Day Ahead

Friday, May 3, 2013, Marketing Communication FTSE 100 Opening Call The FTSE is seen opening down around 10 points lower today UK Corporate Announcements RBS announces a Q1 net profit of £393m, well ahead of the forecasts of £317m seen and states that it has made continued good progress on ‘safety, soundness’ and states the results show pleasing progress Renishaw announces net cash of £35.1m on revenues of £74.7m Mondi reports a Q1 underlying operating profit of €162m and sees sales volumes ahead of last quarter and selling prices largely unchanged and stays confident on its progress Man Group announces assets under management of $54.8bn from $57bn on Q1 net sales of $2.5bn and states that its AHL fund is 4.5% away from its high water mark Direct Line Insurance reports a Q1 operating profit of £107.5m up 33% with gross premiums down 4.5% Theo Fennel announces that it remains in offer talks with EME and extends the deadline to May 31 Laird states that its financial position remains healthy UK Market News Vodafone is in the news on reports that on any possible sale of its stake in Verizon Wireless the $100bn it receives is unlikely to result in any increase in UK tax payments due to a substantial shareholding exemption which could cause a backlash amongst consumers The FCA has been told by a survey of senior finance executives that it needs to open better lines of communication with the industry and implement rules in a predictable manner The business press will take a back seat today as the general press digests the results of the UK local elections Lloyds’ CEO has stated that he expects to complete the turnaround plan by next year, ahead of his initial expectations that it may take 5 years The UK is to sell £2bn in Bills at 11:10 UK Analyst Changes Apr Energy Raised To Neutral Vs Sell At Ubs Compass Group Rated New Buy At Socgen, Pt 970P Sainsbury Cut To Neutral Vs Buy At Citi UK Insider Buying Energetix Group Plc, (EGX), 1 insider(s) bought 111401 shares, £0.18 Fenner Plc, (FENR), 2 insider(s) bought 6000 shares, £3.4 Greggs Plc, (GRG), 4 insider(s) bought 20250 shares, £4 Moss Bros Group Plc, (MOSB), 1 insider(s) bought 7195 shares, £0.55 Spirent Communication, (SPT), 1 insider(s) bought 50000 shares, £1.29 UK Insider Selling Spaceandpeople Plc, (SAL), 3 insider(s) sold 4232448 shares, £0.86 St James'S Place Plc, (STJ),  insider(s) sold 4546 shares, £5.59 Wpp Plc, (WPP),  insider(s) sold 104465 shares, £10.78 FTSE 100 Movers Major European Companies Reporting Bayerische Motoren Werke AG, Q1, 1.783,  Beiersdorf AG, Q1, 0.598,  BG Group PLC, Q1, 0.332,  British Sky Broadcasting Group PLC, Q3, 0.144,  Cofinimmo, Q1, 0,  Danske Bank A/S, Q1, 1.767,  Deutsche Lufthansa AG, Q1, -0.68,  Fuchs Petrolub AG, Q1, 0.78,  Grifols SA, Q1, 0.26,  Hugo Boss AG, Q1, 1.18,  Infineon Technologies AG, Q2, 0.033,  Inmarsat PLC, Q1, 0,  Koninklijke DSM NV, Q1, 0.652,  Metro AG, Q1, -0.03,  Orkla ASA, Q1, 0.609,  Randgold Resources Ltd, Q1, 1.14,  Rexel SA, Q1, 0.285,  Royal Dutch Shell PLC, Q1, 1.045,  Royal Imtech NV, R, 1.202,  Sanofi, Q1, 1.351,  Shire PLC, Q1, 0.536,  Siemens AG, Q2, 1.47,  Smith & Nephew PLC, Q1, 0.184,  Statoil ASA, Q1, 4.359,  Swiss Re AG, Q1, 2.7,  Swisscom AG, Q1, 7.54,  Sydbank A/S, Q1, 2.438,  Vallourec SA, Q1, 0.327,  Verbund AG, Q1, 0.2 European Market Summary The Irish Times highlights how local businesses are unimpressed by the ECB rate cut yesterday on concerns that it will not be reflected in a change in business lending rates ING’s US unit traded 7% higher in its first day after it dropped the IPO price under the indicative range BNP Paribas announces a Q1 profit of €1.58bn and states that it is not currently looking at acquisitions and that it may reduce branches in France Global Intraday Footprint Major US Stock Movers After Hours MBIA gained 2% after hours as it announces a settlement with Flagstar bank and will get $110m in cash Chemed was the major faller off 23% as US authorities sue the group claiming false medicare billing LinkedIn announced a Q1 adjusted EPS well ahead of the forecasts but still slipped in late trading as its sales forecasts was under the expectations S&P 500 Companies Reporting Actavis Inc, Q1, 1.861,  Airgas Inc, Q4, 1.127,  Ameren Corp, Q1, 0.28,  American International Group Inc, Q1, 0.875,  Apartment Investment & Management Co, Q1, 0.455,  Beam Inc, Q1, 0.539,  Becton Dickinson and Co, Q2, 1.352,  Cardinal Health Inc, Q3, 0.955,  CenterPoint Energy Inc, Q1, 0.368,  Cigna Corp, Q1, 1.431,  CME Group Inc/IL, Q1, 0.728,  Denbury Resources Inc, Q1, 0.294,  Dun & Bradstreet Corp/The, Q1, 1.395,  Estee Lauder Cos Inc/The, Q3, 0.333,  Fluor Corp, Q1, 0.96,  Gilead Sciences Inc, Q1, 0.504,  Harman International Industries Inc, Q3, 0.611,  International Paper Co, Q1, 0.738,  Kellogg Co, Q1, 1.027,  Kraft Foods Group Inc, Q1, 0.642,  Marsh & McLennan Cos Inc, Q1, 0.692,  Microchip Technology Inc, Q4, 0.473,  Mylan Inc/PA, Q1, 0.618,  PG&E Corp, Q1, 0.7,  PPL Corp, Q1, 0.698,  Quanta Services Inc, Q1, 0.309,  Scripps Networks Interactive Inc, Q1, 0.743,  Sempra Energy, Q1, 1.016,  Southwestern Energy Co, Q1, 0.378,  Teradata Corp, Q1, 0.538,  Vulcan Materials Co, Q1, -0.344,  WPX Energy Inc, Q1, -0.233,  Xcel Energy Inc, Q1, 0.449,  XL Group PLC, Q1, 0.643 US Market News Corporate America continues to benefit from record low borrowing rates, with IBM securing a record low coupon of just 1.625% on 7 year bonds, as Moody’s details that Apple could have saved as much as $9.2bn with its recent bond sale to fund its share buyback, as to have used its offshore cash would have been taxed on its return to the US Goldman chief Blankfein states that he is concerned that when interest rates do eventually increase, the moves could be sudden and could catch many investors off guard, and he uses the 1994 markets as an example Twitter is in the news as talk mounts that it is considering an IPO as it appoints a senior Morgan Stanley investment banker, who worked with Facebook, Zynga and LinkedIn as head of its corporate development Overnight Market News Macquarie Group has gained 10%, the most since the summer of 2009 after it announces a full year net profit of AUS851m ahead of the forecasts of around AUS820m seen India has cut its key repo rate to 7.25% from 7.5% and expects India’s GDP to gain 5.7% In Pakistan the lead prosecutor in the Benazir Bhutto murder case has himself been murdered on the way to the anti-terrorism court Temasek is reportedly in talks to take a $500m stake in UK financial data provider Markit China Daily writes that Russia and China are doubling the size of the joint venture SWF to $4bn to increase investment in the two countries The People’s Daily writes that the US has used the pretext of state security to interfere in the planned US investment by Chinese companies The China Securities journal states that the recent gains in the yuan may not be sustainable as the moves were made by ‘speculative hot money inflows’ into China after large scale QE by major Western central banks Top Commodity Paul Singer of Elliott Management has stated that despite the recent selloff gold remains the best store of value in an uncertain global economy Economic Data Due 09:30 UK April PMI Services, 52.1 exp. 52.4 previous 13:30 US April Change in Non farm payrolls, 145k exp. 88k previous 13:30 US April Unemployment Rate, 7.6% exp. 7.6% previous 15:00 US March Factory Orders, -2.4% exp. 3.0% previous Economic Events SEC Chairman speaks at ICI Meeting Non Farm Payrolls 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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