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

MARKET UPDATE 13/06/2016

The FTSE 100 is called to open 52 points lower at 6063
UK Gilt 10 Year Yield 1.2318 Spot Gold $1281.95 +8.30 Brent Crude $50.27 -0.41.

$ per £ 1.4214
$ per € 1.1258
€ per £ 1.2625

U.S. stocks retreated, with the S&P 500 Index falling the most in three weeks, amid caution over tepid global growth and a series of looming events with the potential to spur renewed market turbulence.
Losses intensified in afternoon trading following fresh poll results favoring an exit in Britain’s European Union referendum, though a rebound in the final minutes pared declines. Energy producers led the slide, capping their worst session in five weeks. Banks sold off for a second day as Treasury yields continued to drop, with Citigroup Inc. and Bank of America Corp. sinking more than 2.4 percent. A measure of equity market volatility posted the biggest jump in five months.
The S&P 500 fell 0.9 percent to 2,096.07 at 4 p.m. in New York, slipping below 2,100 for the first time in a week, a level where other rallies during the past year have faded. The Dow Jones Industrial Average dropped 119.85 points, or 0.7 percent, to 17,865.34. The Nasdaq Composite Index lost 1.3 percent, the largest decline in two months. About 6.8 billion shares traded hands on U.S. exchanges, 3 percent below the three-month average.
PRESS COMMENTARY
Financial Times: China’s corporate debt risks sparking a bigger crisis if the authorities fail to tackle it, the International Monetary Fund has warned.
COMPANY NEWS
Monsanto Said to Rebuff New Bayer Offer at Same Price: DJ.
Satellite communications services company SpeedCast International Ltd (SDA.AU) has agreed to use satellite operator Inmarsat PLC's (ISAT.LN) new broadband service for boats in its maritime services offering.
EasyJet PLC (EZJ.LN) founder Stelios Haji-Ioannou Thursday said he welcomed the appointment of Nico Bezuidenhout as chief executive of fastjet PLC (FJET.LN). Mr. Haji-Ioannou said Mr. Bezuidenho ut was on a list of candidates from a headhunter he had hired last November.
GVC - Awarded a gaming licence by the New Jersey Division of Gaming and Enforcement after the acquisition of Bwin-Party required an reapplication. Source Quilter Cheviot

Wealth Management in Spain

FINANCIAL MARKET UPDATE 23/05/2016

The FTSE 100 is called to open 9 points higher at 6165

UK Gilt 10 Year Yield 1.4515 Spot Gold $1250.95 -1.55 Brent Crude $48.81 -0.27

$ per £ 1.4517

$ per € 1.1229

€ per £ 1.2928

U.S. stocks rose, with the S&P 500 rebounding from a seven-week low, led by a rally in technology shares amid ebbing anxiety over the potential for higher interest rates as early as next month. Applied Materials Inc. surged 14 percent after forecasting sales that may beat analysts’ estimates, spurring gains among tech companies. Chipmakers jumped the most since January, with Intel Corp. rising 1.8 percent. Apple Inc. increased 1.1 percent to its first weekly advance in five. Equities trimmed gains in afternoon trading as banks lost momentum after Treasuries erased losses, sending yields lower for a second day. The S&P 500 added 0.6 percent to 2,052.32, halting a weekly losing streak at three and regaining its advance for the year. The Dow Jones Industrial Average climbed 65.54 points, or 0.4 percent, to 17,500.94. It wasn’t enough to save the index from a fourth weekly loss, the longest stretch since October 2014. The tech-heavy Nasdaq Composite Index rose 1.2 percent. About 6.7 billion shares traded hands on U.S exchanges, 9 percent below the three-month average.

PRESS COMMENTARY

Axa is to ditch its tobacco investments, arguing that owning them clashes with its position as a health insurer, FT.

Britain will be plunged into a year-long recession if it votes to leave the EU, according to a bleak analysis of the short-term economic shock of a Brexit vote to be published on Monday by the Treasury, FT.

US IPOs: spluttering, FT (LEX).

COMPANY NEWS

Bayer AG made an unsolicited $62 billion all-cash offer to acquire Monsanto Co. to create the world’s biggest supplier of farm chemicals and genetically modified seeds, a proposed acquisition that would be the biggest corporate deal by a German company.

Axa SA, France’s largest insurer, said it will stop investing in tobacco and will divest 1.8 billion euros ($2 billion) of assets in the industry.

Legal & General Group PLC said it has acquired a 3 billion pounds ($4.35 billion) U.K. annuity portfolio from Aegon NV (AGN.AE).

Ryanair Holdings PLC posted a 43% rise in full-year net income but warned profit growth would slow and that concerns over terrorist attacks could weigh on ticket prices.

General Electric Co. signed an agreement with Vietnam's government to develop renewable energy in the country.

Boeing Wins $11.3B order for 100 737 MAX 200 airplanes from VietJet, the largest single commercial airplane purchase in Vietnam's aviation history.

De La Rue PLC (DLAR.LN) said that it has sold its cash processing business to a unit of private equity firm Privet Capital.

Toshiba Corp. said it would reduce its capital to offset losses on its balance sheet, the latest effort by the scandal-hit company to recover from its financial troubles. Source Quilter Cheviot.

www.finance-spain.com

MARKET UPDATE 17/05/2016

The FTSE 100 is called to open 27 points higher at 6178
UK Gilt 10 Year Yield 1.3947 Spot Gold $1275.50 +1.20 Brent Crude $49.55 +0.32
$ per £ 1.4480
$ per € 1.1317
€ per £ 1.2796
U.S. equities climbed as Warren Buffett’s bet on Apple Inc. sent the iPhone maker’s shares rallying, while crude oil’s surge to a six-month high amid speculation a supply glut has eased boosted commodity-producer shares around the world. The S&P 500 Index rebounded after three weeks of losses, with Apple jumping the most in 10 weeks after Berkshire Hathaway Inc. disclosed a stake. Oil extended last week’s gains past $47 a barrel as Goldman Sachs Group Inc. increased its price forecast, saying the market had moved into a supply deficit earlier than expected. Precious metals rallied with aluminum and materials producers climbed, boosting stocks in developing nations. The pickup in commodity prices supported global equities after about $1.8 trillion in value was wiped out in the first two weeks of May amid weaker economic data and disappointing earnings reports. Buffett’s bet on Apple lifted its shares from their lowest level since 2014, after they’d slumped on concern over sales growth. Data Friday showing a jump in American retail sales bolstered the case for the Federal Reserveto raise interest rates as other central banks struggle to fuel price growth via stimulus efforts. The S&P 500 rose 1 percent to 2,066.66 as of 4 p.m. in New York, rebounding from a third weekly decline, its longest sliding streak since January. The gauge topped its average price during the past 50 days after closing Friday below that level for the first time in two months.

PRESS COMMENTARY
Financial Times: The oil price moved closer to the $50-a-barrel mark for the first time since November, on growing supply disruptions in Nigeria and a more positive assessment of the market from Goldman Sachs, the most bearish of the leading commodity banks.
COMPANY NEWS
Wireless carrier Vodafone Group Plc reported quarterly sales growth on its network that beat estimates, helped by improved results in several key European markets. Organic service revenue, which includes customer fees but excludes handset sales, rose 2.5 percent in the three months through March 31.
DCC PLC (DCC.LN) said it expects another year of profit growth as it raised its dividend by 15% after recording a rise in fiscal 2016 profit. The sales, marketing, distribution and business support services group said pretax profit rose 47% to 216.3 million pounds ($310.5 million) for the year ended March 31 compared with GBP147.1 million a year earlier as revenue notched GBP10.60 billion versus GBP10.61 million. DCC raised its dividend a share to 97.22 pence versus 84.54 pence.
Land Securities (LAND.LN) on Tuesday reported an 81% fall in pretax profit for its fiscal 2016 and added that a vote to leave the European Union would lead to business uncertainty.
BTG PLC (BTG.LN), a healthcare company, reported a rise in full-year profit and said it expects revenue for fiscal 2017 to be in the range of 485 million pounds to 515 million pounds ($697 million - $740 million).
Enterprise Inns 1H Ebitda before exceptional items GBP142m vs GBP144m y/y, in line with expectations and reflecting the impact of planned disposals
Greencore says performed well in H1 16; says U.K. backdrop expected to remain uncertain given “changing nature of the grocery industry and other potential economic headwinds.”
Speedy Hire PLC (SDY.LN), a tools, equipment and plant hire services company, on Tuesday said its full-year results are disappointing, but added that the business is starting to respond to its recent restructuring.
Iliad SA, the low-cost mobile-phone company founded by French billionaire Xavier Niel, reported a 6.6 percent increase in sales for the first quarter after promotions helped it win customers.
Schroders has reached an agreement with Brookfield Investment Management Inc. to acquire its securitized products investment management team with more than $4 billion in assets under management.
AstraZeneca Says Benralizumab Studies Achieved Primary Endpoint. Source Quilter Cheviot
www.finance-spain.com

MARKET UPDATE 03/05/2016

The FTSE 100 is called to open 29 points higher at 6270
UK Gilt 10 Year Yield 1.5964 Spot Gold $1292.10 +0.45 Brent Crude $46.10 +0.29
$ per £ 1.4726
$ per € 1.1562
€ per £ 1.2738
U.S. stocks rallied to begin May, with the S&P 500 rising the most in more than two weeks, as banks rebounded and Amazon. Inc. jumped for a second day to boost consumer shares.
Amazon increased 3.7 percent to a four-month high, after its biggest one-day gain in nine months on Friday followed better-than-estimated earnings. Wells Fargo & Co. and Bank of America Corp. climbed at least 1.2 percent. Halliburton Co. added 1.8 percent and Baker Hughes Inc. fell 2 percent after ditching their $28 billion merger. Energy producers edged higher despite lower oil prices, and Apple Inc. extended its longest losing streak since 1998.
The S&P 500 rose 0.8 percent to 2,081.43 at 4 p.m. in New York, recovering more than half of its biggest weekly retreat since February. The Dow Jones Industrial Average added 117.52 points, or 0.7 percent, to 17,891.16. The Nasdaq Composite Index increased 0.9 percent. About 7 billion shares traded hands on U.S. exchanges, 10 percent below the three-month average.
PRESS COMMENTARY
The Times: The City is poised for a brace of listings that could add more than £2 billion to the value of companies traded on the stock market and boost investment banks hit by a worldwide fees drought.
Financial Times: Halliburton’s failed $28 billion bid for rival Baker Hughes, which was abandoned by the two companies on Sunday, faced insurmountable objections from competition regulators, the US Department of Justice has said.
COMPANY NEWS
HSBC Holdings Plc reported a bigger first- quarter profit than analysts forecast, weathering turbulence in global markets, as Chief Executive Officer Stuart Gulliverpared back costs. Pretax profit fell to $6.1 billion from $7.1 billion a year earlier.
Aberdeen Asset Management PLC (ADN.LN) said it is continuing to face weakness in emerging markets as it reported a fall in interim revenue and net profit.
UBS Group AG said first-quarter profit plunged 64 percent, missing analyst estimates, as market turbulence eroded earnings at the wealth-management and securities units. Net income declined to 707 million Swiss francs ($741 million) from 1.98 billion francs a year earlier.
BNP Paribas SA, France’s largest bank, posted a surprise increase in first-quarter profit as a decline in provisions for bad loans helped outweigh a slump in trading revenue. Net income rose to 1.81 billion euros ($2.1 billion) from 1.65 billion euros a year earlier.
BMW AG’s profit declined 2.5 percent in the first quarter on investment in new technologies like self- driving cars to defend its status as the world’s biggest maker of luxury vehicles. Earnings before interest and taxes slipped to 2.46 billion euros ($2.84 billion) from 2.52 billion euros a year earlier.
Royal Philips NV says it is spinning off its iconic lighting division in an initial public offering so it can focus on its future as a health technology provider.
Deutsche Lufthansa AG’s reduced its loss for the seasonally weak first quarter by more than two-thirds after benefiting from lower fuel prices and cutting costs through the streamlining of its short-haul network. The adjusted loss before interest and tax narrowed to 53 million euros ($61 million) from 167 million euros a year earlier. Source Quilter Cheviot
www.finance-spain.com

FINANCIAL MARKETS UPDATE 21/04/16

The FTSE 100 is called to open 16 points higher at 6426
UK Gilt 10 Year Yield 1.4819 Spot Gold $1257.55 +13.40 Brent Crude $45.87 +0.24
$ per £ 1.4353
$ per € 1.1291
€ per £ 1.2711
U.S. stocks edged higher as an oil rally lifted energy producers, with the Standard & Poor’s 500 Index holding at a four-month high amid a slate of corporate earnings that gave investors little clear direction. An afternoon rally stumbled in the final hour of trading to leave equities little changed, wiping out much of the gains sparked by a rebound in crude. Oil jumped after Iraq’s oil minister said major OPEC and other oil producers will meet possibly next month in a new push to freeze output. Meanwhile, a better-than-forecast profit from Discover Financial Services helped offset underwhelming results at Coca-Cola Co. The S&P 500 gained 0.1 percent to 2,102.40 at 4 p.m. in New York, after rising as much as 0.5 percent and briefly touching the highest level since July. The Dow Jones Industrial Average added 42.67 points, or 0.2 percent, to 18,096.27, trimming a 114-point climb. The gauge held at a nine-month high. The Nasdaq Composite Index increased 0.2 percent. About 7.5 billion shares traded hands on U.S. exchanges, 7.4 percent below the three- month average.

PRESS COMMENTARY
Financial Times: Hedge funds have suffered their worst quarter in seven years after more than $15 billion was pulled out by investors starting to fight back against the high fees being charged across the industry.
The Daily Telegraph: Google has been formally charged with monopoly abuse over an alleged effort to crush rivals to its mobile search service and Android smartphone operating system, in a major escalation of its battle with Brussels.
COMPANY NEWS
Volkswagen AG has agreed to set aside at least $10 billion to resolve civil claims by the U.S. government and lawsuits by American car owners over diesel vehicles rigged to cheat pollution controls, a person with direct knowledge of the matter said. The parties reached the accord ahead of a Thursday deadline set by a federal judge for the carmaker to say how it would fix the vehicles. Volkswagen has been negotiating with U.S. environmental regulators on an acceptable solution. Judge Charles Breyer said that fixing the almost 600,000 vehicles or getting them off the road would be the first step to any settlement.
Sky PLC's (SKY.LN) earnings climbed Thursday as subscriber growth and demand for new products in the U.K. and Germany pushed up revenue for the satellite broadcaster and pay-TV giant.
Novartis AG said first-quarter earnings fell 12 percent after the company’s best-selling cancer medicine Gleevec faced generic competition in the U.S. Profit declined to $1.17 a share, excluding some items, the Basel, Switzerland-based company said Thursday in a statement.
Pets At Home Group PLC (PETS.LN), a retailer of pet food, accessories and services, reported a 3.2% rise in like-for-like revenue growth in the final quarter and said full-year profit will be in line with expectations.
Schneider Electric SE first-quarter sales fell after the world’s biggest maker of low- and medium-voltage equipment was more selective on projects amid an oil and gas industry slump that continued to bite.
BHP Says Iron Ore, Met Coal May Fall Again in Short, Medium-Term.
Ladbrokes PLC (LAD.LN) said Thursday it has had an encouraging start to the year as it recorded a 10.6% rise in group net revenue during the first quarter ended March 31, and said it expects full year results in line with its expectations.
SEGRO PLC (SGRO.LN), a real estate investor specializing in warehouses and industrial buildings, Thursday said 2016 is progressing well in line with its expectations.
Pernod Ricard SA, the maker of Chivas Regal whisky and Martell cognac, reported third-quarter sales in line with analyst estimates as retailers in the U.S. restocked.
Ericsson AB’s first-quarter sales missed analysts’ estimates as phone operators continued to curb network investments and the Swedish company’s push to software and services failed to boost growth. Source Quilter Cheviot
www.finance-spain.com

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