Markets Overview:

UK Index called to open -15pts at 7643; Calls for a positive open come in spite of weaker trading sessions overnight in both the U.S. and Asia, in which saw Asian markets hit 6 week lows.  U.S. & China continued trade talks on the back of President Trump’s tweets. Fed will today announce interest rate decision Stateside and it is widely expected that rates will be cut, all eyes will be on Fed chair Powell to signal next steps.  Oil continued to rally overnight breaking through the $65 handle. Gold also rallied through the night to reach $1432.

In corporate news this morning:

Glencore 1H 2019 production update Copper -5%, Cobalt +28%, Zinc +8%, Nickel -11%, Coal +10%, Oil entitlement and Ferrochrome in line. 

Lloyds announces profit after tax of £2.2bn (2018: £2.3bn), EPS of  2.7p (2018: 2.9p). An additional PPI charge of £550m. Expects to deliver sustainable, superior performance for its customers and shareholders, longer term targets remain unchanged although continued economic uncertainty could impact outlook.

Taylor Wimpey reported that they had made good progress in first half, against stratergy.  No meaningful change seen due to Brexit or any other geopolitical issues. YOY Revenue +.8%; Operating profit -9.4%; Profit for H1 -1%.  Also announces special dividend to be paid in 2020 of £360m. Maintained guidance.

BAE Systems pressed ahead as operational improvements drove H1 core earnings to £999m, cementing its full-year guidance. The company reiterated its earnings share forecast to 42.9p as restructuring charges were offset by its operational performance. Interim dividend increased by 4.4% to 9.4p per share.

Vodafone announced this morning that they had completed the sale of Vodafone New Zealand, for a cash value of 2.1bn Euro.  This equated to a FY19 multiple of 7.3x

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

Upgrades/Downgrades:

BP Upgraded to Buy by Jefferies (Bloomberg: 21 Buys / 6 Holds / 1 Sell)

Centrica Upgraded to Buy by Morningstar (Bloomberg: 1 Buy / 13 Holds / 6 Sells)

Fresnillo Downgraded to sector perform by RBC Capital (Bloomberg: 6 Buys / 9 Holds / 1 Sell)

In focus today:

Fed interest rate decision (7.00pm)

Eurozone GDP (10.00am)

Eurozone CPI (10.00am)

Company reporting day reaction:

Taylor Wimpey, Serco Group, St James Place, Talk Talk, Travis Perkins, Lloyds, Direct Line, Indivior, Smurfit Kappa, Smith and Nephew, Just Eat, BAE, Next, Glencore, Sophos, Evraz

Companies reporting tomorrow:

British American Tobacco, Barclays, Shell, Rio Tinto, Standard Chartered (For a full list, see week in advance)

Companies reporting this week:

IAG, RBS, BT (Again for a full list see the week in advance)

Tomorrow's ex-dividend payers:

 RELX: 0.7%

QuentiQ: 1.6%

Beazley: 0.7%

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