Morning Report - 10th November 2022

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Morning Report - 10 November 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
Smiths Group	1,551.5	3.5%
Associated British Foods	1,458.0	3.5%
Admiral Group	1,929.5	3.0%
RS Group	882.0	2.7%
Persimmon	1,254.0	2.2%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
Ocado Group	668.4	-5.0%
Informa	550.6	-3.7%
Harbour Energy	376.1	-3.3%
Glencore	510.4	-2.7%
Flutter Entertainment	11465.0	-2.7%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,296	-0.1%	0.3%
DOW JONES INDUS. AVG	32,647	-1.6%	-9.6%
DAX INDEX	13,666	-0.2%	-14.8%
NIKKEI 225	27,716	-0.6%	-4.8%
S&P/ASX 200 INDEX	6,999	0.6%	-5.7%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	85.76	-3.54%
Brent Crude (ICE)	USD/bbl.	92.60	-2.89%
Gold Spot	USD/t oz.	1,707	-0.3%
Copper (Comex)	USd/lb.	368	-0.2%

The UK 100 is called to open -29 points this morning at 7260.

4 hours; 8 Months

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Markets Overview:

The UK 100 is called to open -29 points this morning at 7260. The UK 100 bluechip index is called to open lower on Thursday, ahead of an eagerly anticipated US inflation read (CPI) at 13:30pm. A hotter-than-expected US inflation reading could cause more problems for the markets. Also, in the US Joe Biden has said it's his "intention to run again" for a second term in office. Stocks overnight in Asia were lower as the Nikkei fell 1%, Shanghai was down 0.4% and Hang Seng was 1.9% lower.

Company News & Broker Comments:

Company News:

AstraZeneca topped analyst's expectations for Q3 profit and sales as they raised their FY adjusted earnings forecast.

BHP Group have warned that the geopolitical landscape continued to change, and economic conditions remained uncertain in the short-term.

Centrica has forecast its FY adjusted EPS to be at the top end of analysts' expectations and said it plans to buy back up to 5% of its shares.

Domino's Pizza sees their FY22 EBITDA in the range of £125-135m.

Haleon reported a 16.1% increase in Q3 reported revenue as it raised prices and said it now expects organic sales growth of 8-8.5%. Their adjusted operating profit rose 14.9% to £725m.

National Grid expects to invest up to £40bn between 2022 and 2026, with a string focus on decarbonisation of energy networks. They also raised their FY growth outlook for EPS. Underlying profit from continuing operations rose to £2.1bn (2021: £1.4bn) helped by earnings from its electricity distribution business.

SolGold CE0 Darryl Cuzzubbo leaves with immediate effect.

Tate & Lyle report that their H1 pretax profit surges to £68m from £21m as they cut their dividend by 40% to 5.4p (9.0p previously). They expect their FY adjusted pretax profit to be in line with market expectations.

WH Smith reinstated its dividend after posting an annual profit as travel rebounded from COVID-19 pandemic lows during the summer, even as labour strife disrupted business at its shops at train stations. They will pay a final dividend of 9.1p per share.

Broker Comments:

Credit Suisse Upgrades Drax Group to Neutral from Underperform (3 Buys / 1 Hold / 0 Sells)

Keefe, Bruyette & Woods Upgrades St James's Place to Outperform (8 Buys / 6 Holds / 0 Sells)

RPT/Numis Downgrades Ashmore Group to Reduce from Hold (3 Buys / 5 Holds / 1 Sell)

Reporting Today:

Allianz Technology Trust

AstraZeneca

Auto Trader Group

Bank of Georgia

Haleon

National Grid

QinetiQ Group

Reporting Friday:

3i Group

Assura

B&M European Value Retail

Beazley

Endeavour Mining

Softcat

WH Smith

In Focus Today:

EU Economic Bulletin

European Commission releases Economic Growth Forecasts

US Consumer Price Index ex Food & Energy

US Initial Jobless Claims

US Monthly Budget Statement

Today's Ex-Dividends:

UK 100 companies going ex-dividend on 10th November 2022:

Airtel Africa

Whitbread

Shell

UK 250 companies going ex-dividend on 10th November 2022:

Dunelm Group

Softcat

Target Healthcare REIT

ContourGlobal

Greencoat UK Wind

Baillie Gifford Japan Trust

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