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Morning Report - 1 August 2023

Yesterday’s UK 100 Leaders Price (p) % Chg
International Consolidated Airlines Group S.A. 171.0 3.5%
Weir Group PLC 1,839.6 2.8%
Centrica PLC 137.6 2.5%
Rightmove PLC 572.8 2.5%
Scottish Mortgage Investment Trust PLC 736.4 2.3%
Yesterday’s UK 100 Laggards Price (p) % Chg
Ocado Group PLC 937.6 -4.0%
Rolls-Royce Holdings PLC 186.2 -3.7%
Coca-Cola Hbc AG 2,298.5 -2.4%
BT Group PLC 122.0 -1.8%
Sainsbury (J) PLC 277.7 -1.7%
Major World Indices Price % Chg 1 YEAR
UK 100 INDEX 7,711 0.2% 3.8%
DOW JONES INDUS. AVG 35,522 0.2% 8.1%
DAX INDEX 16,469 0.0% 22.5%
NIKKEI 225 33,172 1.3% 18.5%
S&P/ASX 200 INDEX 7,410 0.1% 6.7%
Commodities Units Price % Chg
WTI Crude Oil (Nymex) USD/bbl. 81.13 0.68%
Brent Crude (ICE) USD/bbl. 85.34 0.41%
Gold Spot USD/t oz. 1,968 0.4%
Copper (Comex) USd/lb. 400 1.8%
The UK 100 called to open flat point at 7,699.

4 hours; 5 Months

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Markets Overview:

The UK 100 called to open flat point at 7,699.  The UK 100 is called to open broadly flat today, this comes after, markets Stateside rallied into the close leaving the Dow, S&P and Nasdaq all higher.  In Asia, China’s manufacturing sector fell into contraction in July, with the Caixin manufacturing purchasing managers’ index recording a level of 49.2 points in July down from 50.5 in June.

 

 

Company News & Broker Comments:

Company News:

BP on Tuesday reported a nearly 70% year-on-year drop in second-quarter profits on the back of weaker fossil fuel prices, echoing a trend observed across the energy industry.  The British energy major posted second-quarter underlying replacement cost profit, used as a proxy for net profit, of $2.6 billion. Analysts had expected BP to report second-quarter profit of $3.5 billion, according to estimates collated by Refinitiv.

 

 

DiscoverIE Group has acquired Wales-based telecom components group Silver Telecom (Silvertel) for an initial consideration of £21mln and up to a further £23mln in earn-outs

 

 

Greggs PLC has announced growing sales and pre-tax profit during the first half of the year as hopes rest on easing inflation.  Sales in the six months to July jumped 16% to £844mln on a like-for-like basis, “reflecting the exceptional value that Greggs offers to customers,” the company said in a statement.  Pre-tax profit rose 43% to £80mln meanwhile, though this included £16.3mln of exceptional net income thanks to the settlement of a Covid business interruption case.

 

 

HSBC this morning reported and launched a new US$2bn share buyback and revised its guidance upwards as profit in the first half of 2023 more than doubled.  The bank said pre-tax profit in six months to June 30 jumped to US$21.66bn from US$8.78bn the year before including a US$1.5bn gain on acquiring the UK arm of Silicon Valley Bank.  Revenue increased by 50% to US$36.9bn from US$24.6bn driven by higher net interest income in all businesses due to interest rate rises.  Net interest income jumped to US$18.26bn from US$13.39bn.

 

 

Broker Comments:

No new broker comments

Reporting Today:

UK

 

BP

Coats Group

Diageo

Domino’s Pizza Group

Fresnillo

Greggs

HSBC Holdings

Keller Group

Man Group

Travis Perkins

Weir Group

 

 

 

US

 

Caterpillar Inc

Merck & Co

Pfizer

Advanced Micro Devices

MicroStrategy

Pinterest

Starbucks Corp

Uber Technologies

Virgin Galactic

Reporting Tomorrow:

UK

 

BAE Systems

Direct Line Insurance Group

Endeavor Mining

Ferrexpo

Haleon

IP Group

Smurfit Kappa Group

Taylor Wimpey

 

 

US

 

The Kraft Heinz Co

Etsy

Lemonade

Occidental Petroleum

PayPal Holdings

Qualcomm Inc

Shopify

Unity Software

 

 

In Focus Today:

Chinese Caixin Manufacturing PMI

German Trade Balance s.a.

German HCOB Manufacturing PMI

German Unemployment Change

EU Unemployment Rate

US ISM Manufacturing PMI

JOLTS Job Openings

BoJ Monetary Policy Meeting Minutes

 

This Week’s Ex-Dividends:

UK 100 companies going ex-dividend on 3rd August 2023:

 

BT Group

Unilever

Lloyds Banking Group

Reckitt Benckiser Group

RELX

Rentokil Initial

 

 

UK 250 companies going ex-dividend on 3rd August 2023:

 

Oxford Instruments

Schroder Oriental Income Fund

Moneysupermarket.com Group

Games Workshop Group

Tyman

Rathbones Group

Aberforth Smaller Companies Trust

Jupiter Fund Management

Inchcape

Vesuvius

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