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.

www.finance-spain.com

The FTSE 100 is called to open 15 points lower at 6768.

UK Gilt 10 Year Yield 1.4131 Spot Gold $1175.55 +2.18 Brent Crude $52.33 +4.83
...

$ per £ 1.2541
€ per £ 1.1805
$ per € 1.0622

U.S. stocks were mostly lower despite a strong performance by energy shares after OPEC members reached an agreement to cut petroleum production. The S&P 500 Index soared at the market’s open and surpassed it’s record high, but then retreated and was down 0.27 percent to 2,198.81. The Dow Jones Industrial Average also touched a record high before fading and was essentially flat at 19,123.58. The Nasdaq Composite Index fell more than 1 percent to 5,323.68. Earlier Tuesday, the Organization of Petroleum Exporting Countries reached an agreement to curtail oil supply by 1.2 million barrels, the first cut in eight years.
PRESS COMMENTARY
The UK’s latest insider trading trial was brought to an abrupt halt on Wednesday after a former business analyst at Logica and his next-door neighbour pleaded guilty, FT.
Barclays has been accused of providing “seriously incomplete” disclosure over its involvement in the Libor scandal, Times.
Oil prices surged as much as 10% to hit $52-a-barrel yesterday after the Opec cartel agreed to cut its production for the first time since 2008 in an attempt to address the global supply glut and lift prices; Opec said it would reduce output by 1.2 million barrels per day (bpd) to 32.5 million bpd from January for at least six months, Telegraph.
COMPANY NEWS
Glencore Plc, will reinstate its dividend next year and plans to pay out a minimum of $1 billion annually following a rebound in commodity prices and a reduction in its debt.
Grainger FY NAV/Share, Net Rental Income Grow; Raises Div.
Serco Group PLC said that trading in the second half of fiscal 2016 has been in line with its August guidance and that its expectations for fiscal 2017 remain unchanged.
Daily Mail & General Trust PLC recorded a 14.4% rise in fiscal 2016 pretax profit and said organic and M&A investments made over the past few years have started to bear fruit.
Anglo American PLC said it has sold 35 million shares in Exxaro Resources Ltd. (EXX.JO) at 87 South African rand each, raising ZAR3.0 billion ($215 million), as part of its continuing efforts to reduce debt. Source Quilter Cheviot
www.finance-spain.com

Financial Markets Update 08/11/2016

The FTSE 100 is called to open 10 points lower at 6796.
UK Gilt 10 Year Yield 1.2025 Spot Gold $1283.15 +1.36 Brent Crude $46.52 +0.77
$ per £ 1.2423
€ per £ 1.1240
$ per € 1.1054
U.S. stock markets rebounded from a nine-day losing streak, posting its biggest gain in eight months and driving the Dow Jones industrial average up more than 370 points. Financial stocks led the broad market rally, which erased more than half of the losses racked up by the Standard & Poor's 500 index since October 25. The gains came as investors mostly focused on the latest developments in the U.S. presidential race a day before the general election. The Dow gained 371.32 points, or 2.1 percent, to 18,259.60. The S&P 500 index rose 46.34 points, or 2.2 percent, to 2,131.52. Heading into Monday, the index had been down 66 points over the previous nine trading days. The Nasdaq composite index added 119.80 points, or 2.4 percent, to 5,166.17.
PRESS COMMENTARY
European banks’ misadventures on Wall Street will come in for fresh scrutiny this week when they publish the first sets of quarterly accounts for what have often been troubled businesses, FT.
BUY Scottish Mortgage; BUY John Laing Infrastructure; TAKE PROFITS from Informa, Times.
COMPANY NEWS
Marks & Spencer Group Plc announced plans to close 60 U.K. stores and retreat from 10 countries as Chief Executive Officer Steve Rowe unwinds the expansion efforts of his predecessor in an effort to reverse years of underperformance.
Credit Agricole SA, said quarterly profit doubled from a year earlier as it booked gains from a reorganization and bond-trading income surged. The lender also pledged a stable or rising dividend for next year.
AB Foods Plc, said earnings should improve this financial year as world sugar prices turn more favorable and the weakening pound boosts the value of profit made outside its home market.
Deutsche Post AG’s third-quarter profit jumped more than threefold as the mail operator recovered from costs for a failed software project at its freight forwarding unit a year ago.
Imperial Brands PLC reported a fall in full year net profit as duty and other costs rose, but increased its dividend and announced a new investment plan to raise revenue.
ArcelorMittal 3Q Ebitda Misses; FY ’16 Cash Flow to Exceed Capex.
Punch Taverns PLC posted a swing to pretax profit during the fiscal 2016 year-end.
Direct Line 9M Gross Written Premiums from Operations Rise 4.2%.
Henkel AG reported third-quarter profit that beat analyst estimates as the German maker of Persil washing powder reported sales growth across its three business units and confirmed its outlook for the 2016 fiscal year.
Toyota Motor Corp. raised its profit forecast for this fiscal year as the yen’s rally stopped short of levels that the automaker had predicted, providing some respite from a sales slowdown that’s threatening its position as the world’s top seller. Source Quilter Cheviot
International Finance

FINANCIAL MARKET UPDATE 11/10/2016

The FTSE 100 is called to open 23 points lower at 7074.
UK Gilt 10 Year Yield 1.0223 Spot Gold $1261.25 +1.85 Brent Crude $53.24 +2.05
...

$ per £ 1.2319
€ per £ 1.1073
$ per € 1.1126

U.S. stocks rose Monday as crude oil jumped to its highest price in more than a year and energy companies climbed with it. Investors also reacted to the latest twists in the presidential race. Oil rose after Russia's government said it supports efforts by OPEC to cut oil production. Apple reached its highest price of the year and led tech stocks higher after new reports of fires affecting Samsung's Galaxy Note 7 phone, which competes with Apple's iPhone. The Dow Jones industrial average picked up 88.55 points, or 0.4 percent, to 18,329.04. The index rose as much as 159 points earlier. The Standard & Poor's 500 index rose 9.92 points, or 0.5 percent, to 2,163.66. The Nasdaq composite added 36.27
points, or 0.7 percent, to 5,328.67.

PRESS COMMENTARY
• Financial Times: Oil rose to its highest level in a year after Russian president Vladimir Putin said that he backed efforts for a production cap in the clearest sign yet that the country would join any global supply pact.
COMPANY NEWS
N Brown Says Comfortable With FY Market Estimates. N Brown 1H rev. up 1% to GBP429.4m. 1H product rev. up 0.6%, financial services rev. up 1.9%. 1H adjusted pretax GBP31.6m vs GBP39.4m y/y, says ahead of consensus expectations.
McCarthy & Stone Trading Ahead, CFO Maddock to Leave for SIG. Says since Sept. 2 update, trading and other lead indicators are now ahead of the previous year.
LVMH, the world’s biggest luxury-goods maker, reported revenue that beat estimates as shoppers in Asia and the U.S. snapped up its Celine handbags and new Louis Vuitton perfumes. Third-quarter sales rose to 9.14 billion euros ($10.2 billion), the company said in a statement, led by a stronger- than-expected 5 percent gain from its biggest division, fashion and leather goods. Analysts had predicted 8.92 billion euros.
Keller Group Wins GBP60m Contract in Egypt.
Great Portland Estates announces 92,800 sq. feet of lettings since July 1, generating a combined annual rent of GBP7.9m. Source Quilter Cheviot

Pat Macdonald at Blacktower Financial Management (International) Limited
www.finance-spain.com
patrick.macdonald@blacktowerfm.com

FINANCIAL MARKET UPDATE 11/10/2016

The FTSE 100 is called to open 23 points lower at 7074.
UK Gilt 10 Year Yield 1.0223 Spot Gold $1261.25 +1.85 Brent Crude $53.24 +2.05
...

$ per £ 1.2319
€ per £ 1.1073
$ per € 1.1126

U.S. stocks rose Monday as crude oil jumped to its highest price in more than a year and energy companies climbed with it. Investors also reacted to the latest twists in the presidential race. Oil rose after Russia's government said it supports efforts by OPEC to cut oil production. Apple reached its highest price of the year and led tech stocks higher after new reports of fires affecting Samsung's Galaxy Note 7 phone, which competes with Apple's iPhone. The Dow Jones industrial average picked up 88.55 points, or 0.4 percent, to 18,329.04. The index rose as much as 159 points earlier. The Standard & Poor's 500 index rose 9.92 points, or 0.5 percent, to 2,163.66. The Nasdaq composite added 36.27
points, or 0.7 percent, to 5,328.67.

PRESS COMMENTARY
• Financial Times: Oil rose to its highest level in a year after Russian president Vladimir Putin said that he backed efforts for a production cap in the clearest sign yet that the country would join any global supply pact.
COMPANY NEWS
N Brown Says Comfortable With FY Market Estimates. N Brown 1H rev. up 1% to GBP429.4m. 1H product rev. up 0.6%, financial services rev. up 1.9%. 1H adjusted pretax GBP31.6m vs GBP39.4m y/y, says ahead of consensus expectations.
McCarthy & Stone Trading Ahead, CFO Maddock to Leave for SIG. Says since Sept. 2 update, trading and other lead indicators are now ahead of the previous year.
LVMH, the world’s biggest luxury-goods maker, reported revenue that beat estimates as shoppers in Asia and the U.S. snapped up its Celine handbags and new Louis Vuitton perfumes. Third-quarter sales rose to 9.14 billion euros ($10.2 billion), the company said in a statement, led by a stronger- than-expected 5 percent gain from its biggest division, fashion and leather goods. Analysts had predicted 8.92 billion euros.
Keller Group Wins GBP60m Contract in Egypt.
Great Portland Estates announces 92,800 sq. feet of lettings since July 1, generating a combined annual rent of GBP7.9m. Source Quilter Cheviot

Pat Macdonald at Blacktower Financial Management (International) Limited
www.finance-spain.com
patrick.macdonald@blacktowerfm.com