Day Ahead

Monday, May 20, 2013, Marketing Communication

Opening Call The FTSE is seen opening around 20 points higher

UK Corporate Announcements Cranswick details full year pre-tax profits of £47.4m on revenues of £875m and states that there was further room for growth Mitie Group reports full year operating profit of £122m on revenues of £1.98bn  from £1.83bn BTG details a full year pre-tax profit of £16.4m from £14.6m with revenues up 19% to £237m and states that it is on track with its growth strategy Ryanair announces a full year net profit of €569m up 13% with fuel costs up more than €290m and states that fuel costs are now 45%of its total costs ITE Group announces H1 pre-tax profit of £2.6m on revenues of £69.4m and states that it has delivered strong organic growth FirstGroup reports a 2013 operating profit of £335m from £428m and states trading has been in line and details a fully underwritten £615m capital raising

UK News Rightmove suggests that asking prices on UK homes has gained for a fifth consecutive month, and moved up to a record Mervyn King states that the ‘whole debate on fiscal policy has really got overblown’ and also suggest that the government’s plan to aid home buyers should not become permanent, and also responds to ‘banker bashing’ stating that it was wrong to demonise individuals for the failure of the financial system Ernst & Young suggests that UK inflation will be at least 2.5% for four years The Sunday Telegraph suggests that Roger Carr the outgoing president of the CBI is the front runner to be the next chairman of BAE Systems The chairman of Marks & Spencer responds to talk and states the he is 100% behind its CEO Shire may be preparing a £2bn dividend payout to shareholders as it looks to increase its defence against a possible move from Bristol Myers The Battersea Power station developer state that 95% of the planned new homes have now been sold, at £681m, with building work expected to start in July for phase one completion in 2017 ENRC announced over the weekend that it was rejecting a $4.8bn offer from its founders and the Kazakh government, while trading in Kazakhmys is suspended this morning pending an inside information release Morgan Stanley announces it has sold its Indian wealth unit to Standard Chartered and states it will focus on investment banking in the region

UK Analyst Changes Bae Systems Pt Raised To 450P Vs 375P At Ubs Catlin Cut To Underweight Vs Equalweight At Morgan Stanley Dunelm Raised To Add Vs Hold At Numis Intertek Cut To Neutral Vs Buy At Bofaml Next Cut To Neutral Vs Buy At Nomura Pennon Raised To Neutral Vs Sell At Goldman Petropavlovsk Cut To Sell Vs Buy At Socgen Royal Bank Of Scotland Raised To Buy Vs Hold At Numis Thomas Cook Cut To Neutral Vs Buy At Ubs Ultra Electronics Raised To Neutral Vs Sell At Ubs United Utilities Raised To Buy Vs Neutral At Goldman Wh Smith Group Cut To Neutral Vs Buy At Nomura

UK Insider Buying 3I Group Plc, (III), 1 insider(s) bought 10000 shares, £3.45 Bodycote Plc, (BOY), 1 insider(s) bought 2942 shares, £5.55 Deltex Medical Group P, (DEMG), 1 insider(s) bought 93478 shares, £0.14 Jardine Lloyd Thompso, (JLT), 1 insider(s) bought 26092 shares, £9.11 Marston'S Plc, (MARS), 2 insider(s) bought 20000 shares, £1.48 Ortac Resources Ltd, (OTC), 1 insider(s) bought 2644017 shares, £0.25 Petrofac Ltd, (PFC), 2 insider(s) bought 14954 shares, £13.46 Pittards Plc, (PTD), 1 insider(s) bought 100000 shares, £0.02 Wolfson Microelectron, (WLF), 1 insider(s) bought 22446 shares, £2.24

UK Insider Selling Bba Aviation Plc, (BBA), 3 insider(s) sold 118582 shares, £2.74 Cairn Energy Plc, (CNE), 1 insider(s) sold 30000 shares, £2.82 Deltex Medical Group P, (DEMG), 1 insider(s) sold 93478 shares, £0.14 Diageo Plc, (DGE),  insider(s) sold 200822 shares, £20.67 Jardine Lloyd Thompso, (JLT), 1 insider(s) sold 63000 shares, £9.09 Lookers Plc, (LOOK), 1 insider(s) sold 20850000 shares, £1 Petrofac Ltd, (PFC), 1 insider(s) sold 44326 shares, £13.4 Sabmiller Plc, (SAB), 7 insider(s) sold 47180 shares, £36.81 Sainsbury (J) Plc, (SBRY),  insider(s) sold 710102 shares, £3.77

FTSE 100 Movers

Major European Companies Reporting BTG PLC, R, 0.144,  Mitie Group PLC, R, 0.236,  Ryanair Holdings PLC, R, 0.385

European Market Summary H&M is increasingly considering sourcing some of its clothing from Latin America and Africa, following the factory collapse in Bangladesh Moody’s states that Italy’s budget means justifies it has a higher rating than Spain Lloyd Blankfein states that he sees the risk of a euro region breakup lower than last year, but that the economically stronger nations will need to continue to support their weaker neighbours

Global Intraday Footprint

Major US Stock Movers After Hours Qlogic confirmed its full year forecasts after it details that its CEO has resigned with immediate effect

S&P 500 Companies Reporting Campbell Soup Co, Q3, 0.562,  Urban Outfitters Inc, Q1, 0.286

US Market News Yahoo is reportedly considering a $1.1bn move for Tumblr Google’s executive chairman has urged the UK Chancellor to lead reform of the international tax system as his company has been amongst the leading international firms criticised in recent months US homes sales data out this week could show that sales gained in April to the highest level for three years

Overnight Market News Carson Block has suggested that the problems of bad debt within the Chinese banking system are worse than those faced by Western banks before its financial crisis China details that new home prices gained in 67 out of 68 cities in March Danone details that it is to take an 8.3% stake in China Mengniu Dairy, pushing the stock up 10% in Hong Kong trading UBS highlights how valuations of Chinese smallcap shares has reached a high extremes over the large caps, out to levels not seen since 2010, which was then followed by a sharp selloff in Chinese smallcaps and suggests that moves could be repeated

Top FX The yen gained after the economy minister states that further losses in the currency would negatively affect people and that the government’s role was to minimise that

Top Commodity Silver has now fallen to its lowest since September 2010, falling as much as 7% in Singapore trading overnight, down 30% in 2013, and takes its ratio to gold out to its highest for around 3 years

Economic Data Due 00:01 UK May Rightmove House Prices, 2.1% previous 13:30 US April Chicago Fed Nat Activity Index, -0.23 previous

Economic Events Fed's Evans Speaks in Chicago

US Chicago Fed Index

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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

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