$WPP

UK Market Closed mixed yesterday. Royal Dutch Shell fell 3.5%, after the company reported lower than expected adjusted earnings in the third quarter. Evraz shed 1.5%, after the company reported a drop in sales in the third quarter due to a slowdown in the Russian construction market. Restaurant Group slid 1.4%, after the group announced former Cadbury and Avis Europe Executive Ken Hanna as its next Chairman. On the other hand, WPP climbed 8.1%, after the advertising giant reported upbeat results in the third quarter and lifted its outlook for 2021. Synthomer advanced 4.3%, after the company announced that it would acquire Adhesive Technologies for a cash consideration of £728.0 million. Lloyds Banking Group rose 1.3%, after the bank lifted its outlook after reporting stronger than expected profits in the third quarter. The FTSE 100 slipped 0.1%, to close at 7,249.5, while the FTSE 250 rose 0.1%, to end at 23,199.9. . Europe Market Closed mostly higher yesterday, following strong results from food and technology stocks and the European Central Bank’s decision. Anheuser-Busch InBev climbed 10.3%, after the company raised its full year outlook. KUKA advanced 3.8%, after the automation company reported a jump in its 9-months sales revenue. Airbus rose 1.9%, after the commercial plane maker lifted its full-year financial targets. On the flipside, Arcadis declined 10.1%, after the design, engineering and consulting company reported lower earnings in the third quarter. Beiersdorf dropped 4.7%, even though the Nivea maker reported an increase in sales in the third quarter. Volkswagen fell 3.7%, after the company downgraded its forecast for deliveries to customers as it reported a decline in its operating profits in the third quarter. The FTSEurofirst 300 index gained 0.2%, to close at 1,839.2. Among other European markets, the German DAX Xetra 30 fell 0.1%, to close at 15,696.3, while the French CAC-40 advanced 0.8%, to settle at 6,804.2. . US Market Went higher yesterday, amid strong corporate earnings reports. Ford Motor climbed 8.7%, after the automaker reported robust earnings in the third quarter and lifted its annual outlook for the second time this year. Merck advanced 6.1%, after the drug maker reported stronger than expected revenue and earnings in the third quarter. Caterpillar rose 4.1%, after the company reported better than expected profit in the third quarter. On the other hand, Northrop Grumman dropped 7.6%, after the company reported lower than expected revenues in the third quarter. American Express 1.9%, after the company launched a new fully digital business checking account and its first ever business debit card. The S&P 500 gained 1.0%, to settle at 4,596.4. The DJIA rose 0.7%, to settle at 35,730.5, while the NASDAQ advanced 1.4%, to close at 15,448.1. . Asian Market Are trading lower this morning, amid concerns over rising inflation. In Japan, JGC Holdings and Toto have dropped 2.7% and 3.9%, respectively. Meanwhile, Omron and Ricoh have advanced 2.2% and 2.4%, respectively. In Hong Kong, AIA Group and BYD have fallen 1.8% and 3.3%, respectively. Meanwhile, CLP Holdings and WH Group have risen 1.1% and 2.5%, respectively. In South Korea, Celltrion and Century have declined 5.8% and 14.0%, respectively. Meanwhile, INFAC and NHN have climbed 6.4% and 10.2%, respectively. The Nikkei 225 index is trading 0.1% lower at 28,792.5. The Hang Seng index is trading 0.7% down at 25,383.0, while the Kospi index is trading 0.5% lower at 2,994.0.

UK Markets Closed mixed yesterday, as slowdown in business activity overshadowed gains in commodity sector stocks. Mitie Group advanced 2.5%, after the company agreed to sell its document management business to Swiss Post Solutions for a consideration of £40.0 million. Pearson added 2.0%, after a top broker upgraded its rating on the stock to ‘Overweight’ from ‘Neutral’. Shaftesbury rose 1.1%, after the property owner reported a recovery in rent collection and showed signs of improvement as shoppers returned after the Covid-19 restrictions were relaxed. WPP edged up 0.2%, after the company announced that it has acquired technology company, Satalia. easyJet gained 0.2%, after the airline operator appointed former RBS Chief Executive Officer, Stephen Hester, as its new Chairman. On the flipside, Pennon Group fell 3.4%, after a leading broker downgraded its rating on the stock to ‘Underperform’ from ‘Neutral’. The FTSE 100 advanced 0.3%, to close at 7,109.0, while the FTSE 250 marginally fell to end at 23,740.5 . European Markets Finished higher yesterday, amid gains in mining and energy sector stocks. ING added 0.9%, following the appointment of Marnix van Stiphout as its Chief Operations Officer and Chief Transformation Officer. Clariant edged up 0.8%, after the chemicals firm announced that it has purchased its remaining 70% stake in Brazilian personal care speciality company, Beraca. On the other hand, Cembra Money Bank plunged 30.9%, after the company ended its credit card partnership with Swiss retailer, Migros. Vonovia fell 2.4%, after the real estate company announced the launch of its voluntary public takeover offer for Deutsche Wohnen. The FTSEurofirst 300 index gained 0.7%, to close at 1,819.5. Among other European markets, the German DAX Xetra 30 rose 0.3%, to close at 15,852.8, while the French CAC-40 advanced 0.9%, to settle at 6,683.1. . US Markets Closed higher yesterday, after US the Food and Drug Administration (FDA) approved Pfizer-BioNTech’s Covid-19 vaccine and ahead of the Jackson Hole Symposium later this week. Trillium Therapeutics skyrocketed 188.8%, after Pfizer announced that it would acquire the cancer therapy specialist for a consideration of $2.26 billion. Madison Square Garden Entertainment surged 16.2%, after the live entertainment company reported better than expected revenue in the fourth quarter. Boeing advanced 3.2%, following news that the aerospace company plans to invest in a SPAC merger planned by Richard Branson’s satellite company, Virgin Orbit. Pfizer rose 2.5%, following news that the US FDA granted approval to its Covid-19 vaccine. The S&P 500 gained 0.9% to settle at 4,479.5. The DJIA rose 0.6% to settle at 35,335.7, while the NASDAQ added 1.6%, to close at 14,942.7. . Asian Markets Were trading higher this morning, tracking overnight gains on Wall Street. In Japan, Nissan Motor and Sumco have advanced 3.6% and 4.4%, respectively. Meanwhile, NH Foods and Olympus have dropped 0.9% and 1.9%, respectively. In Hong Kong, Xiaomi and Alibaba Group Holding have risen 3.1% and 5.1%, respectively. Meanwhile, Hang Lung Properties and Hong Kong & China Gas have fallen 1.1% and 2.4%, respectively. In South Korea, KCC and Unid have climbed 12.8% and 17.8%, respectively. Meanwhile, KakaoBank and Krafton have declined 3.7% and 5.5%, respectively. The Nikkei 225 index is trading 1.0% higher at 27,763.4. The Hang Seng index is trading 1.7% up at 25,535.3, while the Kospi index is trading 1.6% higher at 3,140.8.

UK Market Finished mixed yesterday. Savills jumped 7.8%, after the company raised its annual guidance and reported a rise in its interim profits. Rolls-Royce Holdings climbed 5.9%, after the engine maker swung to an interim profit. Mondi advanced 3.3%, after the company reported better than expected earnings in the first half of the year. WPP added 2.7%, after the advertising group raised its annual outlook. XP Power rose 0.6%, after a top broker raised its target price on the stock to 6,050.0p from 5,945.0p. On the flipside, Centamin dropped 3.2%, after the company reported a decline in its pretax profit in the first half of the year. Frasers Group slid 0.2%, after the company confirmed that Mike Ashley would step down as Chief Executive Officer and Michael Murray would take over the role in May next year. The FTSE 100 fell 0.05% to close at 7,120.4, while the FTSE 250 rose 0.7%, to end at 23,506.1. . Europe Market Finished higher yesterday, amid strong corporate earnings reports. Siemens advanced 2.6%, after the company lifted its profit forecast for the third time this year. Swisscom added 1.1%, after the company lifted its annual earnings guidance. Continental rose 1.0%, even though the automotive supplier cut its growth forecast to produce passenger and light commercial vehicles in 2021. Meanwhile, Adidas declined 6.0%, despite raising its outlook for full year sales and profitability. Zalando dropped 4.8%, even though the online fashion retailer reported a rise in its second quarter sales. Bayer eased 3.3%, after the drugmaker reported a loss in the second quarter and announced a deal to acquire the US biotech company, Vividion Therapeutics Inc. for around $2 billion. The FTSEurofirst 300 index gained 0.3%, to settle at 1,810.6. The German DAX Xetra rose 0.3%, to settle at 15,744.7, while the French CAC-40 added 0.5%, to close at 6,781.2.. . US Market Finished higher yesterday, ahead of the US jobs report and amid gains in technology sector stocks. Nautilus Biotechnology jumped 10.2%, following reports that Amazon invested in the company as part of its efforts to grow its healthcare presence. Wayfair climbed 10.0%, after the furniture and home goods retailer reported better than expected earnings in the second quarter. Booking Holdings advanced 5.9%, after reporting better than expected revenue in the second quarter. Edgewell Personal Care rose 4.6%, after the company reported stronger than expected revenue and earnings in the third quarter and lifted its annual earnings outlook. On the other hand, Robinhood Markets plunged 27.6%, after the company announced plans to sell up to 97.9 million Class A shares. Cigna declined 10.9%, even though the insurance company’s second quarter revenue and earnings surpassed analysts’ estimates. The S&P 500 gained 0.6%, to settle at 4,429.1. The DJIA rose 0.8%, to settle at 35,064.3, while the NASDAQ added 0.8%, to close at 14,895.1. . Asia Market Asia is trading lower this morning. In Japan, Kawasaki Heavy Industries and Mitsui E&S Holdings have advanced 4.6% and 4.8%, respectively. Meanwhile, Yokohama Rubber and Takara Holdings have dropped 3.5% and 4.3%, respectively. In Hong Kong, Geely Automobile Holdings and Alibaba Health Information Technology have fallen 1.4% and 1.9%, respectively. Meanwhile, PetroChina and Sands China have added 0.9% and 1.0%, respectively. In South Korea, CJ Logistics and Jayjun Cosmetic have declined 4.6% and 4.8%, respectively. Meanwhile, Heung-A Shipping and Namhae Chemical have climbed 7.1% and 8.1%, respectively. The Nikkei 225 index is trading 0.1% higher at 27,744.2. The Hang Seng index is trading 0.4% down at 26,110.9, while the Kospi index is trading 0.2% lower at 3,270.0. . Commodity, Brent crude oil one month futures contract is trading 0.21% or $0.15 higher at $71.44 per barrel, ahead of the weekly US oil rig count data by Baker Hughes, scheduled to be released later today. Yesterday, the contract climbed 1.29% or $0.91, to settle at $71.29 per barrel, amid growing tensions in the Middle East. . Gold futures contract is trading 0.17% or $3.00 lower at $1802.10 per ounce. Yesterday, the contract declined 0.3% or $5.40, to settle at $1805.10 per ounce, amid strength in the US Dollar. . Currency The EUR is trading marginally lower against the USD at $1.1835, ahead of Germany’s industrial production data for June, due in a few hours. Additionally, investors await the US nonfarm payrolls data, unemployment rate and average hourly earnings data, all for July, slated to release later today. Yesterday, the EUR weakened 0.23% versus the USD, to close at $1.1837. On the data front, Germany’s factory orders jumped to a 10-month high in June. In other economic news, the US trade deficit widened in June, while the nation’s initial jobless claims fell less than expected in the week ended 30 July 2021. . GBP is trading marginally higher against the USD at $1.3889, ahead of UK’s housing prices data for July, scheduled to release in a few hours. Yesterday, the GBP weakened 0.19% versus the USD, to close at $1.3889. On the data front UK’s construction PMI dropped more than market forecast in July, recording its lowest reading since February. . Bitcoin BTC is trading 1.24% lower against the USD at $40390.30. Yesterday, BTC advanced 2.88% against the USD to close at $40899.36. In a key development, crypto analytics firm, Messari announced that it has raised $21.0 million through a Series A funding round led by Point72 Ventures. In another development, Fidelity Investments announced that it has acquired 7.4% stake in Marathon Digital Holdings for a consideration of $20.0 million. . Economic News BoE kept its key interest rate unchanged The Bank of England (BoE), in its latest monetary policy meeting, kept its benchmark interest rate unchanged at 0.1% and maintained its government bond purchase programme at £875.0 billion. The central bank indicated that it expects inflation to temporarily rise to 4% in 4Q 2021, amid rising energy and other goods prices. Further, the BoE hinted at "modest tightening" of monetary policy in next 2 years. . UK construction PMI fell more than anticipated in July In the UK, the construction PMI dropped to 58.70 in July, compared to a level of 66.30 in the prior month. Markets were expecting the construction PMI to fall to 64.00. . German factory orders climbed more than expected in June In Germany, seasonally adjusted factory orders rose 4.10% on a MoM basis in June, compared to a revised drop of 3.20% in the previous month. Markets were expecting factory orders to climb by 1.90%. . US goods trade deficit widened in June In the US, goods trade deficit widened to $93.20 billion in June, compared to a trade deficit of $91.20 billion in the prior month. US initial jobless claims dropped less than market forecast in the week ended 30 July 2021 In the US, seasonally adjusted initial jobless claims fell to a level of 385.00 K in the week ended 30 July 2021, compared to a revised level of 399.00 K in the previous week. Markets were expecting the initial jobless claims to drop to a level of 384.00 K

UK Markets Finishing in the green on Friday, led by gains in energy and mining sector stocks. John Wood Group climbed 5.1%, after the company announced that it has reached a $186 million deal to settle a UK-led bribery and corruption probe into a British engineering firm it acquired in 2017. WPP gained 2.3%, following a rating upgrade on the stock to ‘Neutral’ from ‘Underperform’. Greggs advanced 1.6%, after a top broker raised its target price on the stock to 2,950.0p from 2,100.0p. UDG Healthcare added 1.0%, after announcing that Clayton Dubilier & Rice, was considering an improved offer of 1,080p a share for the company. Hargreaves Lansdown rose 0.4%, following the appointment of Penelope James as senior Independent Director, with effect from 1 September. The FTSE 100 advanced 0.4%, to close at 7,136.1, while the FTSE 250 rose 0.6%, to end at 22,646.0 .

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UK Market Markets finished mixed yesterday. Signature Aviation skyrocketed 40.1%, after the company confirmed that it is in talks with Blackstone over a possible cash offer of $5.17 per share for the company. Watches of Switzerland Group climbed 6.3%, after the company raised its annual sales guidance, following stronger than expected interim performance. WPP advanced 4.8%, after announcing that it would increase its dividend each year from 2020 and pay out around 40% of headline earnings per share. Cairn Energy rose 3.1%, after the company announced a special dividend. On the contrary, Avon Rubber declined 11.9%, after the company announced that the approval processes related to several US contracts had been postponed. SSP Group dropped 2.8%, after the travel food outlet operator announced that it expects to report a decline in its first quarter sales. The FTSE 100 declined 0.3%, to close at 6,551.1, while the FTSE 250 rose 1.0%, to end at 20,296.0. .

UK Market Markets finished mixed yesterday. Chemring Group climbed 10.7%, after posting an upbeat annual result. Redrow climbed 3.3%, following a rating upgrade on the stock to 'Overweight' from 'Neutral'. JD Sports Fashion advanced 3.0%, after the company acquired US based, Shoe Palace, for a consideration of $325.0 million along with an equity share in the enlarged group for the company’s founders. BP added 0.4%, after a top broker raised its target price on the stock to 475.0p from 400.0p. WPP rose 0.3%. The advertising company announced that it would restate its financial statements for 2017, 2018 and 2019 to comply with accounting rules. Meanwhile, Airtel Africa plunged 20.2%, after an institutional investor sold 60 million shares in the telecommunications company in a placing. The FTSE 100 declined 0.3%, to close at 6,513.3, while the FTSE 250 rose 0.4%, to end at 19,852.4. .

UK Market The UK markets closed in the red yesterday, amid concerns about tightening Covid-19 restrictions. Standard Chartered declined 7.7%, after the lender warned that it would take longer to hit a key profitability target due to the Covid-19 pandemic. WPP dropped 2.5%, despite reporting an improvement in third quarter sales. BT Group fell 2.5%, after the company posted a decline in its interim pretax profits. On the flipside, Lloyds Banking Group advanced 3.6%, after the bank reported upbeat quarterly profit and lowered its bad loan provisions, after a surge in new mortgage lending. Royal Dutch Shell added 3.6%, after announcing plans to increase dividends and cut debt as it swung to a small third quarter profit. The FTSE 100 marginally fell, to close at 5,581.8, while the FTSE 250 fell 0.4%, to end at 17,177.7. .

UK markets finished in the green yesterday, as homebuilder stocks climbed amid rise in UK house prices. Computacenter climbed 11.6%, as the company upgraded its annual expectations ahead of its interim results. Barratt Developments jumped 8.7%, after the company forecasted more home completions over the coming year. Domino's Pizza Group advanced 3.9%, after the company appointed interim Chief Financial Officer, Neil Smith to the role on a permanent basis. WPP rose 1.3%, after a top broker raised its target price on the stock to 635.0p from 565.0p. International Consolidated Airlines Group added 0.2%. The company is facing a potential shareholder revolt over a £3.0 million-plus pay deal for departing head, Willie Walsh. On the flipside, Wizz Air Holdings dropped 4.1%, after reporting a decline in its passenger traffic in August. The FTSE 100 advanced 1.3%, to close at 5,941.0, while the FTSE 250 rose 0.6%, to end at 17,704.4. .

UK markets closed mixed yesterday, as gains in financial sector stocks were offset by losses in mining and healthcare sector stocks. OneSavings Bank surged 15.7%, after the company reported a 2% rise in its underlying net loan book. WPP climbed 6.5%, as the company reinstated its interim dividend. Grafton Group advanced 4.0%, despite reporting a drop in its revenue in the first half of the year. On the flipside, HomeServe dropped 3.4%, after a top broker downgraded its rating on the stock to ‘Equalweight’ from ‘Overweight’. Rolls-Royce Holdings fell 1.2%, after the aircraft engine maker announced plans to sell its Spanish business as it sought to raise £2.0 billion. Flutter Entertainment slid 0.8%, despite reporting a rise in its interim revenue and earnings. The FTSE 100 declined 0.8%, to close at 6,000.0, while the FTSE 250 rose 0.1%, to end at 17,762.0. .

WPP shares rose 5 per cent after the company reported a 15 per cent drop in life-for-like revenues less pass-through costs in the second quarter but signalled the worst is over for the advertising market. The company also said it is on course to achieve the upper end of the £700m-£800m cost savings target and declared an interim dividend of 10p. Trading is improving but lumpy. In July, the LFL revenue less pass-through costs of -9.2 per cent was a steady improvement on Q2 but the performance across markets remains volatile. Another good bellwether Hays said it’s seen some stabilisation in fees since May and ‘modest’ signs of improvement in permanent hiring. Net fees were down –11 per cent for the year to the end of June, whilst pre-tax profits were –63 per cent lower as a result of a collapse in recruitment due to the pandemic. Shares ticked up 1 per cent.

Ad titan WPP reports it interim results for the six months ended June 30th on Thursday. The advertising giant is a useful barometer of economic confidence. Big brands have slashed marketing budgets to cope with pandemic and WPP has warned of the hit it will take this year. But rival Publicis reported a 13 per cent drop in second quarter like-for-like sales, which was well ahead of the –20 per cent anticipated. Shares in WPP are down over 40 per cent this year – could Publicis offer a clue as whether the stock may find a new course? Does WPP see ad spend picking up? How has the Facebook boycott impacted it? We are also interested in recruiter Hays – which reports finals on Thursday and is often a great indicator as to the overall health of the labour market globally. Salesforce.com (CRM) is expected to deliver earnings and revenue growth when it reports numbers for the quarter ended July on Tuesday. EPS is seen at $0.7 on revenues of $4.9bn