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Morning Report - 28 July 2021

Yesterday’s UK 100 Leaders	Price (p)	% Chg
CRODA INTERNATIONAL PLC	8,266.0	5.6%
JUST EAT TAKEAWAY	6,217.0	3.8%
DS SMITH PLC	426.9	1.4%
ROLLS-ROYCE HOLDINGS PLC	98.3	1.3%
UNITED UTILITIES GROUP PLC	1,054.5	1.0%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
RECKITT BENCKISER GROUP PLC	5700.0	-8.4%
SCOTTISH MORTGAGE INV TR PLC	1278.0	-4.3%
INTERMEDIATE CAPITAL GROUP	2184.0	-3.5%
INFORMA PLC	487.0	-2.6%
PRUDENTIAL PLC	1336.5	-2.2%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	6,996	-0.4%	14.1%
DOW JONES INDUS. AVG	35,059	-0.2%	31.9%
DAX INDEX	15,519	-0.6%	20.9%
NIKKEI 225	27,582	-1.4%	22.0%
S&P/ASX 200 INDEX	7,379	-0.7%	22.6%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	72.12	0.66%
Brent Crude (ICE)	USD/bbl.	74.86	0.51%
Gold Spot	USD/t oz.	1,807	0.4%
Copper (Comex)	USd/lb.	456	0.3%

The UK 100 is called to open +4 points today at 7000.

1 day; 5 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open +4 points today at 7000. The UK Blue chip index is called to open slightly higher this morning having pared off an early fall pre market. A great deal of focus today will be on the Fed interest rate decision this evening, although unlikely to make any changes to the current interest rate, there will be interest in the central bank’s outlook for rest of the year and beyond, particularly how long it thinks inflation will last and any plans to wind down its bond purchasing programme. Yesterday on Wall Street saw the Dow Jones close 0.24% lower at 35,058 while the S&P dropped 0.47% to trade at 4,401, the Nasdaq fell by the greatest margin, falling 1.21% to settle at 14,660. The picture was similar in Asia this morning, with Japan’s Nikkei 225 down 1.71% while Hong Kong’s Hang Seng fell 0.24%. Oil prices have nudged up, Brent now changing hands at $74.80 a barrel, up 0.4% & traditional safe haven gold is now changing hands at $1,804 an ounce, up 0.2%

Company News & Broker Comments:

Company News:

Barclays reported first half profits which nearly trebled, as it took the lead from its Wall St. rivals in making bumper fees from investment banking. COVID-19 pandemic-related bad loan charges remained low which allowed the bank to release £700m in cash, set aside for these loans. Profit before tax was £5bn, above the consensus of £4.1bn. They will pay an interim dividend of 2p per shares after the BoE scrapped their curbs on pay-outs.

British American Tobacco reported better than expected revenue for the first half of the year, as it added a record number of new customers for its vaping products. Adjusted revenue came in at £12.12bn, ahead of the £12.02 analysts were expecting. The company also kept its full-year forecast for 5% sales growth.

Rio Tinto said first-half underlying earnings more than doubled due to the surge in iron ore prices on strong demand from China, which has enabled it to return $9.1bn in dividends. A huge infrastructure spend by China and issues in Brazil helped iron ore prices soar earlier in the year. Underlying earnings came in at $12.17bn from $4.75bn a year earlier. This beat the analysts' estimate of $12.01bn.

ITV said that advertising rebounded strongly, with June showing its largest ad revenue in its history with the relaxation of COVOD restrictions and the Euros. External revenue for the first half rose 27% to £1.55bn. CEO Carolyn McCall said ITV was emerging from the worst effects of the pandemic. The company said that ad revenue for June and July would be 16% higher than the same period in 2018 when it broadcast the World Cup. McCall said they would restart a progressive dividend policy of 5p a share, with a first pay-out of 3.3p proposed at the full-year.

Smurfit Kappa first half EBITDA up 6% as higher input costs passed on. H1 revenue was up 11% to 4.679bn euros. Continue to see strong demand for its core products. Also, to acquire 600,000 tonne recycled containerbord mill in Italy, accelerating its investment plans.

Aston Martin's first SUV, the DBX, helped push sales up by more than 200%. Its pretax loss fell from £227m in H1 of 2020 to £91m, with the company saying it is trading in line with expectations.

Fresnillo says it remains on track to meet full year guidance and production guidance for 2021 is unchanged. Quarterly silver production was 14.0 MOz up 17.9%. Gold production was up 8.6% v Q2 2020.

Broker Comments:

No New broker comments

Reporting Today:

Aston Martin

Barclays

British American Tobacco (BATS)

Fresnillo

GlaxoSmithKline (GSK)

ITV

Rathbone Brothers

Rio Tinto

Smurfit Kappa

St James Place

Wizz Air

Reporting Tomorrow:

Anglo American

Astrazeneca

BAE Systems

BT Group

Compass Group

Diageo

Drax Group

Elementis

Evraz

Indivior

Informa

Intermediate Capital Group

Lloyds Banking Group

National Express Group

Pets at Home

RELX

Rentokil

Royal Dutch Shell

Sage Group

Schroders

Segro

Smith & Nephew

Weir Group

In Focus Today:

Fed Interest Rate Decision

Japanese Leading Economic Index

German Gfk Consumer Confidence

Tomorrow's Ex-Dividends:

FTSE 100:

SSE

Royal Mail

FTSE 250:

BB Healthcare Trust

Sequoia Economic Infrastructure Inc Fnd

QinetiQ Group

Hipgnosis Songs Fund

Bankers Investment Trust

Monks Investment Trust

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