Weekly review

By

Sharecast News | 20 Jul, 2018

The FTSE 100 ended the week at 7,678.79, up 0.25%,

Equity view

Emergency home repairs group HomeServe said trading has been as expected during its traditionally quieter first quarter.

Beazley’s first-half profit fell as the insurer paid out more for claims and investment returns fell heavily but top-line growth was strong as rates firmed.

Unilever announced the successful completion of the first tranche of its share buyback programme on Friday, to buy shares with an aggregate market value equivalent of €3bn.

EasyJet is still interested in Italy's Alitalia after Italy's transport minister said the airline will remain the national flag carrier but needed an operational partner, the Corriere della Sera reported on Friday.

Business information and events group Euromoney Institutional Investor updated the market on its trading for the period from 1 April to 19 July on Thursday, reporting that since its interim results on 17 May, trading had continued in line with the board's expectations.

Anglo American on Thursday reported a 6% year on year rise in total second quarter output on a copper equivalent basis, excluding disruption after a leak at its Brazilian Minas-Rio iron ore project.

Capita has been awarded a £30m, five-year contract by Southern Water that will see the outsourcer become its new customer services managed service provider.

International food packing firm Hilton Food on Thursday said first-half trading was in line with expectations.

Tullow Oil lost out to Kosmos Energy in an arbitration case and has been ordered to pay at least an extra $50.8m (£38.8m) of costs from terminating a drilling contract two years ago.

Building materials group CRH has completed the divestment of its DIY business in the Netherlands and Belgium, together with certain related property assets, it announced on Wednesday.

GVC Holdings, the online gaming group that acquired bookmaker Ladbrokes in March, got a not-unsurprising boost from the World Cup in recent weeks that helped growth accelerate in the third quarter.

Waste and water company Severn Trent has reassured investors it has made a good start to current financial year, including a £100m investment programme.

Dairy Crest maintained its outlook for the year on Tuesday as it said trading in the first quarter has been in line with its expectations.

SSP said it had a good third quarter and was upbeat about its outlook as the operator of airport and rail station food outlets benefited from increased air travel.

X-ray imaging specialist Image Scan has entered into a conditional agreement to acquire British developer and manufacturer of X-ray systems for security purposes, Todd Research, from Supply 999 for £3.25m.

Investors in British Land heard how the company made an “active start” to the year on Monday, with the board saying that along with its joint venture partner, it completed on the sale of 5 Broadgate for £1bn, in line with book value.

Aerospace, defence and energy components and systems company Meggitt announced a $21m contract with the Defense Logistics Agency in Richmond, Virginia on Monday, to supply fuel cell equipment for the UH-60 Black Hawk helicopter until 2022.

Finsbury Food said it expected annual profit to meet expectations despite what the baker described as unprecedented increases in the cost of labour and ingredients.

A US court has granted a preliminary injunction to prevent Dr Reddy's Laboratories from selling a generic version of Indivior's Suboxone Film for treating opioid addiction until a decision is made on patent litigation.

Health information technology developer Akers Biosciences said revenue from its flagship PIFA Heparin PF/4 rapid assay more than halved to $259,983 in its first trading quarter - a result of a lower rate of success in extracting antigen.

Economic news

UK public finances continued to improve in June, with government borrowing falling to its lowest level since 2007 and potentially giving Chancellor Philip Hammond more room for manoeuvre in his autumn Budget.

The government is preparing to issue weekly warnings about the impact of a no-deal Brexit after the prime minister's blueprint for leaving the EU failed to unite her party.

UK retail sales fell back in June, as the football World Cup and hot weather saw consumers abandon the high street.

Sterling was sent slipping and sliding to below $1.30 for the first time in 10 months after a series of disappointing economic data points this week lowered expectations for UK interest rates.

Expectations for an interest rate rise in August have faltered after June's UK inflation rate fell short of analyst expectations.

Prime Minister Theresa May narrowly avoided a rebellion within her own ranks on Tuesday night over the EU customs union with the help of four Labour pro-Brexit MPs and a threat to call an election.

Pay growth has slowed to its weakest in six months despite record employment, posing a puzzle for the Bank of England as it decides whether to increase interest rates next month.

Pay growth has slowed to its weakest in six months despite record employment, posing a puzzle for the Bank of England as it decides whether to increase interest rates next month.

The UK has all the required resources and an industrial and governmental will to become a global hub for crypto economy and blockchain technologies by 2022, according to new research.

Annual house price growth slowed in July, according to Rightmove, amid a rise in the number of properties coming to the market.

International events

President Donald Trump took the unusual step of explicitly criticised the Federal Reserve for raising interest rates and the potential impact on the US economy.

US President Donald Trump said that European Union officials will be travelling to Washington next week to discuss trade and threatened the bloc with “tremendous retribution” if negotiations do not work out.

The number of Americans filing for unemployment benefits fell to the lowest level since 1969 last week, according to figures from the Labor Department.

Manufacturing conditions in the Philadelphia region improved more than expected in July, according to a survey released on Thursday.

Tech giant Google has been fined €4.3bn ($5bn) by the European Union for abusing its market position over smartphone makers and ordered to change the way it puts web browser apps on Android devices.

US housing starts dropped to a nine-month low in June, according to data released by the Commerce Department on Tuesday.

Fresh data out of Beijing on Monday showed GDP growth slowing slightly in the People’s Republic, with second-quarter growth put at 6.7%, compared to the 6.8% seen in the first quarter.

European Council President Donald Tusk on Monday called on Europe, China, the US and Russia to work together and avoid trade wars that could lead to "conflict and chaos".

Business conditions in the New York region deteriorated a little less than expected in July, according to a survey from the NY Fed.

US retail sales increased as expected in June, marking five months of rising sales as the estimate for May was revised up.

Last news