FINANCIAL MARKET UPDATE 11/08/2016

The FTSE 100 is called to open 30 points lower at 6836 (ex divs 37 points)
UK Gilt 10 Year Yield 0.5274 Spot Gold $1343.48 -3.37 Brent Crude $42.14 -0.15
$ per £ 1.3017
$ per € 1.1165
€ per £ 1.1659
U.S. stocks fell, sending the S&P 500 Index down by the most in more than a week as energy producers tumbled with the price of crude, while banks shares sank and Perrigo Co.’s disappointing results weighed on health-care companies. The S&P 500 lost 0.4 percent to 2,172.61, after the measure closed a point from an all-time high. The Dow Jones Industrial Average slid 59.06 points to 18,473.99, and the Nasdaq Composite Index fell 0.5 percent after closing at a record for the second time in three sessions. The S&P 500 lost momentum earlier after slipping past its lowest points of the previous two days, around 2,178. Coupled with the market’s failure to close at a record Tuesday, chart analysts say the potential for a decline increased. The S&P 500 trimmed its annual increase to 6.3 percent and its valuation stood at the highest in more than a decade on an estimated earnings basis. The benchmark has failed to rise or fall more than 1 percent in either direction for 22 straight days, the longest such streak since 2014. The lack of price swings had sent the CBOE Volatility Index to a more than two- year low. The measure of market turbulence known as the VIX rose 6.6 percent Wednesday to 12.42.

PRESS COMMENTARY
Investors flocked to sell government bonds to the Bank of England, restoring confidence in its new £60 billion stimulus plan, which had taken a knock when it failed to attract enough sellers, FT.
COMPANY NEWS
Old Mutual PLC reported a rise in interim net profit as it benefited from lower tax expenses and said its plan to split itself into four businesses is progressing well.
Aegon NV reported a loss of 385 million euros ($430million) in the second quarter after the company sold it U.K. annuity business and interest-rate hedges backfired.
Glencore PLC reported lower second-quarter output, in line with the company's cutbacks in copper, coal, zinc, lead and oil as it sought to slash costs and pare back debt against the backdrop of volatile commodity prices.
Derwent London PLC reported a major cut in pretax profit for the first half of 2016 due to a smaller revaluation surplus and said the U.K. vote to leave the European Union "may lower activity".
Cineworld Sees Year Results In Line With Market Estimates.
Deutsche Telekom AG reported an 8.6 percent increase in second-quarter profit on surging sales at its U.S. mobile-phone unit, offsetting a revenue drop in its German home market.
TUI AG said it delivered a good performance in the third quarter, with strong trading in the U.K. and no apparent slowdown in bookings as a result of the referendum on the country's membership of the European Union.
RWE AG’s second-quarter loss narrowed 22 percent after an improved performance in the German utility’s power plant business, cost cuts and a one-time lower tax rate.
Legal & General Group PLC said it is selling its investment platform Cofunds to Dutch insurer Aegon N.V. (AEG) for 140 million pounds ($183 million).
Henkel 2Q Adj. Ebit Beats Ests, Raises 2016 Margin Forecast.
Card Factory PLC said the fall in sterling since the E.U. referendum is further squeezing its margins as it reported a rise in first half sales.
San Leon Energy PLC said it has received equity placing orders for more than $200 million at 45 pence per share to complete the acquisition of an indirect interest in OML 18, a Nigerian Oil and Gas producing field.
John Lewis of Hungerford PLC (JLH.LN) is closing its showrooms in Tunbridge Wells and Harrogate to save money.
RBS priced an additional $2.65 billion of 8.625% perpetual subordinated contingent convertible Tier 1 capital notes, which it plans to use for general corporate purposes. Source Quilter Cheviot
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FINANCIAL MARKET UPDATE 8/8/16

The FTSE 100 is called to open 4 points higher at 6797
UK Gilt 10 Year Yield 0.6720 Spot Gold $1335.87 +1.21 Brent Crude $42.53 +0.28
...

$ per £ 1.3055
$ per € 1.1089
€ per £ 1.1784
U.S. stocks jumped to record highs Friday after a strong jobs report for the month of July gave investors more confidence that the economy is still growing. Financial and technology stocks soared and investors sold the safe assets they have favored for most of this year. The Labor Department said U.S. employers added 255,000 jobs in July, far more than investors expected and the second straight month of strong gains after shaky reports this spring. Stocks made their biggest gain in almost a month. Banks traded higher as investors anticipated higher interest rates and bigger profits on mortgages and other loans. The Nasdaq composite closed at a record high as tech stocks continued to climb. Consumer companies also made big gains. Investors sold bonds, precious metals, and phone and utility companies, safe
investments that soared earlier this year as investors worried about the health of the economy. The Dow Jones industrial average rose 191.48 points, or 1 percent, to 18,543.53. The Standard & Poor's 500 index climbed 18.62 points, or 0.9 percent, to 2,182.87. The Nasdaq advanced 54.87 points, or 1.1 percent, to 5,221.12.
PRESS COMMENTARY
Thousands of retail investors are likely to be denied the chance of buying shares in Lloyds at a discount as the government is expected to abandon the plan in the aftermath of market uncertainty caused by Brexit, Times.
The 10 poorest performers in the EU bank stress tests have paid almost €20 billion in dividends since 2011, increasing the potential burden on bondholders and taxpayers should they fail, according to a new study, FT.
COMPANY NEWS
Melrose Says Window Shop Period For Nortek Expired Aug. 6.
Air France-KLM said its passenger traffic in July was hit by the strike of flight attendants at its French arm carried out between July 27 and Aug. 2, though strong activity at its low-cost unit offset the decline.
Smith & Nephew to Commence $300m Share Buyback.
Vinci SA said it bought the operator of a highway in Lima, Peru for about 1.5 billion euros ($1.67 billion) as part of a strategy to expand in Latin America.
Lok'nStore Group PLC Monday like-for-like revenue in the core self-storage business grew 5.2% in fiscal 2016 ended July 31.
YouGov PLC said trading for the year ended July 31 should be slightly ahead of expectations after a year of double-digit revenue growth. Source Quilter Cheviot
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MARKET UPDATE 2/8/2016

The FTSE 100 is called to open 18 points lower at 6676

UK Gilt 10 Year Yield 0.7304 Spot Gold $1352.58 -1.35 Brent Crude $42.35 -0.45

$ per £ 1.3181
$ per € 1.1179
€ per £ 1.1793

The S&P 500 Indexretreated after briefly approaching a fresh record, as falling crude prices sparked a sharp selloff in energy shares, denting confidence that U.S. growth and corporate profits will rebound. An advance spurred by gains in health-care and technology companies was erased in early afternoon trading as crude dipped below $40 a barrel, dragging oil and gas producers to their worst decline in five weeks. Exxon Mobil Corp. and Chevron Corp. dropped at least 3.2 percent. Biogen Inc. led the health-care group higher after positive trial results for a drug the company is developing with Ionis Pharmaceuticals Inc. The S&P 500slipped 0.1 percent to 2,170.84, on the heels of its longest monthly winning streak since 2014. The Dow Jones Industrial Average lost 27.73 points, or 0.2 percent, to 18,404.51. The Nasdaq Composite Index added 0.4 percent to its highest in a year, and the Nasdaq 100 Index extended an all-time high. About 6.6 billion shares traded hands on U.S. exchanges, 7 percent below the three-month average.

PRESS COMMENTARY 
A former Bank of England rate-setter has warned that cutting interest rates would do more harm than good as pressure grows on the monetary policy committee before this week’s meeting, Times.

US crude oil prices have slipped below $40 a barrel for the first time since April on signs that production is picking up as clouds gather over the global economy, Times.

COMPANY NEWS 
InterContinental Hotels Group PLC reported a fall in interim net profit, citing challenging conditions in some markets, but said it is confident about the outlook for the full year.

Travis Perkins PLC reported an 11% rise in pretax profit for the first half of 2016 and said secondary housing transactions and consumer confidence in the U.K., its two leading indicators, "are unlikely to be positive."

BMW AG's second-quarter profit and revenue report on Tuesday beat analyst estimates while it confirmed its outlook for the year.

Direct Line Insurance Group PLC said it will issue a special dividend payment despite a decline in first-half pretax profit.

Metro AG reported net profit in the fiscal third quarter almost quadrupled, helped by a lower tax rate.

Fresnillo PLC reported a surge in first-half net profit, buoyed by higher output and increases in gold and silver prices.

Deutsche Lufthansa AG said it still expects to be able to pay a dividend for 2016, despite cutting its profit target for the year.

Meggitt PLC reported a 60% fall in first-half pretax profit, hit by the recent weakness of sterling, but backed its full-year guidance.

Commerzbank AG on Tuesday warned it won't reach its goal of keeping net profit stable in the full year as revenue and net profit declined in the second quarter on the back of negative interest rates and sluggish client activity.

Honda Motor Co. Ltd. said Tuesday its net profit fell 6.1% in the April-June period as the yen's appreciation reduced income from robust sales in overseas markets such as North America and elsewhere in Asia.

Spirent Communications PLC swung to an interim pretax profit as it benefited from a reduction in operating expenses.

SDL PLC reported a drop in half year profit but said it is confident of the outlook for the current financial year despite the recent upheavals in Europe following the U.K.'s decision to leave the European Union.Source Quilter Cheviot

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