Market news round up, upgrades & downgrades

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5 mins. to read

UK MARKET NEWS

  • Manchester United has now filed for its IPO  to list on the NYSE, and is raising just $100m, well under the $500m talked about a week or two ago, and well under the $1bn cited on a possible Singapore IPO, it did not state how many shares would be sold or at what price, as it details nine month revenues of £245.8m up from £231m and a pre-tax profit of £15.7m from £11.8m
  • On the slow news day Barclays may stay the major focus; for the moment the spotlight remains on Barclays, however in the coming days we can expect this to shift to the other UK banks that engaged in the industry practises, which reportedly were widespread at the time, Barclays had a reduced fine for fully cooperating with regulators, a move which so far looks to have completely backfired
  • The resignation by Bob Diamond also allows pressure to build on the splitting of retail banking from investment banks, and finally he will be in the news this afternoon as he is due to speak to the UK Parliamentary Treasury Select Committee (at 14:00) this testimony may have an impact on whether Paul Tucker will replace Mervyn King as the next chief of the Bank of England, King is due to retire next summer, as Paul Tucker may also be called to testify after reports he gave tacit approval to the Libor setting practices
  • Vodafone is reportedly in talks with Hutchison to combine their phone networks in Ireland
  • The Glencore Xstrata deal is back in the news as Knight Vincke is the latest investor to urge Glencore to increase its offer
  • IP Group announces today its plan to raise £25m through an admission to AIM of its Revolymer unit
  • The UK is to sell £4.5bn in 2017 bonds at 10:30
 

S&P 500 COMPANIES REPORTING

  • None Scheduled
 

US STOCK MAJOR MOVERS AFTER HOURS

  • Due to the early closing in US markets yesterday, there was little significant after hours trading
 

US MARKET NEWS

  • Business news flow is naturally expected to be light today on Independence Day
  • The FT details how JP Morgan has been subpoenaed two times in the past quarter as investigations continue on whether it manipulated power markets in California, as Jamie Dimon remains under pressure from various fronts
  • The FDIC has posted the ‘living wills’ of the nine world’s largest banks, to be used as an outline to break up the banks if needed to avoid any future costly banking bailouts
  • Boeing estimates that the new airplane market globally will top $4.5tn over the next 20 years, as it sees the current global fleet doubling in size
 

ASIAN MARKET MAJOR NEWS

  • JFE was the leading faller in the Nikkei overnight, down over 5% on reports that it may issue new shares to help fund its expansion plans
  • Chiyoda was the leading gainer, up over 3%, and following decent gains posted for the past few days, since it announced it has won an order for Hitachi’s LNG Terminal
  • Chinese stocks have been dragged down a touch by industrials overnight, after some concerns that construction activity is faltering
  • Everbright the Beijing based bank is reportedly looking at $1.8bn share sale to list in Hong Kong, it is already traded in Shanghai, and scrapped plans for an IPO in Hong Kong last year
  • Former mainland banking regulator Liu Ming Kang has stated that Hong Kong is more important than ever as it may take up to 20 years for Shanghai and Shenzen to become international financial hubs
 

MAJOR EUROPEAN COMPANIES REPORTING

  • Chr Hansen Holding, Q3, 0.244 expected
 

EUROPEAN MARKET SUMMARY

  • Market talk suggests that along with an expected cut in the benchmark interest rate to 0.75%, under 1% for the first time, the ECB tomorrow will also cut the deposit rate to zero
  • Markozy has had his office raided by French police as part of an investigation into alleged illicit campaign funding
  • CERN has taken down a video which had been posted on its site suggesting that scientists may have found evidence for the elusive Higg’s Bosun, stating it was a pre-recorded video and was posted in error, the genuine data is expected to be released at 09:00 today in Geneva, CERN’s director has previously stated that if they do not find proof of its existence this year they will exclude its existence in their theories
  • Germany is due to sell €4bn in 5 year notes today
 

FOREX SUMMARY

  • The euro has fallen a little against the yen as safe haven buying returns ahead of a Spanish bond sale tomorrow, and ahead of the expected ECB rate cut tomorrow
  • Asian currencies in general have gained against the dollar as US factory orders data out yesterday evening was just ahead of the expectations
  • Yields in the South Africa and Brazil have moved to record lows as talk continues that central banks will take coordinated steps to increase global demand
  • The Aussie dollar moved up to two month highs, following on from the recent gains after the RBA left rates unchanged and as local retail sales data showed strength in May
 

COMMODITY NEWS

  • Traders suggest that LNG prices may have peaked as Japan is due to start nuclear power stations today for the first time since the disaster
  • Oil has continued the recent rally and is now up to five week highs, as Iran keeps up its verbal interventions stating that sanctions threatened its national security
 

ECONOMIC DATA DUE

  • 09:00 Eurozone June PMI Services, 46.0 exp. 46.8 previous
  • 09:30 UK June PMI Services, 52.9 exp. 53.3 previous
  • 10:00 Eurozone May Retail Sales, 0-.0% exp. -1.0% previous
 

ECONOMIC EVENTS

  • Monti meets Merkel in Rome
 

ANALYSTS UPGRADES

  • Quintain Estates, New Overweight at Barclays
 

ANALYSTS CUTS

  • None Out
 

INSIDER BUYS

  • Tui Travel Plc, (TT/), 1 insider(s) bought 15.000 shares, £1.74
  • Soco International Plc, (SIA), 1 insider(s) bought 1.612 shares, £3.15
 

INSIDER SELLS

  • None Detailed

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