Markets Overview:

UK 100 called to open +30 points at 7310; This comes on the back of yesterday’s news that Britain may face its third election in just over four years. PM Boris Johnson will try to trigger a snap poll on Oct. 14 if he loses a crunch vote in Parliament this evening.  This saw the UK 100 rally to 250 points off last weeks bottom!  With it being labour day holiday yesterday Stateside we will see today whether last weeks near 700 point rally on the Dow Jones continues momentum into today! A quieter than usual trading session in Asian closed on a positive note for the Nikkei. Oil hovered around the $59 per barrel level overnight, whilst gold slipped back slightly to settle at $1525.

In corporate news this morning:

Lloyds confirmed the acquisition of Tesco Banks mortgage portfolio at a value of £3.7m

The Restaurant Group like for like sales up 4%, with total sales up 58.2%; Adj profit pre tax £28.1m vs £20.7m last year; EBITDA of £61.4m vs £38.4m; Interim dividend of 2.1p per share (in line with policy)

DS Smith reported today that The business continues to progress well despite, as expected, continued macro-economic uncertainty, and our expectations for overall financial performance remain unchanged

IQE  said Performance in line with half-year guidance and full year guidance and reiterated strategic and operational progress to ensure business is well-positioned for future growth, revenue down from £73.4m to £66.7m; EBITDA down from £13.5m vs £7.4m; Profit fell from £6.6m to a loss of £3.1m;

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

Upgrades/Downgrades:

EasyJet Downgraded to Reduce by Kepler Cheuvreux (Bloomberg: 9 Buys/ 14 Holds/ 4 Sells)

In Focus Today:

U.S ISM Manufacturing

ECB nominated President Legarde speech

Eurozone PPI

Companies reporting day reactions:

IQE, The Restaurant Group, DS Smith

Companies reporting next week: 

Barratt Developments, Just Group, Dunelm, Halfords, Dixons Carphone, Berkeley Group, Ashmore, Greene King

Ex-Dividends next week:

Micro Focus: 4.4%

BHP Group: 3.7%

Glencore: 3.5%

Admiral: 3%

Dixon’s Carphone: 4.2%

Page Group: 4%

Paypoint: 2.4%

Greggs: 2.3%

(Full list available on Week in advance)

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