Markets Overview:

UK 100 called to open flat at 7555; calls for a flat open come on the back of the Tory leadership result yesterday which saw Boris Johnson become the new Tory Leader and Prime Minister (taking office officially today) and the market rallying around 40 points yesterday! Overnight sessions on both the U.S. and Asian markets saw a green sweep! The Dow Jones adding in excess of 175pts to close towards record highs once more! Crude once again broke through $64 a barrel overnight and gold recovered back above $1420.

In corporate news this morning:

Antofagasta announces strong copper production during Q2 2019 (+5.3%). Maintains production guidance for the full year at 750-790,000 tonnes. 

Tullow Oil revenues of $872m, Gross Profit of $527m, Post tax profit $103m & Free cash flow of $181m.  Board confirmed interim dividend of 2.35c per share (c.$33m) in line with policy. Reduced net debt and gearing.  Full year 2019 oil production revised down, reflecting delays in TEN well completion. 

Aston Martin announces wholesale cars sales of 6,300-6,500 for FY 2019. announced challenging environment has worsened. Anticipates this softness will continue for the remainder of the year and are planning prudently for 2020. 

ITV revenues for H1 2019 -7%,, EBITA -13% at £327m (2018: £375m). EPS -9% at 4.8p (2018: 5.3p).  Love Island boosting performance, however economic and political uncertainties remain. 

IQE announces the commitment of initial VCSEL production for a second major customer at the Newport Mega Foundry. As a result IQE have signed a contract extension with one of its largest VCSEL until the end of 2021.

Vodafone finalise 5G network agreement in the UK with o2 to allow site sharing, meaning more customers will have access to 5G sooner than expected.

Whitbread announced completion of Tender offer and total voting rights, the total returned to shareholders is £2.5Bn via Tender offer and share buybacks.

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Upgrades/Downgrades:

Whitbread Downgraded to Reduce by Kepler Chevreaux (Bloomberg: 4 Buys / 14 Holds / 5 Sell)

Asos Upgraded to Equalweight by Berenberg (Bloomberg: 15 Buys / 8 Holds / 4 Sells)

HSBC Downgraded to Hold by Jefferies (Bloomberg: 6 Buys / 4 Holds / 9 Sell)

Rio Tinto Downgraded to Underperform by Credit Suisse (Bloomberg: 9 Buys / 13 Holds / 8 Sell)

In focus today:

ECB Lending survey (9.00am)

U.K. FPC meeting minutes (9.30am)

Tory Leadership contest results (11.45am)

U.S. existing home sales data (3.00pm)

Company reporting day reaction:

Antofagasta, Croda, Metrobank, Paypoint, B&M, Britvic, Drax, GSK (12.00pm) , Informa, ITV, Marstons, Polymetal, Segro, Tullow Oil

Companies reporting tomorrow:

Anglo American, Kaz Minerals, AstraZeneca, Diageo, Unilever

This weeks ex-dividend shares:

SSE - 5.9%

Royal Mail - 7.7%

Pennon Group - 3.8%

Companies reporting this week:

Pearson & Vodafone (Check our the week in advance for a full list)

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.