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Morning Report - 20 January 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
POLYMETAL INTERNATIONAL PLC	1,218.5	7.6%
BURBERRY GROUP PLC	1,866.5	6.3%
FRESNILLO PLC	839.2	4.9%
UNILEVER PLC	3,675.5	4.5%
PEARSON PLC	660.0	4.4%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
ASHTEAD GROUP PLC	5216.0	-4.4%
INTL CONSOLIDATED AIRLINE-DI	160.0	-3.4%
DCC PLC	6306.0	-2.7%
SAINSBURY (J) PLC	291.3	-2.5%
MELROSE INDUSTRIES PLC	162.8	-2.1%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,590	0.4%	12.6%
DOW JONES INDUS. AVG	35,029	-1.0%	12.3%
DAX INDEX	15,810	0.2%	13.6%
NIKKEI 225	27,773	1.1%	-2.6%
S&P/ASX 200 INDEX	7,342	0.1%	8.5%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	87.27	0.36%
Brent Crude (ICE)	USD/bbl.	88.52	0.09%
Gold Spot	USD/t oz.	1,840	0.0%
Copper (Comex)	USd/lb.	450	0.7%

The UK 100 is called to open +40 points today at 7629.

1 Day; 12 Months

Click graph to enlarge

Markets Overview:

The UK 100 is called to open +40 points today at 7629. The UK’s bluechip index looks set to make a decent start as Asian markets rallied following another cut in interest rates in China as investors ignore Nasdaq slide into correction territory. In Asia this morning, China’s Shanghai Composite was marginally up by 0.01% while Hong Kong’s Hang Seng index surged 2.60%. The Nikkei in Japan rose 1.12% and South Korea’s Kospi moved 0.48% higher. On Wall Street yesterday, the technology-focused Nasdaq dipped 1.15% to 14,340.26, the session losses brought the index 10.7% off its most recent record close in November 2021. The Dow Jones fell 339.82 points to 35,028.65, dragged down by a 3.1% decline in Caterpillar stock. The S&P slid nearly 1% to 4,532.76. The small-cap benchmark Russell 2000 lost 1.6% on Wednesday, closing at a 52-week low.

Company News & Broker Comments:

Company News:

AJ Bell report that their assets under administration stood at £75.6bn in Q1, +21% over the last year. Total customer numbers increased to 398,066, +27% over the last year. Total net inflows for the quarter stood at £1.3bn.

Associated British Foods report that sales at its Primark business in the 16 weeks to Jan 8^th were 36% ahead of last year on a constant currency basis, while operating profit margin was ahead of its expectations.

Deliveroo reports that its gross transactional value of orders on its platform rose 36% year-on-year in Q4, resulting in it hitting the top of its guidance range with a 70% rise for the year. The number of orders grew 10% in the quarter and the average value stabilised +1% to £21.40.

Entain expects FY EBITDA in the range of £875-885m to be ahead of expectations.

Premier Foods reports that their Q3 FY22 sales were down 1.8% YoY, but up 7% v FY20. They expect their FY adjusted pretax profit to be at least £125m.

Unilever states they will not increase their £50bn offer for GSK's consumer business.

Broker Comments

Citi Group Upgrades Rentokil to a Buy from Neutral (5 Buys / 6 Holds / 1 Sell)

Credit Suisse Upgrades Intertek to Outperform from Neutral (6 Buys / 10 Holds / 1 Sell)

Deutsche Bank Downgrades Compass Group to Hold from Buy (10 Buys / 8 Holds / 1 Sell)

Goldman Sachs resumes rating ITV with a Sell (5 Buys / 5 Holds / 1 Sell)

Goldman Sachs resumes rating Pearson with a 'Conviction Buy List' entry (3 Buys / 7 Holds / 0 Sells)

Goldman Sachs reinitiates WPP with a Buy (11 Buys / 8 Holds / 0 Sells)

JP Morgan Downgrades IAG to Neutral from Overweight (8 Buys / 8 Holds / 0 Sells)

Reporting Today:

AJ Bell

Associated British Foods

Ibstock

Premier Foods

Workspace Group

Reporting Tomorrow:

Close Brothers Group

In Focus Today:

PBoC Interest Rate Decision

German Producer Price Index

EU Consumer Price Index

ECB Monetary Policy Meeting Accounts

US Initial Jobless Claims

BoJ Monetary Policy Meeting Minutes

Today's Ex-Dividends:

FTSE 100:

Compass Group

FTSE 250:

Diploma

Games Workshop Group

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