Day Ahead

Wednesday, June 5, 2013, Marketing Communication Opening Call The FTSE is called to open down around 30 points today UK Corporate Announcements Tesco states that its plans to exit the US remains on track as it announces Q1 UK comparable sales, ex fuel, fell 1%, just worse than the forecasts, and states that international markets continue to be challenging Moss Bros announces that trading has been in line and stays confident on its expectations UK News HSBC has been accused by New York Attorney general of violating state foreclosure laws by failing to give homeowners a chance to negotiate loan modifications Bloomberg suggests that Severn Trent bonds are indicating that a higher takeover offer is expected, the utility yesterday rejected a £5.2bn approach from Kuwait’s SWF ENRC holds its AGM today where as many as half of its shareholders are expected to vote against some of its planned resolutions UK Lawmakers are expected to suggest that all options should be considered for RBS, including being split into a good and bad bank FTSE 100 Dividends: Associated British Foods PLC, ABF, (9.35), National Grid PLC, NG/, (26.36), WPP PLC, WPP, (19.71) Est. FTSE 100 Dividend Impact: 4.86 points FTSE 250 Dividends: Alliance Trust PLC, ATST, (.36),  Alliance Trust PLC, ATST, (2.387), British Empire Securities and General Trust PLC, BTEM, (2),  Debenhams PLC, DEB, (1),  Grainger PLC, GRI, (.58),  Murray Income Trust PLC, MUT, (7),  Pace PLC, PIC, (2.029),  Perpetual Income and Growth Investment Trust PLC, PLI, (3.55),  Synthomer PLC, SYNT, (3.30),  Worldwide Healthcare Trust PLC, WWH, (9.50) FTSE Small Share: Aberdeen New Thai Investment Trust PLC, ANW, (7),  Anglo Pacific Group PLC, APF, (5.75),  Anglo-Eastern Plantations, AEP, (2.50),  BlackRock Frontiers Investment Trust PLC, BRFI, ($.02),  BlackRock Frontiers Investment Trust PLC, BRFI, ($.034),  Brammer PLC, BRAM, (6.40),  Capital Gearing Trust PLC, CGT, (16),  Cineworld Group PLC, CINE, (8),  F&C Capital & Income Investment Trust PLC/Fund, FCI, (2.15),  Greencore Group PLC, GNC, (1.9g),  Headlam Group PLC, HEAD, (10.20),  Henderson Diversified Income Ltd, HDIV, (1.25g),  Henderson Global Trust PLC/Fund, HGL, (2.50),  Majedie Investments PLC, MAJE, (4.20),  Marshalls PLC, MSLH, (3.50),  McKay Securities PLC, MCKS, (5.8g),  Schroder UK Mid Cap Fund PLC, SCP, (2.25),  Securities Trust of Scotland PLC, STS, (1.30),  Standard Life Equity Income Trust PLC, SLET, (3.20) UK Analyst Changes Ds Smith Cut To Neutral Vs Buy At Goldman Wolseley Pt Raised 7% To 3,700P At Barclays, Stays Overweight UK Insider Buying Cello Group Plc, (CLL), 1 insider(s) bought 6250 shares, £0.56 F&C Asset Management Pl, (FCAM), 1 insider(s) bought 31000 shares, £0.96 Senior Plc, (SNR), 1 insider(s) bought 8000 shares, £2.71 UK Insider Selling Intermediate Capital Gr, (ICP),  insider(s) sold 282128 shares, £4.68 Prudential Plc, (PRU),  insider(s) sold 2953 shares, £11.07 Sabmiller Plc, (SAB), 11 insider(s) sold 231884 shares, £33.3 FTSE 100 Movers Major European Companies Reporting Elektra, F, 3.617, Voestalpine, F, 2.443 European Market Summary Portugal’s Secretary of State for Finance states that Portugal will not need a new aid plan and it wants to be eligible for the ECB bond buying program China details that it is to start an investigation into wine imports after the EU imposed tariffs on Chinese solar panels Germany sells €4bn in bonds at 11:30 Global Market Footprint Major US Stock Movers After Hours Bob Evans Farms gained 4% as it announced a Q4 adjusted EPS of $2.60 from $2.67 and sees revenues of around $1.4bn in 2014 S&P 500 Companies Reporting Brown-Forman, Q4, $0.462 US Market News IBM announced yesterday it is to buy SoftLayer, the Cloud Computing provider for $2bn, while Salesfroce.com announces it is to buy ExactTarget the customer management software solutions group for $2.5bn Pimco’s Total Return Fun last month posted its first monthly net outflows for over nine years, as investors took out money on the falling bond markets Alcoa’s place in the Dow Jones Industrials is being questioned as it was cut to junk status by Moody’s only the second junk rated stock in the index for thirty years, it is the lowest market cap in the index as it fell 67% over the past 10 years Jefferson County’s $4.2bn municipal bankruptcy is the largest such filing in the US, increasing concerns that it may have set a precedent The FT writes that MF Global is now effectively out of bankruptcy as its trustee steps down, handing control of its liquidation to a new panel Amazon is expected to launch its Amazonfresh service in LA as early as this week, with plans to roll out a grocery delivery business nationally, and potentially even internationally Overnight Market News Australian GDP data out overnight has GDP gaining 0.6% in Q1 from Q4, but just marginally under the expectations Samsung has won one of the numerous suits against Apple, this latest verdict in the US could cause Apple to face some US import bans on some of its older devices While US markets have attempted to rally in recent days, Asian markets have slumped to fresh lows for the year, as the concerns are that the Fed tapering of QE will continue to cause net out flows Top FX Deutsche Bank suggests that the dollar will strengthen 10% this year citing the international appeal for US bond yields Top Commodity Sucden has rejected an offer to exchange some of the bags of cocoa it bought last month that were deemed unfit for delivery, as the proposal only covers part of the batch, Sucden took delivery of the $2.4m batch and under LIFFE rules has 10 days to reject the physical delivery if it is deemed unfit Economic Data Due 00:01 UK May BRC Shop Price Index, 0.4% previous 10:00 Eurozone Q1 GDP, -0.2% exp. -0.2% previous 15:00 US April Factory Orders, 1.4% exp. -4.0% previous 15:00 US May Non Manufacturing Composite, 53.5 exp. 53.1 previous 19:00 US Federal Reserve Beige Book Economic Events EU Rules on Latvia's Eligibility to Adopt Euro Eurozone 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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