Financial Markets Update 28/04/2017

The FTSE 100 is called to open 8 points higher at 7245

UK Gilt 10 Year Yield 1.061 Spot Gold $1265.65 +1.27 Brent Crude $52.32+0.47

$ per £ 1.2903

€ per £ 1.1869

$ per € 1.0871

Asian equities retreated, trimming a fourth straight monthly gain for the regional benchmark index, as geopolitical concerns intensified and investors assessed corporate earnings before a report on growth in the world’s largest economy. The MSCI Asia Pacific Index dropped after climbing for six straight sessions. Results at Amazon.com Inc. and Alphabet Inc. buoyed Nasdaq futures. Crude climbed back above $49 a barrel after tumbling on concern over a supply glut. The yen strengthened, weighing on Tokyo shares. The euro held losses after the European Central Bank signaled its commitment to stimulus even as the region’s economy firms. Geopolitical concerns continued to loom over the markets.

Donald Trump said he sees the chance of a “major, major conflict” with North Korea over its nuclear program, though he prefers a diplomatic solution, according to an interview with Reuters.

PRESS COMMENTARY

The Trump administration unveiled what it called the biggest tax cuts “in history” on Wednesday, in a move that will simplify the US tax system, slash taxes, eliminate inheritance taxes and set the president on a collision course with Congress over the likely $2 trillion-plus cost of the proposal, Guardian.

COMPANY NEWS

Royal Bank of Scotland Group Plc reported a quarterly profit for the first time in more than a year as Chief Executive Officer Ross McEwan stepped up the pace of cost- cutting.

Barclays PLC said Friday that net profit fell by more than half in the first quarter of the year, as the U.K. bank took a write-down on the value of its African business.

Nomura Holdings Inc. is disposing of a stake in Standard Chartered Plc valued at almost $500 million through a stock sale to institutional investors Thursday, according to transaction terms.

Old Mutual PLC (OML.LN) said Friday its wealth management business has recorded 6% growth in first quarter funds under management and has appointed a new finance head.

UBS Group AG said Friday its net profit jumped during the first quarter, exceeding analyst expectations, buoyed by strong income growth in its investment-banking and wealth-management units.

Technology firm Laird PLC (LRD.LN) said Friday that its performance for the first quarter of the year was in line with its expectations and provides a solid start to 2017.

Renault CFO Delbos Sees Risk of Diesel Decline Going Forward. Renault saw no major impact of diesel decline in 1Q, CFO Clotilde Delbos says in conference call.

Linde AG, the German industrial gas company planning to combine with Praxair Inc., reported first-quarter profit that beat estimates and said orders rose at the engineering division even as demand for new plants remained sluggish.

Sanofi, the French drugmaker grappling with declining sales of its best-selling insulin for diabetes, warned things will get worse in the months ahead.

Zodiac Aerospace SA said Chief Executive Officer Olivier Zarrouati is ready to step down as the aircraft- seat maker pushes to seal a takeover by Safran SA, after a first-half loss revealed the extent of its troubles.

Rotork PLC (ROR.LN) said Friday that group order intake and revenue during the first quarter of the year increased 19.7% and 14.5% respectively, as a result of favorable exchange rates and the contribution from acquisitions. Source Quilter Cheviot

Wealth Management in Spain

Financial Market Update 27/04/2017

The FTSE 100 is called to open 27 points lower at 7261

UK Gilt 10 Year Yield 1.080 Spot Gold $1267.09 -2.19 Brent Crude $52.20 -0.17

$ per £ 1.2881

€ per £ 1.1814

$ per € 1.0903

Stock indexes wobbled between modest gains and losses Wednesday, as the White House unveiled broad outlines of its plan to slash tax rates but left many of the details to be determined. The S&P's 500 index slipped by 1.16 points, or less than 0.1 percent, to 2,387.45. The Dow Jones industrial average lost 21.03 points, or 0.1 percent, to 20,975.09. The Nasdaq composite slipped 0.27 points, or less than 0.1 percent, to 6,025.23. The Russell 2000 index of smaller-company stocks rose 8.35, or 0.6 percent, to 1,419.43.

PRESS COMMENTARY

The Trump administration unveiled what it called the biggest tax cuts “in history” on Wednesday, in a move that will simplify the US tax system, slash taxes, eliminate inheritance taxes and set the president on a collision course with Congress over the likely $2 trillion-plus cost of the proposal, Guardian.

 COMPANY NEWS

AstraZeneca Plc’s first-quarter profit jumped 4 percent, beating analysts’ estimates, as the company pared expenses amid declining sales of old blockbusters.

BASF SE reported its highest quarterly profit in close to five years, bolstered by recovering crude prices and demand for materials and chemicals used in car parts and construction.

WPP Plc said first-quarter revenue rose 17 percent as currency swings and acquisitions lifted sales, and said new-business momentum picked up.

Total SA posted a 56 percent increase in first-quarter profit, beating analysts’ estimates as crude prices rebounded and the French giant continued to cut costs while increasing oil and gas production.

DS Smith Says Volume Growth Has Been ’Good’.

Taylor Wimpey PLC said Thursday it is well positioned to achieve its medium term targets as strong customer demand helped lift its order book during the first quarter of the year.

Lloyds isn’t getting bruised by Brexit so far. Britain’s largest mortgage bank boosted its target for lending margins this year, even amid record-low U.K. interest rates introduced in the wake of the nation’s vote to leave the European Union.  

Cobham Says Expectations for Financial Year Remain Unchanged.

Nokia Oyj reported first-quarter sales that topped analysts’ estimates as a slump in wireless-network demand began to stabilize and the company reaped more revenue for its patents.

Schroders PLC reported a rise in first-quarter assets under management, adding the business has continued to perform well in the first three months of 2017.

Deutsche Bank AG’s John Cryan is keeping investors waiting for the return to growth he promised, as trading revenue at Europe’s largest investment bank trailed peers in the first quarter.

Weir Group IMS Solid, Triggers Slight Rise in Estimates: Goldman.

Meggitt Says 1Q Trading In Line With Expectations.

Vodafone Group PLC and Proximus have renewed their strategic partnership for Belgium and Luxembourg for a further five years, the U.K. telecom company said Thursday.

Hermes Q1 Sales Rise 13.5% to EUR1.35 Billion.

Persimmon PLC reported a strong start to calendar year 2017, with total forward sales revenue including legal completions in the year to date up by 11% from last year at 2.56 billion pounds ($3.30 billion).

Aggreko News Demand Surges; Stock Advanced 5.5%.

Countrywide PLC Thursday maintained its full year expectations as it reported that the company's performance during the first quarter of the year has been in line.

Travis Perkins Says Start to 2017 Is in Line With Expectations.

N Brown Adj. Pretax Profit Falls 8.7%; Gross Margin Drops.

Jardine Lloyd Thompson Group PLC said  it has made a good start to 2017 and the company remains confident of delivering organic revenue growth in line with historical rates, generating sustained year-on-year financial progress. Source Quilter Cheviot

Financial Advisors in Spain

Market update 25/04/2017

The FTSE 100 is called to open 88 points higher at 7202

UK Gilt 10 Year Yield 1.033 Spot Gold $1270.98 -13.49 Brent Crude $52.72 +0.39

$ per £ 1.2787

€ per £ 1.1786

$ per € 1.0848

A relief rally fueled by speculation that pro-growth centrist Emmanuel Macron will become France’s next president was marred by a selloff in Chinese shares. The euro jumped the most in a month while European equity futures soared after Macron and far-right nationalist Marine Le Pen won the first round of voting. The yen retreated and volatility ebbed, with gold dropping and 10-year Treasury yields climbing. U.S. stock-index futures rose and Japanese shares led Asian equity gains. Shanghai shares tumbled to the lowest since January amid heightened regulatory scrutiny. Investors have been anxiously viewing the French vote in the wake of last year’s Brexit referendum and Donald Trump’s victory in U.S. elections. The result, in which both establishment parties were eliminated, triggers a runoff on May 7 between two radically different visions of the country’s future. Le Pen, who wants to take France out of the euro and clamp down on immigration, has trailed Macron, a committed globalist, in almost every opinion poll for the runoff by a margin of some 20 percentage points.

PRESS COMMENTARY

• The Times: Europe’s highest court could still rule the City years after Brexit under plans being considered by the government in order to win a wider agreement on access to the single market.

Software AG Cut to Hold at HSBC, PT EU40

COMPANY NEWS

Philips 1Q Rev. Beats Est. Philips 1Q rev. EU5.7b, est. EU5.69b (range EU5.62b-EU5.8b).

Computacenter says trading update is published earlier due to co.’s performance in 1Q and the improved outlook for the full year.

LafargeHolcim Ltd. Chief Executive Officer Eric Olsen has resigned amid an investigation into payments the company made to keep a cement plant operating in war-torn Syria, funds that may have ended up in the hands of Islamic State.

Becton Dickinson to Buy C.R. Bard for $24 Billion. Becton will pay $317 per common share in cash and stock in a deal approved by board of both companies, according to statement on PRNewswire.

British Telecom has filed a criminal complaint with Italian prosecutors over an accounting scandal at its Italian unit, Reuters reports, citing the complaint it reviewed.

Interserve, the international support services and construction group, has won a £36.5 million contract to design and build a new secondary school in Caldicot, Monmouthshire, South Wales. Source Quilter Cheviot

Blacktower Group in Spain

MARKET UPDATE 20/04/2017

We´re back!
The FTSE 100 is called to open 4 points lower at 7110.UK Gilt 10 Year Yield 1.063 Spot Gold $1279.01 -1.19 Brent Crude $53.45 +0.17

$ per £ 1.2804 € per £ 1.1938 $ per € 1.0725

U.S. stocks ended the day lower as an early rally in financial companies reversed and as plunging crude oil prices sent energy shares lower. S&P 500 down 0.2% to 2,338.17. Dow Industrials closed down 119 points, or 0.6%, to 20,404.49. Financials slid 0.3% after gaining as much as 1%. Utilities, real estate and staples weakended as the 10-year Treasury yield jumped to 2.21% from 2.17%. Stock movers inc Up: Intuitive Surgical (ISRG), Lam Research (LRCX), Mettler-Toledo (MTD) and down: IBM (IBM), Textron (TXT), Archer-Daniels Midlands (ADM). VIX climbed to 14.9. About 6.6b shares traded hands on U.S. exchanges, roughly in line with the one-year average.

PRESS COMMENTARY

The International Monetary Fund has revised up its UK growth forecast for the second time in three months; the IMF said it now envisaged the British economy expanding by 2% in 2017, Guardian.

Soaring fee income from bond trading helped Morgan Stanley to beat expectations on Wall Street, Times

COMPANY NEWS

Unilever PLC reported stronger underlying sales for the first quarter, as it raised prices, while headline results were helped by currency volatility.

Sky PLC said additional costs relating to Premier League soccer and a weaker U.K. advertising market led to a 11% drop in adjusted operating profit for first nine months of fiscal 2017.

Publicis Groupe SA posted first-quarter sales that beat analysts’ expectations and forecast a return to growth in the second half as Chief Executive Officer Maurice Levy prepares to hand over to Arthur Sadoun in June.

Man Group PLC said strong fund inflows, positive investment performance and weakening of the dollar against certain other currencies has led to a sharp rise in quarterly funds under management, or FuM.

Debenhams Profit Meets Estimates; New Strategy Detailed.

Senior PLC said trading since January has been in line adding that it expects 2017's performance in line with its expectations.

Pershing Square to Repurchase Up to 5% of PSH Outstanding Shares.

Telecom Plus Says Customer, Service Numbers Grow; Raises Div.

Go-Ahead says 3Q trading in line with management expectations; full-year expectations for both bus and rail divisions unchanged from update given on Feb. 28.

Acacia Mining PLC reported Thursday 6% growth in first-quarter revenue to $234 million on increased production from its North Mara mine and a rise in gold prices.

John Laing Environmental Assets Group said it bought a wind farm for 22.7 million pounds ($28.5 million). Source Quilter Cheviot.

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