Markets Overview:

UK 100 called to open -30 points at 7450; U.S. and European futures slumped and Asian stocks tumbled to a seven-week low amid mounting evidence that the coronavirus epidemic is disrupting the world’s second-largest economy. In focus today in the UK will be The BOE Interest rate decision, which could go either way, as Mark Carney oversees his last decision at the helm. Investors put the odds of a 25 basis-point cut at about 50-50, the most divided they've been this close to a decision under his watch. Investor risk off was in focus during trading in Asia overnight with sharp declines seen, the Nikkei falling 1.78% (415 points) to close at 22,963, the Hang Seng followed suit, falling 2.19% (596 points) to close at 26,564. In the U.S a combination of factors saw the Dow pare early gains to close out the day near flat (having been 200 points higher during the session) closing +11 points at 28,734, this pattern continued across both the S&P closing -3 points at 3,273, and the Nasdaq +5 points closing at 9,275. Yesterday’s build in EIA inventories saw oil trading back below $60 once more, trading at $59.2 at time of writing. As so often the case, equity risk off, saw funds invested in traditional safe haven gold, seeing prices back up towards $1580 (trading at $1577 at time of writing).

In corporate news this morning:

BT Group reported a worse-than-expected 3% drop in third-quarter revenue to £5.78bn and 4% drop in core earnings to £1.98bn, but said it remained on track for the year. They welcomed the government's decision to allow Huawei to take a role in building future networks, although the new rules would cost BT 500 million pounds over five years.

Diageo announced that they see FY organic net sales growth to be towards lower end of mid-term range. HY EPS +4.2%, net sales +4.2%, organic profit +4.6%, operating profit +0.5% and interim dividend +5% to 27.41p  

Evraz reported a +2.1% increase in Q4 crude steel output at 3.4m tonnes QoQ. Production of raw cooking coal -5.3% QoQ at 5.98m tonnes. Total sales of steel products +6.6% QoQ at 3.6m tonnes.

Kaz Minerals FY copper production above guidance of 300kt owing to outperformance at Aktogay. Q4 copper copper production of 80.9kt with strong output from all divisions. Full year gold production rose by 10% to 201.5koz (FY2018: 183.4koz) due to high grades ar Bozshakol and Bozymchak.  

RDSB said this morning that  they had delivered competitive cash flow performance in 2019 despite challenging macroeconomic conditions in refining and chemicals, as well as lower oil and gas prices. Generating $47 billion in cash flow from operating activities excluding working capital movements and distributed over $25 billion in dividends and share buybacks to our shareholders. Also stating intention to complete the $25 billion share buyback programme is unchanged, but the pace remains subject to macro conditions and further debt reduction

Unilever expects underlying sales growth in lower half of multi year 3-5% range in 2020. Remain on track for 2020 goals.

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

Reporting Today:

Unilever

Haynes

Rank

Renishaw

Royal Dutch Shell

Evraz

BT Group

Diageo

Reporting Tomorrow

None

In Focus Today:

UK - Bank of England Interest Rate Decision

EU - Eurozone unemployment rate

DE - German Harmonised Index of Consumer Price

US - GDP

Today's Ex Dividends:

UK 100 :

None

:

IG Group

Victrex

Upgrades/Downgrades

None

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