Markets Overview:

UK 100 Called to open +20 points at 7322; On the back of a call for calm in Hong Kong overnight as the countries leader calls for a peaceful resolution, this saw the Hang Seng +355 points lead a mixed Asian trading session as the Nikkei closed -124 points, as the wait goes on for further information of a trade deal between the US and China hits risk sentiment.  The Dow Jones once again closed at record levels +31 points to lead higher the S&P +1.57 points and the Nasdaq +9 points (Albeit modestly).  Oil prices pulled back slightly overnight to sit at $62.4, whilst gold benefited slightly sitting at $1470.

In corporate news this morning:

AO World said they were on track to deliver sustainable growth,  Revenue increased by 16.3% to £470m,Group Adjusted EBITDA losses increased to £6.2m vs £5.4m 2018, Statutory losses flat at £10.6m, Loss per share of 1.01p improved vs 2.31p in 2018.

Big Yellow Group saw like for like revenue increase of 4.2% during half one, Net rent per square foot increased by 1.6% for the period, Cash flow increased by 4%, Adjusted profit rose 6%.  A 17.1p share dividend was announced.

EasyJet delivered FY results in line with prior guidance with headline profit before tax towards the higher end of expectations (-26% at £427m v 2018: £578m). Passenger numbers +8.6% and capacity +10.3%. Total revenue +8.3% and headline cost per seat -0.8%. They will become the world’s first major airline to operate net-zero carbon flights by offsetting carbon emissions from the fuel used. Will cost £25m to offset in the next financial year. They have also exercised the purchase rights to order 12 more Airbus A320neo aircrafts. 

Halma announce record 1H results and continued dividend growth. Revenue +12%, Adjusted profit +14%, EPS +15% and interim dividend increased +7%. They remain on track to make further progress in 2H of the year and to deliver another good FY performance.  

Meggitt sign a 6 year $130m requirements contract with Defense Logistics Agency, Philadelphia, for the supply of fuel bladders. 

Melrose delivered results today, saying trading was in line to hit boards expectations for 2019.  Their aerospace division delivered a higher profit margin than the same period last year and an increase in sales of 5% YoY; Automotive also delivered a higher YoY profit margin, however the sales were down 5% YoY.  Powder Metallurgy was impacted more than automotive by the General Motors strike, seeing sales decline by 13%. Finally Nortek Air & Security has seen improving trends YoY.

Saga announce that Cheryl Agius will join the board on 1st Jan 2020 as CEO of Insurance and Giles Normand will join as COO on 25th Nov 2019.

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Upgrades/Downgrades:

Diploma Downgraded to Neutral by JP Morgan (Bloomberg: 1 buys/ 8 holds/ 0 sells)

Experian Upgraded to Hold by Deutsche Bank (Bloomberg: 8 buys/ 6 holds/ 3 sells)

Intertek Upgraded to Neutral by Jefferies (Bloomberg: 2 buys/ 7 holds/ 10 sells)

In Focus Today:

US Housing Starts

US Weekly API Oil Inventories

Companies reporting today:

Easyjet, AO World, Big Yellow Group, Halma, Keller Group

Companies reporting Tomorrow:

Babcock, Inmarsat, United Utilities, Mitchells and Butler, Sage, SSP Group, Direct Line Group, Kingfisher

(Full list available on Week in advance)

This Week's Ex-Dividends:

Imperial Brands - 4.1%

Carnival - 1.2%

DCC - 0.7%

Tate & Lyle - 1.2%

(Full list available on Week in advance)

For any help you may require placing trades or in terms of market information, put a call in to our trading floor – it’s all part of the service.