cup.
Portmeirion Group PLC (PMP.LN) recorded a rise in earnings on higher revenue, boosted by sales in the U.K., U.S. and other export markets.
source Quilter Cheviot

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Pat Macdonald - International IFA. Blacktower Financial Management Group.