MARKET UPDATE 21/09/2016

The FTSE 100 is called to open 41 points higher at 6871
UK Gilt 10 Year Yield 0.8064 Spot Gold $1316.99 +2.12 Brent Crude $46.88 +0.63
...

$ per £ 1.2974
$ per € 1.1658
€ per £ 1.1129
U.S. stocks rose amid speculation central banks will maintain efforts to support growth before Wednesday’s closely watched policy decisions from the Federal Reserve and Bank of Japan. Equities jumped out of the gate for a second day, though the early gains have lost some momentum. A rally Monday faded in afternoon trading to leave shares little changed for the session. Consumer staples and drugmakers paced Tuesday’s advance, with biotechnology shares rallying after Allergan Plc agreed to buy Tobira Therapeutics Inc. for as much as $1.7 billion. Energy producers slipped for a third day as oil swung between gains and losses.
The S&P 500 Index added 0.03 percent to 2,139.80 in New York. The Dow Jones Industrial Average gained 9.80 points, to 18,130.

PRESS COMMENTARY
• Financial Times: Santander has pulled out of talks with Royal Bank of Scotland to acquire Williams & Glyn in a blow to the state-backed lender’s attempts to offload the challenger bank.
• The Times: The prospect of a spin-off of GlaxoSmithKline’s consumer healthcare division receded yesterday when the pharmaceuticals group appointed the head of the division Emma Walmsley to succeed Sir Andrew Witty as group chief executive.
COMPANY NEWS
Inditex SA, the retailer behind the Zara fast-fashion chain, on Wednesday reported a 8.8% rise in second-quarter net profit, continuing to benefit from its focus on easily renewed inventory and quick deliveries to drive up sales.
Diageo PLC's (DGE.LN) fiscal year ending June 30, 2017, has started well and the spirits maker expects to achieve its growth target, Chief Executive Ivan Menezes said Wednesday.
Saga PLC (SAGA.LN) reported an 8.5% rise in first-half fiscal 2017 pretax profit, raised its dividend, and said it hasn't seen any discernable impact on customer behavior following the U.K.'s decision to leave the European Union.
Majestic Wine PLC (WINE.LN) said fiscal 2017 earnings, before interest and tax, will be below current market estimates due to lower than expected sales growth in the commercial business and higher marketing costs in the U.S. division of Naked Wines.
Barclays Plc offered to buy back about $2.1 billion of notes as the bank reorganizes into a holding-company structure. The tender covers eight series of notes in dollars, pounds and euros, according to a statement on Tuesday.
Deutsche Bank AG’s status as the riskiest among its peers is worsening, based on a U.S. regulator’s measure of leverage, adding to the lender’s woes as it braces for a settlement over mortgage securities. Source Quilter Cheviot
www.finance-spain.com

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
www.finance-spain.com

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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MARKET UPDATE 29/07/2016

The FTSE 100 is called to open 8 points higher at 6729
UK Gilt 10 Year Yield 0.7125 Spot Gold $1334.53 -1.10 Brent Crude $43.16 -0.54
$ per £ 1.3176
$ per € 1.1083
€ per £ 1.1891
U.S. stocks rose, with the S&P 500 Index staging an afternoon advance as it heads for a fifth monthly gain amid a raft of corporate results. Trading was light as investors awaited a Bank of Japan policy decision and data tomorrow on the strength of the American economy. Facebook advanced after reporting sales and user growth that beat analysts’ projections. Ford Motor Co. plunged as quarterly profit fell short of estimates and it warned that income targets are at risk. Those were just two of the companies moving on a busy earnings day, with more than 60 membersof the S&P 500 Index reporting, including Amazon.com Inc., MasterCard Inc. and Alphabet Inc. The S&P 500 Index rose 0.2 percent to 2,170.05, 0.2 percent from an all-time high set July 22. The index has gained more than 3 percent in July. The Dow Jones Industrial Average lost 15.89 points to 18,456.28. The Nasdaq 100 Index rose, pushing its July gain to 6.9 percent. U.S. stocks are in a rare holding pattern. Since the S&P 500 hit the fourth straight all-time high on July 14, the benchmark gauge has alternated between gains and losses, finishing every day less than 0.5 percent from the previous close. The 10-day streak is the longest since data began in 1927.
PRESS COMMENTARY
The listed banks in the EU’s latest stress tests would have to raise close to €900 billion to convince investors that they have enough capital to withstand another crisis, a feat that would allow them to finally overcome their weak valuations, three academics have argued, FT.
The Bank of Japan expanded its purchases of exchange-traded funds and doubled the size of a U.S. dollar lending program, while refraining from boosting the pace of government-bond purchases that have formed the main part of its monetary stimulus. Governor Haruhiko Kuroda led his board in voting to expand an ETF program to 6 trillion yen a year, the BOJ said in a statement in Tokyo Friday. In an unexpected development, Kuroda has ordered an assessment of the effectiveness of BOJ policy, to be undertaken at the next meeting, which is scheduled for Sept. 20-21.
COMPANY NEWS
Barclays Plc profit fell by more than half in the second quarter as the bank posted a 1.9 billion- pound pretax loss from the unit that houses the businesses and assets its trying to sell or wind down and cuts Dividend to 1.0p Vs 2.0p.
Pearson PLC said it is trading in line with its expectations and reiterated its 2016 guidance, adding that it goals to 2018 are unchanged. It recommended a dividend of 18 pence, unchanged from a year earlier and in line with previous guidance, it said
Reckitt Sees 2016 LFL Rev. at Lower End of Target Range
UBS Group AG said profit slipped 14 percent in the second quarter as both wealth management and investment banking generated less revenue during a rocky period for markets.
IMI Sees FY Results In Line With Current Market Expectations
Indivior 2Q Net Revenue Beats Estimates, Raises 2016 Forecast
Sony Corp. posted a surprise quarterly profit as strength in its PlayStation division outweighed a slowdown in sales of image sensors
UBM 1H Adj Operating Profit Up, Keeps Trading Outlook for Year
Foxtons’ profits fall 42% as Brexit uncertainty bites
Qatar Airways Ltd. will further raise its stake in British Airways owner IAG SA, adding to its holding after the shares plunged in the wake of the Brexit vote. Source Quilter Cheviot.

www.finance-spain.com

MARKET UPDATE 25/07/2016

The FTSE 100 is called to open 6 points higher at 6736.

UK Gilt 10 Year Yield 0.7976 Spot Gold $1317.62 -4.96 Brent Crude $45.94 -0.98

$ per £ 1.3128
$ per € 1.0971
€ per £ 1.1966

U.S. stocks rose, sending the S&P 500 Index to a fresh record, as investors showed confidence corporate earnings will not derail a rally that’s headed toward a fifth week. Equities rebounded as some of the week’s best performers were among the biggest contributors to Friday’s climb. Microsoft Corp. and Biogen Inc. added to their strongest weekly increases since at least March. Verizon Communications Inc. rose 1.3 percent as it’s said to be near a deal to buy Yahoo! Inc. Gains were tempered by disappointment that followed earnings from General Electric Co., Honeywell International Inc. and Apple Inc. supplier Skyworks Solutions Inc. The S&P 500 rose 0.5 percent to 2,175.03, a seventh all-time high in the last 10 sessions after going more than 13 months without one. The benchmark gained 0.6 percent this week, the smallest such advance in its four-week run. The Dow Jones Industrial Average added 53.62 points, or 0.3 percent, to 18,570.85, and the Nasdaq Composite Index increased 0.5 percent. About 5.6 billion shares traded hands on U.S. exchanges, 21 percent below the three-month average.

PRESS COMMENTARY

Apple is on the verge of selling its billionth iPhone, a rare achievement for any consumer electronics company and one that highlights the maturation of the smartphone market, FT.

European banks from Barclays to BBVA are launching another round of cost-cutting as they brace for conditions to deteriorate this year, due to low interest rates, the UK vote to exit the EU and the latest stress test results, FT.

COMPANY NEWS

Aberdeen Asset Management PLC reported a 2.9% rise in assets under management during the third quarter, citing the diversified asset and client base of the business.

William Hill confirms received a highly preliminary approach from 888 and Rank regarding a potential combination of the three companies.

Ryanair Holdings Plc warned it may lower its fiscal 2017 profit forecast amid weakening travel demand stemming from Britain’s decision to exit the European Union.

L’Oreal SA agreed to acquire IT Cosmetics for $1.2 billion in its largest acquisition in eight years, adding more than 300 skin-care and makeup products to its lineup.

Hammerson PLC said that it will pursue a secondary listing on the Johannesburg Stock Exchange to access a wider pool of international capital, as it reported a sharp drop in first half pretax profit because of the falling value of its properties.

Hiscox Ltd reported its bottom line has benefited from sterling weakness after the Brexit vote as it posted a rise in interim pretax profit, and said it may set up an EU-based insurance company following the U.K.'s exit from the European Union.

Nintendo Co. shares plunged 17% after the company said late Friday that the financial impact from the worldwide hit Pokemon Go will be limited.

Royal Philips NV, reported second-quarter profit that rose more than expected on cost savings and said earnings will improve in the second half of the year.

Speedy Hire PLC said that a shareholder has requested a general meeting of the company to propose a resolution for the removal of Executive Chairman Jan Astrand.

CVS Group PLC said it expects its fiscal 2016 earnings to be modestly ahead of market expectations. Source Quilter Cheviot.

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MARKET UPDATES 28/06/2016

The FTSE 100 is called to open 91 points higher at 6073
UK Gilt 10 Year Yield 0.9345 Spot Gold $1318.45 -6.30 Brent Crude $48.42 +0.56
$ per £ 1.3285
$ per € 1.1058...
€ per £ 1.2012
U.S. stocks continued a rout sparked by Britain’s shock vote to leave the European Union, with the Dow Jones Industrial Average falling 260 points after equities on Friday tumbled the most in 10 months. Banks remained the focal point in the downdraft, with no sign of the pummeling letting up as lenders marked the worst two-day drop in almost five years. Bank of America Corp. and JPMorgan Chase & Co. sank more than 3.3 percent. Raw-material and industrial shares also posted the steepest back-to-back slide since 2011. Sentiment was dealt another blow after S&P Global Ratings today cut the U.K.’s top credit grade by two levels. The S&P 500 Index dropped 1.8 percent to 2,000.54, holding at the lowest since March 10. The benchmark fell below its average prices during the past 100 and 200 days. The Dow Jones Industrial Average lost 260.51 points, or 1.5 percent, to 17,140.24, after falling more than 600 points Friday. The Nasdaq Composite Index decreased 2.4 percent to an almost four-month low. About 10.6 billion shares traded hands on U.S. exchanges, 48 percent above the three-month average.
PRESS COMMENTARY
It is Britain’s greatest global export but the English language could be banned from the heart of Europe after Brexit, The Times
The UK’s tourism industry is poised to benefit from Britain’s vote to leave the EU, as the crashing value of the pound attracts an influx of international visitors and encourages Britons to take “staycations”, FT.
COMPANY NEWS
Old Mutual PLC on Tuesday detailed plans for its previously announced decision to separate its business units and said that Britain's decision to leave the European Union may impact the performance of its underlying businesses by increasing market volatility.
Rolls-Royce Total Trading in First 5 Months ‘Broadly’ in Line.
Redrow PLC reported pretax profit for the year to June will be above the top end of analysts' estimates of 240 million pounds ($319.4 million) and said it is too early to tell whether Brexit will have any effect on future sales.
John Wood Group PLC (WG.LN) has been awarded a multimillion dollar contract to provide engineering and design, and procurement services to South Atlantic Holding for the development of the Peregrino field wellhead platform C, offshore Brazil.
Ocado Group PLC reported a slow-down in profit growth for the first-half, but said it looks forward to the future with confidence.
AstraZeneca PLC announced that the European Commission has approved the use of its infection treatment Zavicefta.
Legal & General Group PLC said it has appointed John Kingman as chairman.Sourece Quilter Cheviot.www.finance-spain.com