TODAY’S FAYRE – Wednesday, 27th July 2016


“The raven himself is hoarse

That croaks the fatal entrance of Duncan

Under my battlements. Come, you spirits

That tend on mortal thoughts, unsex me here,

And fill me from the crown to the toe top-full

Of direst cruelty. Make thick my blood.

Stop up the access and passage to remorse,

That no compunctious visitings of nature

Shake my fell purpose, nor keep peace between

The effect and it! Come to my woman’s breasts,

And take my milk for gall, you murd’ring ministers,

Wherever in your sightless substances

You wait on nature’s mischief. Come, thick night,

And pall thee in the dunnest smoke of hell,

That my keen knife see not the wound it makes,

Nor heaven peep through the blanket of the dark

To cry “Hold, hold!”


Lady Macbeth



William Shakespeare – poet & playwright – 1564-1616



Such very sad news that the Irish amateur jockey JT McNamara aged just 41 gave up the unequal struggle yesterday having broken his neck 3 years ago in the Kim Muir Chase.  He was almost totally paralysed.  A truly brave man and a fantastic jockey/sportsman and great friend of Sir Anthony McCoy and countless others in the weighing rooms on both sides of the Irish Sea. 



For the avoidance of doubt, it has been brought to my attention that Sir Philip Green is NOT a tax-exile. He is paid a salary by Arcadia in his capacity as a director and tax is deducted at source. My apologies for any misinformation that may have been circulated. 



With the sun still high on the yardarm with much of Europe attempting to get used to the idea of BREXIT, European bourses put in what could only be describes as a rather nebulous performance. There was quite a flow of results – few, if any, were earth shattering or very disappointing. I think the market was cheered by BP’s stronger than expected looking balance sheet, which ventures to suggest that despite all the trouble surrounding Deepwater from our ‘special friends’ in the US – dividends look safe enough for the time being. Though yesterday’s bottom line profit of $720 million was disappointing resulting in the shares dropping 2%, BP’s shares have rallied 12.8% in the past 3 months.  House builders lost a little shine thanks to a note put out by Deutsche Bank.  Provident Financial grabbed the yellow jersey from an enigmatic session, which saw the FTSE 100 end the trading session up 13 points at 6724. BT was 3.16% to the good, having agreed with Ofcom to have Openreach run as a subsidiary, so that the poor broadband service to date can be monitored more closely. 30 million internet users have access to Openreach which supplies 80% of the broadband market, including Sky and TalkTalk. A note about Jane-Ann Gadhia, the CEO of Virgin Money.  She’s doing a splendid job and really understands the retailer and consumer – shares up 8.7% after very encouraging numbers. AB InBev sweetened its bid for SAB Miller, as discussed yesterday, valuing the company at £71 billion and German investors just about gave Deutsche Bourse its reluctant approval to buy the LSE, though regulatory approval may not come through until next June.



There was little to get the taste buds going on the Street of Dreams yesterday as the DOW added a parsimonious 0.10%, with the S&P hardly doing much better – up 0.03% and the NASDAQ nervously awaiting results from Apple after hours.  Though profits were down some 22%, the numbers were better than expected – revenues of $50.06 billion producing a profit of $10.5 billion against last year’s effort of revenue $58 billion profit of $13.6 billion. The dividend was 10% with eps at $1.90 a share. The share buyback has been increased from $140 billion to $175 billion. iPhone 6 sales were up 35% on the last quarter.  The market seemed to like these numbers and the shares added 6.8% after hours, though they have fallen 20% this year.  Many felt that Marissa Mayer, Yahoo!’s CEO had done a very average job, which made her $65 million bonus stick in the crawl fairly uncomfortably. The earnings floodgates open today with Boeing, Coca-Cola and Facebook likely to catch most investors’ eyes.



A rumoured stimulus package of over Y28 trillion by the Bank of Japan, which may be announced today, put life back in to the NIKKEI, which weakened the end for the benefit of exports – up 1.80%.  The rest of the Asian bourses put in very mixed performances – ASX +0.10%, Shanghai Composite +2.55% and the Hang Seng -0.27%%.



There have been a slew of earning this morning. Deutsche Bank set the ball rolling this AM.  There have been some mutterings about the robustness of this bank for many weeks.  However CEO John Cryan posted a 67% drop in profits to E408 million for the second quarter.  Mr Cryan seemed to believe that the bank was making good progress with its restructuring programme, no doubt attempting to cut back on its derivative exposure. 2k new commercial clients have been identified at 10k private clients in the last trading period. Santander posted a 50% drop in profits again attributing this fall to restructuring.  Non-performing loans had fallen to 4.29%.  The ECB banking stress tests are due on Friday and will make interesting reading.


ARM Holdings due to fall in to the lap of Softbank before too long posted a 5% increase in profits to £95.9 million from a 9% increase in earnings to £387 million. EPS came in at 6.3p and the dividend was upped by 20%.  There was no outlook provided due to the sensitivity of the takeover procedure. GSK seem very comfortable with BREXIT as it announced a £275 million investment programme in the UK. ITV posted a decent set of numbers – Total external revenue was up 11% to £1,503m (2015: £1,356m). ITV Studios total revenue up 31% to £651m (2015: £496m).  Net Advertising Revenue was flat at £838m (2015: £838m. The adjusted Pre-tax-profit was up 9% to £425m (2015: £391m. The balance sheet looks to be in rude health.


The FTSE 100 is expected to open up 10 points to the good.


UK companies posting results this week – Wednesday – Tullow, Glaxo Smithkline, Brewin Dolphin, M&B, ITV, Marston’s, Shawbrook, Capita, Thursday – Centrica, Sky, Thos Cook, BT Group, Smith & Nephew, Henderson, Astra Zeneca, Rentokil Initial, Just Eat, PayPoint, Genel, Domino Pizza, Lloyds Banking Group, Royal Dutch Shell, Friday – Barclays, Vesuvius, Reckitt Benckiser, Pearson, Foxton’s, Paragon


US companies posting interim results this week – Wednesday – Boeing, Mondelez, Nasdaq, Corning, Coca-Cola, Altria, General Dynamics, Goodyear, Comcast, Facebook, Xilinx, Whole Foods, Amgen, Dolby Systems, Thursday – Alphabet (Google), Baker Hughes, Ford Motor, Zimmer, Boston Scientific, Lear, Hershey, Raytheon, CME, Bristol Myers Squibb, ConocoPhillips, Colgate Palmolive, Harley Davidson, Amazon, Pixelworks, Friday – Xerox, Exxon Mobil, Chevron, Cigna


David Buik
Market Commentator – Panmure Gordon & Co
+44 (0)20 7886 2775
Mobile – 0044 7788 144 877

Panmure Gordon & Co

One New Change | London | EC4M 9AF | United Kingdom


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