DEALERS' EARLY CALL: 07.08.2020

The FTSE 100 is called to open 3 points higher 6029. Stocks dropped Friday, led by Chinese technology firms, after a U.S. move to prohibit transactions related to WeChat stoked tensions. Treasuries and the dollar rose. China and Hong Kong shares saw the bulk of losses, with WeChat operator Tencent Holdings Ltd. slumping. The offshore yuan also retreated along with American and European equity futures. President Donald Trump signed executive orders prohibiting U.S. residents from doing any business with WeChat, TikTok or the apps’ Chinese owners beginning 45 days from now, citing national security risks. After Hours T-Mobile (TMUS) +5% – beats top and bottom line, UBER -3% Food delivery offset falling cab rides. Virus – Norway will pause the planned easing of some Covid-19 restrictions because of a rising number of new cases. Denmark also dropped a plan to allow bigger crowds. Boris Johnson’s decision to stick by his chief aide Dominic Cummings after he allegedly broke pandemic lockdown rules led to a sharp drop in confidence in the U.K. gov (Lancet).

UPGRADES AND DOWNGRADES

  • Glencore cut to hold at Renaissance Capital; PT 187.02 pence
  • Greggs Target Started at 2175p by Jefferies
  • Subsea 7 Cut to Hold at HSBC; PT 70 kroner
  • Danone Cut to Hold at Deutsche Bank; PT 64 euros
  • Allianz Cut to Hold at Nord/LB; PT 192 euros
  • LXI Reit rated new buy at Jefferies; PT 124 pence

COMPANY NEWS

  • Rolls-Royce – Major Shareholder Sells Remaining Stake In Co’, Losing -20% On Investment (FT).
  • Hikma – Sees FY Generics Rev. $720M To $760M, Est. , Branded Rev Seen Growing Mid-Single Digits In Constant FX.
  • Kaz Minerals – New Proposal Under Consideration At Cape Nagloynyn.
  • Rightmove – Revenue Drops 34% And Profits Down By 43%, doesn’t declare interim dividend.
  • Standard Life Aberdeen AUMA GBP511.8B, Est. GBP505.50B, 1H Net Outflows GBP24.8B, Est. GBP26.40B, 1H Adj Pretax GBP195M, Est. GBP179.9M.
  • TP ICAP – July Trading Activity Materially Lower Than ‘19 Levels, 1H Global Broking Rev Increased 2%, FY Rev Growth Guidance Remains Unchanged.
  • Tencent Loses $46 Billion as WeChat Ban Rocks China Markets.
  • Airbus Deliveries Jump 36% for Third Straight Monthly Gain.
  • Richemont Holders to Vote on Conditional Share Capital Increase.
  • Conzzeta First Half Net Revenue 3.3% Above Estimates
  • Hannover Re CFO Vogel Retiring; Jungsthoefel Named as Successor
  • Ageas SA/NV 2Q Life Insurance Unit Net EU220.6 Mln, -16% Y/y
  • Hargreaves Lansdown Reports Net New Business Inflows
  • Scapa Group – 1Q Rev Well Ahead Of Covid-19 Scenario Plan, Better Than Anticipated Performance In FY21 To Date, FY Trading Profit Outlook About 10% Ahead Of Views.
  • Avacta Group – Pact With LSTM To Clinically Validate Antigen Test.