ADVFN III Morning Euro Markets Bulletin for August 15, 2012

	ADVFN III	Morning Euro Markets Bulletin
	Daily world financial news

Wednesday, 15 August 2012

London Market Report

FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts

Tobacco stocks provide a drag early on Market Movers techMARK 2,122.53 -0.05% FTSE 100 5,832.14 -0.56% FTSE 250 11,476.43 -0.24% Greece to ask for more time Markets await MPC minutes Tobacco stocks fall on Australian plain packing issue UK stocks slipped on Wednesday morning on the back of concerns over Greece and ahead of a keenly awaited report on US industrial output; tobacco companies were leading the decline in London after an unfavourable Australian ruling. Greece needs two more years to implement its austerity package which seeks to comply with the bailout requirements by reducing debt. According to a report by Financial Times on Tuesday evening, the proposal suggests slowing down the cuts by spreading them over a four-year period until 2016. Prime Minister Antonis Samaras expects to present the proposal during talks to be held next week with German Chancellor Angela Merkel and French President François Hollande, according to the FT report. Investors will be keeping an eye out for the minutes of the latest Monetary Policy Committee (MPC) meeting due out later this morning. The Bank's Governor, Mervyn King, made it pretty clear in his press conference following the release of the central bank's inflation trends report that he did not think it was necessary just yet to contemplate more financial stimulus, whether through more asset purchases or a rate cut, but it will be interesting to see if any of his colleagues on the MPC disagree with him. Analysts at Barclays Capital said this morning: "We expect these to show that the votes to hold Bank Rate at 0.5% and to maintain the stock of asset purchases at £375bn were both unanimous. We also look to the minutes to shed further light on the committee's evolving view on the efficacy of a 25bp rate cut should conditions warrant further policy easing." FTSE 100: Imperials and BATS providing a drag Cigarette giants Imperial Tobacco and British American Tobacco (BATS) were leading the retreat after a legal challenge to Australia's decision to insist cigarettes are sold in plain packaging was thrown out. The new packaging rules are scheduled to be come into force at the beginning of December. BATS was also lower after being among the handful of stock which went ex-dividend today, along with Anglo American, Fresnillo, Hammerson, Meggitt, Pearson, PZ Cussons, Rio Tinto, Schroders and Vedanta. From today, investors will not have the right to each company's respective dividends. Heading the other way was Standard Chartered after having reached a settlement with the New York Department of Financial Services (DFS) over claims its US subsidiary illegally processed payments for Iran. The emerging markets-focused bank will pay $340m to settle the claims. Sector peer Lloyds was flat after announcing its intention to sell its interest in a portfolio of private equity-related investments worth over a billion pounds which made a loss last year. Diversified mining giant Eurasian Natural Resources Corp (ENRC) slipped after being hit by a fall in commodity prices and challenging economic conditions in the first half, meaning that both revenues and profits were significantly lower than the same period in 2011. The group slashed its interim dividend by 59.4% FTSE 100 - Risers Resolution Ltd. (RSL) 238.40p +8.36% Standard Chartered (STAN) 1,409.00p +2.85% ARM Holdings (ARM) 580.50p +1.13% Shire Plc (SHP) 2,017.00p +0.90% British Land Co (BLND) 545.50p +0.65% Ashmore Group (ASHM) 357.50p +0.42% Admiral Group (ADM) 1,193.00p +0.42% Experian (EXPN) 996.00p +0.40% Burberry Group (BRBY) 1,367.00p +0.37% Babcock International Group (BAB) 902.00p +0.33% FTSE 100 - Fallers Rio Tinto (RIO) 3,059.50p -4.09% Vedanta Resources (VED) 927.00p -3.44% Anglo American (AAL) 1,962.00p -2.75% Evraz (EVR) 266.30p -2.53% Eurasian Natural Resources Corp. (ENRC) 405.80p -2.15% Fresnillo (FRES) 1,514.00p -2.01% British American Tobacco (BATS) 3,382.00p -1.84% BHP Billiton (BLT) 1,947.00p -1.74% CRH (CRH) 1,140.00p -1.72% Xstrata (XTA) 919.40p -1.67% FTSE 250 - Risers Perform Group (PER) 389.00p +3.46% Bank of Georgia Holdings (BGEO) 1,175.00p +2.17% Redrow (RDW) 138.90p +1.98% Interserve (IRV) 329.90p +1.82% Heritage Oil (HOIL) 167.00p +1.77% Balfour Beatty (BBY) 299.30p +1.70% Dunelm Group (DNLM) 584.00p +1.57% Henderson Group (HGG) 109.70p +1.57% Rathbone Brothers (RAT) 1,300.00p +1.40% Phoenix Group Holdings (DI) (PHNX) 499.10p +1.40% FTSE 250 - Fallers Man Group (EMG) 81.35p -5.46% FirstGroup (FGP) 247.50p -4.44% New World Resources A Shares (NWR) 288.80p -4.18% Ferrexpo (FXPO) 186.20p -2.62% Salamander Energy (SMDR) 197.00p -2.28% Hochschild Mining (HOC) 420.60p -2.21% Ruspetro (RPO) 147.30p -2.19% Premier Oil (PMO) 386.30p -2.13% Petropavlovsk (POG) 436.20p -2.13% Cable & Wireless Communications (CWC) 33.38p -2.00% FX round-up FTSE 100 Euronext Dax perf CAC 40 Dollar gains after US data The dollar rose to a three-week high against the yen on Tuesday after US retail sales data beat expectations. Retail sales increased by 0.8% in July, compared to the 0.2% consensus estimate, prompting speculation that third-quarter gross domestic product (GDP) growth in the US may be better than the measly 1.5% growth seen in the second quarter. With data earlier this week showing a significant slowdown in the Japanese economy, the dollar rose from 78.32 yen to 78.73 yen, the highest New York close since July 18th. Meanwhile, the euro fell against the dollar after Eurozone GDP contracted by 0.2% in the second quarter. The single currency fell from $1.2333 to $1,2322. "We could now be set for another test of the descending trend line around 1.224. The pair broke above here almost two weeks ago and has tested it on numerous times since. A break below would prompt a move back towards 1.2041," said analyst Craig Erlam from Alpari. The euro has been stronger since Mario Draghi pledged to do "whatever it takes to preserve the euro" a few weeks ago. Erlam said: "If the pair can break above 1.24, it could prompt a move back towards 1.26. However, before we see such a move, we may have to hear more from the Euro zone on plans to stem the crisis." The Canadian dollar was close to a three-month high after oil prices rose and US retail sales beat expectations on hopes that exports to the world's largest economy will rise. The loonie gained 0.1% to 99.23 cents per US dollar. UK Event Calendar INTERIMS Balfour Beatty, CLS Holdings, Eurasian Natural Resources Corp., Huntsworth, Interserve, Lookers, PPHE Hotel Group Ltd, Resolution Ltd., Vindon Healthcare INTERIM EX-DIVIDEND DATE Anglo American, British American Tobacco, CSR, Dairy Farm International Holdings Ltd. (Singapore), Foresight 2 VCT Planned Exit Shares, Foresight VCT Planned Exit Shares, Fresnillo, Hammerson, Hongkong Land Holding Ltd. (Singapore), Informa, Japan Residential Investment Co Ltd., Jardine Matheson Holdings Ltd (Singapore), Jardine Strategic Holdingd Ltd. (Singapore), Man Group, Mandarin Oriental International (Singapore), Meggitt, Moneysupermarket.com Group, Pearson, Rio Tinto, RM, Schroders, Schroders (Non-Voting), Telecity Group, Ultra Electronics Holdings QUARTERLY PAYMENT DATE Abbott Laboratories, Marsh & Mclennan Cos Inc., Merchants Trust QUARTERLY EX-DIVIDEND DATE Boeing Co, M Winkworth, MedicX Fund Ltd. INTERNATIONAL ECONOMIC ANNOUNCEMENTS Capacity Utilisation (US) (16:15) Consumer Price Index (US) (13:30) Crude Oil Inventories (US) (15:30) Industrial Production (US) (16:15) MBA Mortgage Applications (US) (12:00) Wholesale Price Index (GER) (07:00) GMS HMV Group, Mercury Recycling Group FINALS Stagecoach Theatre Arts IMSS Pennon Group AGMS Mountview Estate UK ECONOMIC ANNOUNCEMENTS BoE Interest Rate Minutes (09:30) Claimant Count Rate (09:30) Unemployment Rate (09:30) FINAL DIVIDEND PAYMENT DATE National Grid, Speedy Hire FINAL EX-DIVIDEND DATE Ashtead Group, Carclo, Iomart Group, Latchways, Mulberry Group, New Century AIM VCT, Northgate, Prosperity Minerals Holdings Ltd., PZ Cussons, Vedanta Resources US Market Report Stocks wobble on Greek austerity concerns Dow Jones: 13,172 (+0.02%) Nasdaq: 3,017 (-0.18%) S&P 500: 1,414 (-0.01%) After a fairly decent start on Wall Street, US stocks had pared gains by the close with the three major benchmarks finishing broadly mixed on the back of concerns about Greek austerity. Driving stocks early on were US retail sales which rose by 0.8% in July compared to the 0.2% consensus estimate. In other economic news, the producer price index rose by 0.3% in July, above the 0.2% expected. However, according to the The Financial Times today, Greece will ask European officials whether it can have two more years to implement the austerity measures tied the current bailout deal. Prime Minister Antonis Samaras is expected to reveal his proposal next week, the paper said. Elsewhere in the Eurozone today, it was revealed that the region's gross domestic product (GDP) contracted by 0.2% from the previous three months (down 0.4% year-on-year), according to a 'flash' estimate by Eurostat. This was in line with consensus forecasts. However, European stocks were pushed higher after both German and French economic growth bettered expectations. COMPANY MOVERS Social networking website Facebook slumped despite being given the go ahead to progress with its billion dollar-bid for photo-sharing website Instagram after the Office of Fair Trading (OFT) decided not to refer it to the Competition Commission. Investors were showing caution ahead of Thursday when the first lock-up on share sales expires. Daily deals and vouchers firm Groupon plummeted after second-quarter revenues missed estimates, held back by economic weakness in the Eurozone. Home Depot gained after presenting second-quarter earnings per share (EPS) of $1.01, topping the consensus estimate of $0.98. The home materials company also raised its annual guidance. Both Michael Kors and Estee Lauder jumped after their respective EPS came in ahead of analysts' forecasts. S&P 500 - Risers Monster Beverage Corp (MNST) $58.59 +9.99% Estee Lauder Co. Inc. (EL) $60.13 +9.31% Home Depot Inc. (HD) $54.71 +3.58% Constellation Brands Inc. Class A (STZ) $30.68 +3.13% Netflix Inc. (NFLX) $61.76 +3.09% Lincoln National Corp. (LNC) $23.59 +2.79% Nabors Industries Ltd. (NBR) $16.03 +2.17% American International Group Inc. (AIG) $33.82 +2.14% PulteGroup Inc. (PHM) $12.70 +2.09% E*TRADE Financial Corp. (ETFC) $8.67 +1.88% S&P 500 - Fallers Juniper Networks Inc. (JNPR) $18.07 -4.49% Alpha Natural Res (ANR) $6.84 -3.93% EMC Corp. (EMC) $25.71 -3.85% F5 Networks Inc. (FFIV) $96.99 -3.70% JDS Uniphase Corp. (JDSU) $10.68 -3.44% GameStop Corp. (GME) $17.28 -3.41% Advanced Micro Devices Inc. (AMD) $4.12 -3.29% Peabody Energy Corp. (BTU) $22.28 -2.96% Coach Inc. (COH) $54.33 -2.88% Cliffs Natural Resources Inc. (CLF) $42.06 -2.86% Dow Jones I.A - Risers Home Depot Inc. (HD) $54.71 +3.58% Pfizer Inc. (PFE) $23.98 +1.10% Wal-Mart Stores Inc. (WMT) $74.01 +0.83% Bank of America Corp. (BAC) $7.78 +0.78% United Technologies Corp. (UTX) $77.78 +0.40% Procter & Gamble Co. (PG) $66.73 +0.38% JP Morgan Chase & Co. (JPM) $37.10 +0.30% Johnson & Johnson (JNJ) $68.64 +0.26% McDonald's Corp. (MCD) $88.12 +0.25% Coca-Cola Co. (KO) $39.38 +0.20% Dow Jones I.A - Fallers Alcoa Inc. (AA) $8.69 -1.59% Hewlett-Packard Co. (HPQ) $19.36 -1.33% Cisco Systems Inc. (CSCO) $17.17 -0.98% Microsoft Corp. (MSFT) $30.13 -0.86% Caterpillar Inc. (CAT) $87.87 -0.84% Intel Corp. (INTC) $26.48 -0.79% Boeing Co. (BA) $73.81 -0.51% AT&T Inc. (T) $37.25 -0.37% International Business Machines Corp. (IBM) $198.29 -0.36% Walt Disney Co. (DIS) $49.69 -0.34% Nasdaq 100 - Risers Monster Beverage Corp (MNST) $58.59 +9.99% Vertex Pharmaceuticals Inc. (VRTX) $53.53 +4.10% Netflix Inc. (NFLX) $61.76 +3.09% Nuance Communications Inc. (NUAN) $23.55 +1.86% Gilead Sciences Inc. (GILD) $57.57 +1.66% Amgen Inc. (AMGN) $83.54 +1.59% Sears Holdings Corp. (SHLD) $55.17 +1.49% Virgin Media Inc. (VMED) $27.40 +1.44% Perrigo Company (PRGO) $116.59 +1.33% Google Inc. (GOOG) $668.66 +1.31% Nasdaq 100 - Fallers Green Mountain Coffee Roasters Inc. (GMCR) $22.85 -6.62% Research in Motion Ltd. (RIMM) $7.56 -6.32% Check Point Software Technologies Ltd. (CHKP) $47.94 -5.46% F5 Networks Inc. (FFIV) $96.99 -3.70% Expedia Inc. (EXPE) $52.31 -2.82% Micron Technology Inc. (MU) $6.55 -2.46% Broadcom Corp. (BRCM) $34.41 -1.99% Yahoo! Inc. (YHOO) $14.73 -1.93% Marvell Technology Group Ltd. (MRVL) $11.78 -1.75% Altera Corp. (ALTR) $36.08 -1.74% Wednesday newspaper round-up Greece, StanChart, Tobacco... Greece is seeking a two-year extension of its latest austerity programme aimed at improving the country’s debt sustainability and prospects for a return to growth, according to a document obtained by the Financial Times. Antonis Samaras, the centre-right prime minister, is expected to outline the proposal during talks next week with Angela Merkel, German chancellor, in Berlin and French President François Hollande in Paris. It comes as Greece struggles to find another €11.5bn of spending cuts – equivalent to about 5 per cent of national output – to be implemented in 2013 and 2014 under the current bailout deal with the European Union and International Monetary Fund. [Financial Times] Standard Chartered was forced to pay a $340 million fine last night to settle damaging allegations from a New York regulator that it had indulged in a “wilful and egregious” breach of American sanctions against Iran. In an eleventh-hour settlement before a meeting in the United States due to take place this morning, the bank also agreed to permanently install staff at its New York branch to monitor its anti-money-laundering practices. It has agreed to report directly to New York State’s Department of Financial Services, which levelled the charges, about the quality of its risk controls for at least the next two years. [The Times] Australia’s High Court has rejected a challenge by the world’s biggest tobacco companies which are seeking to overturn a new law requiring cigarettes to be sold in plain packaging from the start of December. The country’s plain packaging act, which was approved by parliament last year, requires cigarettes to be sold in drab dark brown packaging without logos but featuring graphic images of smoking-related diseases. Brand names can still be used but only in a standard font, size and position. [Financial Times] The Government could fund a £20bn tax giveaway to boost growth next year by releasing the profits made by the Bank of England’s money-printing programme, a leading economist has suggested. Michael Saunders, UK economist at Citi, said the Government could use the “accumulated profits from quantitative easing (QE) to finance a special temporary tax cut for a year or two”. According to official figures, the “potential profit” by February 2013 from QE to the Bank is £20.7bn – more than enough to knock 2.5p off income tax for a year.[The Telegraph] Russia's giant, state-owned railway company is eyeing a London float in a part-privatisation that would value it at more than 1.7trn roubles (£33bn). Russian Railways, whose assets include 85,200km of track, 1 million employees and 1 billion passengers, is planning to sell as much as a quarter of the business in 2015 or 2016 through a share listing. Vladimir Yakunin, Russian Railways' president, told The Independent that London was his preferred location, after Trans Container, Russian Railways' "daughter" container-handling operation, was floated there in 2010. [The Independent] Shares in Groupon plummeted Tuesday as the firm once billed as "the fastest growing company ever" said sales had slowed. The daily deals site reported its first-ever quarterly profit as a public company on Monday after stock markets had closed. Revenues increased 45% on the year. But the sell-off began as investors took fright at numbers that seem to suggest a slowing appetite for daily deals. The stock price plummeted in after-hours trading and continued to fall when the markets opened Tuesday. Groupon's shares fell more than 26% to close at $5.53. Its shares are now worth about a fifth of their $31 high.[The Guardian]