Day Ahead

Tuesday, May 14, 2013, Marketing Communication FTSE 100 Opening Call The FTSE is seen opening up around 25 points higher this morning UK Corporate Announcements Babcock reports a full year underlying pre-tax profit of £317m and an order book of £12bn from £13bn British Land announces a full year pre-tax profit of £260m from £497m and states that its main business has stayed resilient, and stays cautious on the environment DCC states that revenues have gained to €13bn and an operating profit of €229m, which its states reflects strong performance at its DCC Energy unit ICAP reports a full year operating profit of £308m from £372m and states that the markets have been ‘extraordinarily tough’ Capita states that it has made a positive start to the year and was making good progress across key financial metrics BG states that it was making good progress and sees significant volume growth and expects positive free cash flow from 2015 Lonmin announces that operations have been suspended at its Marikana mine, due to an illegal stoppage and that the reasons for the stoppage were as yet unclear UK Market News UK House prices have gained to their highest level for three years, with the RICS House Price Balance up to 1%, just under the forecasts but up from -1% as the majority of surveyors now see price gains, interest from new buyers moved up to the highest level since 2009 Betfair confirmed that the talks with CVC Partners have now ended, having rejected its last full and final offer as still undervaluing the company Severn Trent will be eyed on talk that a Kuwait based group may be considering a move The Times writes on doubts over the future of the Co-operative bank and that its new CEO is considering asset disposals including its property portfolio Vodafone is to receive $3.15bn in a dividend from Verizon Wireless, ahead of the expectations The Independent highlights how Bloomberg mad a ‘grovelling apology’ yesterday over its ‘inexcusable’ privacy breach where it let its journalists use internal customer information David Cameron is expected to unveil a draft bill today for an EU referendum A YouGov poll has a quarter of 1,000 students polled as stating that they would be too embarrassed to admit to their friends that they were taking up a job in banking Barclays has won the dismissal of a US lawsuit from holders of its ADRs that alleged the bank misled shareholders over Libor The UK sells £4.75bn in 2018 bonds at 10:30 UK Analyst Changes Smith & Nephew Cut To Hold Vs Buy At Berenberg Rio Tinto Cut To Equalweight Vs Overweight At Barclays Tui Travel Cut To Neutral Vs Overweight At Jpmorgan Vedanta Cut To Equalweight Vs Overweight At Barclays UK Insider Buying Arden Partners Plc, (ARDN), 1 insider(s) bought 61750 shares, £0.4 Diageo Plc, (DGE), 1 insider(s) bought 411 shares, £20.19 G4S Plc, (GFS), 1 insider(s) bought 50000 shares, £2.63 Harvey Nash Group Plc, (HVN), 2 insider(s) bought 22000 shares, £0.7 Ideagen Plc, (IDEA), 4 insider(s) bought 190000 shares, £0.21 Kofax Plc, (KFX), 1 insider(s) bought 40000 shares, £3.21 London Capital Group H, (LCG), 1 insider(s) bought 150000 shares, £0.43 Powerflute Oyj, (POWR), 1 insider(s) bought 650000 shares, £0.23 Reed Elsevier Plc, (REL), 1 insider(s) bought 16420 shares, £7.4 Xaar Plc, (XAR), 1 insider(s) bought 2000 shares, £5.27 UK Insider Selling Filtrona Plc, (FLTR), 1 insider(s) sold 14527 shares, £7.45 Hargreaves Lansdown P, (HL/),  insider(s) sold 151120 shares, £9.96 Harvey Nash Group Plc, (HVN), 1 insider(s) sold 200000 shares, £0.68 Home Retail Group, (HOME), 3 insider(s) sold 282918 shares, £1.46 Schroders Plc, (SDR), 1 insider(s) sold 121470 shares, £24.4 Schroders Plc-Non Vot, (SDRC),  insider(s) sold 30593 shares, £19.12 Tesco Plc, (TSCO), 1 insider(s) sold 39164 shares, £3.75 Tt Electronics Plc, (TTG), 1 insider(s) sold 66775 shares, £1.76 FTSE 100 Movers Major European Companies Reporting ACS Actividades de Construccion y Servicios SA, Q1, 0.25,  Aurubis AG, Q2, 0,  Babcock International Group PLC, R, 0.691,  Banca Monte dei Paschi di Siena SpA, Q1, -0.007,  Banca Popolare dell'Emilia Romagna Scrl, Q1, 0,  Banca Popolare di Milano Scarl, Q1, 0.02,  Banca Popolare di Sondrio SCARL, Q1, 0,  Banco Popolare SC, Q1, 0.042,  Bilfinger SE, Q1, 0.533,  Bouygues SA, Q1, 0,  British Land Co PLC, R, 0.301,  Celesio AG, Q1, 0.27,  DCC PLC, R, 1.988,  Deutsche Post AG, Q1, 0.352,  Deutsche Wohnen AG, Q1, 0.185,  European Aeronautic Defence and Space Co NV, Q1, 0.386,  Finmeccanica SpA, Q1, 0.02,  ICAP PLC, R, 0.318,  Intesa Sanpaolo SpA, Q1, 0.028,  K+S AG, Q1, 1.009,  Mediaset SpA, Q1, -0.005,  Merck KGaA, Q1, 2.072,  OMV AG, Q1, 1.327,  Tecnicas Reunidas SA, Q1, 0.655,  Terna Rete Elettrica Nazionale SpA, Q1, 0,  Tod's SpA, Q1, 1.41,  Vivendi SA, Q1, 0.45 European Market Summary Danish banks are to be given more time to raise capital and avert potential failures after the local regulator eases its resolution practises Ireland’s new insolvency service will target and prosecute borrowers who fraudulently seek debt forgiveness, and could be faced with fines of €100,000 and five years in prison France is reportedly looking at a move to tax smartphones and tablets as a way to help fund production of French art, films and music Spain, Denmark, Malta, Greece, Belgium and Norway all sell debt today Global Intraday Footprint Major US Stock Movers After Hours Nanosphere gained over 21% in late trading as it announces it is in a pact with Hitachi High Tech S&P 500 Companies Reporting Agilent Technologies Inc, Q2, 0.669 US Market News An ex Blackrock fund manager, Mark Lyttleton was arrested April 30 as part of the FCA insider trading probe Three Wellpoint Inc board members have stepped down, following the recent appointment of the new CEO at the second largest US health insurer The Associated Press states that the US government secretly gained the telephone records of AP reporters for a two month period in 2012, and described it as a massive and unprecedented intrusion Detroit’s emergency manager states that the largest city in Michigan is clearly insolvent and that it needs to restructure its debt Overnight Market News The China Securities Journal states that when IPO’s resume after being suspended last year, authorities would bring in steps to lift the standards of listed firms to avoid the need for additional administrative measures to manage the market Cheung Kong Holdings has cancelled plans to sell $180m of hotel rooms after Hong Kong regulators stated that they have launched a probe into the move Tata Steel announces it was writing down its European assets by €1.34bn citing the weak European markets Top FX The yen weakened a touch over the past 24 hours as it takes a pause following the strong moves posted in recent weeks, as traders state that the ‘FX markets are not one-way bets’ Economic Data Due 00:01 UK April RICS House Price Balance, -1% previous 10:00 Eurozone May ZEW Survey, 7.0 exp. 9.2 previous Economic Events EU-27 Finance Ministers Meet in Brussels German ZEW CFD Sales/Traders 0044 (0) 207 894 8883 cfdsales@cantor.com Equity Spread Bet Sales 0044 (0) 207 894 8800 sales@cantorcapital.com Footnotes FTSE 100 Call as at 6:45am Analyst Changes, as at 6:30am Times given are UK Local Time, (GMT or GMT +1 during BST) Insider Deals data compiled from Director/PDMR Shareholding forms published in the past 24 hours (ex weekends). Major European Companies defined as those companies in the STOXX Europe 600 Index FTSE 100 Movers, Blue >0.25%, Green <0.25% > -0.25%, Red < -0.25%, Font size dependent on percentage size of move This note is compiled using information / charts from financial data providers such as Bloomberg and Reuters, as well as from the general financial / business media Regulatory Disclaimer This market commentary note (“note”) has been issued by Cantor Fitzgerald Europe (“CFE”), which is authorised and regulated by the Financial Conduct Authority (“FCA”). Cantor Index is a trading name of CFE. This note is defined by the FCA as a marketing communication. This note has been prepared and distributed for information purposes only and represents the personal views and opinions of the sender. This note is not “investment research”, a “research recommendation” or a product of the Research Department. Please be aware that the CFE Research Department may issue a formal recommendation and target price on the stocks mentioned, which may differ from the opinion given here.  This note may contain information obtained by CFE from third parties; the source of information will usually be disclosed.  CFE makes no representation and gives no warranty as to the accuracy or completeness of the contents of this note. Any person placing reliance upon this note does so at their own risk. Investors should consider this note as only a single factor in making their investment decision. The investment discussed in this note may be unsuitable for investors depending on their specific investment objectives and financial position. CFE, its officers, employees and affiliates shall not be liable to any person in any way whatsoever for any losses, costs or claims howsoever arising from any inaccuracies or omissions in this note or any reliance on this note. The recipient is strongly recommended to see independent legal, tax and financial advice. Past performance is not necessarily a guide to future performance. Income from investments may fluctuate. The price or value of the investments to which this note relates; either directly or indirectly, may fall or rise against the interest of investors. This note should not be considered to be a solicitation nor an offer of advice for the purposes of the sale or purchase of any security, investment or derivative.  The information contained in this note is not intended to form the basis of any investment decision and should not be considered a recommendation by CFE or any other person in relation to any of the companies, stock, commodities, currencies or other markets mentioned / referred to in this note. All the information contained herein is based upon information available to the public and has been obtained from sources believed to be reliable. However, the information contained in this note has not been verified by CFE and CFE undertakes no obligation to provide recipients of this note with any additional information or any update to or correction of the information contained in this note. This note is provided by CFE and may be forwarded unamended and in its entirety. This note may not be used in whole or in part to create any other work. All rights reserved. FTSE International Limited (“FTSE”) © FTSE [2013]. “FTSE®” is a trade mark of the London Stock Exchange Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and / or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and / or FTSE ratings or underlying data. No further distribution of FTSE Data is permitted without FTSE’s express written consent. CFE is authorised and regulated by the FCA under Firm Reference Number 149380.   CFE – The Financial Services Register Information: http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=61341 Registered in England No. 02505767 Registered Address: 17 Crosswall, London, EC3N 2LB Risk Warning Trading CFDs carries a high level of risk to your capital and is not suitable for all customers. Furthermore, margined products use leverage to increase the level of exposure to the product, and as a result your losses may substantially exceed your initial deposit and require you to make additional deposits at short notice. Prior to trading leveraged CFDs, you should carefully consider your investment objectives, experience and risk appetite and should not invest money that you cannot afford to lose. Spread Bets are leveraged products placing your capital at risk. Losses can quickly exceed your initial deposit and thus require you to make additional deposits at short notice to maintain your positions. Leveraged products are not suitable for all customers. Please ensure you understand the risks involved before opening an account. You should ensure you fully understand the risks and seek independent financial advice if in doubt. CFE provides an execution only service and does not offer investment advice. These products are not intended for people under the age of 18 or for US residents. The distribution of this note in other jurisdictions may be restricted by law and persons into whose possession this note comes should inform themselves about and observe any such restrictions. By accepting this note you agree to be bound by the foregoing instructions.