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

Blacktower Financial Management in Spain

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

www.finance-spain.com

 

 

 

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

Investment Services from Blacktower Group           

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.

www.finance-spain.com

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
More finance for expats here

MARKET UPDATE 31/03/2016

The FTSE 100 is called to open 8 points lower at 6195.

UK Gilt 10 Year Yield 1.4343%, Spot Gold $1228.35 +2.95 Brent Crude $39.64 -0.45

$ per £ 1.4342

$ per € 1.1315

€ per £ 1.2675

U.S. stocks rose, extending to the highest levels this year, as central bankers continued to spur optimism amid assurances that they will act to stave off a global downturn. The Standard & Poor’s 500 Index climbed for a third day after yesterday posting the strongest increase in two weeks as Federal Reserve Chair Janet Yellen signaled officials will be cautious in raising interest rates due to heightened economic risks overseas. The dollar headed for its steepest monthly drop since 2010. Apple Inc. rallied to a three-month high, boosting technology shares, while banks rose for the first time in six days. The S&P 500 added 0.4 percent to 2,063.95, pushing its 2016 gain to 1 percent. The Dow Jones Industrial Average climbed 83.55 points, or 0.5 percent, to 17,716.66. The Nasdaq Composite Index increased 0.5 percent to close above its average price during the past 200 days for the first time this year. About 6.6 billion shares traded hands on U.S. exchanges, 22 percent below the 2016 daily average.

PRESS COMMENTARY

More US initial public offerings collapsed than succeeded in the first quarter of 2016 as the ferocity of this year’s stock market tumble hit many companies’ hopes of coming to market, FT.

COMPANY NEWS  

Orange SA and Bouygues SA are heading into a make-or-break weekend as they try to salvage their wireless- phone merger plan, after acknowledging that talks had not advanced sufficiently to clinch a deal.

TUI said that both bookings and revenue for Summer 2016 are ahead of last year so far, and backed its full-year guidance for underlying Ebita growth of at least 10%.

Valeant Pharmaceuticals International Inc. said it was seeking more room from lenders to stave off a potential default. But stock investors were unnerved, as Valeant inched back from earlier assurances about its ability to hit financial targets required by its lenders.

Panmure Gordon & Co. PLC (PMR.LN) said 2015 was a disappointing year for its primary markets activities as it swung to a full year pretax loss.

Wincanton Says Trading Continues to Be in Line With Views

Booker Group PLC (BOK.LN) said like-for-like sales fell 2.5% for the 12 weeks ended March 25, compared with a 6.1% drop a year earlier, impacted by deflation in food prices and weak consumer demand, but said profit for the full year remains in line with expectations.

Boeing Co. said that it planned to cut more than 4,500 jobs by June, as the company accelerates cost-cutting efforts in an effort to keep pace with customers demanding less expensive jetliners.

Wendel Says Has Already Met 2013-2017 Targets

Speedy Hire PLC (SDY.LN) said it expects adjusted pretax profit for fiscal 2016 ending March 31 to be in line with market expectations and net debt broadly in line with the previous year-end.

 

Maersk’s APM Terminals unit will invest EU758m in a second terminal in Tangier, which will have annual capacity of 5 mln TEUs. Source Quilter Cheviot

More Financial Information here 

 

MARKET UPDATE 30/03/2016

The FTSE 100 is called to open 50 points higher at 6155.

UK Gilt 10 Year Yield 1.4112%, Spot Gold $1237.75 -4.45 Brent Crude $40.17 +0.31

$ per £ 1.4394

$ per € 1.1298

€ per £ 1.2741

U.S. stocks rose, with the S&P’s 500 Index posting a 2016 high, as Federal Reserve Chair Janet Yellen signaled the central bank will be cautious on further interest-rate increases in a nod to global risks.

Equities saw the strongest gains since the conclusion of the last Fed meeting, when policy makers reduced their outlook for rate increases this year, citing negative developments overseas. The dollar repeated a post-Fed selloff, helping commodity and industrial shares to reverse losses on speculation the weaker currency will buoy earnings. The S&P 500 rose 0.9 percent to 2,055.01, the highest since Dec. 30. The Dow Jones Industrial Average added 97.72 points, or 0.6 percent, to 17,633.11, wiping out a drop of more than 100 points. The Nasdaq Composite Index increased 1.7 percent as Apple Inc. and Microsoft Corp. rallied more than 2.1 percent. The Russell 2000 Index of small caps jumped 2.7 percent, the most in two months.

PRESS COMMENTARY

Tata Steel is set to pull out of all its UK operations, including Port Talbot, in a move that could put thousands of jobs at risk, Guardian.

Janet Yellen, has vowed to move with extreme care before tightening monetary policy in the face of lingering global deflation and trouble in China.

Sports Direct has upped its stake in Findel to nearly 30%, in the latest stage of its battle to wrest control of the online specialist.

COMPANY NEWS  

Deutsche Bank AG’s Paul Achleitner has won support to stay on as the firm’s supervisory board chairman from one of its biggest investors, former Qatar Prime Minister Sheikh Hamad bin Jassim bin Jabr Al Thani.

3M Co. affirmed its 2016 sales and earnings outlook, but set targets for the five-year period through 2020 slightly below its past five-year targets.

McCormick & Co.Inc. raised its offer for the U.K.'s Premier Foods PLC to around 537 million pounds ($773 million). The 65 pence a share offer comes after Premier Foods, whose brands include Mr. Kipling cakes and OXO stock cubes, rejected a previous 60 pence a share offer.

Colgate-Palmolive Inc. promoted two company veterans as part of a plan to line up an eventual successor to Chief Executive Ian Cook, who has run the company for nine years.

UniCredit in talks with Rome over €2bn mutual capital raising

EDF Engineers Urge Delay of U.K. Nuclear Project: FT

Fidelity Investments will charge annual fees of 0.35% to 0.39% for Fidelity Go, its automated robo-investing service -- a price that makes the service roughly competitive with offerings from Vanguard Group and other rivals.

Sports Direct Raises Stake in Findel to 29.8%

NewRiver Retail Ltd. (NRR.LN) said it is in advanced negotiations to buy the Broadway shopping centre and Broadway Square in Bexleyheath town centre, London Borough of Bexley for 120 million pounds ($172.76 million).

Sinclair Pharma 1H Rev. Decline, Renegotiated Ellanse Mile stone

IMImobile PLC (IMO.LN) Wednesday said it is trading in line with expectations, with revenue and gross profit expected to have increased by around 25% and 20% respectively in the year ending March 31. Source Quilter Cheviot

More financial information here