Market Commentary - Housing, Infrastructure, Construction and Services 22nd February 2017
Serco’s progress in 2016 on its road to redemption is reported today. Barratt Developments has also reported its results for the half year to end December. The moves yesterday saw Mitie fall by around 2%, the largest faller and G4S and Galliford dip by 1%.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 21st February 2017
Interserve was the back marker yesterday, quite predictably as the warning was a bit of a shocker. Balfour Beatty has unexpectedly announced that it has sold its Middle East JV to its partner for £11m; Capita has announced that it will take £90m, non-cash, asset impairment to its P&L for last year; Wolseley has announced that it is to merge its Swiss operations with a locally based business, Walter Meier and Galliford Try has announced some solid numbers at the halfway stage of its financial year.
Read more...Trump soldiers on
General H.R McMaster is appointed as US National Security Advisor
There is a certain irony that the US host of the Apprentice was left scrabbling around for someone to fill the post of US National Security Advisor (NSA). However, after what appears to have been a fraught week of negotiating, President Trump has appointed General H.R.McMaster, a current Army Officer, who gained notoriety for his criticism of military leadership during the Vietnam War.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 20th February 2017
Bovis Homes tells us of its results for 2016 this morning and Interserve provides an unexpected update on its troubled waste to energy business. Interserve’s news is bad and there is no guarantee it will not get worse. Bovis has come out with the best it can do in the circumstances and promised it will press the reset button on the way it approaches the production process and customer service. The sector performed well last week with an outcome a head of the markets 0.5% rise at around a 1% increase. The housebuilders were the best performers in the group, up by near 1.5%.
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Earnings estimates stuck in low gear
Still no sign of Trump bounce in corporate profits outlook
Now, several months after Trump’s election there has been ample time for the corporate sector to re-evaluate the 2017 outlook in respect of improved economic optimism. However, we have found that earnings upgrades have not to date followed positive economic surprises. In the past, short-term market direction has been closely linked to earnings momentum and the current absence of upgrades points to a period of sluggish market performance.
Read more...Market Commentary - Housing, Infrastructure, Construction and Services 17th February 2017
Kingspan is the main news creator today with its full year results to end December 2016. Kingspan is probably the largest sector company of which many investors have never heard. The moves yesterday showed the HICS sector to have no clear direction at present.
Read more...Court room dramas
Embraer & Brazil vs. Bombardier & Canada – round 2
Embraer and the Brazilian Government vs. Bombardier and the Canadian Government looks set to be the next aerospace courtroom drama. This follows hot on the heels of the aerospace giants Airbus and Boeing slogging it out in the courts over government’s providing financial support for new aircraft programmes, known commonly as ‘Launchaid’ (see Andy’s December blog). 2017 will see the aerospace minnow’s take to the stand in a replay of their previous drama, as Embraer has again complained to the World Trade Organisation about Canada’s support of Bombardier.
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