Our analysts have their fingers on the pulse of the world's financial market news.
Tesco (-1.9%) Nobody was expecting anything all that positive from Tesco but the fact that profits more than halved in H1 from £779m to £354m. Like for like sales were also down 1.1% and there was a note of caution from management that trading conditions will continue to be challenging. Nevertheless, pre-tax profit was £74m, a great deal better than the £19m loss posted last year. The new national living wage is also set to pose a problem for the supermarket chain, costing £500m by 2020 and expected to put even more pressure on weak profit margins. Also the company is not paying an interim dividend which will likely put off some of the income investors.
Tesco’s peers are not doing much better with Morrison falling 0.5% and Sainsbury shedding 0.9%.
Marks & Spencer (-2.41%) JPM downgrade . ‘’We expect another quarter of negative LFL performance from M&S in General Merchandise and are also concerned that LFL growth in the Food business is becoming harder to achieve. With our new TP of 550p (from 600p) offering only 6% upside to the current share price, we reduce our recommendation to Neutral.
SAB Miller (+2.5%) following yesterday’s refusal, Budweiser maker, Anheuser-Busch InBev NV has now bid 42.15 pounds a share in cash. For now, it’s uncertain if this will be acceptable and investors, judging by the muted response in the share price this morning are cautious and probably more than a little dubious that this deal will go ahead.
The transaction would be the biggest of 2015 and the fourth-largest takeover ever.
Anglo American (+4.55%) Raised to equal weight at Morgan Stanley. |Rio Tinto +5% Raised to overweight. Morgan Stanley state that stable data from China in the past few months has spurred this upgrade, potential uplift from stimulus policies increased conviction that the 19% commodity uplift by 2017 is achievable. Forcing supply disciple on the mining companies will also be an elevator to commodity prices.
Easyjet (-3%) - some profit taking following yesterday’s upside. The pop higher in oil prices may also become a factor for the airline industry should the present move prove sustainable. U.S. crude closed at nearly a three-month high yesterday after a new U.S. forecast showed tighter oil supplies next year, while Russia, Saudi Arabia and other big producers hinted at further talks to support the market.
IAG (– 2.98%)
Standard Chartered (+1.92%)Heinz Hilger announced as new Germany head. Standard Chartered just launched a fintech accelerator programme to help companies crack the Asian market.
Old Mutual (+2.72%) Underpriced and underrated according to Barclays- upgraded to Overweight
European markets look set to turn lower at the start of trading on Monday. The new US and Chinese tariffs take effect today so traders in Asia and Europe look cautious. Both continents are more exposed to global trade than the US. For markets, the new tariffs …Read more
Whilst risk sentiment has been healthy across the week, this swelling optimism boosted US stock markets to an all-time high overnight. A rally in tech stocks, which have done a lot of lifting for the indices over the year, in addition to fading concerns over U…Read more
Despite a shaky end to trading on Wall Street overnight, which saw the Dow gain 0.6%, the S&P just 0.1% and the Nasdaq slip by the same, Asian markets moved broadly higher on improved sentiment. European bourses are taking the lead from the US over Asia, w…Read more
Asian markets took the lead from Wall Street overnight, rallying as the latest tit for tat measures in the escalating trade spat have not been quite as severe as the markets had been expecting. Tech stocks were also heavily in demand, bouncing back after steep…Read more
Traders are faced with a sea of red in risk-off trading as markets are set to open on Tuesday. Despite the fact the market has been expecting an escalation in trade tensions between the world’s two largest economies with further tariffs from Trump; the reality…Read more
Escalating trade tensions will once again be a central theme to driving sentiment and trading this week, with President Trump widely expected to levy tariffs on a further $200 billion worth of Chinese imports, potentially as soon as today. The elevated trade c…Read more
European bourses are set to take the lead from a positive session on Wall Street and Asia overnight. A drive higher from tech stocks on Wall Street helped lift Asian equities after their recent battering, pulling them off 2-year lows.
Asian markets were endin…Read more
Today will be a busy day for traders with 2 central bank rate decisions and US inflation data all due for release within a few hours of each other. The BoE monetary policy announcement will kick things off, followed shortly after by the ECB rate announcement a…Read more