Markets Overview:

UK 100 called to open +40 points at 7726; Continuation in overnight trading has seen the UK Index rally even further to fresh year highs, we have now seen the UK Index rise in excess of 1200 points from its low this year.  Pound weakness was the catalyst for this movement after Dominic Raab yesterday said the EU needed to weaken their position on Brexit. This momentum was also seen Stateside, seeing U.S bourses ending the session higher.  Asian markets ended the overnight trading session on a high in anticipation of trade talks with the U.S continuing.  Oil prices picked up yesterday to move from $63 a barrel to break through the $64 handle.  Gold prices picked up overnight also to head back to $1425.

In corporate news this morning:

BP said plan is right on target at midpoint of 5 year plan. Year on Year, Profit -9%; Underlying RC profit -4.5%; RC Profit per ordinary Share -8.9%; RC Profit per ADS -8.9%.  Dividend announced at 10.25 cents (c1.5%)

Centrica cited challenging environment in ½ 2019 for impacted earnings and cash flows, dividend cut 58% YoY.  However, more positive outlook for H2 and into 2020. Company will exit oil and gas production. Revenue -2%; EBITDA -15%; Adj Operating profit -19%; EPS -63%; Dividend -58%. 

Centrica also announced that Group Chief Executive Officer Iain Conn will step down and retire as CEO from the board next year. 

Fresnillo reports 1H 2019 revenues -10.2%, profit for the period -69.1% at $70.9m. Interim dividend of 2.6 cents per share. Challenges continue at Fresnillo, Saucito and Herradura mines, combined with higher costs, have impacted profitability for the period. However, they expect to see gradual improvement at their mines in the following quarters, albeit not at the rate they anticipated. 

Greggs 1H 2019 sales +14.7%, pre-tax profit £40.6m (H1 2018: £25.7m). Strong cash generation supporting investment programme and enhanced return to shareholders. Ordinary interim dividend per share +11.2% to 11.9p. Declares special dividend of 35p per share. Exceptionally strong trading helped by the popularity of the new vegan-friendly sausage roll. Expectations for FY 2019 underlying profits remain unchanged. 

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

Upgrades/Downgrades:

Fevertree downgraded to sector perform by RBC (8 Buys/ 3 Holds/ 0 Sell)

Domino’s Pizza Downgraded to Add by Peel Hunt (5 Buys/ 3 Holds/ 5 Sell)

In focus today:

Bank of Japan interest rate decision (3.00am already happened)

German CPI (1.00pm)

U.S Pending home sales data (3.00pm)

U.S API weekly crude count (9.30pm)

Company reporting day reaction:

Elementis, Greggs, Centrica, Weir Group, Reckitt Benckiser, BP, Provident Financial, Kier Group, Agrekko, Fresnillo

Companies reporting tomorrow:

Taylor Wimpey, Lloyds, BAE, Glencore (See Week in advance for full list)

Companies reporting this week:

British American Tobacco, Barclays, Shell, Rio Tinto, Standard Chartered, IAG, RBS, BT (Again for a full list see the week in advance)

This weeks ex-dividend payers:

 RELX: 0.7%

QuentiQ: 1.6%

Beazley: 0.7%

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