Wednesday, August 19, 2015

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

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