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MARKET NEWS ROUND UP, UPGRADES & DOWNGRADES COURTESY OF CANTOR INDEX

5 Dec 2012
Cantor Opening Call
  • The FTSE is called to open around 25 points higher today
 
 
 
UK Corporate Announcements
  • Tesco announces Q3 group sales gained 2.9% ex fuel, with UK comparable sales ex VAT down 0.6%, just inside the forecasts, and that it sees increasingly tough conditions in central Europe
  • Brewin Dolphin reports a full year pre-tax profit of £29.9m up 36.5% and states that markets remain resilient and that demand for its services remain firm
  • Stagecoach announces H1 revenues of £1.4bn up from £1.29bn and an interim dividend of 2.6p, with an operating profit of £142m from £106.2m
  • Sage Group reports full year revenues of £1.34bn and a pre-tax profit of £334.3m up from £330.8m and a full year dividend of 10.15p from 9.75p
  • Innovation Group details full year revenues of £193.7m up 10% and a full year gross margin of 41%
  • Unite Group details the sale of £116m of asset sales and stays on track to reach its leverage reductions targets for the full year
  • Consort announces an H1 pre-tax profit of £10.5m from £10.2m and states that the business has delivered on its forecasts
 
UK Market News
  • UK Chancellor Osborne is to give his Autumn budget statement today with the expectations that he may need to extend austerity measures through to 2018
  • Tesco will also be eyed on reports that it may undertake a review of its US Fresh & Easy chain, which could result in a sale – this has just been confirmed by Tesco this morning and that the CEO of the unit is to leave
  • HSBC confirms that it is to sell its stake in China’s Ping An stake at HK$59 to Charon Pokphand for $9.4bn
  • FTSE 100 Ex dividends (net): Aberdeen Asset Management PLC, ADN, (7.10),  Associated British Foods PLC, ABF, (20),  Carnival PLC, CCL, ($0.50),  Land Securities Group PLC, LAND, (7.4g),  SABMiller PLC, SAB, ($0.24),  Severn Trent PLC, SVT, (30.34)
  • FTSE 250 Ex dividends (net): Big Yellow Group PLC, BYG, (5g),  British Empire Securities and General Trust PLC, BTEM, (3.50),  British Empire Securities and General Trust PLC, BTEM, (7.50),  Britvic PLC, BVIC, (12.40),  Cranswick PLC, CWK, (9.40),  De La Rue PLC, DLAR, (14.10),  Debenhams PLC, DEB, (2.30),  Electrocomponents PLC, ECM, (5),  Grainger PLC, GRI, (1.37),  Homeserve PLC, HSV, (3.63),  Investec PLC, INVR, (7.521),  London Stock Exchange Group PLC, LSE, (9.70),  N Brown Group PLC, BWNG, (5.45),  PayPoint PLC, PAY, (10.20),  Perpetual Income and Growth Investment Trust PLC, PLI, (2.55),  Personal Assets Trust PLC/Fund, PNL, (140),  Shanks Group PLC, SKS, (1.10),  TR Property Investment Trust PLC – Ordinary Shares, TRY, (2.65),  TR Property Investment Trust PLC – Sigma Shares, TRYS, (1.05),  WS Atkins PLC, ATK, (10)
  • FTSE Small Share Ex dividends (net): F&C Capital & Income Investment Trust PLC/Fund, FCI, (2.85),  Fuller Smith & Turner, FSTA, (5.35),  Greencore Group PLC, GNC, (2.50),  Headlam Group PLC, HEAD, (4.65), Hogg Robinson Group PLC, HRG, (.60),  Invesco Income Growth Trust PLC, IVI, (2),  IRP Property Investments Ltd, IRP, (1.80),  Management Consulting Group PLC, MMC, (.23),  Norcros PLC, NXR, (.155),  Phoenix IT Group Ltd, PNX, (3.70),  Tarsus Group PLC, TRS, (2.20),  UK Mail Group PLC, UKM, (6.40),  Value and Income Trust PLC, VIN, (4),  Vp PLC, VP/, (3.25)
 
FTSE 100 Movers
 
 
UK Analyst Upgrades
  • Compass Added To Citi’S Focus List Europe
  • Home Retail Raised To Buy Vs Neutral At Bofaml
  • Thomas Cook Rated New Outperform At Credit Suisse; Pt 36P
  • Tui Travel Pt Raised 15% To 300P At Exane; Kept At Neutral
 
UK Analyst Cuts
  • Halfords Cut To Neutral Vs Buy At Bofaml
 
UK Insider Buying
  • Barclays Plc, (BARC), 1 insider(s) bought 2000 shares, £2.48
  • Dialight Plc, (DIA), 1 insider(s) bought 2085 shares, £10.62
  • Pennon Group Plc, (PNN), 1 insider(s) bought 460 shares, £6.22
  • Thomas Cook Group Plc, (TCG), 2 insider(s) bought 117907 shares, £0.26
  • United Utilities Group, (UU/), 1 insider(s) bought 3000 shares, £6.88
 
UK Insider Selling
  • Beazley Plc, (BEZ),  insider(s) sold 136211 shares, £1.8
  • Hyder Consulting Plc, (HYC),  insider(s) sold 63328 shares, £4.18
  • Lonmin Plc, (LMI), 1 insider(s) sold 6654 shares, £1.25
  • Smith & Nephew Plc, (SN/), 1 insider(s) sold 203316 shares, £6.64
 
Global Footprint
 
 
Major European Companies Reporting
  • Elekta AB, Q2, 0.789, TUI Travel PLC, R, 0.24
 
European Market Summary
  • Telefonica is reportedly looking to raise as much as €6bn euros through an IPO of its Latin American business in both London and Madrid
  • Swedbank’s chief details how it is deliberately looking to lose market share in the domestic mortgage market in order to reduce its exposure from the risk of impairments from record household indebtedness
  • Germany sells €4bn in 2 year notes at 11:30
 
Major US Stock Movers After Hours
  • Chelsea Therapeutics fell over 22% after hours as it details that results of a key drug tests were not statistically significant
  • Mattress Firm fell 23% as it cuts its full year outlook citing softening sales trends
  • Tibco Software came off 13% as it announces Q4 EPS of $37-38, against the estimates of $0.44 seen
 
S&P 500 Companies Reporting
  • Brown-Forman Corp, Q2, 0.782, SAIC Inc, Q3, 0.34
 
US Market News
  • President Obama has stated that there is the potential for a deal on the Fiscal Cliff and that the US economy is ‘poised to take off’ after a deal
  • The Fed looks set to announce a further round of Treasury bond purchases when it meets next week
  • Rochdale Securities stays in the news as its former trader David Miller is charged with wire fraud over his unauthorised $1bn purchase of Apple shares that nearly bankrupted Rochdale after the recent volatility in Apple’s share price
  • John Paulson has stated that the bulk of his losses in 2012 have come from the incorrect assumption, so far, that the European sovereign debt crisis would worsen
  • Iran claims to have a US unmanned stealth drone
  • John McAfee founder of McAfee Software, acquired by Intel last year, has stated that he is now in Guatemala after fleeing from Belize where is wanted for questioning over the murder of his neighbour
 
Overnight Market News
  • Chinese markets gained overnight as the new administration details that it will promote domestic demand and urbanisation, boosting commodity prices, at the same address Xi Jinping has pledged to protect citizen’s rights and reinforce public confidence in the law
  • Australian GDP gained 0.5% from the previous quarter, just under the forecasts of around 0.6% seen
  • China’s People’s Daily writes that China has published a pamphlet which details the disputed Senkaku/Diaoyu islands as being in sovereign Chinese territory
  • Overseas Chinese Banking Corp OCBC recommends being overweight in Olam short end bonds
  • Bloomberg writes on how Allisher Usmanov, who made $1bn investing in Facebook, is now avoiding the US and focusing on China
FX Summary
  • The yen has weakened following some verbal intervention from deputy Bank of Japan governor who stated that the central bank remains ready for action when needed
  • Bloomberg highlights a new survey which has more German companies bearish on the euro outlook for the first time since August
  • The Swiss franc has weakened after the reports that Credit Suisse is placing a negative interest rate on balances held in Swiss francs by financial institutional clients, as naturally investors are less keen to hold a currency which offers negative interest rates
 
Economic Data Due
  • 09:00 Eurozone November PMI Composite, 45.8 exp. 45.8 previous
  • 09:30 UK November PMI Services, 51.1 exp. 50.6 previous
  • 10:00 Eurozone October Retail Sales, -0.8% exp. -0.8% previous
  • 15:00 US Factory Orders, 0.0% exp. 4.8% previous
 
Economic Events
  • EU to adopt proposals against Tax Evasion
 
US November Non Manufacturing ISM
Swen Lorenz: