Day Ahead

Tuesday, June 4, 2013, Marketing Communication Opening Call The FTSE is called to open around 40 points higher today UK Corporate Announcements Wolseley states that it has continues to make decent progress as revenues in Q3 gained to £3.23bn and a trading profit of £150m, up 7.9% and sees good growth in the UK and US, more challenging in Europe Sepura states that trading has been in line with the expectations Severfield Rowen announces an underlying pre-tax loss of £21.5m on revenues of £318m AstraZeneca announces that it will not proceed with its Fostamatinib program after late stage trials did not measure up to its expectations, and states the impairment will not impact on its 2013 guidance UK News Pimco suggest that while UKIP support at the next General Election looks set to damage the Tories enough to give power to Labour Party, but that this may not necessarily be bad for gilts The FT writes that Rentokil may be considering combining its office maintenance unit with Balfour Beatty The Institute of Economic Affairs announces that it estimates that the UK blackmarket now accounts for around 10% of the economy, or more than £150bn/year, and urges the government to simplify the tax system The UK sells £1.6bn in Bonds at 11:30 UK Analyst Changes Invensys Pt Raised 9% To 465P At Barclays, Stays Overweight Smiths Group Pt Raised To 1,270P Vs 1,020P At Citi, Stays Sell UK Insider Buying Guinness Peat Group Pl, (GPG), 1 insider(s) bought 200000 shares, £0.24 Spdi Secure Property D, (SPDI), 1 insider(s) bought 2000 shares, £0.65 Travis Perkins Plc, (TPK), 1 insider(s) bought 3200 shares, £15.44 UK Insider Selling None Detailed FTSE 100 Movers Major European Companies Reporting Koninklijke Ahold, Q1, 0.252 European Market Summary Scor acquire’s Generali’s US reinsurance unit for $750m Fitch has cut its rating on Cyprus to B- from B with a negative outlook on high implementation risks on the agreed restructuring plan German press writes that the EC backs Latvia’s bid to join the Euro Area Malta sells bills at 11:00 and Sweden sells Sek 15bn of bills at 11:03 Global Market Footprint Major US Stock Movers After Hours S&P 500 announces that General Motors will replace HJ Heinz in the S&P 500, moving back to the blue chip four years after its bankruptcy, the stock gained 3% on the news S&P 500 Companies Reporting Dollar General, Q1, $0.713 US Market News Fitch announced late yesterday that it has cut its rating on Illinois to A- from A after local lawmakers failed to restructure state pensions and the current $100bn in unfunded liabilities US lawmakers move closer to passing a bill that would effectively liquidate Fannie Mae and Freddie Mac and replace them with a government reinsurer of mortgage securities Zynga came off 12% yesterday as it announces that it was laying off 520 employees, around 20% of its staff, and closing some offices, as the young growth stock already starts a cost cutting exercise Fed Ex announced that it is to retire 10 aircraft and is to hasten the withdrawal of a further 70 citing the slow economy Overnight Market News The RBA left interest rates unchanged at 2.75% as expected and states that the stance of monetary policy remains appropriate for the time being Billabong announces that it has now ended takeover talks, and is looking at asset sales and refinancing The FT suggests that Japan’s public pension funds are to be monitored by a panel to review investment guidelines to aid fund buying in stocks, and away from focusing solely on Japanese sovereign bonds Top FX The Polish zloty came off 2.8% in May and is down to an 11 month low cutting expectations of additional rate cuts Top Commodity Man Group suggest that the diverging prices between raw materials and other risk assets was a sign that traders are to once more focus on supply and demand, as the correlation n between commodities and equities has fallen this year from the levels seen in 2011 and 2010 Economic Data Due 00:01 UK May BRC LFL Sales, -2.2% previous 09:30 UK May PMI Construction, 49.6 exp. 49.4 previous 13:30 US April Trade Balance, -$41.0bn exp. -$38.8bn previous Economic Events NATO Defence Ministers Meet in Brussels UK PMI Construction 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. 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