Morning Report

17th 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
ASTRAZENECA: Anglo-Swedish pharmaceutical firm AstraZeneca said on Friday its chief executive,
Pascal Soriot, would host a results call with reporters on July 27, after refusing to comment on
speculation this week that he was leaving the firm.
ITV: British broadcaster ITV is closing in on naming easyJet's Carolyn McCall as new chief executive,
the Guardian reported on Saturday.
UNILEVER: Anglo-Dutch conglomerate Unilever is vying with U.S. canned meat producer Hormel
Foods Corp to buy the foods division of British consumer goods maker Reckitt Benckiser, the Sunday
Times newspaper reported, citing sources.
BREXIT: Senior members of the government are becoming convinced of the need for a phased British
departure from the European Union to help protect the economy, finance minister Philip Hammond
said on Sunday.
COPPER: London copper edged up to its highest in two weeks on Monday, supported by a weaker
dollar and an upbeat second quarter for China's economy which brightened demand prospects for
metals.
OIL: Oil prices strengthened on Monday, supported by a slowdown in the growth of rigs looking for
crude in the United States and because of strong refinery demand from China.
Markets Summary Last Change Proportion
FTSE 100 7378.39 -35.05 -0.47%
FTSE 250 19408.36 -9.98 -0.05%
DJIA 21553.09 +84.65 +0.39%
S&P 500 2447.83 +11.44 +0.47%
Euro Stoxx 50 3525.94 -1.89 -0.05%
Nikkei 225 20118.86 +19.05 +0.09%

US 10yr Yield 2.33% Oil (WTI) $46.61 Gold $1230.30

EUR/GBP 0.8751 GBP/USD $1.3104 EUR/USD $1.1467
Macro Commentary
European bourses are expected to open higher Monday morning, as investors react to robust economic growth
data in China and await the second round of formal Brexit talks in Brussels. U.K. Brexit Secretary David Davis
is set to resume talks with the EU's Michel Barnier in Brussels on Monday. Negotiators are expected to break
into groups to discuss four key areas before a scheduled news conference on Thursday. Elsewhere, China
reported stronger-than-expected economic growth data on Monday as the world's second-largest economy
was supported by robust industrial output, retail sales and exports. The Chinese economy grew 6.9 percent
(year-on-year) in the second quarter to keep pace with the first quarter of 2017, according to the National
Bureau of Statistics. Meanwhile, in the U.S. on Friday, data showed consumer prices were unchanged in June
and retail sales slipped for the second consecutive month. The data is likely to dampen expectations of robust
economic growth in the second quarter. The chances of an interest rate hike from the Federal Reserve in
December fell to around 43 percent on Friday, according to the CME's Fedwatch tool.
Major Economic Announcements
Time Country Data Consensus Previous
10:00 EUR Euro-Zone CPI (Y/Y)(JUL) 1.30% 1.30%
10:00 EUR Euro-Zone Core CPI (Y/Y) 1.10%
23:45 NZD NZD CPI (Y/Y) 1.90% 2.20%
 Morning Report
17th July 2017

Corporate Announcements

FTSE 100 Stocks

None Today
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FTSE 250 Stocks

Weir (WEIR) Trading Statement

In recent weeks, upstream North American markets have recovered more strongly than formerly
anticipated.
Higher levels of frack fleet utilisation and significant tightening of industry capacity are both benefiting
the Group's Oil & Gas division.
As a result, it has seen increased volumes, stronger operating leverage and modest pricing recovery
ahead of prior expectations, and has delivered low double-digit operating margins in the first half.
Assuming supportive market conditions continue, the division is now expected to deliver low-teens
operating margins through the second half with full year revenues and operating profits that are above
the upper end of analysts' estimates.
At Group level, this growth will be partially offset by one-off charges to operating profit of 13m related
to previously announced legacy contract delivery challenges in the Gabbioneta business, part of the
Group's Flow Control division. Expectations for the Minerals division remain unchanged.
The updated outlook for the Group's full year performance is now for strong constant currency revenue
and profit growth. As previously indicated, profits will be weighted to the second half of the year.
Upgrades/Downgrades
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BEZ Beazley Plc Peel Hunt Reduce Reduce
MTO Mitie Group Plc Investec Sell Buy
RYA Ryanair Holdings Plc AlphaValue Sell Add
Downgrades
888 888 Holdings Plc Peel Hunt Buy Buy
PSON Pearson Plc Berenberg Sell Sell