Day Ahead

Friday, August 2, 2013, Marketing Communication Opening Call The FTSE is called to open up around 30 points today, as it prepares to move back above 6,700 and post a move to the May highs just short of 6,900. Interestingly the S&P 500 has already posted a move strong enough to break its comparable May highs UK Corporate Announcements Inchcape reports an H1 adjusted EPS of 22.9p up 10.6% with H1 sales up 6.6% to £3.3m Inmarsat announces H1 revenues of $640m and a pre-tax profit of $125m just under the forecasts Direct Line reports an operating profit of £286.6m up 27% with an NAV of 186.9p and an H1 net income of £151.8m William Hill announces an H1 pre-tax profit of £143.6m just under the estimates of €152.3m and an H1 operating profit of £181.4m from £167.8m Man Group reports an H1 statutory pre-tax profit of $122m from the loss of $163m and H1 redemptions of $11.5bn and states that it sees no improvement in the near term outlook and that its AHL fund fell 3.2% in the period while GLG multistrategy gained 5.1% IAG reports an H1 adjusted operating loss of €33m with revenues up 2.1% to €8.70bn and states that it was lo longer giving guidance at an operating level for the full year RBS announces that it appoints Ross McEwan as its new CEO as it also details an H1 net profit of £535m from the £2bn loss and that it continues to focus on simplification and efficiency Rexam details H1 results slightly under the expectations and states that it maintains its relentless focus on costs as it reports an H1 underlying pre-tax profit of £169m down 2% on sales of £1.97bn up 1% UK News The FT writes on how the UK accounting watchdog has now ended its investigations into the commissions paid by BAE Systems, after claiming it would need to go back to many years The Guardian continues its focus on the NSA by detailing how the US agency has paid at least £100m to GCHQ in the past three years, in order to secure access Business press report on how the return to profit announced at Lloyds yesterday and its moves to resume dividend payments will further increase expectations of a Government stake sale Trinity Mirror detailed yesterday that it has seen an 8% drop in digital revenues in recent months, as it continues to find it difficult to offset the falling paper sales with increased online revenues The Nationwide has UK house prices up 3.9% on the year, 0.8% in the month The UK sells £2bn in Bills at 11:10 UK Analyst Changes Antofagasta Cut To Reduce Vs Neutral At Nomura Csr Cut To Sell Vs Neutral At Ubs Lloyds Banking Raised To Overweight Vs Equalweight At Barclays Reed Elsevier Pt Raised To Eu16 Vs Eu13 At Ing, Stays Buy Vodafone Added To Most Preferred Telco Shrs At Ubs Weir Raised To Buy Vs Hold At Berenberg UK Insider Buying Grainger Plc, (GRI), 1 insider(s) bought 12000 shares, £1.72 Nakama Group Plc, (NAK), 1 insider(s) bought 197140 shares, £0.01 Wolfson Microelectroni, (WLF), 1 insider(s) bought 33300 shares, £1.54 UK Insider Selling Lo-Q Plc, (LOQ),  insider(s) sold 100000 shares, £6 Jupiter Fund Managemen, (JUP),  insider(s) sold 4930 shares, £3.59 FTSE 100 Movers Major European Companies Reporting Ageas, S1, 0,  Allianz SE, Q2, 2.893,  Amadeus IT Holding SA, S1, 0.78,  AXA SA, S1, 0.96,  Bank of Ireland, S1, -0.01,  Deutsche Lufthansa AG, Q2, 0.525,  Direct Line Insurance Group PLC, S1, 0.121,  Fuchs Petrolub SE, Q2, 0.775,  IMMOFINANZ AG, R, 0.238,  Inchcape PLC, S1, 0,  Inmarsat PLC, S1, 0.2,  International Consolidated Airlines Group SA, S1, 0,  Intesa Sanpaolo SpA, S1, 0,  Man Group PLC, S1, 0.032,  Meda AB, Q2, 0.892,  Rentokil Initial PLC, S1, 0,  Rexam PLC, S1, 0.187,  Royal Bank of Scotland Group PLC, S1, 0.131,  William Hill PLC, S1, 0.154 European Market Summary Deutsche Bank and Maurizzio Borletti have reportedly sold the French luxury department store chain Printemps for €1.75bn to Qatari based investors Italy’s Top Court has confirmed Berlusconi’s tax-fraud conviction and is likely to result in community service or house arrest, rather than jail time Global Market Footprint Major US Stock Movers After Hours Active Network gained 32% after hours as it lifts its full year outlook LinkedIn gained 8% despite cutting its sales forecasts, but does detail a doubling in membership to 238m Audience fell 22% after hours as it unexpectedly announced it sees a loss in Q3 and sees softness in the high end smartphone market S&P 500 Companies Reporting Berkshire Hathaway Inc, Q2, 2165.8,  Cablevision Systems Corp, Q2, 0.044,  Chevron Corp, Q2, 2.955,  Eaton Corp PLC, Q2, 1.105,  Host Hotels & Resorts Inc, Q2, 0.417,  Parker Hannifin Corp, Q4, 1.964,  Pinnacle West Capital Corp, Q2, 1.128,  Sealed Air Corp, Q2, 0.247,  Southwestern Energy Co, Q2, 0.515,  Viacom Inc, Q3, 1.304,  Washington Post Co/The, Q2, 0 US Market News President Obama is reportedly looking to cancel the planned summit next month with Vladimir Putin after Edward Snowden secure a one year’s asylum in Russia Goldman Sachs is in focus as Fabrice Tourre was found guilty in the SEC case over his role in a failed $1bn investment as the jurors did not accept his defence that his junior role meant that he was not primarily responsible Traders at Bank of America made money on 89% of trading days in Q2, down from the 100% seen in Q1, as the banks continues to require trading profits to help offset losses on the subprime lender Countrywide Financial it acquired in 2008 Microsoft is being forced to change its SkyDrive Cloud storage unit after a legal challenge by BSkyB in June, Microsoft had previously stated that it would appeal the ruling but now appears to back down on the ruling A probe by the CFTC finds that banks manipulated the ISDAfix as part of its investigations into the Swaps market Overnight Market News Li Ka-Shing the wealthiest man in China has stated that he is looking to increase his market share in Europe and seek acquisitions GIC Pte the manager of $100bn of Singapore’s Reserves states that it was amending its investment strategy for just the second time in thirty years, stating that for the past 30 years investors could invest in bonds and stocks and ‘ride the wave’ of declining interest rates, but that in the future the outlook is not expected to be so straight forward Top FX SocGen states that the Indian rupee could fall past 62 per dollar, and that this could well force the central bank to take steps to further tighten cash supply Top Commodity Gold has traded back under $1300 and does look vulnerable to a move back to the June lows just under £1200 Economic Data Due 09:30 UK July Construction PMI, 51.5 exp. 51.0 previous 13:30 US Change in Non Farm Payrolls, 185k exp. 195k previous 13:30 US June Personal Income, 0.4% exp. 0.5% previous Economic Events 13:30 US ECB Press Conference US 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). 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.