Markets Overview:

UK 100 called to open -200 points at 5488.  U.S. and European equity futures pulled back overnight, along with most Asian shares Thursday as investors looked past Donald Trump’s stimulus packages to the mounting human impact of the coronavirus outbreak. Government bonds and the yen pushed higher.  This does however come on the back of another big rally yesterday in the markets, could this simply be another dip? or could we be headed back towards resistance turned support on the UK Index ?  The Nikkei was down 4.5% in trading (having gained 8% in the previous session).  The Hang Seng traded 0.73% lower, having pared most of early losses.  Oil’s recovery rally faltered as mounting evidence of the demand devastation being wrought by the coronavirus outweighed progress on a U.S. economic rescue package. Futures in New York fell around 2% to near $24 a barrel after rallying 9% over the previous three days.

Company News:

AstraZeneca announce that their drug Lokelma has been approved in Japan for the treatment of hyperkalaemia (elevated levels of potassium in the blood).

British Land have temporarily suspended their future dividend payments with immediate effect. This includes the FY20 Q3 dividend due for payment in May.

Dixons Carphone update that the loss of sales from their physical stores being closed will adversely impact FY profitability and their cash position. They will not achieve their previous guidance for 2020 of adjusted PBT of £210m or for net debt to be lower year-on-year.

DS Smith announces that Adrian Marsh will not be joining William Hill. They have agreed that his prior resignation will be treated as withdrawn and Adrian will continue as Group Finance Director.

Intu Properties are in talks with the UK Government to preserve their liquidity and may look to access a £330bn support package.

Vodafone announce that their Telecom Italia Group (TIM) and INWIT have today completed the merger of Vodafone Italy’s towers into INWIT.

Weir Group state that given the level of uncertainty due to COVID-19, our 2020 guidance issued in February is now withdrawn and they will update further when visibility improves. Trading in January and February was in line with expectations, but March has been severley impacted.

Reporting Today:

FCA has asked UK companies to delay results

for at least two weeks to prevent investors acting on out-of-date information

Reporting Tomorrow:

FCA has asked UK companies to delay results

for at least two weeks to prevent investors acting on out-of-date information

In Focus Today:

UK – BOE England Interest Rate Decision

US – Initial Jobless Claims

Today’s Ex Dividends:

UK 100 :

British Land

Royal Bank Of Scotland

Pearson

British American Tobacco

Schroders

Prudential

:

Go-Ahead Group

Upgrades/Downgrades:

Autotrader Group Downgraded to Hold by HSBC (Bloomberg: 8 Buys/ 11 Holds/ 2 Sells)

National Grid Downgraded to Sell by Morningstar (Bloomberg: 13 Buys/ 6 Holds/ 1 Sells)

Rentokil Upgraded to Buy by Goldman Sachs (Bloomberg: 5 Buys/ 6 Holds/ 3 Sells)

Rentokil Downgraded to Hold by J.P. Morgan (Bloomberg: 5 Buys/ 7 Holds/ 3 Sells)

Royal Bank Of Scotland Downgraded to Hold by Investec (Bloomberg: 13 Buys/ 9 Holds/ 2 Sells)

Sage Group Upgraded to Hold by Panmure Gordon & Co (Bloomberg: 4 Buys/ 9 Holds/ 6 Sells)

Spirax-Sarco Downgraded to Hold by Berenberg (Bloomberg: 3 Buys/ 10 Holds/ 3 Sells)

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