Day Ahead

Thursday, May 23, 2013, Marketing Communication Opening Call The FTSE is seen opening down a hefty 100 points this morning UK Corporate Announcements SABMiller reports a full year EBITA of $6.42bn largely in line with the consensus, on full year group revenues of $34.5bn Daily Mail details H1 revenues of £915m and an adjusted pre-tax profit of £137m ahead of the forecasts and maintains its full year outlook Pennon Group reports a full year operating profit of £246m  and full year capital expenditure of £439m United Utilities announces a full year pre-tax profit of £282m on revenues of £1.64bn and details that it expects to invest around £800m in 2013/2014 Electrocomponents reports a full year pre-tax profit of £98.7m to £98.7m with revenues up 0.5% to £1.24bn Booker announce a full year pre-tax profit after tax of £83.1m and an operating margin of 2.48% Qinetiq reports a full year adjusted operating profit of £168.7m from £159.6m and a pre-tax profit of £152.1 from £110m and states it is to conduct a strategic review of its US services unit Investec announced a full year adjusted operating profit of £433.2m up 20.8% and states that the environment continues to be challenging Mothercare reports full year group sales fell 7.8% to £750m with a full year underlying pre-tax profit of £8.3m just ahead of the estimates UK News The FTSE yesterday closed at its second highest close ever, leaving only the December 31st 1999 spike higher to 6930 as the next level to breach to follow the Dow, S&P 500 and Dax to fresh all time highs, but the profit taking expected today will halt these moves, at least for this week Lloyds is reportedly looking at a planned $8.7bn auction of US mortgage bonds, and also is reducing its holding in St James Place from 36% to 21% While Osborne is reportedly set to approach the private sector in the coming days with his plans for Lloyds and RBS after the IMF calls on the government to devise a clear strategy The CEO of SSE has responded to the statements made by the CBI chief as he too criticises the UK politicians for ‘attacking’ UK listed companies, as risking driving talent away to unaccountable foreign private equity firms The CEO of Ocado has stated that the head of Waitrose is refusing to meet him, after Ocado’s recent partnership with WM Morrison UK Analyst Changes Arm Cut To Neutral Vs Outperform At Exane Anglo American Cut To Hold Vs Buy At Jefferies Ashmore Group Rated New Buy At Berenberg; Pt 500P Darty Pt Raised To 42P Vs 35P At Morgan Stanley Ferrexpo Cut To Hold Vs Buy At Jefferies Fidessa Cut To Underweight Vs Neutral At Jpmorgan Henderson Group Cut To Neutral Vs Buy At Bofaml Henderson Group Rated New Sell At Berenberg; Pt 140P Kingfisher Cut To Reduce Vs Neutral At Nomura Man Group Rated New Sell At Berenberg; Pt 105P Petropavlovsk Cut To Neutral Vs Overweight At Jpmorgan Schroders Rated New Hold At Berenberg; Pt 2,450P Sse Cut To Sector Perform Vs Outperform At Rbc Thomas Cook Raised To Neutral Vs Reduce At Nomura UK Insider Buying Afriag Plc, (AFRI), 1 insider(s) bought 500000 shares, £0.01 Cello Group Plc, (CLL), 1 insider(s) bought 13700 shares, £0.54 Hays Plc, (HAS), 1 insider(s) bought 50000 shares, £0.95 Sage Group Plc/The, (SGE), 1 insider(s) bought 12239 shares, £3.65 Vitec Group Plc/The, (VTC), 2 insider(s) bought 15000 shares, £5.93 UK Insider Selling Bodycote Plc, (BOY), 2 insider(s) sold 205800 shares, £5.46 Frenkel Topping Group, (FEN), 1 insider(s) sold 135000 shares, £0.26 Grainger Plc, (GRI), 1 insider(s) sold 42589 shares, £1.55 Hikma Pharmaceuticals, (HIK), 1 insider(s) sold 5700 shares, £9.83 Inchcape Plc, (INCH), 1 insider(s) sold 113789 shares, £5.61 Intercontinental Hotel, (IHG), 1 insider(s) sold 330870 shares, £19.42 Old Mutual Plc, (OML), 1 insider(s) sold 277182 shares, £2.16 Sage Group Plc/The, (SGE),  insider(s) sold 519610 shares, £3.65 St. Ives Plc, (SIV),  insider(s) sold 977842 shares, £1.6 Wetherspoon (J.D.) Plc, (JDW), 1 insider(s) sold 3256 shares, £6.62 FTSE 100 Movers Major European Companies Reporting Aveva Group PLC, R, 0.749,  Booker Group PLC, R, 0.046,  Daily Mail & General Trust PLC, S1, 0.232,  Electrocomponents PLC, R, 0.156,  Investec PLC, R, 0.375,  Lundbergforetagen AB, Q1, 0,  OPAP SA, Q1, 0.081,  Pennon Group PLC, R, 0.423,  Portugal Telecom SGPS SA, Q1, 0.048,  QinetiQ Group PLC, R, 0.174,  SABMiller PLC, R, 2.387,  United Utilities Group PLC, R, 0.393 European Market Summary Telecom Italia’s board is due to meet today to discuss possible spinoff plans, its fixed line assets are valued at around $18.0bn ECM board member Praet states that the ECB could yet introduce new approaches to monetary policy as long as it keep sits primary goal of price stability Global Intraday Footprint Major US Stock Movers After Hours Domino’s Pizza gained 3% after hours as it was announced the restaurant group is to be moved into the S&P400 mid-cap Pacific Sunwear gained 17.8% after hours as it announced a Q1 adjusted loss ahead of the expectations Hewlett Packard gained a solid 13% after hours as it announces a Q2 adjusted EPS of 87c ahead of 81c estimates on revenues of $27.5bn down 10% and in line, and states that the China market is slowing down and details that it could make small acquisitions in software S&P 500 Companies Reporting Dollar Tree Inc, Q1, 0.57,  GameStop Corp, Q1, 0.402,  Gap Inc/The, Q1, 0.674,  Hormel Foods Corp, Q2, 0.493,  Patterson Cos Inc, Q4, 0.621,  PVH Corp, Q1, 1.338,  Ralph Lauren Corp, Q4, 1.291,  Ross Stores Inc, Q1, 1.063,  Salesforce.com Inc, Q1, 0.107 US Market News Google’s chief again criticises his critics by stating that it was up to governments to create the tax laws, and for business to abide by them, as he states that the company has not broken the law Bernanke responded to questions at the Senate yesterday and denied that the QE was creating new financial bubbles, he also signalled that the central bank was prepared to cut bond purchases once it was confident of sustained economic gains The S&P 500 posted a strong move lower yesterday evening, and for Technical Analysts it posted a very clear outside day key reversal, trading to fresh all time highs intraday, only to then close the day at lower lows Ford announces that it is to end production in Australia from 2016, and is to cut 1,200 jobs, ending a 90 year tradition of making cars locally Overnight Market News Chinese manufacturing unexpectedly fell in May, for the first time in seven months, and this slight shock to the market in addition to the S&P 500 sell-off on the Bernanke statements has led the profit taking to gather pace in Asian markets overnight, with Japan’s TOPIX and Nikkei 225 both off 5% The sharp moves have triggered trading in Nikkei 2225 futures to be halted at 06:36, the TOPIX has so far gained 40% in 2013 China’s People’s Daily details that president Xi Jinping will meet with President Obama in early June Singapore details that its Q1 GQP gained 1.8% ahead of the estimates Japan’s 10 year government bonds yields traded at 1%, the first time in over a year as US Treasuries slip on the increasing talk at the Fed on the eventual end date of QE Top FX The yen has gained 0.5% against the dollar and as it maintains its historically high correlations to the moves on the Japanese equity markets Top Commodity Coffee has fallen to a three year low as the market prices in expectations that strong supplies will exceed demand, following strong crops in Brazil Economic Data Due 09:00 Eurozone May PMI Manufacturing, 47.0 exp. 46.7 previous 09:30 UK Q1 GDP, 0.3% exp. 0.3% previous 13:30 US Weekly Jobless Claims, 3644k exp. 360k previous 15:00 US April New Home Sales, 425k exp. 417k previous Economic Events Fed's Bullard Speaks in London UK GDP 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). 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