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Market news round up, upgrades & downgrades courtesy of Cantor Index

10 Jan 2013

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Cantor Opening Call
  • The FTSE is called to open up around 5 points higher today
 
 
UK Corporate Announcements
  • Tesco announces key 6 week holiday sales gained 1.8%, ahead of the forecasts of around 1% seen, and states that trading was broadly in line through the Christmas period, although food sales were much stronger
  • Rathbone Brothers details funds under management gained 13.2% to £17.98bn and confirms its full year targets
  • SIG announces full year revenues of £2.64bn and sees a full year pre-tax profit of no less than £82m and expects further progress in 2013
  • JD Sports reports 49 week same store sales fell 3.9% and sees full year pre-tax profit at the low end of the market forecasts
  • Hays states that UK and Southern Europe stays tough, and that Q2 LFL net fees in total fell 1%
  • London Capital Group announces full year group revenues of £28.6m and saw suppressed trading volumes in Q4 and details that COO Rachel Woodford is to resign
  • Marks & Spencer late yesterday announced Q3 numbers that disappointed the analysts, as it reported a day earlier than expecte, reportedly due to a leak of the results, it detailed it had offered fewer promotions and opted out of the discount driven market, and states that the performance in general merchandise was ‘not satisfactory’
 
UK Market News
  • The FTSE yesterday closed at its highest level since May 2008, as its close at 6098 just surpasses the 2011 highs of 6082
  • The UK and ECB rate announcements at midday will take focus as the markets increasingly gets back into gear following the holiday season
  • The FT writes that Premier Foods has been forced to abandon its pledge to use only British wheat, after the poor weather in the UK has affected harvests
  • The UK high street has had its first casualty of 2013, as Jessops, the camera retailer, fell into administration yesterday
  • The FT writes on how the US has warned Britain again on leaving the EU
  • The UK details this morning that it will continue to publish RPI data and that the formula used will not change after the ONS states that RPS does not meet international standards and that it will create an new inflation index to be known as RPIJ
  • Hardy Oil & Gas responds to talk and states that it is in talks with the block operator of its GS-01 exploration block off India, but that no agreement has yet been made
 
UK Analyst Upgrades
  • Chemring Pt Raised To 360P Vs 300P At Ubs
  • Delta Lloyd Raised To Overweight Vs Equalweight: Morgan Stanley
  • Dunelm Raised To Buy Vs Neutral At Citi
  • Monitise Rated New Underperform At Exane
  • Oxford Instruments Rated New Buy At Ubs, Pt 1,700P
  • Vesuvius Rated New Neutral At Nomura; Pt 400P
 
UK Analyst Cuts
  • Bodycot Cut To Sell Vs Neutral At Citi
  • Melrose Raised To Buy Vs Neutral At Citi
 
FTSE 100 Movers
 
 
Major European Companies Reporting
  • Suedzucker, Q3, 0.637
 
European Market Summary
  • Bloomberg writes on how CaixaBank is now looking ‘bloated’ compared to others in the sector as its 6,600 branches serve on average 1,991 clients, against the 3,000 on average served by branches of Banco Santander
  • Berlusconi is in the news as he trails in the polls and as a result is being forced into an interview next week with Michele Santoro, who he fired from state run RAI back in 2002
  • Van Rompuy and Barroso have backed the Irish bank deal
  • Spain sells bonds at 10:30
  • Italy sells €8.5bn in 365 Bills at 11:00
 
Major US Stock Movers After Hours
  • Voxx International gained 17% as it announces Q3 sales of $243m
  • Quicklogic fell 9% after hours as it cuts its revenue outlook for Q4
  • Ruby Tuesday came off 8% as it announces it was closing some stores and exiting some concepts, and lowers its full year EPS forecasts

US Market News
  • US press suggests that Morgan Stanley is set to announce a further reduction in its investment banking staff, with around 1,600 jobs to go
  • The VIX Index continues to ease, and has now moved down to a 5 year low, as investors view 2013 with increasing confidence
  • Bats Global Markets, the third largest stock exchange operator, has stated that its systems violated rules intended to set a level playing field for all investors
  • Herbalife is reportedly being looked at by the SEC on concerns on its multi level sales practises
 
Overnight Market News
  • Asian markets gained overnight as Chinese exports gained by more than the expectations, with overseas sales up 14.1% from last year.
  • The Bank of Japan governor keeps up the verbal intervention as he states that the central bank was in close cooperation with the government, ramping up speculation of additional asset purchases
  • Hong Kong listed Foxconn Technology announces that Chinese authorities are investigating allegations that at least one of its executives accepted bribes from suppliers
  • In wider news the lawyer representing the three of the men charged with the gang rape and murder of a student aboard a bus has blamed the victims and states that he has never heard of a ‘respected lady’ being raped in India
 
Economic Data Due
  • 12:00 MPC Rate Announcement, 0.5% Unchanged expected
  • 12:45 ECB Rate Announcement, 0.75% Unchanged expected
  • 13:30 US Initial Jobless Claims, 361k exp. 372k previous
  • 15:00 US November Wholesale Inventories, 0.3% exp. 0.6% previous
 
Economic Events
  • EU – Kenny – Barroso Press Conference in Dublin

Bank of England Official Rate
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