Financial Market Research and Analysis

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DBK, Tesco and Shire

Ex divs are taking some 2.91 points from the FTSE today, including Aviva, WPP, Next, Kingfisher, Smith & Nephew, Travis Perkins.

TESCO (-0.61%) UBS ‘’We see scope for Tesco to recover trading and earnings momentum in the UK over the next 2-3 years; the business is relatively well differentiated versus peers and we think management's initiatives to improve service and availability will be rewarded’’ UBS have a Buy recommendation PT 245p from 250p

Shire PLc +1.25%: Cosmo Patent for Shire’s Lialda to Be Reviewed by Patent Office
Hedge-fund manager Kyle Bass persuaded the U.S. Patent and Trademark Office to take a second look at a patent that protects Shire Plc’s colitis medicine Lialda from generic competition.
Bass’s Coalition for Affordable Drugs has a “reasonable likelihood” of proving that the patent is invalid, the U.S. Patent and Trademark Office said in a decision posted on its website. A trial will be held with both sides making arguments, and a final decision is expected in 12 months.

Deutsche Bank +0.16%:  3Q15 Profit Warning & Major Write- Downs Charges of €7.6bn - Deustche has announced an impairment of €5.8bn on goodwill and intangibles of CB&S and PBC, a €0.6bn write-down of the 20% stake in Hua Xia Bank and an extra €1.2bn litigation provision. Citi on DB ‘Importantly the first two charges will have no significant impact on capital. Meanwhile the latter is only €0.2bn heavier than consensus expectations.’ The stock had initially dropped at the open by 6% but has recovered. Still remains in a long term downtrend and would need to break above EUR28 per share to provide a real bull case. Dividend cut also makes fears of a capital raise less likely hence the lack of significant downside.