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Tullow revises production guidance down, poor weather hits Marston\'s

By Josh White

Date: Wednesday 24 Jul 2019

(Sharecast News) - London open

The FTSE 100 is expected to open 15 points lower on Wednesday, having closed up 0.56% at 7,556.86 on Tuesday.
Stocks to watch

Tullow Oil said it was revising down its 2019 full year production forecast to 89-93,000 bopd due to mechanical issues experienced completing the Enyenra-14 production well in Ghana. The company reported interim pre-tax profits of $268m, up from $150m a year earlier. In June it had forecast full year production of 90,000 to 98,000 bopd.

Vodafone has agreed to share 5G active equipment, such as radio antennas, on joint network sites across the UK with its rival network O2, it announced on Wednesday. The FTSE 100 company said both itself and the Telefonica subsidiary had also agreed to greater 5G network autonomy on approximately 2,700 sites in 23 UK cities, where each party would install their own radio equipment, fibre connection and power supply, while sharing physical elements such as the mast. It said the agreement would see the 50-50 joint venture Cornerstone take an additional role in the deployment of both networks, and for further operational efficiencies.

Poor weather in May and June hit brewer Marston\'s, which reported a \"modest\" 0.5% rise in like-for-like sales at its managed and franchised pubs for the 42 weeks to July 20. The company said it had decided to accelerate plans to cut debt and generate cash by deferring its remaining new-build plans and reallocate £20m -£30m of £70m in new-build capital expenditure\" to drive higher returns from our existing estate\". \"We believe that this focus will further enhance our returns from our existing pub business and reduce our debt at an even greater pace,\" the company said in a trading statement.

ITV said it remains on track to deliver full year guidance of 5% growth in ITV Studios revenue and double-digit margin growth for its online division, sending revenue climbed 18% higher against tough comparatives. However, total revenue dropped by 7% as advertising continues to be impacted by political and economic uncertainty, while profits also came in lower as the business continues to focus on a digital transformation strategy.

Newspaper round-up

The US justice department is opening a broad antitrust review into major technology firms, as criticism over the companies\' growing reach and power heats up. The investigation will focus on growing complaints that the companies are unlawfully stifling competition. \"The Department\'s review will consider the widespread concerns that consumers, businesses and entrepreneurs have expressed about search, social media, and some retail services online,\" the Department of Justice said in a statement. - Guardian

British Airways has lost its legal attempt to block planned strikes by pilots, which could take place next month and disrupt the travel plans of hundreds of thousands of passengers. The pilots union, Balpa, can now call strike dates with two weeks\' notice. However, it has said it will not set dates until after further talks with the airline, which intends to take its case to the court of appeal. - Guardian

Heathrow boss John Holland-Kaye believes neither Boris Johnson nor the Court of Appeal will be able to block the building of the third runway. The chief executive of the west London airport threw down the gauntlet to the new prime minister, who has previously opposed Heathrow\'s plans. \"It is now government policy and we are all getting on with it,\" he said. \"This is now a done deal.\" - Telegraph

The Bank of England\'s chief economist has warned the new government not to expect the \"monetary cavalry\" to ride to the rescue if the economy flounders. Andy Haldane said a \"dependency culture\" around central banks could develop after a decade of ultra-low interest rates, adding rate-setters should not be \"called at the first whiff of grapeshot\". - Telegraph

Britain needs to build a fleet of nuclear or carbon-capture power plants equivalent to a dozen Hinkley Point Cs to hit climate change targets, a leaked government analysis suggests. Up to 40 gigawatts of non-intermittent low carbon power stations could be needed in 2050 to reduce Britain\'s emissions to \"net zero\", ministers believe. - The Times

The German central bank has issued a wary welcome to Facebook\'s plans to set up a digital currency, arguing that it could reform finance by driving down the costs for consumers of moving money around. However, the bank also said it would \"closely monitor\" the risks that the libra payment system could be used for money laundering or financing terrorism, as well as the dangers it could pose to the stability of the global economy. - The Times

US close

Wall Street stocks closed higher on Tuesday following earnings from the likes of Coca-Cola, Biogen, Lockheed Martin, United Technologies and Harley-Davidson.

At the close, the Dow Jones Industrial Average was up 0.65% at 27,349.19, while the S&P 500 was 0.68% higher at 3,005.47 and the Nasdaq Composite was 0.58% firmer at 8,251.40.

The Dow closed 177.29 points higher on Tuesday after seeing out Monday slightly firmer on the back of a Wall Street Journal report late last week that suggested a more cautious 25 basis point cut from the Federal Reserve was likely following comments from multiple officials from the central bank.

Oanda analyst Craig Elam said: \"It seems traders are finally starting to come around to the idea that the Fed is not going to cut interest rates by 50 basis points at the meeting next week.

\"After rising to around 40% last week, the probability has dropped back to around 15% today and even that seems a little high given the New York Fed\'s clarification and Bullard\'s comments on Friday.\"

Stocks also got a boost after news that face-to-face talks between Washington and Beijing\'s trade negotiators were set to begin next week.

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