Financial Markets Update 14/06/2017

The FTSE 100 is called to open 1 point higher at 7501.

UK Gilt 10 Year Yield 1.031 Spot Gold $1268.90 +2.27 Brent Crude $4844 -0.39

$ per £ 1.2748

€ per £ 1.1369

$ per € 1.1214

Asian equities were mixed, with solid gains in Australia and New Zealand offset by China, where markets weakened despite data showing resilience in retail sales and industrial output. The dollar held declines and Treasuries edged higher ahead of the Federal Reserve’s policy decision. South Korea’s benchmark gave up earlier gains that came on the back of U.S. stocks climbing to all-time highs as technology stocks rebounded. Economic data from China were largely in line with forecasts, but stocks slipped on concerns regulators will place further curbs on insurers’ investments. The yen was little changed, while sterling fell after rising for the first time since the U.K. election. Oil also resumed its decline as industry data showed U.S. crude stockpiles expanded, exacerbating an inventory overhang. A rebound in tech shares on Tuesday in Asia carried through to U.S. trading, restoring what had been a key driver for global equity gains.

PRESS COMMENTARY  

The Times: Philip Hammond is preparing to lead a battle within the government to soften Brexit by keeping Britain inside the EU customs union.

The Daily Telegraph: The City of London has warned Brussels that attempts to grab large parts of its euro clearing market will put financial stability at risk as EU bureaucrats unveiled plans to move big clearing houses inside the bloc after Brexit.

COMPANY NEWS  

Zara owner Inditex SA reported quarterly earnings that rose at the fastest pace in almost two years as online sales bolstered growth at the Spanish clothing retailer. Operating profit gained 18 percent to 834 million euros ($936 million) in the three months through April, Inditex said in a statement Wednesday. Analysts expected 832 million euros.

Bellway PLC (BWY.LN) said it will report 10% growth in home sales for fiscal 2017, ahead of original expectations, but added that the average price for its homes remained at 260,000 pounds ($334,987).

British American Tobacco PLC (BATS.LN) said trading for the year to date is in line with its expectations, and that earnings are expected to benefit from the current weakness of the British pound.

3i Group Plc, the U.K.’s largest publicly traded buyout firm, is in talks with banks about refinancing Scandlines’ debt in preparation for a potential sale, according to people familiar with the matter.

WH Smith PLC (SMWH.LN) reported a mixed sales performance for the 15 week period to June 10, and said it remains confident in the outcome for the full year.

Biffa Says FY Ebitda Rises, Plans Maiden Dividend. Biffa underlying Ebitda up 12.6% to GBP137.7m. Maiden dividend of 2.40p per share proposed

Fiat diesels emitted pollution by 3-20 times government limits, according to Daniel Carder, director of West Virginia University’s Center for Alternative Fuels, Engines and Emissions, the same lab that uncovered the VW scandal.

Billionaire Paul Singer’s Elliott Management Corp. is demanding BHP Billiton Ltd.’s incoming chairman review the management team and refresh the board as a widening activist campaign shifts up a gear to target the leadership of the world’s largest mining company.

Ryanair in talks to place an order for Boeing’s proposed new 737 Max 10 jetliner, Reuters says, citing two people familiar. Boeing, Ryanair spokesmen declined to comment. Source Quilter Cheviot

Wealth management in Spain

                

Market Update 02/06/2017

The FTSE 100 is called to open 46 points higher at 7589.

UK Gilt 10 Year Yield 1.071 Spot Gold $1261.10  -4.87 Brent Crude $50.32 -0.27.

$ per £ 1.2878

€ per £ 1.1479

$ per € 1.1220

U.S. stocks climbed after a slew of economic data that was mostly better than expected, an announcement by President Trump that the U.S. will exit the Paris climate accord and a rally in financial shares that was the best in more than a month.

* S&P 500 up 0.8% to 2,430.06

* Dow Industrials up 136 points to 21,144.18

* Russell 2000 index up 1.9%, the most in 3 months

* Financial stocks rallied in the final hour of trading to cap the biggest 1-day jump since April 24

PRESS COMMENTARY

• Financial Times: President Donald Trump has withdrawn the US from the Paris climate accord, prompting widespread criticism from allies and business leaders as America became one of only three nations to oppose the 2015 global pact to combat climate change.

• The Times: Britain could be heading for another property recession, an expert said after figures showed the longest sustained dip in house prices since the peak of the financial crisis.

COMPANY NEWS  

CD&R and SSA Investments announce that they have sold an aggregate of 125,000,000 ordinary shares in B&M, representing approximately 12.5% of B&M's issued ordinary share capital, at a price of 363.4 pence per share raising aggregate gross sale proceeds of £454.3m.

Inmarsat PLC (ISAT.LN) said it will build another Global Xpress broadband network communications satellite for $130 million in the next three years. The satellite will cover the Middle East, Europe and the Indian subcontinent and should be launched in 2019, the company said.

National Grid announces that it is to commence its £835 million share buy-back programme to repurchase ordinary shares in the capital of the Company, expected to be carried out in not less than two tranches. The sole purpose of the Programme is, as previously announced, to reduce the share capital of the Company as part of the return of proceeds to shareholders following the sale of a majority interest in the Company's UK gas distribution business.

Wendel plans to sell 20m Saint-Gobain shares, or a stake of about 3.6%, in a private placement through accelerated bookbuilding, co. says in statement.

GSK and ViiV Healthcare, the specialist HIV company majority-owned by GSK, submitted for a single-tablet, two-drug regimen of dolutegravir (Tivicay) and rilpivirine (Edurant) for the maintenance treatment of HIV-1 infection, GalxoSmithKlein says in statement.

Volvo Cars May Sales Rise 12.2% to 47,247 Vehicles. Source Quilter Cheviot.

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MARKET UPDATE 26/05/2017

The FTSE 100 is called to open 1 point higher at 7518

UK Gilt 10 Year Yield 1.036 Spot Gold $1258.40 +2.75 Brent Crude $51.42 -0.20

$ per £ 1.2877
€ per £ 1.1500
$ per € 1.1198

DOW 21082.95 +70.53pts +0.34%
S&P 2414.75 +10.36pts +0.43%
NASDAQ 6205.26 +42.23pts +0.69%

Stocks began the session in positive territory and set new records for the S&P and Nasdaq in the process. There was little to account for the move as the absence of any Trump controversy and the rally overnight in global markets were attributed to investor optimism. Shares of Best Buy (BBY) surged over 21.5% after the electronics retailer reported better than expected earnings and revenue for the first quarter and updated its fiscal 2018 guidance to reflect better than expected Q1 results.

PRESS COMMENTARY

The Independent: The UK’s GDP growth in the first quarter of 2017 has been unexpectedly revised down to 0.2%, in news that will compound fears that the economy is slowing as the impact of last June’s Brexit vote finally hits home.

The Guardian: The world’s major oil producers have voted to continue their production cuts into 2018 in an attempt to prop up the oil price.

COMPANY NEWS

PepsiCo Inc. (PEP) plans to sell some or all of its 4.5% stake in Britvic PLC (BVIC.LN), the drinks company that produces and sells Pepsi in the U.K.

Informa PLC's (INF.LN) chief executive said he remains confident that the publisher and business events group will meet its full-year expectations.

Restaurant Group PLC's (RTN.LN) like-for-like sales for the 20 weeks ended May 31 have declined 1.8%, with total sales decreasing by 1.5%, but still expects to achieve 2017 profit target the Frankie & Benny's brand owner's chairman said.

BOC Aviation to Buy Six Aircraft from Airbus. Company plans to purchase 2 A320NEO, 2 A321NEO and 2 A330-900 aircraft, it says in Hong Kong stock exchange filing. Aggregate list price is approximately $1.05b.

Statoil sold 22.8m shares at C$4.77/share; aggregate proceeds about C$109m pursuant to the offer launched on April 24 by Lundin Petroleum BV. Source Quilter Cheviot

Financial Advisors in Spain

FINANCIAL MARKET UPDATE 18/05/2017

The FTSE 100 is called to open 27 points lower at 7476
UK Gilt 10 Year Yield 1.066 Spot Gold $1259.06 -2.36 Brent Crude $52.17 -0.16

$ per £ 1.2952
€ per £ 1.1634
$ per € 1.1131

US stock indices suffered their worst trading day in eight months on Wednesday, as concern mounted that political turmoil in Washington could derail President Donald Trump's efforts to push through pro-growth policies. The Dow Jones Industrial Average Index closed down 372.82 points, or 1.78pc, at 20,606.93. Meanwhile, the S&P 500 fell 43.25 points, or 1.8pc, to 2,356.71, it's biggest drop sinc Sep 9. The Nasdaq was down 158.636 points, or 2.57pc, at 6,011.23. US stocked slumped on the back of reports which emerged on Tuesday night that Mr Trump asked the former FBI director, James Comey, to end an investigation into his former national security adviser, Michael Flynn. VIX CLOSED ABOVE 15 TO 15.07, HIGHEST INTRADAY SINCE APRIL.

PRESS COMMENTARY

Britain will “pay a price” for stopping the free movement of workers in Europe, Angela Merkel said yesterday as she warned of tit-for-tat measures in response to changes to consumer or environmental protections after Brexit, Times.

COMPANY NEWS

Cineworld Revenue Grows, on Track to Meet FY Expectations.

Land Securities Increases Dividend as Development Pays Off.

Inmarsat to Focus on Network Expansion Before Deals, CEO Says.

National Grid FY Adjusted Operating Profit Beats Est.

3i Group Total Returns Rise 93 Percent on Infrastructure Gains.

Experian PLC said fiscal 2017 pretax profit rose 11% and it would buy back $600 million worth of shares in the new fiscal year.

Cairn Energy Says Senegal SNE-6 Well Being Plugged, Abandoned.

Balfour Beatty PLC said trading is in line with expectations and that it continues to make good progress on its transformation program.

Thomas Cook 1H Revenue GBP2.99b.

Hargreaves Lansdown Has 4-Month Inflows; Chairman to StepDown.

ConocoPhillips Lowers 2Q Production Guidance on FCCL Sale.

Cisco Revenue Forecast Disappoints, Hurt by Networking Shift.

Greggs 19-Weeks Total Sales Up 7.5% vs 5.7% in Year Ago Period.

Bloomsbury Publishing PLC reported a 8.9% fall in pretax profit for fiscal 2017, which it cited to investments in its digital growth strategy and the end of its seven year Qatar Foundation contract.

Nedbank’s First-Quarter Revenue Growth Slower Than Expected.

Rank Group LFL Revenue Edges Up, FY Expectations Unchanged.

Royal Mail FY Adjusted EPS Beats Est.

Kraft Heinz said to have lined up tens of billions in financing from banks to help buy Colgate-Palmolive.

Abcam PLC said it was set to make its final performance-based payment to AxioMx Inc, which it acquired in November 2015.

Rio Tinto to Improve Payment Terms for Some Smaller Suppliers.

Dairy Crest FY Revenue Misses Est.

Facebook Inc. may be fined as soon as Thursday by the European Union for misleading regulators during a 2014 review of the WhatsApp messaging service takeover, a person familiar with the situation said.

Hedge Funds Creep Into Valeant Seeing Rebound That Eluded Ackman.

Burberry Group Plc reported earnings that beat estimates as cost-cutting and improving consumer trends in China shored up the company’s performance as it prepares for the arrival of a new chief executive officer.

Investec FY Net Income Rises to 487.1m Pounds vs 423.1m Pounds, raises Dividend to 23p Vs 21p. Source Quilter Cheviot

Wealth Management in Spain

Financial Market Update 16/05/2017

The FTSE 100 is called to open 2 points higher at 7456
UK Gilt 10 Year Yield 1.136 Spot Gold $1234.64 +4.11 Brent Crude $52.11 +0.16

$ per £ 1.2911
€ per £ 1.1743
$ per € 1.0996

U.S. stocks climbed after equities posted their first back-to-back drop in almost a month, as commodity prices staged an early advance and financial shares rallied. The S&P 500 Index rose 0.5 percent to 2,402.32, a fresh record and first close above 2,400. The Dow Jones Industrial Average climbed 0.4 percent to 20,981.94, shy of its March 1 high, while the Nasdaq Composite added 0.5 percent to a record 6,149.67. Nine of 11 S&P 500 industry groups higher. S&P 500 Financials up 0.8% on gains in all but one company; Navient (NAVI) and Charles Schwab (SCHW) add at least 2.3%. Energy shares up 0.6% as WTI oil adds 2.2%. Utility, real estate and telecom shares lag broader market. Volume 11% below 30-day average in S&P 500 at this time. VIX up to 10.4.

PRESS COMMENTARY

Sky News: Virgin Money withdraws Co-op Bank interest.

Global IPOs Up 121% in 2017, JP Morgan Leads, Snap Inc Biggest.

Ford Plans to Cut About 10% of Global Workforce, WSJ Reports.

COMPANY NEWS

Vodafone Group PLC set its sights on more profit gains in the current year after achieving its organic growth target for fiscal 2017 and raised its final dividend a share by 2% to 10.03 cents, up 2%, giving total dividends per share of 14.77 cents.

Inmarsat says its fourth high-speed broadband communications satellite in the Global Xpress constellation was launched successfully by SpaceX.

BHP Billiton CEO: Olympic Dam Expansion Plans Progressing Well.

Warren Buffett’s Berkshire Hathaway Inc. spent the first quarter fine-tuning its investments in airlines and technology companies, and retreating from 21st Century Fox Inc.

EasyJet 1H Revenue Misses Est.

Novo to Lose Money on Brexit When Current FX Hedge Ends: Borsen.

Cairn Homes to offer as many as 33.7m Shares. Goodbody and BofA/ Merrill Lynch are bookrunners and Davy is acting lead manager, bbg report terms as to be at least €1.54/shr.

Crest Nicholson Holdings PLC said it is on track to deliver 10% growth in revenue in fiscal 2017.

BTG FY Rev. Beats Estimates, Sees FY18 Rev. Rising.

OM Asset Management Prices 17.3m Shares at $14.55 Each. Source Quilter Cheviot

Wealth management in Spain

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