FINANCIAL MARKETS UPDATE 21/04/16

The FTSE 100 is called to open 16 points higher at 6426
UK Gilt 10 Year Yield 1.4819 Spot Gold $1257.55 +13.40 Brent Crude $45.87 +0.24
$ per £ 1.4353
$ per € 1.1291
€ per £ 1.2711
U.S. stocks edged higher as an oil rally lifted energy producers, with the Standard & Poor’s 500 Index holding at a four-month high amid a slate of corporate earnings that gave investors little clear direction. An afternoon rally stumbled in the final hour of trading to leave equities little changed, wiping out much of the gains sparked by a rebound in crude. Oil jumped after Iraq’s oil minister said major OPEC and other oil producers will meet possibly next month in a new push to freeze output. Meanwhile, a better-than-forecast profit from Discover Financial Services helped offset underwhelming results at Coca-Cola Co. The S&P 500 gained 0.1 percent to 2,102.40 at 4 p.m. in New York, after rising as much as 0.5 percent and briefly touching the highest level since July. The Dow Jones Industrial Average added 42.67 points, or 0.2 percent, to 18,096.27, trimming a 114-point climb. The gauge held at a nine-month high. The Nasdaq Composite Index increased 0.2 percent. About 7.5 billion shares traded hands on U.S. exchanges, 7.4 percent below the three- month average.

PRESS COMMENTARY
Financial Times: Hedge funds have suffered their worst quarter in seven years after more than $15 billion was pulled out by investors starting to fight back against the high fees being charged across the industry.
The Daily Telegraph: Google has been formally charged with monopoly abuse over an alleged effort to crush rivals to its mobile search service and Android smartphone operating system, in a major escalation of its battle with Brussels.
COMPANY NEWS
Volkswagen AG has agreed to set aside at least $10 billion to resolve civil claims by the U.S. government and lawsuits by American car owners over diesel vehicles rigged to cheat pollution controls, a person with direct knowledge of the matter said. The parties reached the accord ahead of a Thursday deadline set by a federal judge for the carmaker to say how it would fix the vehicles. Volkswagen has been negotiating with U.S. environmental regulators on an acceptable solution. Judge Charles Breyer said that fixing the almost 600,000 vehicles or getting them off the road would be the first step to any settlement.
Sky PLC's (SKY.LN) earnings climbed Thursday as subscriber growth and demand for new products in the U.K. and Germany pushed up revenue for the satellite broadcaster and pay-TV giant.
Novartis AG said first-quarter earnings fell 12 percent after the company’s best-selling cancer medicine Gleevec faced generic competition in the U.S. Profit declined to $1.17 a share, excluding some items, the Basel, Switzerland-based company said Thursday in a statement.
Pets At Home Group PLC (PETS.LN), a retailer of pet food, accessories and services, reported a 3.2% rise in like-for-like revenue growth in the final quarter and said full-year profit will be in line with expectations.
Schneider Electric SE first-quarter sales fell after the world’s biggest maker of low- and medium-voltage equipment was more selective on projects amid an oil and gas industry slump that continued to bite.
BHP Says Iron Ore, Met Coal May Fall Again in Short, Medium-Term.
Ladbrokes PLC (LAD.LN) said Thursday it has had an encouraging start to the year as it recorded a 10.6% rise in group net revenue during the first quarter ended March 31, and said it expects full year results in line with its expectations.
SEGRO PLC (SGRO.LN), a real estate investor specializing in warehouses and industrial buildings, Thursday said 2016 is progressing well in line with its expectations.
Pernod Ricard SA, the maker of Chivas Regal whisky and Martell cognac, reported third-quarter sales in line with analyst estimates as retailers in the U.S. restocked.
Ericsson AB’s first-quarter sales missed analysts’ estimates as phone operators continued to curb network investments and the Swedish company’s push to software and services failed to boost growth. Source Quilter Cheviot
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FINANCIAL MARKETS UPDATE 20/04/2016

The FTSE 100 is called to open 27 points lower at 6378

UK Gilt 10 Year Yield 1.5078 Spot Gold $1248.30 - 2.00 Brent Crude $42.83 +1.01

$ per £ 1.4359
$ per € 1.1360
€ per £ 1.2642

The Standard & Poor’s 500 Index rose Tuesday, extending a four-month high as commodity producers rallied in a seesaw session amid mixed results in corporate earnings. Raw-material companies surged to the highest in nine months, while energy shares jumped on crude’s first gain in five days. Johnson & Johnson, Goldman Sachs Group Inc. and UnitedHealth Group Inc. advanced at least 1.5 percent amid better-than-estimated earnings, countering Netflix Inc.’s biggest drop since 2014 and the steepest slide for International Business Machines Corp. since October as results disappointed. Illumina Inc. plunged 23 percent after the gene-sequencing company’s revenue missed predictions. The S&P 500gained 0.3 percent to 2,100.80 at 4 p.m. in New York, closing above the 2,100 mark for the first time since Dec 1. The Dow Jones Industrial Average added 49.44 points, or 0.3 percent, to 18,053.60, extending a nine-month high. The Nasdaq Composite Index slid 0.4 percent under the drag from Netflix and Illumina. About 7.1 billion shares traded hands on U.S. exchanges, 12 percent below the three-month average.

PRESS COMMENTARY

Financial Times: Goldman Sachs’s profits more than halved after across-the-board falls in revenues, bringing down the curtain on a sobering first-quarter earnings season for the big US banks.

Financial Times: Saudi Arabia is raising $10 billion from a consortium of global banks as the kingdom embarks on its first international debt issuance in 25 years to counter dwindling oil revenues and reserves.

COMPANY NEWS

Travis Perkins plc- First quarter 2016 trading update - encouraging sales growth in all divisions. Highlights. Total sales growth of 5.0% and 6.2% on a comparable days basis. Like-for-like sales growth of 4.2%. Two-year like-for-like sales growth of 9.5%. Overall trading in line with expectations.

Engineer GKN Wednesday said it performed in line with expectations in the quarter ended March 31, helped by a strong performance from its automotive business.

Moneysupermarket 1Q Rev. Rises 9%; Confident on FY Expectations. Co. says solid start to the year, with 1Q group rev. up 9% y/y to GBP83.7m.

ABB 1Q revenue $7.90b vs est. $7.98b, revenues down 2% on lower short-cycle volumes, timing of order backlog. Says oil prices, forex continuing to hit results. Says financials impacted by currency translation due to appreciation of $.

ASML Holding NV, Europe’s largest semiconductor-equipment maker, forecast sales topping analysts’ estimates as customers are ramping up capacity and investing in new machinery. Second-quarter revenue will be about 1.7 billion euros.

BHP Billiton Ltd., the world’s biggest mining company, cut its iron ore production forecast for its Australian mines by 4 percent because of bad weather and rail network maintenance, adding to bullish signals for the global market.

N. Brown Group PLC (BWNG.LN), a specialist fit fashion retailer, on Wednesday said that trading since the year-end has been subdued as it reported a drop in full-year profit.

GAM Holding AG said net outflows in investment management were 3.1 billion francs ($3.2 billion) in the first quarter as market turbulence prompted investors to avoid risk.

ARM sees FY USD rev. in line with market expectations. 1Q sales GBP276.4m vs est. GBP272.6m. 1Q adj. EPS 8.2p vs est. 8.3p. 1Q adj. pretax profit GBP137.5m vs est. GBP139.4m.

Syngenta 1Q group sales $3.74b, est. $3.72b (5 estimates); 1Q group reported sales -7%, unchanged at constant exchange rates.

SAP SE said it has “high visibility into a strong second quarter” as it seeks to make up for a software- license slump that led to unexpectedly sluggish sales at the outset of the year.

Accor 1Q Total Rev. In Line With Ests., LFL Sales Beat.

Heineken NV, the world’s third-biggest brewer, reported beer shipments that rose more than analysts estimated, led by growth in Asia and the Americas. Beer volume rose 7 percent, the Amsterdam-based company said Wednesday in a statement, compared with the 2.4 percent median estimate of 19 analysts surveyed by Bloomberg. Source Quilter Cheviot

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FINANCIAL MARKETS UPDATE 15/04/2016

The FTSE 100 is called to open 1 point higher at 6366

UK Gilt 10 Year Yield 1.4502 Spot Gold $1231.55 +3.70 Brent Crude $43.92 +16.9

$ per £ 1.4165

$ per € 1.1270

€ per £ 1.2569

U.S. stocks ended little changed on Thursday, with the Standard & Poor’s 500 Index near a four-month high and the Dow Jones Industrial Average edging to the highest since July, as investors assessed earnings releases and data showing the labour market is improving with little pickup in inflation. Banks advanced, with Bank of America Corp. advancing a fifth day after saying it sees more room for cost cuts. Airline operators jumped along with Delta Air Lines Inc., which posted quarterly earnings that beat projections. Technology shares retreated as Seagate Technology Plc plummeted 20 percent after reporting preliminary revenue that trailed estimates. The S&P 500 added less than 0.1 percent to 2,082.78 at 4 p.m. in New York, after reaching the highest level since Dec. 4 yesterday. Financial shares and commodity producers have led the benchmark gauge to a 1.7 percent advance so far this week, after the measure faltered last week amid scepticism central banks’ efforts to shore up growth will fail to be effective. The Dow Jones Industrial Average increased by 18 points to 17,926.43 on Thursday, the highest since July 20. The index is 2.1 percent below its record.

PRESS COMMENTARY  

• The Times: Shareholders in BP voted overwhelmingly to reject a massive pay rise for its chief executive yesterday amid mounting anger over boardroom excess.

 COMPANY NEWS

Carrefour SA, France’s largest retailer, reported higher first-quarter revenue as growth in southern Europe and Latin America compensated for a decline in China. Revenue reached 20.1 billion euros ($22.6 billion), Boulogne-Billancourt, France-based Carrefour said Friday in a statement. Analysts expected 20 billion euros, according to the median of 13 estimates compiled by Bloomberg.an Group Plc, the world’s largest publicly traded hedge-fund firm, reported net inflows of $500 million in the first quarter as its computer-driven funds attracted investors. Sales of $5.1 billion more than offset $4.6 billion in redemptions, the London-listed firm said in a statement on Friday. Asset under management marginally fell to $78.6 billion from $78.7 billion at the end of December.

Faurecia 1Q Reported Sales Rise 0.1%: FY Forecast Reiterated. Faurecia reported sales up 0.1% to EU4.66b. Lfl sales up 4.4%. FX negatively impacted business activity by 1.5%. Reiterates Feb. guidance for: FY total sales growth 1%-3%, oper margin improvement.

Credit Suisse Japan Unit Faces Penalty for Leaking Information. Japan’s Securities and Exchange Surveillance Commission recommends Financial Services Agency take administrative action against Credit Suisse Securities Japan.

H&M says March sales incl. VAT increased by 2% in local currencies y/y, as previously announced.

Edenred 1Q LFL Issue Vol. Growth Beats, Had Negative Latam FX. Edenred 1Q issue volume EU4.28b, est. EU4.41b. Total Edenred LFL issue vol. growth 7.4%, est. 6.7%. Source Quilter Cheviot

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FINANCIAL MARKETS UPDATE 13/04/2016

The FTSE 100 is called to open 58 points higher at 6300

UK Gilt 10 Year Yield 1.4418 Spot Gold $1247.85 -7.65 Brent Crude $43.92 -77.7

$ per £ 1.4239

$ per € 1.1351

€ per £ 1.2546

U.S. stocks rose to a one-week high as crude pushed past $42 a barrel to overshadow a tepid start to the first-quarter earnings season. Energy producers surged 2.7 percent as crude climbed to a four-month high after Saudi Arabia and Russia were seen agreeing on whether to freeze oil production. Chesapeake Energy Corp. surged the most on record after pledging assets to maintain access to financing. Alcoa Inc. slid 3.4 percent after the largest U.S. aluminum producer cut its forecast for global demand. Juniper Networks Inc. plunged 7.5 percent after sales missed forecasts, dragging the semiconductor industry lower. The S&P 500 added 1 percent to 2,061.74 at 4 p.m. in New York. The index has alternated gains and losses for four days and is now little changed for the month of April. The Dow Jones Industrial Average climbed 165.05 points, or 0.9 percent, to 17,721.46.

 

PRESS COMMENTARY

• The Daily Telegraph: A British exit from the EU risks causing "severe global damage" that would drag down UK growth for years to come, the International Monetary Fund has warned.

• Financial Times: The heads of the world's largest oil trading houses sought to draw a line under nearly two years of falling prices on Tuesday as Brent crude rose to its highest level so far in 2016.

COMPANY NEWS

Tesco PLC swung to a full-year profit as the British supermarket giant bounced back from a year-earlier period weighed down by property write-downs, even as revenue continued to decline. For the year to Feb. 27, Tesco's pre-tax profit was GBP162 million ($230.8 million), compared with a loss of GBP6.33 billion a year ago.

McCormick Abandons Premier Foods Bid, Says Board Wants Too Much. McCormick & Co. abandoned plans to make a takeover bid for Premier Foods Plc, saying the U.K. company’s board wants too high a price. McCormick finished a review of Premier’s finances with the cooperation of the company’s management, the Sparks, Maryland- based company said in a statement Wednesday.

U.K. retailer WH Smith PLC (SMWH.LN) reported 11% growth in first half pre-tax profit due to strong performance by both its business units, travel and high street.

De La Rue PLC (DLAR.LN) said it expects full-year underlying operating profit to be around 62 million pounds ($89.7 million), above previous expectations, on a revenue broadly in line with views, adding that expectations for fiscal 2017 remain unchanged.

WS Atkins Says Traded Well Through 4Q; Sees FY In Line. Co. says traded well through 4Q; expects to report underlying results for the year in line with expectations. Says good progress toward 8% group operating margin. Sees net funds of ~GBP190m at March 31.

Halfords 11-Week LFL Up 2.6%, On Track For FY Profit Expectation. Halfords says for 11-wks to April 1, group LFL 2.6%, Retail LFL +3.1%, Autocentres LFL +1.7%. Source Quilter Cheviot

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FINANCIAL MARKETS UPDATE 12/04/2016

The FTSE 100 is called to open 4 points lower at 6196

UK Gilt 10 Year Yield 1.3937 Spot Gold $1255.25 -2.55 Brent Crude $42.79 -14.1

$ per £ 1.4235

$ per € 1.1414

€ per £ 1.2472

U.S. stocks fell, erasing gains in late afternoon trading, as investors braced for what is forecast to be the worst earnings season since the financial crisis. The Standard & Poor’s 500 Index fell 0.3 percent to 2,041.99 at 4 p.m. in New York, wiping out an advance of as much as 0.8 percent, after the steepest decline last week in two months. Financial shares, the worst performing group in the S&P 500 in 2016, gained, with JPMorgan Chase & Co. and Goldman Sachs Group Inc. climbing. Signs of a pick-up in Chinese industrial demand pushed raw-material producers higher, while health-care and consumer-staples companies weighed on the index.

PRESS COMMENTARY

Shire, Endo possible targets for Allergan, dealReporter said, citing unidentified bankers.

Financial Times: Regulators in Brussels were under intense pressure to block CK Hutchison’s £10.5 billion deal to acquire UK mobile operator O2 after the UK competition watchdog intervened, arguing that the proposed deal would harm British consumers.

The Daily Telegraph: Tata moved a step closer to exiting its heavily loss-making British steel assets as the Indian conglomerate sold its Scunthorpe site for £1 at the same time as the Government admitted it could co-invest in a plan to rescue Port Talbot.

COMPANY NEWS

Asos 1H Retail Gross Margin Beats, On Track to Achieve Outlook. Asos 1H total rev. GBP667m, est. GBP666m. FY continuing operations will reflect a higher underlying Ebit margin of ~4.5%, before inclusion of operating losses in relation to discontinuing operations in China.

Galliford Try responds to press comments following closure of certain Edinburgh schools. Says has contractual responsibility for four of the 17 schools in question through its acquisition of Miller Construction. Says work to remedy defects in these 4 schools is near completion, costs are not material to the co.

LVMH 1Q total sales EU8.62b, est. EU8.73b. 1Q total organic sales up 3%, est. up 4.1%. Says U.S. market is strong and Europe remains well oriented except for France which is affected by a fall in tourism; Asian markets are varied, Japan continues to progress. Says will maintain a strict control over costs.

Givaudan 1Q Sales in Line With Estimates, Confirms 2020 Targets. Givaudan 1Q sales of CHF1.15b meet estimates, rises 5.8% on like-for-like basis, according to e- mailed statement. Co. to maintain current dividend practice.

AbbVie Inc. and Roche Holding AG’s treatment for a type of leukaemia won U.S approval almost three months ahead of schedule. Source Quilter Cheviot.

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FINANCIAL MARKET UPDATE 08/04/2016

The FTSE 100 is called to open 25 points higher at 6161
UK Gilt 10 Year Yield 1.3282 Spot Gold $1236.95 -3.75 Brent Crude $40.07 +0.57
$ per £ 1.4079
$ per € 1.1375
€ per £ 1.2377
The burst of bullishness that lifted U.S. stocks on Wednesday evaporated, with the Standard & Poor’s 500 Index posting the steepest selloff in six weeks amid renewed scepticism over global growth. The Dow Jones Industrial Average dropped more than 230 points at its worst levels, while banks in the S&P 500 fell the most since February, pacing declines amid falling bond yields as investors sought havens. A measure of volatility had its biggest spike since January, with today’s selloff echoing action that started the year when lenders were also especially hard hit on flaring growth concerns. The S&P 500 fell 1.2 percent to 2,041.91, alternating for a third day between gains and losses of at least 1 percent. The Dow sank 174.09 points, or 1 percent, to 17,541.96. The Nasdaq Composite Index lost 1.5 percent, nearly reversing yesterday’s rally. About 7.2 billion shares traded hands on U.S. exchanges, 14 percent below the three-month average.
PRESS COMMENTARY
The chairman of the Federal Reserve has celebrated the strength of the US economy, insisting that recent growth was not built on a bubble blown by the central bank, Telegraph.
The yen touched new highs on Thursday, defying Tokyo’s effort to weaken the Japanese currency in the latest sign that policymakers in leading economies are running out of tools to kick-start sagging growth and battle the threat of deflation, FT.
AVOID Wordplay for now; BUY Dunelm for now for the flow of special dividends should continue; BUY Puretech Healthfor long term, Times
COMPANY NEWS
Associated British Foods PLC (ABF.LN ) said it will buy the remaining 48.65% interest in Illovo Sugar Ltd. (ILV.JO) for 5.6 billion South African rand ($0.37 billion), or ZAR25 per share, in cash.
BNP Paribas SA and its partners in a Scottish energy loan are staring at a loss of 122 million pounds ($172 million) after entrepreneur Ian Suttie’s venture went bankrupt, illustrating the wreckage banks are likely to face from the oil bust.
Tullow Says FPSO Bearing Damaged; Restart to Be in 2 Weeks
Sanofi Bought Back 18.8M Shares Totaling EU1.4 Billion in 1Q
Dechra Pharmaceuticals PLC (DPH.LN) said Tony Rice has joined the company's board as non executive director and will assume the position of chairman with effect from the conclusion of the annual meeting on Oct. 31.
Hikma Pharmaceuticals PLC (HIK.LN), a pharmaceutical group, on Friday confirmed that its abbreviated new drug application, or ANDA, for fluticasone propionate and salmeterol inhalation powder has been accepted for filing by the U.S. Food and Drug Administration.
Advent Sells 30m DFS Shares at 300p/Share
John Wood Group PLC (WG.LN) said Friday that it has acquired Ingenious Inc., a U.S. based software supplier to the energy industries, from its senior management.
Vivendi CEO Says Tel Italia May Consider Work With Enel: I l Sole source Quilter Cheviot
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