Morning Report

24th 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
GLENCORE: Glencore Plc. has signed an agreement to invest up to 66 million reais ($21 million) into
Brazilian copper producer Paranapanema SA, the Brazilian firm said in a securities filing.
BAKKAVOR: Bakkavor, one of the biggest suppliers of ready meals to Marks & Spencer and
Waitrose, is exploring plans for a stock market float that could value it at up to 1.5 billion pounds, The
Times reported on Sunday.
B&M EUROPEAN VALUE RETAIL: Asda, the British supermarket arm of Wal-Mart stores, is
considering a 4.4 billion pounds ($5.7 billion) takeover of B&M European Value Retail, the discount
retailer run by the billionaire Arora brothers, The Sunday Times reported.
AIM: Companies leaving London's junior stock market because a broker or investment bank has quit
as their adviser has hit a record this year, an accountancy firm specialising in the sector said.
BRITAIN ECONOMY: British households' financial situation has deteriorated at the fastest rate in three
years this month, as families increasingly shy away from big purchases like cars, holidays and
household appliances, a survey showed on Monday.
OIL: Oil prices gained on Monday after a steep fall the session before, buoyed by expectations that a
joint OPEC and non-OPEC meeting later in the day may address rising output in Nigeria and Libya,
two OPEC members so far exempt from a push to cut production.
Markets Summary Last Change Proportion
FTSE 100 7452.91 -34.96 -0.47%
FTSE 250 19408.36 -12.70 -0.06%
DJIA 21580.07 -31.71 +0.15%
S&P 500 2472.54 -0.91 +0.04%
Euro Stoxx 50 3451.71 -47.78 -1.37%
Nikkei 225 20099.75 -44.84 +0.22%

US 10yr Yield 2.24% Oil (WTI) $45.77 Gold $1247.25

EUR/GBP 0.8970 GBP/USD $1.2996 EUR/USD $1.1156
Macro Commentary
Bourses in Europe open higher on Monday as investors look out for new earnings and data reports and
possible new sanctions on Russia. The pan-European Stoxx 600 was 0.14 percent up with most sectors
trading in positive ground. President Donald Trump said Sunday he is willing to sign new sanctions against
Russia. However, in Europe, the European Commission's President Jean-Claude Juncker warned that there
will be retaliations on the U.S. if it pushes sanctions affecting European companies. The Auto sector is set to
be under pressure after reports that the European Commission is investigating collusion between German
carmakers. In corporate news, Luxottica, Ryanair, Julius Baer and Reckitt Benckiser are due to report their
latest earnings numbers. Later, Alphabet is also due to report after the bell. In terms of data, there will be new
flash manufacturing PMIs in France, Germany and the euro zone. In currency markets, the euro held at two-
year highs following remarks by ECB President Mario Draghi last week, while the dollar remained weak ahead
of the U.S. Federal Reserve's policy meeting later in the week.
 Morning Report
24th July 2017

Major Economic Announcements

Time Country Data Consensus Previous
8:30 EUR EUR German PMI Composite(SEP) 56.3 56.4
8:30 EUR EUR German PMI Services(SEP) 54.3 54
8:30 EUR EUR German Manufacturing PMI (M/M)(OCT) 59.2 59.6
9:00 EUR Euro-Zone PMI Manufacturing(OCT) 57.2 57.4
9:00 EUR Euro-Zone PMI Services(SEP) 55.5 55.4
13:30 CAD CAD Wholesale Sales (M/M)(MAY) 1.0%
14:45 USD USD Manufacturing PMI(SEP) 52.1
14:45 USD USD Markit Services PMI(SEP) 54.2
15:00 USD USD Existing Home Sales(JUN) 5.65M 5.62M
15:00 USD USD CB Consumer Confidence(JUL) 116.0 118.9

Corporate Announcements

FTSE 100 Stocks

Anglo American PLC - Anglo American Platinum earnings reconciliation

Anglo American wishes to draw attention to Anglo American Platinum Limited's announcement of its results for
the six months ended 30 June 2017. Anglo American Platinum Limited reported headline earnings of R747
million. Anglo American will report underlying earnings in respect of Anglo American Platinum Limited of $37
million for the six months ended 30 June 2017, which takes into account certain adjustments.

SSE Plc - Transaction in Own Shares

SSE plc (the "Company") announces that on 21 July 2017 it purchased for cancellation a total of 270,784
Ordinary Shares of nominal value 0.50 each in the capital of the Company. The purchases were carried out
on behalf of the Company by Morgan Stanley & Co. International plc, who have been engaged to manage part
of the Company's capital return programme.

British Land Co PLC - Transaction in Own Shares

The British Land Company PLC ("the Company") announces that it has engaged Morgan Stanley and UBS ("the
Brokers") in relation to the programme, announced on 18 July 2017, to repurchase the Company's ordinary
shares up to the value of 300 million. The programme will be executed between 24 July 2017 and 23 March
2018.The purpose of the programme is to reduce the capital of the Company. The Brokers will purchase the
Company's ordinary shares as principal and sell them on to the Company in accordance with the terms of their
respective engagements. The Company intends to cancel the shares it purchases through the programme.

Reckitt Benckiser Gp - Half-year Report

Significant progress on our portfolio transformation:

Mead Johnson Nutrition (MJN) acquired on 15 June, earlier than expectations and integration
progressing well.
Food disposal announced. Proceeds to be used to reduce debt.
RB base business on track in a challenging environment.
LFL net revenue decline of -1% (Q2: -2%) - in line with our announcement on 6 July. (specific
issues: Scholl, Korea, GST and cyber-attack)
 Morning Report
24th July 2017

ENA (-3% LFL) and DvM (+3% LFL growth) - impacted by specific issues in challenging market
conditions.
Health (-2% LFL) - continuing strong dynamics offset by specific issues. Hygiene (+1% LFL growth),
Home (-3% LFL).
Adjusted operating margin expansion of +30bps to 23.7%, (ex MJN: +50bps to 23.9%).
Adjusted net income growth of +14% (-1% at constant rates); adjusted diluted EPS of 124.9p (+15%).
Adjusting items of 127m principally in respect of the MJN acquisition.
318m provision in respect of Indivior / DoJ discussions taken within discontinued operations. Further
details on p15, 26.
Reported net income increased by +61% (+34% constant); reported diluted EPS of 109.3p (+62%).
Strong free cash flow generation of 1,251m. Further details on p13.
Full year net revenue target adjusted to +2% (previously +3%) as previously announced. MJN net
revenue target for H2 of -2% to flat.
The Board declares an interim dividend of 66.6p per share (2016: 58.2p), an increase of 14%.
________________________________________________________________________________________

FTSE 250 Stocks

Alliance Trust PLC - Transaction in Own Shares

The Board of Alliance Trust PLC ("the Company") announces that on 21 July 2017 the Company purchased for
cancellation 153,494 ordinary shares of 2.5p each at a price of 718.3458p per share.

Therefore, the total number of voting rights in the Company is now 352,409,998.

The above figure (352,409,998) may be used by shareholders as the denominator for the calculations by which
they will determine if they are required to notify their interest in, or a change to their interest in, the Company
under the FCA's Disclosure and Transparency Rules.

Upgrades/Downgrades
Upgrades Broker From To
DRX Drax Group Plc RBC Capital Underperform Outperform
Markets
OPHR Ophir Energy Plc Jefferies Underperform Hold
International
SIA Soco International Plc Jefferies Hold Buy
International
Downgrades
IAG International Kepler Buy Hold
Consolidation Airlines Cheuvreux
Group SA
NCC NCC Group Plc Berenberg Hold Sell