Markets Overview:

UK 100 called to open +30 points at 7426; China said it has agreed with the US to rollback tariffs in phases. News overnight that China was to punish 3 nationals for Opiod trafficking into the US has been met by positive investor sentiment as it is seen as another step in the direction of allowances being made to get a US-China deal done. In focus today will be the Bank of England interest rate decision, it is widely expected that rates will be held at 0.75%. Trading in the Us was widely mixed as the Dow Jones closed flat on the day, the S&P marginally higher +2 points; and the Nasdaq closing -24 points. It was a similar story in Asia, the Nikkei closed +26 points while the Hang Seng was the biggest mover closing -115 points. Following yesterday’s EIA oil data showed a build of 6m barrels oil slipped back to $62 per barrel. Whilst gold rose $5 from yesterday’s open to sit at $1491.

In corporate news this morning:

Aston Martin expects challenging trading conditions to persist, with the DBX progressing well. YTD 2019 revenue -7%, EBITDA -57%, adjusted operating loss £21.8m (2018: £91.5m profit) and loss before tax £92.3m (2018: £23.9m profit). 

BAE Systems reported that the group guidance for 2019 remains unchanged. EPS expected to grow by mid-single digit percentage v 2018 EPS of 42.9p. 

Flutter released Q3 results this morning, total group revenue was +9% for the quarter and grew 10% year on year.  2019 guidance remains unchanged at £420-440m, US guidance raised, EBITDA loss now expected to be circa £40-45 vs expectation of £55m. 

Galliford Try confirms the combination between themselves and Bovis Homes and the acquisition of Linden Homes and partnerships & regeneration division. 

Hikma Pharmaceuticals reiterates FY 2019 guidance for the group and will continue to deliver profitability in line with expectations. 

Persimmon said trading over the Summer was in line with forecasts and said they are fully sold up for the current year. They also have £950m of forward sales reserved beyond 2019. See H2 volumes above H1. Continue to make good progress with plans.

Purplebricks group announced a trading update ahead of FY results on December 12th, citing a slow down in the housing market due to political and economic uncertainty.  However maintained its 4% market share.

Rolls Royce delivered a trading update this morning showing improved trading since the half year, however FY Operating profit now expected to be towards the lower end of guidance.

Sainsburys interim results showed increased grocery market share.  Group sales -0.2% YoY; Retail Sales (Excluding fuel) YoY -0.6%; Like for Like sales -1%; Guidance in line; EPS -16% to 7.9p per share. 

Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

Upgrades/Downgrades:

Associated British Foods (ABF) Upgraded to Buy by Goldman Sachs (Bloomberg: 18 buys/ 5 holds/ 0 sells)

Hiscox Downgraded to Neutral by JP Morgan (Bloomberg: 3 buys/ 6 holds/ 4 sells)

Marks and Spencer Upgraded to Hold by Societe Generale (Bloomberg: 4 buys/ 9 holds/ 11 Sells)

SSE Downgraded to a Hold rating by Berenberg (Bloomberg: 9 buys/ 10 holds/ 0 sells)

In Focus Today:

Bank Of England Interest rate decision

Companies reporting today:

Flutter, Hikma, Provident Financial, Persimmon, RSA Insurance, Sainsburys

Companies reporting next week:

Dignity, William Hill, Informa, Land Securities, Vodafone, ITV, Meggitt, British Land, Wizz Air, Coca-Cola HBC, JD Wetherspoon, Tullow OIl, Taylor Wimpey, Bunzl, Spire Healthcare, Burberry Group, Mediclinic, national Grid, Premier Oil.

(Full list available on Week in advance)

Todays’s Ex-Dividends:

BP – 1.6%

Whitbread  – 0.8%

Galliford Try – 4.7%

Card Factory – 4.6%

(Full list available on Week in advance)

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