Day Ahead

Monday, June 3, 2013, Marketing Communication Opening Call The FTSE is seen starting the month down around 50 points lower UK Corporate Announcements Phoenix IT announces full year revenues fell 4.1% to £250m and an underlying operating profit of £19.0m St Modwen states that it sees its pre-tax profit in line with H1 of 2012 as it sees a continuing strong performance UK News Mervyn King has stated that you can now see the signs of a recovery and also took the opportunity to suggest that Mark Carey should simply ‘be himself’ when he takes charge of the Bank of England at the end of the month S&P has cut its outlook on RBS to negative amid ‘new failings’ UK press suggests that Rio Tinto is considering a possible spinoff of its diamond division, and that this could be of interest to Glencore Xstrata and Blackstone Melrose announces that it is in the early stages of a possible sale of its Crosby and Acco units The Co-op may be selling off its travel unit to help meet the shortfall at its bank and also is in the news as some of its cash machine services crashed over the weekend Card Factory, the greetings card chain is reportedly looking at a possible £700m IPO A leading Tesco shareholder has criticised the accounting methods at the retailer for counting clubcard points used by shoppers in its headline sales numbers but does not factor in the cost of maintaining the system Vodafone is set to increase its UK capital expenditure to £900m from £600m as it prepares for the launch of 4G this year UK Analyst Changes British American Tobacco Raised to 'Accumulate' at Kestrel Cap UK Insider Buying British American Tobac, (BATS), 1 insider(s) bought 311 shares, £36.58 Centaur Media Plc, (CAU), 1 insider(s) bought 100000 shares, £0.33 Diamondcorp Plc, (DCP), 1 insider(s) bought 300000 shares, £0.04 Guinness Peat Group Pl, (GPG), 1 insider(s) bought 200000 shares, £0.24 Havelock Europa Plc, (HVE), 1 insider(s) bought 58839 shares, £0.2 Manx Financial Group P, (MFX), 1 insider(s) bought 321147 shares, £0.08 Serco Group Plc, (SRP), 1 insider(s) bought 1568 shares, £6.33 Travis Perkins Plc, (TPK), 1 insider(s) bought 3200 shares, £15.48 Vatukoula Gold Mines P, (VGM), 1 insider(s) bought 142720 shares, £0.1 UK Insider Selling Bp Plc, (BP/), 1 insider(s) sold 110000 shares, £4.78 Bunzl Plc, (BNZL),  insider(s) sold 7055 shares, £12.99 Morgan Advanced Mater, (MGAM), 1 insider(s) sold 3000 shares, £2.93 Spaceandpeople Plc, (SAL),  insider(s) sold 25000 shares, £1.04 FTSE 100 Movers Major European Companies Reporting None Detailed European Market Summary ECP president Draghi states that he does expect a recovery this year, despite the challenging outlook in the euro area The IMF has agreed to disburse €1.7bn in additional aid to Greece after the government took steps to cut costs Telefonica is reportedly looking at the sale of its O2 Ireland operation to help cut its debt France sells €8bn in bills at 14:50 Global Market Footprint Major US Stock Movers After Hours There were no major movers after hours S&P 500 Companies Reporting SAIC, Q1, $0.264 US Market News US Bonds lost 1.5% in May after the Fed started to suggest a possible tapering to QE, as the market stays cautious as the likes of Bill Gross stated recently that the 30 year bull market in bonds was over Barron’s suggests that Crimson Wine could gain as it looks undervalued when compared to its case volume growth The paper also suggest that CST Brands looks interesting as it had the option to gain value by spinning off units It also highlights a bullish analysts who suggests that Intel could double over the next five years Google details that there were 48bn Android apps downloaded in May, while Apple details 50bn apps downloaded, with analysts suggesting that Google will surpass Apple within months Overnight Market News China has blocked Mastercard transactions that are settled in yuan, a year after the WTO raised concerns over Beijing discriminating against foreign card companies Chinese PMI fell for smaller companies fell to 47.3 in May from 47.6 increasing pressure on the government to do more to help smaller companies and shift focus away from state backed concerns Top FX The South African rand fell 11% against the dollar in May, the most oversold currency in the world over the period, with ING stating that the bull run for developing nation currencies was over, as global markets price in the end of QE Top Commodity Brent crude has dipped under $100 for the first time in over a month as OPEC keeps its production targets unchanged Economic Data Due 09:00 Eurozone May PMI Manufacturing, 47.8 exp. 47.8 previous 09:30 UK May Manufacturing PMI, 50.1 exp. 49.8 previous 15:00 US May Manufacturing ISM, 50.5 exp. 50.7 previous Economic Events Fed's Williams Speaks in Brussels US Personal Income 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.