1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

FTSE slips back on miners and Sainsbury, but Next and BAE buck trend

Discussion in 'Market News' started by Lily, May 4, 2016.

  1. Lily

    Lily Forum Member

    Joined:
    Aug 29, 2015
    Messages:
    7,420
    Likes Received:
    0
    Investors welcome updates from Next and BAE but Sainsbury disappoints

    Leading shares in the UK are dipping lower again but reasonable eurozone services surveys are providing some support, even helping European markets edge higher.

    Mining shares are among the biggest losers on the FTSE 100 on continuing concerns about the strength of the global economy and thus demand for commodities, but BAE Systems has climbed 1% to 481.2p after saying it had made a good start to the year. The statement comes ahead of its annual meeting, but analyst Sandy Morris at Jefferies remained cautious:

    The AGM statement says BAE has “good momentum”, but provides no real substance for that assertion, in our view. The breadth of BAE’s business and programmes does make it robust, even were there no further export for Typhoon, but we believe there is arguably still some uncertainty about the rate of growth BAE can sustain over the next three years.

    BAE appears to have made a satisfactory start to 2016, but has arguably not been able to generate any excitement. We recognise the backdrop looks more positive. Certainly, the conflict in Yemen appears intractable despite the recent peace negotiations in Kuwait (although the Saudi-led coalition has halted the bombing campaign). On the other hand, the Russian defence budget is under pressure and may now reduce. Looking across BAE’s major US peers, we think it fair to summarise the first quarter of 2016 as having been pretty uneventful in terms of organic growth in sales and the development of order backlogs. We venture BAE is in the same camp.

    Continue reading...
     

Share This Page