| Miners battered by Chinese manufacturing slow-down
Market Movers
techMARK 2,126.35 -0.46%
FTSE 100 5,844.58 -0.75%
FTSE 250 11,890.81 -0.70% London has opened lower with miners taking a hammering after a report from China showed manufacturing activity in the People's Republic in September only edged up from disappointing August levels.
China´s manufacturing sector Purchasing Manufacturers' Index (PMI) for the month of September came in at 47.8 overnight, after 47.6 in August, for its longest streak below the 50 point threshold – which indicates economic contraction – in eight years.
Elsewhere in Asia, Japan’s exports fell 5.8% year-on-year in August, for a third straight decline, on weakness in demand from the EU and China.
Nerves are also jangling ahead of today´s Spanish Treasury debt auction.
Back home, retail sales figures for August are published at 9.30. Consensus expects both total sales and core sales to have fallen by 0.3% month-on-month, as the Olympics distracted households from their normal shopping pursuits, economists at Barclays Research suggest.
The CBI Industrial Trends survey for September is released at 11.00 (Consensus: -15). IMPs is smoking after trading update In company news, Imperial Tobacco Group has said that the overall financial position and operational performance of the group in the year ended September 30th has been in line with its expectations. Tobacco net revenues are expected to be up by around four per cent with particularly good performances in its Eastern Europe, Africa & Middle East and Asia-Pacific regions. However, stick equivalent volumes are expected to decline by up to three per cent, the majority of which is due to ongoing market weakness in Ukraine and Poland and compliance with international trade sanctions against Syria.
BSkyB has said it welcomes an announcement by Ofcom that Sky "remains a fit and proper holder of its broadcasting licences".
Utility company United Utilities remains confident of delivering its 2010-15 regulatory out-performance targets after a solid start to the current financial year. Revenue in the year to the end of March 2013 should be higher than last year, but, as expected, the increase is slightly below the allowed regulated price rise, principally reflecting the ongoing impact of customers switching to meters and continued lower commercial volumes. Basket case Online grocer Ocado is sharply lower after an underwhelming trading update. The firm said gross sales increased 9.9% in the 12 weeks to August 5th 2012 and that it expects an increase in the rate of sale growth in the fourth quarter.
Year to date gross sales growth to the end of the third quarter was 11.3%. Panmure Gordon, which is bearish on the stock, had been looking for third quarter sales growth of 13%.
FTSE 100 - Risers
Imperial Tobacco Group (IMT) 2,379.00p +1.84%
International Consolidated Airlines Group SA (CDI) (IAG) 157.30p +1.35%
United Utilities Group (UU.) 733.00p +0.83%
British Sky Broadcasting Group (BSY) 731.50p +0.62%
Vodafone Group (VOD) 175.50p +0.60%
Severn Trent (SVT) 1,715.00p +0.18%
Capita (CPI) 762.00p 0.00%
Centrica (CNA) 335.20p -0.09%
Kingfisher (KGF) 273.50p -0.11%
Pennon Group (PNN) 744.00p -0.13%
FTSE 100 - Fallers
Evraz (EVR) 264.50p -4.68%
Vedanta Resources (VED) 1,038.00p -3.89%
Kazakhmys (KAZ) 722.50p -3.67%
Anglo American (AAL) 1,959.50p -3.66%
Antofagasta (ANTO) 1,250.00p -2.95%
Rio Tinto (RIO) 3,070.50p -2.88%
BHP Billiton (BLT) 1,945.50p -2.73%
Fresnillo (FRES) 1,819.00p -2.62%
Eurasian Natural Resources Corp. (ENRC) 348.80p -2.41%
Xstrata (XTA) 1,039.50p -2.16%
FTSE 250 - Risers
Perform Group (PER) 381.30p +2.50%
BBA Aviation (BBA) 205.90p +2.23%
Rank Group (RNK) 142.14p +1.82%
Diploma (DPLM) 478.00p +1.57%
Ruspetro (RPO) 108.50p +1.40%
easyJet (EZJ) 578.50p +0.96%
BH Macro Ltd. GBP Shares (BHMG) 1,999.00p +0.91%
IG Group Holdings (IGG) 452.70p +0.71%
Phoenix Group Holdings (DI) (PHNX) 514.50p +0.68%
Jardine Lloyd Thompson Group (JLT) 754.00p +0.67%
FTSE 250 - Fallers
Ocado Group (OCDO) 63.65p -5.28%
Lonmin (LMI) 620.50p -4.76%
Ferrexpo (FXPO) 209.90p -3.85%
Heritage Oil (HOIL) 205.10p -3.44%
Aquarius Platinum Ltd. (AQP) 45.28p -3.14%
Afren (AFR) 137.60p -2.96%
Talvivaara Mining Company (TALV) 171.20p -2.56%
Bodycote (BOY) 395.00p -2.42%
Petropavlovsk (POG) 429.60p -2.30%
Victrex (VCT) 1,359.00p -2.23%
| FX round-up |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | | Yen rises across the board
The Japanese yen rose across the board on Wednesday, shrugging off earlier weakness, following the Bank of Japan's surprise expansion of its asset-purchase programme.
The yen had initially fallen to a one-month low against the dollar after the BoJ move, which comes just a week after the Federal Reserve's bold quantitative easing announcement.
However the Japanese currency started to recover ground on Wednesday as the ¥10 trillion in asset purchases, around double what some had anticipated, was deemed not as bold as moves by other central banks such as the Fed.
The dollar had risen to ¥79.22 straight after the BoJ announcement but later traded at around ¥78.33, down around 0.7%.
Meanwhile the dollar slipped against the euro as investors cheered the latest US economic data. The dollar index, which measures the US currency against a basket of six currencies, fell to 79.112 versus 79.227 on Tuesday.
The euro bought $1.3052 from $1.3041 the previous session and erased earlier gains against the yen. The euro fell 0.5% against the yen on Wednesday at ¥102.30 after striking an earlier high of ¥103.64 while sterling was down 0.9% at ¥126.95.
The euro has enjoyed a good run-up recently and many believe weakness yesterday was caused by caution over whether Spain officially asks for financial aid.
Against the dollar, the pound bought $1.6218 versus $1.6245 the day earlier. UK Event Calendar INTERIMS
BrainJuicer Group, Moss Bros Group, Norcon, Tawa
INTERIM DIVIDEND PAYMENT DATE
Dragon Oil, First Quantum Minerals Ltd., Hochschild Mining, Mobeus Income & Growth Vct
QUARTERLY PAYMENT DATE
Royal Dutch Shell 'A', Royal Dutch Shell 'B'
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (14:45)
Consumer Confidence Indicator (EU) (10:00)
Continuing Claims (US) (13:30)
Initial Jobless Claims (US) (13:30)
Leading Indicators (US) (15:00)
Philadelphia Fed Index (US) (15:00)
Producer Price Index (GER) (07:00)
ANNUAL REPORT
NCC Group
IMSS
Ocado Group
AGMS
African Copper, Best of the Best, GEONG International Ltd., NCC Group, New India Inv Trust, NWF Group, Supergroup, Trifast
TRADING ANNOUNCEMENTS
Imperial Tobacco Group
UK ECONOMIC ANNOUNCEMENTS
CBI Industrial Trends Surveys (11:00)
Internet Retail Sales (09:30)
Retail Sales (09:30) |
| US Market Report | | BoJ juices markets
Market movers
Dow Jones: +13 at 13,578
S&P 500: +2 at 1,461
NASDAQ Composite: +5 at 3,182 US investors saluted the Bank of Japan (BoJ) after the Japanese central bank opted to beef up its quantitative easing programme. The BoJ took markets by surprise with the announcement that it will increase the size of its asset purchase fund to 55trn Yen (£77.46bn), from 45trn before. The action has been taken in a bid to weaken the Yen and – it is thought - in reaction to increasing political pressure to take measures, although it remains to be seen how effective they will be. US home sales data also lifted sentiment, with house builders such as PulteGroup and DR Horton wanted as a result. The number of previously owned home sales rose 7.8% in August to reach an annualised rate of 4.82m, higher than the consensus forecast of around 4.6m Breakfast of champions US breakfast cereals maker General Mills reported earnings per share (EPS) of 66 cents for its fiscal first quarter, topping the 63 cents expected by the consensus.
Revenue rose 5% to $4.05bn with the help of its recently acquired yoghurt unit Yoplait International. Analysts were expecting a just slightly higher figure of $4.08bn.
Looking forward, General Mills reiterated its full-year EPS outlook of $2.65, more or less in line with the consensus estimate of $2.66.
Corning, which makes flat panel TV screens got a boost after a recommendation from analysts at Goldman Sachs.
Groupon, the discount and daily deal outfit, rose sharply on news of a new payment system product that will reduced card fees for retailers.
Mobile communications network Sprint Nextel was the top performing blue-chip on the day RBC Capital reiterated its "sector perform" rating for the stock. While the world and his wife have been getting het up about the Apple iPhone 5 Sprint was busy bragging about the forthcoming availability of the Samsung Galaxy Note II on its 4G LTE network. The Note II from the number one mobile phone provider in the US market will be the first phone to launch with the new Android operating system, Jelly Bean, and will have a larger than 5" screen and a quad-core processor. Other markets Gold for December delivery trended higher, boosted by the BoJ's decision, and hit $1,781.80 an ounce at one point, before settling at $1,772.70 an ounce, up 50 cents on the day.
The big story on the futures market was the oil price, with the front month contract for West Texas light, sweet crude sliding 3.5% to $91.98 a barrel, its lowest level in more than six weeks, after the Energy Information Administration said crude inventories rose by 8.5m barrels in the week ended September 14th.
The oil price came under additional pressure after the Financial Times ran a story that Saudi Arabia had offered extra oil supplies to customers in the US, Europe and Asia in a bid to put a cap on oil price rises.
The October contract expires at the end of trading in New York tomorrow.
The value of the greenback, as measured by the dollar index, pulled back 0.1% to 79.13.
S&P 500 - Risers
Sprint Nextel Corporation (S) $5.56 +7.13%
Metropcs Communications Inc. (PCS) $11.30 +5.21%
Regions Financial Corp. (RF) $7.65 +5.08%
Gannett Co. Inc. (GCI) $18.29 +4.34%
PulteGroup Inc. (PHM) $16.43 +4.25%
Goodyear Tire & Rubber Co. (GT) $13.48 +4.09%
D. R. Horton Inc. (DHI) $22.22 +4.07%
Viacom Inc. Class B (VIAB) $53.55 +3.48%
AutoZone Inc. (AZO) $369.84 +3.35%
Vulcan Materials Co. (VMC) $47.57 +2.94%
S&P 500 - Fallers
KLA-Tencor Corp. (KLAC) $48.43 -4.76%
Waste Management Inc. (WM) $32.69 -3.68%
Alpha Natural Res (ANR) $7.63 -3.17%
Lam Research Corp. (LRCX) $32.85 -2.52%
Newfield Exploration Co (NFX) $33.45 -2.39%
Rowan Companies plc (RDC) $35.97 -2.39%
Charles Schwab Corp. (SCHW) $13.65 -2.08%
Mattel Inc. (MAT) $35.25 -2.06%
Nabors Industries Ltd. (NBR) $15.65 -2.00%
Occidental Petroleum Corp. (OXY) $87.47 -1.99%
Dow Jones I.A - Risers
Walt Disney Co. (DIS) $52.70 +1.54%
Kraft Foods Inc. (KFT) $40.85 +1.05%
Home Depot Inc. (HD) $59.47 +1.04%
Dow Jones I.A - Fallers
Exxon Mobil Corp. (XOM) $90.57 -1.18%
Intel Corp. (INTC) $23.15 -0.94%
Hewlett-Packard Co. (HPQ) $18.10 -0.82%
Boeing Co. (BA) $69.90 -0.78%
Microsoft Corp. (MSFT) $31.05 -0.39%
Travelers Company Inc. (TRV) $68.23 -0.34%
Chevron Corp. (CVX) $116.60 -0.32% |
| Thursday newspaper round-up | | BP, BAE, China BP is close to ditching its troublesome Russian joint venture and resurrecting a controversial Arctic exploration alliance after holding “positive” talks with Vladimir Putin. Bob Dudley, BP’s chief executive, Carl-Henric Svanberg, its chairman, and Igor Sechin, the boss of Rosneft, the Kremlin-backed oil firm, attended a private meeting with the Russian President at his retreat in the Black Sea resort of Sochi on Tuesday. BP is in advanced talks with Rosneft about selling its 50 per cent stake in the TNK-BP joint venture. Industry sources in Moscow believe that the sale would pave the way for the British oil firm to form another alliance with Rosneft to explore the Russian Arctic, The Times reports.
In a letter to EADS staff which marks Mr Enders first comments on the £30bn merger, he said EADS and BAE represent a "perfect fit" but warns there is “serious work to do” to convince shareholders and governments to back the deal. Mr Enders confirms in the letter that EADS and BAE are focused on winning approval for the deal from governments, including the US, UK, France and Germany. These talks are “constructive and advanced”, he adds, despite concerns about national security. All the governments must voice their approval for the deal or it will face collapse. Britain's "golden share" in BAE means it can veto any merger or takeover of the company. BAE is also understood to be demanding that Germany and France loosen their grip on EADS's strategy by losing their right to nominate board members and vote as a block, The Telegraph says.
More than 2,000 Britons in Monaco are costing the UK economy £1bn a year in lost tax revenue. An investigation by The Times into tax avoidance has revealed the scale of activity in the principality, where a wealthy elite reaps the benefits of British assets and connections, but escapes the levies that apply to other citizens. Some have been awarded knighthoods, while others have been able to make political donations — despite government pledges to close a loophole enabling them to do so.
François Hollande and Angela Merkel will seek to agree a joint position at a meeting on Saturday on the €35bn combination of EADS and BAE Systems to create the world’s largest defence and aerospace company by revenue. Approval by the French president and German chancellor is crucial to the deal on which EADS hopes to make an announcement soon. The heads of state are due to meet in Ludwigsburg in Germany to assess the Eurozone crisis but the EADS-BAE deal will be discussed, The Financial Times says.
The number of Britons contributing to workplace pension schemes has fallen to its lowest since records began in 1953, fuelling fears that people are not saving enough for their old age. In its latest snapshot of the pensions sector, the Office for National Statistics found that the number of people putting money into workplace pensions in the private sector fell to 2.9m last year, from 3m in 2010 and the peak of 8.1m in 1967. Joanne Segars, chief executive of the National Association of Pension Funds, said: “The ongoing slide in pensions uptake in the private sector is deeply worrying. Our society isn’t saving enough for its old age and millions of workers are set to end up scraping by on just the state pension,” writes The Times.
The EU has stalled a controversial trade case against Chinese telecommunications companies, defusing a row with Beijing on the eve of premier Wen Jiabao’s last summit with European leaders. Karel De Gucht, the EU trade commissioner, has told officials that the anti-subsidy case, which was seen as proof of a more assertive stance towards China, required stronger evidence before it could proceed, according to people briefed on the meeting. Commission staff insist the move is not tied to Mr Wen’s visit on Thursday, or to stronger pressure from Beijing – as well as from some EU member states, worried about Chinese retaliation – to drop the case, The Financial Times explains. |
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