DEALERS' EARLY CALL: 08.07.2020
The FTSE 100 is called to open 55 points lower 6134. Another mixed day across the region today post US weakness overnight as investors continue to evaluated rising COVID cases and the economic impact, with another lockdown announced in Melbourne. The rally in Chinese shares continued. Stocks slipped in Australia, Japan and South Korea, and edged higher in Hong Kong. The Shanghai Composite Index climbed for a seventh session. Futures on the S&P 500 were little changed after the gauge closed lower, with almost six shares falling for every one that gained. European contracts retreated. Traders brushed off reports that some top advisers in the Trump administration were weighing proposals to undermine Hong Kong’s dollar peg to the greenback. B0E Chief Economist Andy Haldane says is the greatest uncertainty has seen in his three-decade career. He said the pandemic has been “dramatic, traumatic” for the economy but reiterated his view that the rebound has been quicker than the central bank anticipated.
UPGRADES AND DOWNGRADES
- Davy cuts DS SMITH price target to 300 (335) pence – ‘Neutral’
- HSBC Holdings Cut to Hold at Investec; PT 400 pence
- Countryside Raised to Buy at Peel Hunt; PT 370 pence
- Persimmon Raised to Add at Peel Hunt; PT 2,730 pence
- Taylor Wimpey Cut to Hold at Peel Hunt; PT 150 pence
- Rio Tinto Raised to Sector Perform at RBC; PT 4,200 pence
- Ferrexpo Cut to Hold at Investec; PT 175 pence
- Vonovia Cut to Hold at LBBW; PT 59 euros
- Swedish Match Cut to Equal-Weight at Barclays; PT 620 kronor
- EDF Raised to Reduce at AlphaValue
- Iliad Cut to Hold at HSBC; PT 180 euros
- Lanxess Cut to Sell at Goldman; PT 48 euros
- Nokia Cut to Neutral at JPMorgan; PT 3.80 euros
- TeamViewer Rated New Overweight at JPMorgan; PT 62 euros
- Idorsia Reinstated Neutral at JPMorgan; PT 34 Swiss francs
- AstraZeneca Lynparza approved in the EU to treat pancreatic cancer.
- Segro as at 7 July 2020, had received 93 per cent of the £37 million of rent which was due on the UK quarterly payment date after adjusting for re-profiled rent agreed with customers. Doesn’t say what the forgone amount would have dragged it down to.
- Amazon Drops Boohoo Products Over Labour Abuse Concerns: Reuters.
- Boohoo to launch independent review of UK supply chain, led by Alison Levitt QC. ‘No evidence of suppliers paying workers £3.5 per hour’.
- Deutsche Post sees FY Ebit E3.5-3.8bn (c3.64), Q2 prelim E890m. Divi E1.15/shr. Reassuring.
- Unite USAF’s property portfolio value unchanged over quarter. Valuations on basis of material valuation uncertainty. Reservations across the Group for the 2020/21 academic year are currently at 81% (2019/20: 90%), reflecting delays by some students and Universities in making their accommodation choices at this stage.
- HSBC US considers undermining HK dollar’s U.S. dollar peg.
- Electrolux Q2 net sls Sek23.5bn (ccs22.64). Op loss Sek100m had seen significant loss.
- Daimler AGM today. BBG report CEO is due to face disgruntled investors over “lost year”.
- Bang & Olufsen according to reports, Apple has stopped selling Bang & Olufsen products in more then 200 stores across the US as it no longer wants to sell products that competes with their own. CEO Kristian Tear has indicated they are looking for a new US partner.
- FirstGroup small Beat – FY Rev £7.75bn con £7.65bn. Op Profit £257m (Inc impairment) con £324m. No Guidance on FY 21. Liquidity increased to c.£850m in free cash and committed undrawn facilities as at end of June 2020.
- Daimler CEO Ola Kallenius is to face critical questions at his first AGM since taking over the German carmaker, with the coronavirus pandemic having disrupted plans to restructure and revive returns. A string of profit warnings — several of which predated Covid-19 — exposed misguided investments and the vulnerability of Daimler’s business.
- First Derivatives total Rev 6% Ahead Y/Y For 4Mos Ended June 30.
- Regional Reit rent collection 96.7% expects Q2 collections to increase.
- BBOX 97% of q3 rent expected to be collected by end of August 202 – 84% paid to date.
- Victrex solid start but weaker end to Q3 as COVID headwinds impact performance. Aerospace, Automotive and Energy end-markets experienced the greatest level of decline, with performance being moderately weaker than market indicators.
- Cranware sees FY rev for year about $71.4mn. EBITDA $24.5mn. Expects to pay div for year to 30th June 2020.
- Funding Circle continue To See Value Of Investments Be Impacted, Says Approved C.£460M Applications Through CBILS.