Morning Report

14th July 2017

READ OUR FULL RISK WARNING. The value of investments and any income from them can fall as well as rise, and
you may get back less than you invested. An investments past performance is not a reliable indicator of future
performance. Tax allowances depend on your personal circumstances and the benefits of tax-efficient accounts could
change in the future.
Market News in Brief
SKY/Twenty-First Century Fox: Rupert Murdoch is unlikely to offer any new concessions to protect
the editorial independence of Sky, increasing the chance that the $15 billion takeover deal goes to a
lengthy investigation, a person familiar with the situation said.
ANTOFAGASTA: Workers at the Zaldivar copper mine in Chile, owned by Antofagasta Plc and Barrick
Gold Corp, will resume talks with Antofagasta after voting to strike earlier this week, the union said on
Thursday.
JOHN LEWIS: John Lewis , Britain's largest department store operator, has seen a drop in demand for
big ticket items as consumer confidence wanes, but trade in more spontaneous categories, such as
beauty, was holding up, its boss said on Thursday.
Markets Summary Last Change Proportion
FTSE 100 7413.44 -3.49 -0.05%
FTSE 250 19418.34 +150.48 +0.78%
DJIA 21553.09 +20.95 +0.10%
S&P 500 2447.83 +4.58 +0.19%
Euro Stoxx 50 3527.83 +12.60 +0.36%
Nikkei 225 20141.91 +42.10 +0.21%

US 10yr Yield 2.49% Oil (WTI) $46.05 Gold $121.40

EUR/GBP 0.8802 GBP/USD $1.2959 EUR/USD $1.1408
Macro Commentary
European stock markets are set to open higher Friday morning with investors looking ahead to earnings from
Wall Street banks and more developments from a meeting between French and U.S. Presidents Emmanuel
Macron and Donald Trump. The U.K. FTSE is set to open at 7,425, up 12 points. Meanwhile, the German DAX
is anticipated to start Friday trading at 12,652, up 10 points. The French CAC is seen at 5,244, up 9 points.
Spain's IBEX is set to make the biggest gains, up 22 points at 10,680. Stateside, Friday also marks the official
beginning of U.S. earnings season. Major banks Citigroup, JPMorgan Chase and Wells Fargo will all release
their second-quarter results. In Europe, U.K. recruitment firm Hays and Swedish financial group SEB will also
release their figures. In U.S. politics, senior Democrat Nancy Pelosi Thursday called for an independent body
to investigate what she described as "cold, hard evidence" that the Trump family played a role alongside
Russia in influencing last year's presidential election. Meanwhile Trump, in comments released by the White
House Thursday, suggested that he would invite Russian President Vladimir Putin to the White House, though
he added that now was not the right time.
Major Economic Announcements
Time Country Data Consensus Previous
13:30 USD USD CPI (Y/Y)(JUL) 1.80% 1.90%
13:30 USD USD CPI Ex Food & Energy (Y/Y)(JUL) 1.70% 1.70%
13:30 USD USD Advance Retail Sales (M/M)(JUL) 0.20% -0.30%
13:30 USD USD Core Retail Sales (M/M)(JUL) 0.20% -0.30%
15:00 USD USD Michigan Consumer Sentiment 95.8 95.1
 Morning Report
14th July 2017

Corporate Announcements

FTSE 100 Stocks

DCC (DCC) Interim Management Statement

DCC's profits are significantly weighted towards the second half of its financial year.
At what is still a very early stage in the financial year, the Group reiterates its belief that the year ending
31 March 2018 will be another year of profit growth and development.
Were current foreign exchange rates to prevail for the remainder of the year, the Group would benefit
modestly, relative to current market consensus, from a favourable translation of non-Sterling profits into
Sterling.
The processes to complete the acquisitions of Esso Retail Norway and Shell Hong Kong & Macau are
progressing to plan and are expected to complete by the end of the third and fourth quarters of DCC's
financial year respectively.
DCC remains ambitious to continue the growth and development of its business. DCC's strong and
liquid balance sheet, leaves it well placed to continue the growth of its LPG, Retail & Oil, Healthcare
and Technology divisions, in both existing and new geographies.
The strength and liquidity of DCC's balance sheet was further enhanced by the recent successful
completion of a c.450 million fundraising in the US private placement debt market. The drawdown of
funds will occur in September 2017.
The fundraising has a weighted average term of 10.2 years and will extend DCC's weighted average
debt maturity by 1.3 years to 6.8 years.
________________________________________________________________________________________

FTSE 250 Stocks

Hays (HAS) Trading Update

Good overall growth of 7% (underlying growth of c.9% adjusted for working days) and another record
quarterly net fee performance for the Group
Full-year operating profit is expected to be marginally ahead of current consensus market
expectations, which we understand to be 209.5 million
Strong, broad-based 11%growth in Continental Europe & Rest of World, driven by Germany up 16%
(c.21 adjusted for working days) and 11 further countries growing in excess of 10%
Continued strong trading in Asia Pacific, up 11%, with strong, uniform growth of 13% in Australia
(c.15% adjusted for working days). Solid growth in Asia where net fees grew 6%
UK & Ireland down 5% adjusted for working days) with activity levels sequentially stable. Private sector
(77% of net fees) was down 1% with continued signs of modest improvement. Public sector markets
remained tough, down 17%
Group consultant headcount was up 10% year-on-year and up 2% in the quarter, primarily in Europe
Strong cash performance, with a year-end net cash position of c.110 million
We will host an Investor Day in London on the afternoon of 9th November 2017

Upgrades/Downgrades
Upgrades Broker From To
SL. Standard Life HSBC Hold Buy
ADN Aberdeen Asset HSBC Hold Buy
Downgrades
BLT BHP Billiton HSBC Buy Hold