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Morning Report - 28 July 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
SMURFIT KAPPA GROUP PLC	2,862.0	5.9%
MONDI PLC	1,488.5	5.1%
INTL CONSOLIDATED AIRLINE-DI	118.9	5.1%
OCADO GROUP PLC	768.0	4.4%
LLOYDS BANKING GROUP PLC	45.4	4.4%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
UNITE GROUP PLC/THE	1097.0	-7.0%
DECHRA PHARMACEUTICALS PLC	3584.0	-1.8%
AVAST PLC	487.9	-1.7%
JD SPORTS FASHION PLC	125.8	-1.6%
BRITISH LAND CO PLC	475.2	-1.4%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,354	0.7%	4.9%
DOW JONES INDUS. AVG	31,913	0.5%	-9.0%
DAX INDEX	13,162	0.5%	-15.4%
NIKKEI 225	27,716	0.2%	0.5%
S&P/ASX 200 INDEX	6,823	0.2%	-7.5%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	97.35	2.50%
Brent Crude (ICE)	USD/bbl.	106.70	2.20%
Gold Spot	USD/t oz.	1,720	0.2%
Copper (Comex)	USd/lb.	343	1.4%

The UK 100 is called to open +40 points this morning at 7391.

1 Day; 10 Months

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Markets Overview:

The UK 100 is called to open +40 points this morning at 7391. The UK's blue chip index looks set to continue its strong start to the week and open firmly in the green on Thursday, this comes after the Federal Reserve announced its much anticipated 0.75 percentage point rate increase last night, in an attempt to combat inflation. This saw The Dow Jones jump 436.05 points, or nearly 1.4%, to end the session at 32,197.59. The S&P also gained, 2.62% was added to close at 4,023.61. The Nasdaq completed the green sweep climbing 4.06% to trade at 12,032.42. Tech shares led gains a day after quarterly results from Alphabet and Microsoft.

Company News & Broker Comments:

Company News:

Anglo American has slashed payouts to shareholders after earnings for H1 fell 28% due to lower production and higher costs. They declared an interim dividend of $1.24 per share, down 27% from last year's $1.71 per share payout.

BAE Systems state they will buy back shares worth up to £1.5bn and boost its interim dividend by 5% as it reported higher HY profits. Underlying earnings before interest and taxes rose 8.2% YoY to £1.11bn in H1.

Barclays reported H1 profits fell more than expected as it took a £1.9bn conduct charge mostly from covering the costs of having to buy back billions of dollars worth of securities it sold in error. They reported profits before tax of £3.7bn for H1, down from £4.9bn in the same period last year and just below average of analysts' forecasts of £3.9bn.

BT report that their revenue for three months to end of June increased 1% to £5.13bn, whilst their pretax profit fell 10% to £482m. They state that modernisation remains on track and that they're confident in their 2022 outlook.

Centrica swings to a H1 pretax loss of £1.2bn and declares an interim dividend of 1p per share for 2022. They state that outlook for the FY22 remains positive.

Diageo posts a 21.4% increase in FY sales as more people drank expensive spirits and bars reopened after pandemic lockdowns last year. They reported net sales rose to £15.5bn in H1, beating the 16.1% increase analysts had been expecting.

Shell reported a record profit of $11.5bn for Q2, beating expectations, lifted by strong refining profits and energy prices. They have also announced a share buyback programme of $6bn for Q3.

Smith & Nephew report a H1 pretax profit of $204m as they declare a 14.4 US cents dividend in line with the prior year. They have lowered 2022 trading profit margin to 18% reflecting prolonged inflation and supply challenges.

Wier Group reports a H1 pretax profit of £126m, +26% YoY. They have also declared a 13.5p interim dividend, +17% from 11.5p previously.

Broker Comments:

Berenberg Downgrades Mitchells & Butlers to Hold from Buy (8 Buys / 3 Holds / 0 Sells)

Bernstein Upgrades Reckitt Benckiser to Market-Perform from Underperform (9 Buys / 3 Holds / 1 Sell)

Reporting Today:

Airtel Africa

Anglo American

Aveva Group

BAE Systems

Barclays

Jupiter Fund Management

Mitchells & Butlers

National Express Group

RELX

Rathbone Brothers

Rentokil Initial

Schroders

Segro

Shell

Smith & Nephew

St James Place

Weir Group

Reporting Friday:

Aston Martin Lagonda

AstraZeneca

Babcock

Croda International

IMI

International Consolidated Airlines Group

Intertek

NatWest Group

Rightmove

Standard Chartered

In Focus Today:

EU Business Climate

EU Consumer Confidence

German Harmonized Index of Consumer Prices

US Gross Domestic Product Annualized

US Initial Jobless Claims

Japanese Unemployment Rate

Today's Ex-Dividends:

FTSE 100:

SSE

FTSE 250:

Royal Mail

NB Private Equity Partners

Bytes Technology Group

Sequoia Economic Infrastructure Inc Fnd

Moneysupermarket.com Group

QinetiQ Group

Bankers Investment Trust

BlackRock Throgmorton Trust

Monks Investment Trust

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This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.

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