Day Ahead

Tuesday, July 23, 2013, Marketing Communication Opening Call The FTSE is seen up around 15 points higher today UK Corporate Announcements PZ Cussons announces full year revenues of £883m largely in line, and an adjusted pre-tax profit of £107.5m IG Group reports a full year pre-tax profit of £192.2m up from £185.7m with net trading revenues of £361.9m from £366 down 1.4% Beazley states that it sees strong underwriting, as it details an H1 pre-tax profit of $82.3m Carpetright announces that it continues to increase its market share, as it also details UK LFL sales fell 1.9%, against expectations of up 2.5% Sage Group reports that trading remains in line with the expectations and stays confident it will deliver in its strategic goals Premier Foods states that it now sees the full year trading profit seen around the top end of previous expectations Croda International announces a Q2 operating profit of £71.1m largely in line and states that it does not expect a drop in demand as seen in H2 last year Provident Financial reports an H1 pre-tax ex-items profit of £76.5m from £71.5m and states that it is experiencing challenging market conditions and that it is taking actions to reduce its cost base Monitise states that it remains very well placed and enters the new financial year with momentum at an all time high UK News Ofcom today sets out its license terms for ITV, STV, UTV and Channel 5 to include more localised TV news in English regions The FCA itself is in the news as it detailed yesterday it has abandoned its £5m case against three former directors of iSoft The FT details that almost 7,000 new build homes have been reserved by the government Help to Buy scheme, the scheme comes fully into force in January The average luxury property in London has topped £2m for the first time UK Analyst Changes Ladbrokes Pt Raised To 215P Vs 165P At Morgan Stanley Ladbrokes Raised To Equalweight Vs Underweight: Morgan Stanley William Hill Pt Raised To 500P Vs 420P At Morgan Stanley UK Insider Buying Frontier Mining Ltd, (FML), 1 insider(s) bought 752000 shares, £0.02 Idox Plc, (IDOX), 1 insider(s) bought 68500 shares, £0.36 Mediterranean Oil & Gas, (MOG), 2 insider(s) bought 280769 shares, £0.07 Pressure Technologies , (PRES), 1 insider(s) bought 18000 shares, £2.18 Quintain Estates & Dev , (QED), 2 insider(s) bought 50000 shares, £0.88 Zytronic Plc, (ZYT), 1 insider(s) bought 6000 shares, £1.62 UK Insider Selling Dee Valley Group Plc, (DVW),  insider(s) sold 2154 shares, £13.9 Eg Solutions Plc, (EGS),  insider(s) sold 936394 shares, £0.79 Land Securities Group P, (LAND), 1 insider(s) sold 874 shares, £9.66 Lo-Q Plc, (LOQ),  insider(s) sold 250000 shares, £6 Topps Tiles Plc, (TPT), 1 insider(s) sold 17872 shares, £0.86 FTSE 100 Movers Major European Companies Reporting Bolsas y Mercados Espanoles SA, S1, 0,  Croda International PLC, S1, 0.677,  Enagas SA, S1, 0,  Gas Natural SDG SA, S1, 0,  Gecina SA, S1, 2.63,  IG Group Holdings PLC, R, 0.375,  Kemira OYJ, Q2, 0.202,  Koninklijke KPN NV, S1, 0,  Provident Financial PLC, S1, 0.437,  Sulzer AG, S1, 0,  Telenor ASA, Q2, 2.293,  Trelleborg AB, Q2, 2.004 European Market Summary Vivendi is in talks to sell its 53% stake in Maroc Telecom for €4.2bn KPN announces it is selling its E-Plus unit for €5bn to Telefonica and that it will receive a 17.6% stake in Telefonica Deutschland post the deal, and states it will now focus on its core geographies The UK’s NICE asks for more information on Roche’s MabThera treatment Spain sells 3 and 9 month Bills at 10:30 and the ESM sells up to €2bn in Bills at 11:30 Global Market Footprint Major US Stock Movers After Hours CapitalSource gained 12% after it announced that it was to merge with Pacwest Bancorp in a deal valued at $2.3bn SanMinia announces Q3 in line,  and gained 5% after hours as it forecasted an improvement for Q4 Netflix announces a Q2 EPS of 49c ahead of the estimates of 40c but it also detail net additions well under the forecasts and the stock slipped 6% after hours S&P 500 Companies Reporting ACE Ltd, Q2, 1.941,  Air Products & Chemicals Inc, Q3, 1.358,  Altera Corp, Q2, 0.308,  Altria Group Inc, Q2, 0.629,  Apple Inc, Q3, 7.295,  AT&T Inc, Q2, 0.683,  Avery Dennison Corp, Q2, 0.703,  Broadcom Corp, Q2, 0.694,  CR Bard Inc, Q2, 1.38,  Discover Financial Services, Q2, 1.154,  EI du Pont de Nemours & Co, Q2, 1.272,  Electronic Arts Inc, Q1, -0.595,  FMC Technologies Inc, Q2, 0.471,  Forest Laboratories Inc, Q1, 0.079,  Freeport-McMoRan Copper & Gold Inc, Q2, 0.467,  Illinois Tool Works Inc, Q2, 1.095,  International Game Technology, Q3, 0.309,  Juniper Networks Inc, Q2, 0.25,  Linear Technology Corp, Q4, 0.419,  Lockheed Martin Corp, Q2, 2.203,  Nabors Industries Ltd, Q2, 0.088,  Norfolk Southern Corp, Q2, 1.494,  PACCAR Inc, Q2, 0.745,  Peabody Energy Corp, Q2, -0.048,  Pentair Ltd, Q2, 0.901,  Regions Financial Corp, Q2, 0.211,  Robert Half International Inc, Q2, 0.433,  Ryder System Inc, Q2, 1.229,  Sigma-Aldrich Corp, Q2, 1.035,  Total System Services Inc, Q2, 0.332,  Travelers Cos Inc/The, Q2, 1.596,  United Parcel Service Inc, Q2, 1.136,  United Technologies Corp, Q2, 1.576,  Valero Energy Corp, Q2, 1.026,  Waters Corp, Q2, 1.214 US Market News Surveys suggest that economists consensus is that Bernanke will start to trim QE in September from $85bn of bond buying a month to $65bn Southwest Airlines is in focus as one if its flights front landing gear collapsed during a landing at LaGuardia, which affected arrivals at the major hub for several hours yesterday evening Odyssey Marine Exploration detailed yesterday that it has so far recovered 1,574 silver ingots from the SS Gairsoppa which was torpedoed by a German U-boat in 1941, the value of the recovered silver is around $36m Bloomberg suggests that Pfizer, Novartis and AstraZeneca are all taking a look at Onyx which rebuffed the moves from Amgen Nasdaq OMX details that it is to cancel trades involving five ETF tracking VIX options after they moved more than 10% away from the market price yesterday Yahoo details that it has bought back Daniel Loeb’s stake in the company and he is to leave the board, around two years after he invested in the Web portal group, looking to turnaround its fortunes, allies of Loeb on the board are also stepping down The CFTC has sent letters to metals warehouses to demand that they preserve records as the investigations continue into the practices in the sector Panther Energy Trading is to pay $4.5m to US and UK authorities to settle allegations that its high frequency trading manipulated the commodity markets Overnight Market News Glaxo states that it is in active talks to set up a China joint venture on vaccines, as it looks to counter some of the recent negative publicity in the region, while an AstraZeneca employee has also reportedly been detained in China by the Public Security Bureau Chinese rail stocks gained after China Business News details that the state run China Railway Corp could increase construction investment this year Top FX Bloomberg details surveys that during 2012 $111bn moved into emerging market economies, but that over the last 8 weeks $40.3bn has been pulled from emerging market bond and equity funds Top Commodity Goldman has cut its 12 month commodity return to around flat after recent oil price rallies, as an 8% drop seen in precious metals and agricultural as mostly offset by a 6% gain seen in base metals Economic Data Due 15:00 Eurozone Consumer Confidence, -18.2 exp. -18.8 previous Economic Events EU General Affairs Ministers Meet in Brussels Euro-Zone Consumer Confidence 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 Capital and Cantor Index are trading names 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.