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Morning Report - 2 August 2022

Yesterday’s UK 100 Leaders	Price (p)	% Chg
PEARSON PLC	852.6	12.7%
HSBC HOLDINGS PLC	545.2	6.1%
OCADO GROUP PLC	876.0	4.4%
AVAST PLC	480.0	3.2%
AUTO TRADER GROUP PLC	646.2	2.6%

Yesterday’s UK 100 Laggards	Price (p)	% Chg
MELROSE INDUSTRIES PLC	151.8	-5.5%
ANGLO AMERICAN PLC	2832.5	-4.0%
INTERTEK GROUP PLC	4231.0	-3.3%
PRUDENTIAL PLC	973.6	-3.2%
INTL CONSOLIDATED AIRLINE-DI	116.1	-2.2%

Major World Indices	Price	% Chg	1 YEAR
UK 100 INDEX	7,413	-0.1%	5.4%
DOW JONES INDUS. AVG	32,798	-0.1%	-6.1%
DAX INDEX	13,480	0.0%	-13.3%
NIKKEI 225	27,993	0.7%	0.8%
S&P/ASX 200 INDEX	6,993	0.7%	-6.7%

Commodities	Units	Price	% Chg
WTI Crude Oil (Nymex)	USD/bbl.	93.89	-4.80%
Brent Crude (ICE)	USD/bbl.	100.10	-3.72%
Gold Spot	USD/t oz.	1,772	0.0%
Copper (Comex)	USd/lb.	354	-0.9%

The UK 100 is called to open -36 points this morning at 7395.

30 minutes; 16 Days

Click graph to enlarge

Markets Overview:

The UK 100 is called to open -36 points this morning at 7395. The UK’s blue chip index looks set to open in the red this morning, with the mood hit by tensions between the US & China over House Speaker Nancy Pelosi’s trip to Taiwan. All three major indexes snapped three-day winning streaks on Wall Street, with the S&P slipping 0.28% to end at 4,118.63. The Nasdaq lost 0.18% and closed at 12,368.98. The Dow Jones shed 46.73 points, or 0.14%, to end at 32,798.40.

Company News & Broker Comments:

Company News:

BP reported a Q2 profit of $8.45bn, its highest in 14 years, as soaring refining margins and energy prices helped it boost its dividend by 10%. Their net earnings of $8.45bn for Q2, the strongest since 2008, far exceeded analysts’ expectations for a $6.8bn profit.

Bunzl has agreed to buy four businesses across Netherlands, Brazil, Australia and UK.

Direct Line Insurance reports a H1 pretax profit of £178.1m (2021: £261.3m) as they declare an interim dividend of 7.6p, in line with the previous year.

Fresnillo reported a H1 pretax profit of $218.2m (2021: $471.9m) and have declared an interim dividend of 3.40 cents per share. They remain on track to meet their FY22 guidance for silver and gold production. They expect exploration expenses to remain at around $180m.

Greggs reports H1 pretax profit of £55.8m (2021: £55.5m) and declares an interim dividend of 15p (unchanged YoY). They state that FY outcome expectations remain unchanged.

Sage Group expects their FY22 organic recurring revenue growth to be towards top end of guidance at 8-9%. Their Q3 total revenue increased 7% YoY to £488m (2021: £456m).

Travis Perkins reports a HY adjusted operating profit of £163m (2021: £164m) and an interim dividend of 12.5p per share (2021: 12p per share). The strong performance of their merchant businesses is set to continue into H2. They expect the overall group to deliver a FY performance broadly in line with market expectations.

Broker Comments:

RPT/Exane Downgrades HSBC to Neutral from Outperform (8 Buys / 8 Holds / 0 Sells)

Reporting Today:

Capital & Counties Properties

Coats

Direct Line Insurance

Domino’s Pizza Group

Fresnillo

Greggs

Man Group

Rotork

Sage Group

Travis Perkins

Virgin Money

Reporting Wednesday:

Endeavour Mining

Ferrexpo

Hill & Smith Holdings

Hiscox

IP Group

Taylor Wimpey

In Focus Today:

UK House Price Data

This Week’s Ex-Dividends:

FTSE 100:

BT Group

Lloyds Banking Group

Schroders

Reckitt Benckiser Group

Unilever

RELX

Rentokil Initial

FTSE 250:

Currys

Vesuvius

Tyman

GCP Infrastructure Investments

City of London Investment Trust

Games Workshop Group

Aberforth Smaller Companies Trust

Lancashire Holdings

Inchcape

Schroder Oriental Income Fund

Mediclinic International

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