Markets Overview:

UK 100 is called to open +27 points this morning at 6788. Calls for a positive start today come on the back of yesterdays US Federal Reserve meeting which highlighted improving growth in the United States and a best of both world scenario in which the US has delivered a higher growth rate, but at the same time, it doesn’t see the need to hike rates anytime soon.  On Wall Street, the news was greatly received by investors, seeing the Dow Jones rise by 189 points or 0.58% to close Wednesday’s session at 33,015.  The S&P 500 moved up 0.29% to close at 3,974 and the Nasdaq ended Wednesday up 0.4% at 13,525 to complete a green sweep of markets.  In Asia overnight, Japan’s Nikkei gained 302 points or 1.01% to trade at 30,216 and Hong Kong’s Hang Seng climbed further, adding 475 points or 1.64% to 29,505.  In China, the Shanghai Composite was up 0.37% to 3,458.

Company News & Broker Comments:

Company News:

Fevertree reports a 2020 pretax profit of £51.6m, down 29% (2019: £72.5m) declaring a 15.68p dividend (+4%). They have reintroduced guidance and sees revenue growth of 12-16% in 2021. They expect on-trade to rebound as lockdowns lifted, with little switching from off-trade.

National Express reports that their revenue fell 29% in 2020 to £1.96bn as they swung to a loss of £444.7m (2019: £187m profit). They report material structural cost savings in every division as they are to resume dividend payments "as soon as it is prudent to do so".

Ocado says that their retail revenue rose 40% in the 13 weeks to Feb 28th with their average order size of £147. Their retail revenue in the last quarter was £599m, up 40% YoY. They expect positive annual revenue growth in Q2 as they ramp up production in their Bristol fulfilment centre and they expect to see a dramatic and permanent shift towards online grocery shopping around the world.

Premier Oil sinks to a 2020 pretax loss of $605.3m (2019: $102.5m).

Vodafone has priced shares in its infrastructure unit Vantage Towers at 24 euros each, valuing the firm at 12.1bn euros.

888 Holdings reports an adjusted pretax profit of $26.7m (2019: $45.3m) and a final dividend of 12 cents per share (2019: 3 cents). They expect the annualised impact of regulatory and compliance changes are expected to be a headwind to revenues of $70-100m in the FY.

Broker Comments:

Deutsche Bank Upgrades Standard Life Aberdeen to Buy from Hold (4 Buys / 8 Holds / 0 Sells)

Goldman Sachs Upgrades Natwest to Conviction Buy List from Buy (4 Buys / 10 Holds / 3 Sells)

UBS Downgrades Crest Nicholson to Sell from Neutral (4 Buys / 0 Holds / 0 Sells)

UBS Downgrades Persimmon to Neutral from Buy (13 Buys / 3 Holds / 0 Sells)

Reporting Today:

888 Holdings

National Express Group

Ocado

Vectura Group

Reporting Tomorrow:

ContourGlobal

Investec

OneSavings Bank

Sanne Group

Wetherspoon

In Focus Today:

BoE Interest Rate Decision

EU Labour Cost

US Initial Jobless Claims

BoE's Haldane speech

Japanese National Consumer Price Index

Today's Ex Dividends:

UK 100:

SEGRO

Anglo American

Hikma Pharmaceuticals

CRH

M&G

UK 250:

Dunelm Group

BlackRock World Mining Trust

Tritax Big Box REIT

Spirent Communications

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