Equities have raced out of the blocks this morning on the back of strong GDP growth figures from the US yesterday and news of more quantitative easing in Japan. Click here for The Trader Nicole Elliott’s latest thoughts.
IC TIP UPDATES:
Royal Bank of Scotland (RBS) has posted improved profit figures of £1.27bn for the third quarter, helped by improving economic conditions in the UK and Ireland and a reduction in impairment charges which led to £801m of write-backs. But the bank has set aside £400m for potential charges relating to the manipulation of foreign exchange rates. We maintain our buy rating.
SuperGroup (SGP) has become the latest clothing retailer to bemoan the mild Autumn weather, reducing profit expectations as a result to £60m-£65mfor the full year and describing recent trading conditions as ‘difficult’. Our recommendation is under review.
KEY STORIES:
Advertising giant WPP (WPP) says that its third quarter revenues rose by 3.1 per cent to £2.7bn with nine month reported revenues up 2.8 per cent at £8.2bn. Like for like sales growth outpaced forecasts at 7.6 per cent for the three months to September.
International Consolidated Airlines (IAG), the owner of British Airways and Iberia, has announced strong results with operating profit of €900m outstripping last year’s third quarter profit by €210m. The result has been helped by falling costs, aided by the lower oil price. Operating profit for the first nine months of the year is almost double that of the same period last year at €1.13bn.
Rolls Royce (RR.) has signed a gas turbine contract with BG Group for the Lake Charles LNG Export train project in Louisiana with an associated 25 year service contract.
Insurance group Direct Line’s (DLG) third quarter figures reflect a tougher operating environment with gross written premiums for the first nine months of the year 5 per cent lower than last year although the company still expects a full year combined ratio in a profitable range of 95-97 per cent. Meanwhile costs have been cut by 6 per cent.
OTHER COMPANY NEWS:
First Quantum Minerals (FQM) reports an 11 per cent reduction in third quarter copper production and a 5 per cent decline in nickel production but revenues remained stable at $885m as higher nickel prices mitigated falling copper prices.
UK focused car dealer Pendragon (PDG) posted a 29 per cent uplift in third quarter operating profits and now expects full year figures to come in ahead of forecasts.
Irish focused real estate investment trust Hibernia (HBRN) has raised a further €300m through a placing and open offer at €1.05 a share.
