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Morning Report - 10 August 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
BP PLC	424.3	1.9%
NATIONAL GRID PLC	1,153.0	1.6%
HSBC HOLDINGS PLC	554.3	1.6%
IMPERIAL BRANDS PLC	1,862.0	1.6%
SHELL PLC	2,195.0	1.6%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
ABRDN PLC	161.1	-6.9%
SCOTTISH MORTGAGE INV TR PLC	875.8	-4.5%
JD SPORTS FASHION PLC	127.6	-4.5%
ENTAIN PLC	1272.5	-3.9%
BERKELEY GROUP HOLDINGS/THE	4007.0	-3.0%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,495	0.2%	4.9%
DOW JONES INDUS. AVG	32,847	0.0%	-6.4%
DAX INDEX	13,543	-1.1%	-13.6%
NIKKEI 225	28,000	-0.9%	0.7%
S&P/ASX 200 INDEX	7,030	0.1%	-7.0%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	91.41	0.72%
Brent Crude (ICE)	USD/bbl.	97.58	0.96%
Gold Spot	USD/t oz.	1,793	0.2%
Copper (Comex)	USd/lb.	361	0.5%

The UK 100 is called to open -20 points this morning at 7475.

1 hour; 20 Days

Click graph to enlarge

Markets Overview:

The UK 100 is called to open -20 points this morning at 7475. The UK 100 looks set to open lower this morning, after a mixed session in Asia and a tough session in the US overnight as we await today’s US CPI inflation report. On Wall Street yesterday, the S&P fell 0.42% to close at 4,122.47, while the Nasdaq dropped 1.19% to end the day at 12,493.93. The Dow Jones shed 58.13 points, or 0.18%, to close at 32,774.41.

Company News & Broker Comments:

Company News:

Admiral Group posted a 48% fall in pretax profit in H1 to £251.3m as they will pay a total interim dividend of 105p per share.

Aviva posted a better-than-expected 14% rise in H1 operating profit of £829m (ahead of analyst expectations of £742m), helped by strong performance in commercial lines and plans to launch a share buyback with FY results.

Deliveroo state they are consulting on leaving the Netherlands market after failing to gain a strong local position, as they reported a larger pretax loss in “challenging market conditions” in H1. They reported a pretax loss of £147m in H1 compared to a £95m loss a year ago.

National Express says their CFO Chris Davies is to become the new CFO at Diploma.

Prudential reports a H1 pretax profit attributable to shareholders down YoY to $300m from $1.26bn.

Royal Mail: Communication Workers Union announces strikes between 26-31st August and 8-9th September. They state that if the strikes take place their UK arm will be materially loss making in FY23.

TP ICAP reported better-than-expected HY profit as the Ukraine crisis and rising inflationary pressures continued to fuel market volatility. They reported an adjusted profit before tax of £116m for H1, compared with £88m a year ago. Analysts had expected a profit of £107m.

TUI posted a Q3 operating loss due to additional costs related to air traffic disruptions across Europe but said summer bookings were close to pre-pandemic levels. They reported a smaller underlying operating loss of 27m euros for Q3, compared with a loss of about 670m euros a year earlier. Excluding the additional costs of 75m euros for disruptions in air traffic, adjusted operating profit stood at 48m euros for Q3, its first positive result since the COVID-19 crisis started.

Broker Comments:

HSBC Downgrades XP Power to Hold from Buy (6 Buys / 2 Holds / 0 Sells)

Peel Hunt Downgrades IWG to Add from Buy (8 Buys / 1 Hold / 0 Sells)

Reporting Today:

4Imprint Group

Admiral Group

Avast

Aviva

CLS Holdings

ContourGlobal

Provident Financial

Prudential

Quilter

TP ICAP

Reporting Wednesday:

Antogfagasta

Coca-Cola HBC

Derwent London

Entain

M&G

Petrofac

Savills

Spirax-Sarco Engineering

In Focus Today:

Chinese Consumer Price Index

Chinese Producer Price Index

German Harmonized Index of Consumer Prices

US Consumer Price Index

US Consumer Price Index ex Food & Energy

US Monthly Budget Statement

Tomorrow’s Ex-Dividends:

FTSE 100:

Rio Tinto

Barclays

Ashtead Group

Shell

SEGRO

Pearson

Astrazeneca

Standard Chartered

Informa

Fresnillo

FTSE 250:

Jupiter Fund Management

Direct Line Insurance Group

Provident Financial

Man Group

Greencoat UK Wind

Renewables Infrastructure Group

Domino’s Pizza Group

Hiscox

Scottish American Investment Company

IMI

IP Group

Balanced Commercial Property Trust

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