3rd Apr 2020 08:03
(Alliance News) - Well, at least someone is doing well.
Online trading firm CMC Markets said Friday net trading revenue has been strong over its financial year ended March 31, especially in the last quarter due to a rise in market activity.
CMC said contract-for-difference revenue nearly doubled to GBP214 million, while its stockbroking business also is set to report doubled annual revenue, to GBP32 million.
CMC reaffirmed its policy of paying a total annual dividend of 50% of post-tax profit.
"At CMC we have focused rigorously on our strategic priorities and feel that the benefit of this focus has started to come through in our performance this year which demonstrates a step change from where we were 12 months ago," said Chief Executive Officer Peter Cruddas.
He added: "Notwithstanding the uncertainty we remain confident in the outlook for 2021 as we progress with our numerous strategic growth initiatives. We're not reliant on a sustained period of high volatility in markets, but our well-invested platform, technical expertise and diversified offering supports us delivering sustainable results not just now but also in years to come."
CMC Markets shares were up 1.7% early Friday in London.
Here is what you need to know at the London market open:
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MARKETS
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FTSE 100: down 0.4% at 5,457.79
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Hang Seng: down 0.5% at 23,156.57
Nikkei 225: closed flat at 17,820.19
DJIA: closed up 469.93 points, 2.2%, at 21,413.44
S&P 500: closed up 2.3% at 2,526.90
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GBP: down at USD1.2389 (USD1.2402)
EUR: down at USD1.0835 (USD1.0878)
Gold: down at USD1,608.00 per ounce (USD1,610.10)
Oil (Brent): down at USD29.76 a barrel (USD30.02)
(changes since previous London equities close)
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ECONOMICS AND GENERAL
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Friday's Key Economic Events still to come
0930 BST UK CIPS-Markit services purchasing managers' index
0955 CEST Germany services PMI
1000 CEST EU services PMI
1100 CEST EU retail trade
0830 EDT US non-farm payrolls and unemployment rate for March
0945 EDT US services PMI
1000 EDT US ISM non-manufacturing report on business
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UK Prime Minister Boris Johnson emerged from self-isolation to join people around the country applauding key workers on the frontlines of the coronavirus pandemic. This is the second time the nationwide salute has taken place, as people stood on their doorsteps to applaud those working to stem the outbreak of Covid-19. Bagpipers took to the streets in Scotland, while families banged pans and fireworks were let off around the country. Johnson appeared briefly on the steps of Number 10 to join in, the first time he has been seen in person since announcing he had been diagnosed with Covid-19 last week. He told those gathered outside: "I am not allowed out really, I am just standing here."
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Latest data showed 2,921 people were confirmed to have died in hospital after testing positive for coronavirus in the UK as of 5pm on Wednesday. The youngest person who died without underlying health conditions was aged 25. The total is up by 569 from 2,352 the day before and is the biggest day-on-day increase so far, just above the 563 reported the day before.
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More UK businesses will be able to access financial support during the coronavirus lockdown after the chancellor announced a wider package of measures to assist struggling companies. The move will enable larger UK firms with turnovers as high as GBP500 million to access support, while opening up the availability of state-backed cash to smaller companies. And the UK Treasury has confirmed the imposition of new rules on lenders in a bid to ensure money gets to business owners faster and with less personal risk involved.
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High street retailers in the UK suffered their worst month on record, as Covid-19 lockdown measures dented the already struggling sector, the BDO's March high sales tracker numbers showed. In the five weeks to March 29, total like-for-like sales slumped 18% year-on-year, with bricks and mortar sales collapsing by 34%. There was however, a 14% rise in online sales. "Sliding footfall due to social distancing, diverted demand from discretionary to essential items, and retail closures in the final week of the month all contributed to the worst results on record for both total like-for-likes and total in-store like-for-likes in March," the BDO said.
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The Taoiseach has expressed hope that Ireland's looming recession will not result in another era of austerity. Leo Varadkar said the relatively good state of the Irish economy going into the sharp downturn triggered by coronavirus would help make the recovery less painful than it was following the crash of the Celtic Tiger in 2008. The deaths of another 13 patients with Covid-19 in the Republic of Ireland were announced on Thursday, bringing the total number of deaths to 98. There were 402 new cases of coronavirus confirmed, with the total number now at 3,849.
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Ireland's services sector has been hit hard by the Covid-19 crisis, data showed, with output and new business falling at the fastest pace in 11 years in March, swinging from a record pace of growth only the month before. The AIB Ireland services business activity index slumped to 32.5 in March, well below the 50 mark which separates growth from decline, and little better than half the February print of 59.9. The February number was the highest in more than two years.
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The Japanese service sector slumped sharply in March as Covid-19 hit demand, the au Jibun-IHS Markit purchasing managers' index showed. The services business activity index tumbled to 33.8 in March from 46.8 the month before, with the latest reading close to the record low of 33.7 seen in 2009 and consistent with a "severe fall" in business activity.
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BROKER RATING CHANGES
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DEUTSCHE BANK CUTS NATIONAL GRID TO 'HOLD' (BUY) - PRICE TARGET 910 PENCE
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GOLDMAN RAISES SEGRO TO 'BUY' ('NEUTRAL') - TARGET 913 (954) PENCE
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HSBC CUTS JOHNSON MATTHEY TO 'HOLD' ('BUY') - TARGET 1850 (3350) PENCE
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COMPANIES - FTSE 100
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Defence contractor BAE Systems said it is in a "strong" position with a large order backlog, mainly in the form of contracts from governments across the world. The balance sheet is strong, BAE continued, as is liquidity. Covid-19 has had no material impact on financial performance in the first quarter of 2020, though disruption is beginning to increase. However, BAE has still decided to defer its 13.8 pence per share final dividend for 2019 declared in February. An update on the dividend will be provided in July when reporting results for the first half of 2020.
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COMPANIES - FTSE 250
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UK travel operators welcomed financial support from the UK government for the bus sector amid the collapse in demand caused by Covid-19. Bus companies in England will receive almost GBP170 million in new government funding to ensure services continue to operate during the coronavirus pandemic. UK Transport Secretary Grant Shapps said the investment will protect crucial local transport links across England for those unable to work from home. FirstGroup Chief Executive said he was "pleased" with the help, while his counterpart at Go-Ahead Group David Brown said he was "very pleased". Stagecoach said the aid was "welcome".
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Events and data firm Ascential has taken the "difficult" decision to cancel the Cannes Lions festival this year, having already postponed it due to Covid-19. Ascential said it would not have been commercially viable to run it this year, with the next edition running in June 2021. Ascential has decided to withdraw the 4.0p per share final payout for 2019 declared earlier this year, which will save it GBP15 million. Salary increases, including for some executive and non-executive directors, have also been halted.
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Great Portland Estates said it is financially strong but warned only 62.9% of rent due in the first quarter of 2020 was collected, compared to 99.2% a year before and 99.3% in the last quarter of 2019. Another 4.5% for the quarter is expected imminently, Great Portland said, with over half of the outstanding amount from retail, hospitality and leisure.
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COMPANIES - OTHER MAIN MARKET AND AIM
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Budget airline Ryanair reported a 48% fall in passenger numbers in March to 5.7 million, as airlines bear the brunt of the coronavirus pandemic. It operated 33,000 flights in March, just under half of the budgeted number of 64,000. Ryanair expects to carry out "minimal if any" traffic during April and May. It is currently operating less than 20 flights a day. The firm expects pre-exceptional items post-tax profit of between EUR950 million and EUR1.00 billion in the financial year ended March 31, which is at the lower end of the previously guided range. Ryanair will be booking a EUR300 million charge due to the ineffectiveness of fuel hedges made for financial 2021, it added.
Ryanair stressed it has one of the "strongest" balance sheets in the industry. No guidance is yet possible for its newly begun financial year.
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COMPANIES - INTERNATIONAL
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Moody's Investor Service downgraded oil major ExxonMobil's issuer and senior unsecured ratings, but affirmed peer Chevron's. ExxonMobil's issuer and senior unsecured ratings have been lowered to Aa1 from Aaa, whilst Chevron's remain at Aa2. The outlook for Exxon remains at Negative, while Chevron had its Stable outlook affirmed. "ExxonMobil was generating negative free cash flow and weakly positioned within its Aaa rating prior to the collapse in oil prices," commented Pete Speer, a Moody's senior vice president.
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US President Donald Trump's family company is asking creditors such as Deutsche Bank if it can delay loan payments as the economic impact of the coronavirus pandemic deepens, The New York Times reported. The Trump Organization – the conglomerate of companies created by Trump and now run by his sons – is, like many others, losing money as the restrictions put in place to lessen the spread of deadly Covid-19. The New York Times said the Trump Organization contacted Deutsche Bank, seen as the only major lender willing to do business with the company, at the end of March to ask about extending some repayment deadlines.
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Friday's Shareholder Meetings
no events scheduled
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By Tom Waite; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
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