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Morning Report - 8 December 2021

Yesterday’s UK 100 Leaders	Price (p)	% Chg
ANGLO AMERICAN PLC	2,995.0	6.5%
FERGUSON PLC	12,255.0	5.9%
BHP GROUP PLC	2,173.5	5.6%
AVEVA GROUP PLC	3,371.0	5.4%
RIO TINTO PLC	4,813.0	4.8%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
B&M EUROPEAN VALUE RETAIL SA	627.6	-1.9%
ASTRAZENECA PLC	8223.0	-1.7%
PEARSON PLC	594.0	-1.2%
RECKITT BENCKISER GROUP PLC	6152.0	-1.1%
VODAFONE GROUP PLC	111.9	-0.9%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,340	1.5%	11.9%
DOW JONES INDUS. AVG	35,719	1.4%	18.4%
DAX INDEX	15,814	2.8%	19.1%
NIKKEI 225	28,861	1.4%	9.0%
S&P/ASX 200 INDEX	7,405	1.3%	10.7%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	71.36	-0.96%
Brent Crude (ICE)	USD/bbl.	74.81	-0.84%
Gold Spot	USD/t oz.	1,790	0.4%
Copper (Comex)	USd/lb.	434	0.0%

The UK 100 is called to open -9 points today at 7330.

4 hours; 4 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open -9 points today at 7330. The UK's index of bluechip stocks looks set to open flat to moderately lower as investors take stock of the past few days of rapid growth. The UK 100 has risen around 200 points already this week, as the positivity and stability of the past couple of days show signs that markets appear to be shrugging off the prior panic about the Omicron Covid variant. On Wall Street yesterday the Dow Jones closed 492 points or 1.4% higher, at 35,719, whilst the S&P 500 was stronger rising by just over 2% to 4,686. The Nasdaq gained 3% to finish the session at 15,686 and small cap focussed Russell 2,000 added 2.28%. This positivity continued this morning in Asia as stocks were higher on Wednesday even as troubles in China’s property sector resurfaced. The Nikkei in Japan surged 1.42% and South Korea’s Kospi rose 0.34%. China’s Shanghai Composite gained 1.09% while Hong Kong’s Hang Seng index lifted 0.18%,

Company News & Broker Comments:

Company News:

Berkeley Group reports that their HY pretax profit increased 26% to £290.7m YoY as they expect 5% annual pretax profit growth for the next 3 years.

Centamin reports net 1.1m ounce mineral reserve growth at Sukari.

Centrica are to sell Spirit Energy Norwegian assets, Statfjord field for around £800m.

Deliveroo & Just Eat Takeaway: May have to reclassify some of their workers as employees under draft EU rules meant to boost their social rights, according to an EU document seen by Reuters.

SSP Group reported a bigger annual loss due to earlier pandemic restrictions, while sales in the first 9 weeks of its new fiscal year averaged at about 66% of pre-COVID levels. They posted an underlying pretax loss of £251m for the year ended Sept 30^th (2020: £239.6m loss).

Taylor Wimpey says their CEO Peter Redfern will step down after a successor is found.

TUI expects travel in summer 2022 to return to booking levels similar to pre-pandemic times, after it posted an annual loss of over 2bn euros as curbs dominated the better part of its financial year. They were close to reaching break-even in Q4 and achieved 69% of pre-crisis levels in Q1 of the new financial year.

Broker Comments

Jefferies Upgrades Ocado to Hold from Underperform (6 Buys / 8 Holds / 2 Sells)

Morgan Stanley Downgrades Avast to Equal-Weight from Overweight (3 Buys / 6 Holds / 0 Sells)

Morgan Stanley Downgrades Softcat to Equal Weight from Overweight (2 Buys / 3 Holds / 2 Sells)

Morgan Stanley Upgrades Sage to Overweight from Equal-Weight (5 Buys / 10 Holds / 1 Sell)

Morgan Stanley Upgrades Trustpilot to Overweight from Equal Weight (3 Buys / 3 Holds / 0 Sells)

UBS Upgrades Croda to Buy from Neutral (6 Buys / 9 Holds / 1 Sell)

Reporting Today:

Berkeley

SSP

Tui

Reporting Tomorrow:

DS Smith

Dr Martens

First Group

Moonpig

Rolls Royce

Watches of Switzerland

In Focus Today:

German 10-y Bond Auction

Tomorrow's Ex-Dividends:

FTSE 100:

Intermediate Capital Group

FTSE 250:

XP Power

Homeserve

Investec

Liontrust Asset Management

Redde Northgate

Assura

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