TheChek News Flow

Gucci Helps Propel Kering Net Up 77.6%

Saint Laurent and Balenciaga also helped drive growth at the French conglomerate.

PARIS — Kering continued to strongly outperform its luxury sector peers in the second quarter, boosted by another outstanding performance from Gucci that helped propel operating profit for its luxury activities to a record level in the first half.

And while Gucci accounts for more than a third of the group’s revenues, the French conglomerate said it has two more powerhouses waiting in the wings, with Saint Laurent and Balenciaga on track to reach revenues of 3 billion euros and 1 billion euros, respectively, in the medium-term.

Kering said Thursday that net profit surged 77.6 percent to 825.8 million euros in the first half. Recurring operating income jumped 57.1 percent to 1.27 billion euros, while the operating margin reached 17.5 percent, up 330 basis points versus the same period a year earlier.

The parent of Bottega Veneta, Brioni and Boucheron said group sales rose 25.4 percent to 3.72 billion euros in the three months to June 30, with Western Europe and Asia-Pacific driving retail sales thanks to a rebound in tourism. In organic terms, revenues were up 24.6 percent in the second quarter.

“Thanks to the execution of our strategy, we achieved outstanding revenue growth in the first half, clearly outperforming the sector, and delivered record profits and operating margins,” François-Henri Pinault, chairman and chief executive officer of Kering, said in a statement published after the market close.

“This excellent first half raises our confidence in the group’s capacity to realize another year of growth and improved operating performances,” he added.

The figures come on the heels of a 15 percent rise in revenues at LVMH Moët Hennessy Louis Vuitton in the second quarter. Burberry’s reported retail revenue rose 13 percent in the period, while Hermès International said sales increased 9 percent.

Jean-François Palus, group managing director of Kering, cautioned that the group would face tougher comparatives in the second half, in addition to the potential impact of a stronger euro. Nonetheless, he sounded a triumphant note.

“The first half of the year has definitely been one for the record books,” he said on a conference call. “I don’t think there are many organizations of our size that are able to generate incremental revenues of 1.6 billion euros over a six-month period and to do so on the basis of a platform and footprint whose expansion has been marginal and purely organic.”

Gucci has undergone a reinvention at the hands of creative director Alessandro Michele and ceo Marco Bizzarri.

Organic sales at the maker of Dionysus handbags and Princetown loafers rose 39.3 percent in the second quarter to 1.48 billion euros, beating market expectations. This compared with 48.3 percent growth in the first quarter of this year and with a 7.4 percent increase in the second quarter of 2016.

Gucci’s recurring operating income gained 69 percent in the first half, while operating margin increased by 440 basis points to 32 percent.

Sales in directly operated stores rose 46.2 percent at constant exchange rates in the first half, despite a slight reduction in the number of stores compared with the same period last year, while the brand’s online sales progressed by more than 60 percent.

“A spectacular revival of our largest house remains unparalleled in the world of luxury. Gucci is working on every driver and KPI that will allow for the full potential of all categories to be achieved and thereby sustain momentum in the business,” said Palus.

Rogerio Fujimori, analyst at RBC Capital Markets, said its consumer surveys suggested further share gains for the Italian brand. “Gucci is the hottest luxury brand today so expectations are understandably high and investor sentiment is overwhelmingly bullish on the stock,” he said in a research note.

Jean-Marc Duplaix, chief financial officer of Kering, said the margin at Gucci was boosted by the elimination of markdowns. He predicted that Kering would be able to progressively grow the brand’s EBIT margin despite continued investments in store refurbishments, communications and online sales.

“For the full year, let’s say that a 32 percent margin looks like a good estimate of what we can deliver,” he told analysts on the call.

Gucci saw high double-digit growth in all product categories in the second quarter, leading to some shortages, but Duplaix saw room for improvement in eyewear and said the brand was fine-tuning its jewelry and watch offering. The first fragrance under Michele’s direction will hit the market in the second half.

The executive noted its e-commerce site was launched in China in July, “with already a lot of success and with very encouraging trends because it allows Gucci to penetrate further the Chinese territory and also to sell in some tier-three cities.”

The luxury division as a whole — which also includes brands such as Bottega Veneta, Balenciaga and Alexander McQueen — saw revenues increase 25.3 percent in organic terms.

“Our luxury activities achieved a first-half EBIT of 1.25 billion euros, up 49 percent, our highest first-half result ever,” said Duplaix.

Palus emphasized that Gucci was not the only brand driving growth, pointing to another strong performance from Saint Laurent, which posted organic growth of 23.7 percent in the second quarter, as well as the momentum of Balenciaga and continued efforts to turn around Bottega Veneta.

“Not only is Gucci continuing to achieve strong growth in all categories and all geographies with no contribution from in-store markdowns, but virtually all other houses and brands are growing. In fact, about 45 percent of the incremental group revenues in the six months were not generated by Gucci,” he said.

During a recent investor day, Francesca Bellettini, ceo of Saint Laurent, said she is aiming for revenues of 3 billion euros in the medium-term after breaking the barrier of one billion euros in 2016. Commenting on Saint Laurent’s target, Palus said: “Its current trajectory is fully consistent with its ambitions.”

Meanwhile, Balenciaga — for which the group does not break out revenues — appears on track to become the third powerhouse in its portfolio. “The brand is fully on a roll, enjoying an outstanding creativity and spectacular trading momentum, so now we can consider the one-billion mark as a first midterm milestone,” Palus said.

He said Bottega Veneta soon would undergo a “radical reset” of its communications strategy, with a strong digital component, but would probably not reap the benefits of its overall turnaround strategy until the first quarter of 2018.

Alexander McQueen, meanwhile, turned in an “excellent” first-half performance, according to Kering. Palus added the group was pleased with progress at men’s wear brand Brioni, and confident in its new direction under recently appointed ceo Fabrizio Malverdi and creative director Nina-Maria Nitsche.

Margins at jewelry brands Boucheron and Pomellato will come under pressure in the near-term due to investments in communications and store openings aimed at increasing their share of voice and expanding their footprint into new territories like China, the executive said.

The sports and lifestyle division, which revolves around Puma, posted a 14.7 percent rise in the second quarter. As a result, first-half revenues topped the two-billion mark for the first time. As reported, Puma saw revenues increase 16 percent in the second quarter, with footwear the main driver.

Palus declined to comment on ongoing speculation that Kering will offload Puma, saying: “Our priority remains on sustaining growth, enhancing profitability and improving cash flow.” He added that the group is not contemplating any acquisitions in the short-term.

BAML:
SABADELL - Increased NPA coverage & guiding down 2018 impairments (2.03)....+5%

LAIRD - H1 numbers read very well with much improved performance too (149.1)+5%

ADIDAS - Pre-release which is a beat and upgrades FY17 guidance nos (185).+4-5%

CS - Strong results. Beat across the board, notably in APAC & markets (15)+2-3%

T.ITALIA - Good print with revs +1.3% and EBITDA +0.7%, debt inline (0.885).+2%

AIR FRANCE - Beat with q revs +5.4% YoY LFL. Announce two deals (12)........+2%

EUTELSAT - Revs inline, outer year EBITDA upgrade, should be well taken (23)+2%

KERING - Growth surpassed expectations: +24.6% v +19.6%. Gucci good (310).+1-2%

EDP - EBITDA inline with cons, net income a beat. Op trends inline (3.03)...+1%

BNP - 19% net income and 13% op profit beat driven by good provisions (66.6)+1%

EDF - EBITDA down 22% y/y but slight beat v cons. Targets confirmed (8.7)...+1%

IMI - Raising guidance. Demand inline with our forecasts,ahead of cons(1300)+1%

MTU - Big Q2 beat again as margins surprise to upside. Op profit 12% (129)..+1%

BT - Revs 0.6% and EBITDA 1.3% ahead of ests. EE the driver of the beat(319)+1%

WOLTERS KLUWER - Rev 1% ahead of cons, reflecting org growth of 2% (37.5)...+1%

IAG - Op profit for Q2’17 was c.€805mn. Outlook commentary is positive (600)+1%

ENGIE - EBITDA beat v cons, COI slight beat v ests. Guidance restated(13.9).+1%

BARCLAYS - Q2 nos look disappointing but guidance should be enough (210)....+1%

LINDE - EBITDA 4% beat v cons. Sales inline, no change to FY17 guide (166)+0.5%

MELIA - RevPAR in H1’17 grew by 7.7% vs H1’16. Spain strongest region (13)+0.5%

SALZGITTER - Guidance u/g. Now expects pre-tax profit of EUR150-200mn (39)..u/c

ENI - Strong beat with op cash flow inline. DPS/prodn targets are unch (13).u/c

ENEL - Weighed down by weak hydro but we think '18 outlook improving (4.89).u/c

JMAT - Low single digit sales growth, FY17/18 guidance is maintained (2903).u/c

ABERTIS - ACS said to ask TCI to join Abertis consortium; Confidential (17).u/c

VINCI - Solid; contracting rev growth accelerating H2, backlog up QoQ (77)..u/c

CAIXABANK - Net profit a 19% beat, driven by fees and trading income (4.4)..u/c

SAFRAN - Profits a 2% beat but softer after-mkt trend this quarter (81.5)...u/c

B.VERITAS - Results inline for sales and EBITA, FY guidance unchanged (20.2)u/c

BBVA - Small beat but mix not great. Focus will be on Q2 weakness (7.7).....u/c

UBM - Rev of £448m v BAML £445m. DPS of 5.5p is inline with BAML est (717.5)u/c

UBS - Beat in wealth mgmt and CC offset by weakness in IB and WMA (17.2)....-1%

ALTICE - Solid, revs inline & EBITDA 0.9% ahead of cons.Travel & arrive (21)-1%

L'OREAL - Not good enough top line and margin contraction will weigh (179)..-1%

AIR LIQUIDE - Miss with sales 50bps below cons and EBIT below cons (105.7)..-1%

ST GOBAIN - Op profit 2% below cons but includes -ve from cyber attack (46).-1%

ESSILOR - Cut FY17 guide from 3-5% LfL to 'around 3%'. EBIT guide reit (115)-1%

MINERS - Copper -1.1%,Iron Ore fut -1.4% with BHP OZ -1.3%,RIO OZ -1.35%..-1-2%

RENAULT - Op profit 3.5% above, Nissan -4% and auto op profit miss (79.8).-1-2%

PROXIMUS - Nos a little light. Revs 2.2% and EBITDA -0.9% miss v cons (31)-1-2%

FERROVIAL - EBITDA inline, services better but construction is weaker (18)..-2%

AMUNDI - Beat on revs and cost/income ratio but AuM a 10% miss v cons (65)..-2%

ROTORK - The CEO departing 'mutually' agreed with Board of Directors (247)..-3%

RBC:
*ADIDAS: +7% Q2 revenues 4% ahead, org growth strong, FY guidance raised.

*AIR FRANCE: -3% Q2 margin lags, dilutive deal.

*ALTICE: +2% Q2 op trends good, US good, revenue boosted by wholesale.

*AMUNDI: -1% Q2 AUM declined 1%.

*BARCLAYS: -1% Q2 results PBT 7% miss, guidance on UK NIM upgraded.

*BBVA: +1% Q2 numbers decent, 11% pretax beat driven by higher NII.

*BNP: +1% Q2 pretax beat driven by stronger revenues, equities +26%, FICC -16%.

*BT/: +1% small beat across the board.

*BVI: 0% H1 numbers in line, Q2 growth not enough.

*CAXIA: +3% beat across the board, quality driven, CET1 ratio flat.

*CSGN: +2% Q2 results strong, constructive outlook, private banking better.

*EDF: +1% H1 results in line, strong beat at bottom line, FY guidance confirmed.

*EDP: -1% H1 numbers weak as expected, with poor weather.

*ENI: +1% Q2 results in line, net beat on tax, FY guidance confirmed.

*ENEL: +3% H1 results strong, positive management outlook.

*ENGIE: +2% Q2 numbers beat, 3% beat @ op level,

*EUTELSAT: +2% FY results strong, dividend up & debt target down.

*FERROVIAL: -1% construction cautious, no comment on dividend.

*FPM: 0% $5M acquisition announced, increased stake in BLANE.

*IAG: +2% Q2 numbers 8% beat, expects improved FY op profit.

*IMI: +2% Q2 small beat & raises guidance.

*JMAT: +1% Q2 trading in line, FY guidance unchanged.

*KERING: +2% H1 results strong, luxury division org growth +28%, Gucci beat.

*LINDE: 0% H1 op profit +4.3%, FY forecasts confirmed.

*L'OREAL: -2% Q2 LFL sales growth light, op profit in line.

*MTU: +3% Q2 adj EBIT beat.

*PROXIMUS: 0% Q2 rev slight miss, FY guidance reiterated.

*RENAULT: -1% H1 numbers not enough, FY targets confirmed.

*RIGHTMOVE: +1% H1 trading in line, FY guidance confirmed.

*ROTORK: 0% Peter France resigns as CEO.

*SABADELL: +1% beat driven by trading gain, long term guidance better.

*SAFRAN: -1% H1 numbers in line, confirms outlook, weak into numbers.

*SAINT GOBAIN: 0% Q2 results in line, FY guidance confirmed.

*SANTANDER: +2% Q2 pre-tax 6% beat, better NII & fee income, lower impairments.

*SECURITAS: -5% Q2 EBITA light, another earnings miss.

*SES: -2% Q2 numbers small miss, lowered FY guidance.

*TELECOM ITALIA: +2% Q2 numbers solid, rev & EBITDA ahead.

*UBS: -2% Q2 headline beat, but lower CET1 ratio.

*VINCI: -1% H1 sales -1.4% v consensus, EBITDA in line, FY guidance confirmed.

*WACKER CHEMIE: +3% Q2 numbers solid, FY forecasts raised.

Citi:
UK
* Morgan Advanced - H1 revs/op profit beat,improvements ahead of plan +1%
* IMI - H1 pretax beat,sees fy results modestly above consensus +2%
* UBM - H1 revs small beat,op profit light,outlook unchanged +2%
* Barclays - Q2 adj pbt/revs/capital beat +1%
* BT - Q2 ebitda/revs in line,maintains fy,new consumer ceo +2%
* Essentra - H1 revs beat,eps miss,expects improving trends in H2 unch
* Rightmove - H1 revs/op profit in line,confident in fy exoectations +2%
* IAG - Q2 op profit beat,expects to improve op profit this yr +2%
* Laird - H1 pretax/revs beat,fy expectations unchanged +2%
* Johnson Matthey - Q1 trading in line,fy guidance unchanged +1%
* Rotork - ceo Peter France resigns,Martin Lamb exec chairman -2%

Barcap:
UK

LRD +3% PBT £24.1, encouraged by progress, fy expectations remain unchanged.

RMV +2% Inline with no's, ARPA +£81 slightly ahead with confident outlook

UBM +2% Revs +18% with improving margins,good integration of Allworld acqn

BT +1% Q1 revs £5.84bn vs 5.71bn cons. Adj ebitda 1.79bn vs 1.75bn, Outlook maintained

ROR +1% CEO resigns, mutually agreed, current projections in line with expectations.

IMI -1% FY results ahead of exp, organic rev growth to be below last year

ADS +4% Raised guidance, Sales +19% to €5bn, EBIT +18% €505m driven by gross margins

ETL +4% FY rev. €1.477bn is inline, ebitda margin 76.7% touch better

CABK +3% Nos strong, Revs 19% beat, net profit 19% ahead on cons, CET1 flat 11.5%

BNP +2% 19% reported PBT beat, Revs 1% ahead, CET1 at 11.7%, +10bps looks inline.

MTU +2% BEAT EBIT €163m est €146.8, EBIT margin 12.7% raises forecast

TIT +2% Q2 Rev €5bn vs 4.9 cons, EBITDA inline, MSR +2.5% org, Mobile net adds +535K

UBS +1% NI CHF1.17bn beat, Revs inline, IB weak FI/EQ 15%/2% miss, CET1 light 13.5%

ATC +1% Q2 revs €5.96bn vs 6bn cons. Adj Ebitda 2.41bn vs 2.39bn cons

SAB +1% Net 27% ahead, 12% better revs, NII drove revs 46% ahead higher trading gains.

BBVA +1% Net profit €1.1bn 7% ahead, NII +2% CET1 11.1% 30bps ahead vs Barclays

CSGN +1% U/L PBT 14%, Core Net Revs 1% ahead, NII 1.74bn, CET1 13.2 c10bps better.

IAG +1% BEAT Revs €5.95bn est €5.78bn Op Pro €805m est €746m

ENGI +1% H1 ebitda eu 5bn..c 4% ahead cons

SAF +0.5% NI €1.61bn Revs €8.04bn, FCF €666m, FY guidance

ENI UNCH op cash $2.28bn vs (e) $2.2bn..breakeven @ $61

ENEL UNCH H1 ni eu 1.8bn vs (e) eu 1.78 bn

CLNX UNCH Q2 rev €192m vs 191m, ebitda 85m is inline , net debt 1.55bn.

LIN UNCH q2 ebitda eu 1.08bn..c 3% light..gases marin 27.6% vs (e)

AIA -2% H1 record growth in VNB, +42% (x FX). APE up 37%, margin up to 54.2%.

AMUN -1% Nos inline, Revs 2% ahead est, costs 1% better, PBT 4% ahead net profit inline

PROX -1% Q2 rev €1.42bn light, Adj Ebitda 464m light. Ses FY capex €1bn

RNO -1% Revs 29.54bn, Op Profit €1.82bn, Auto margin of 4.8% (cons of 5%)

SGO -1% ebit 2% below cons, operating profit 2% ahead, fy reiterated.

AI -1% small miss vs cons (rev's eu 5.1bn c 50 bps light vs cons), guidance maintained

DG -1% Numbers fully in line with EBIT at EUR1.883m (vs. EUR1,862m Barclays)

Exane:
Adidas +6%

Air France +2%

Air Liquide -2%

Altice +1%

Altran +1%

Amundi -1%

BBVA unch

BNP +1%

BT +3%

Bureau Veritas +1%

Caixa Bank +2%

Coface +3%

Cofinnimo unch

Credit Suisse +2%

EDF +2%

EDP +2%

Enel -2%

Engie +2%

ENI -1%

Essilor -4%

Euler Hermes +2%

Eurazeo -2%

Euronext +2%

Ferrovial -2%

Flow Traders -1%

IAG +2%

IMI -3%

Kering +4%

Lagardere +3%

Lectra +2%

Linde +1%

Luxottica -4%

MTU Aero +3%

Nexans -2%

Oreal -2%

Proximus -3%

Prysmian +1%

Renault -1%

Rightmove +2%

Safran unch

Saint Gobain -1%

Santander unch

SESG -2%

Sopra +1%

Spie -5%

Telecom Italia +1%

Teleperformence +4%

UBS unch

Vinci -1%

Wacker Chemie +1%

Numis:
* CLIPPER LOGISTICS -1% Interims in line with expectations; shares have been strong into numbers

* FORTERRA Mkt: Acquisition of Bison (manufacturer of concrete flooring) for £20m, funded by existing cash balances.

* FRONTIER DEVELOPMENTS +5-7% £17.7m Strategic investment from Tencent

* IAG: +1%, Solid H1 driven by lower Q2 costs and strong demand.

* IMI +1% Interims in line; positive order in take in critical

* LAIRD -1% Interims broadly in line; however, Margins in CVS a bit light

* NUMIS Trading update - comfortably ahead - FY rev and Profit will be comfortably ahead of prior year

* RIGHTMOVE: +1%, solid update, good ARPA growth to £911

* SATELLITE SOLUTIONS WORLDWIDE Mkt Proposed acquisition of Quickline Communications & Proposed placing to raise £8m at 7p

* UBM: -1%, Underlying Rev -0.9%, but increasing divi payout

CS

Adidas +3-5% Q2 Sales +19% vs CS at +15%, increased guidance

Air France +7-10% Delta/China Eastern to buy 10%, numbers good too

Air Liquide +0.5% Adj EBIT 1656 vs CS at 1662, guidance unchanged

Altice +0.5% Adj EBITDA beats est, revs slightly light

Amundi UNCH Net outflow a miss, net profit a decent beat

Bank of Ire UNCH PBT 9% ahead of CSe, NII 2% light vs CS

Barclays +1% FICC -15% qoq, CET1 at 13.1% cons 12.8%

BBVA +0.5% Q2 net 7% ahead, Revs 2% ahead of cons

BNP +3% 20% Net beat versus consensus, CET1 inline

BT Group +1% 1% EBITDA beat, confirms outlook

Bureau Veri M/P Q2 EBITA inline at €359m vs cons €358m, reiterated FY

CaixaBank +2% Q2 17 net profit of Eu436m cons Eu367m, CET1 at 11.5%

Cellnex +1% Revs inline, EBITDA slightly light, agreement with Bouygues

CGG +5% Revs 26% ahead, EBITDA 64% beat

Cofinimmo M/P H1 adj eps €3.25 vs cons €3.23, EPS €6.49 vs cons €6.59

EDF -1% H1 EBITDA at 7bn looks 1% light vs bbg cons, confirms 2017

EDP +1% H1 EBITDA 1.9bn vs 1.89 cons, net 5% beat vs cons

Engie +2% H1 EBITDA 3% ahead of consensus, Guidance confirmed

Enel +1% Net income slightly better, confirmed 2017 guidance

ENI +1% No's better, Beat driven by downstream, upstream miss

Essilor -2% 1H revs inline, cut FY rev growth TGT

Euronext +2-3% Q2 17 EBITDA 5% ahead of cons, revs better

Eutelsat +2% Revenues in line. EBITDA ~1% ahead, guidance better

Ferrovial +1% Sales 6.06bln cons 5.92bln , EBITDA 469mln cons 460mln

Fiat UNCH Said to win EPA approval for selling 2017 diesel vehicles

Flow Traders +2% Q2 Net trading income (NTI) to Eu46.7m (cons. Eu46.9m)

Forbo M/P H1 Revenues inline, Guidance for the FY 2017 is confirmed

IMI +2% Sales 1.5% ahead, op profit 4% miss

Indra -1% Revs inline €1.38b cons €1.382b, net €38m cons €45.1m

IAG +5% Q2 adj op prof €805m vs cons 746m, positive outlook

Italgas +0.5% H1 EBITDA looks 2% ahead, net 1% ahead

JMAT M/P Trading inline with expectations. Reiterated guidance

Kering -1% H1 revs 1% beat, op income 3% beat

Linde R 1H revs EU8.65B, outlook for 2017 confirmed

Logista M/P Numbers inline with market expectations

L'Oreal -1-2% LFL sales growth 4.3% est 4.7%, 1H op pft E2.53B,est E2.58B

Luxottica -2% Negative read from Essilor who cut its FY rev growth target

Morg Adv +1-2% 1h revs 518.9m cons 512m, op profit 61.6m cons 56.6m

MTU Aero +3-5% Adj EBIT ahead, increasing rev guidance

Miners -2% Copper -0.70%, Brent +0.30%, Iron Ore +0.70%, China +0.10%

Prudential UNCH Positive read from AIA numbers

Proximus -2-3% 2Q Adj EBITDA meets ests, forecasts maintained

Rai Way +1% Revs inline, net ahead

Rightmove M/P H1 Revenues 0.5% ahead, Underlying op profit 1.2% ahead

Rotork -2% CEO Peter France resigns

Renault -1-2% Revs inline, op profit 1.5% miss

Safran -1% H1 adjusted net EU 1.61b, Confirms outlook for full year

Saipem +1-2% Awarded offshore contract worth $900m

Saltzgitter -2% Prereleased Q2, slight miss, guidance upped but still below

St Gobain UNCH 1H sales inline with cons, Ebitda 2.07bln cons 2.16bln

Securitas -2% Q2 organic growth +3% cons +3.4%, EBITA light

Tele Italy +2% Q2 Rev EU 5bln est EU 4.9bln, De Puyfontaine Interim CEO

Teleperf +1-2% Q2 in line, guidance refined slightly higherUBM plc

UBM +2-3% H1 Revs GBP 448.4mln est GBP 443mln, FY Outlook confirmed

UBS -2-3% PBT inline, beat in WM offset by a modest miss in the IB

VINCI M/P EBIT slightly better, 1% miss on EPS, outlook reiterated

Wacker Chem -1% No's inline, Guidance raised but to where cons is

Wolters Klu +1% Increased share buyback by EU100m, reiterates FY

Investec calls

• BARCLAYS-H1-#'s not great, lots of 1 offs.PPI worse. IB soft..............-1%

• BT-in line nos,broadband net adds 19k vs 29k lst Q BUT dwn big vs 76k a Y.-2%

• EQUINITI-in line w/ exp, and FY guidance affirmed, O/P decent recently....-1%

• ESSENTRA-H1.#'s decline continues(expected)CEO trying to stabilise........-2%

• FAROE PETROL-Acuires further interest in UK Blane Field for $5.25m.......unch

• FORTERRA-Aqcuires Bison Manufacturing for £20m............................+1%

• GLENCORE-Agrees to buy 49% interest in Hunter from Yancaol................-1%

• IAG-H1.Strong Update, at current FX lvls expects O/P double dig % imp yoy.+3%

• IGAS-Caudrilla set to drill fracking well in lancashire...................+3%

• IMI-H1.#'s ahead, sees FY 'modestly' above current market exp's...........+2%

• JOHNSON MATTHEY-Q1.Trading in line, reits FY guidance....................unch

• LAIRD-H1.#'s I/L.Connected vehicles Strong, cash flow weak...............+1%

• MORGAN ADV.-H1.#'s in line, see momentum improving into H2..............+1-2%

• RIGHTMOVE-H1.#'s I/L,visibility improving.Confident of meeting FY exp's..unch

• UBM-H1.Rev a sml beat. No chgnage to FY outlook.........................+1-2%

• WORKSPACE-Raises £200m in in 8&10 yr loan notes..........................unch

MainFirst Pre Mkt Indications

*KERING-Rev 7.3b(7.22),Op Inc 1.27b(1.23),Gucci L-F-L 39.3%(30%).....+3%

*RENAULT-H1 Net 2.416b(2.08),Lifts Russia/Brazil est,reits FY........-2%

*CS-Rev 5.21b(5.27),NI 303m(294.2),WM PT 378m,GM PT 300m.SI 1.8%.....+2%

*BNP-NI 2.4b(1.91),FICC Rev -16%,GM Rev 1.52b,LLP 662m,SI 0.9%.......+1%

*UBS-Net 1.17b(800.3),Op Inc 7.27b(7.25),WM NNM 13.7b,SI 0.5%........+1%

*ADIDAS-Raises f/c for 2017,NI 1.36-1.39B(1.2-1.225) - 8%/9% U/G.....+4%

*SAFRAN-NI 1.61b(1.4),Rev 8.38b(8.12),FCF 666m,SI 1.38%..............-1%

*VINCI-Rev 18.51b(18.4),NI 1.03b(1.05),OP 1.9b(1.89),Reit FY.........-1%

*AIR LIQUIDE-Rev 10.29b(10.3),Net 928m(946),upbeat on Airgas deal....0.5%

*EURONEXT-Q2 Rev 137.3m(133),Ebitda 79.2m(74),NI 54m(50).............+1%

*EUTELSAT-FY Rev 1.477b(1.47),Net 351.8m(332),Confirms targets.......+2%

*CAIXABANK-NI 436m(365.9),NII 1.2b(1.19),CET 11.5%,B/Loans 6.5%......+2%

*AIRFRANCE-Q2 Rev 6.61b(6.53),jv with Delta/China Eastern,Virgin.....+1%

*LINDE-H1 Rev 8.65b(8.7),OP 2.12b,Sees FY Rev Grth -3% to +3%........-0.5%

*ITALGAS-Net 140m(136.3),Ebitda 390m(384.2),Rev 565m(562.8)..........+2%

*BUREAU VERITAS-H1 Rev 2.36b(2.35),OP 359m(354),Net 188m(194.5)......+2%

*ENI-Q2 Net 463m(287.9),Op Cash Flow 2.28b,Production 1.77m..........+1%

*ST GOBAIN-H1 Sales 20.5b(20.5),OP Inc 1.47b(1.5),O/Sales +3.5%......U/C

*BBVA-NI 1.11b(1.04),CET1 11.1%,Bad Loans Ratio 4.8%.................+1%

*EDP-Net Inc 450m(427),Ebitda 1.90b(1.908),Net Debt 18.89b June......+1%

*ENEL-Ebitda 7.53b(7.64),NI 1.81b(1.78),Rev 36.3b(37.4)..............-0.5%

*TELEPERFORMANCE-Rev 2.08b(2.06),Net 116m(127),L-F-L Rev Grth 7%.....+0.5%

*LAGARDERE-Rev 3.31b(3.26),NI 29m(47.35),Ebit 136m(125.5)............+3%

*VISCOFAN-Rev 390.3m(389),NI66.2m(67.93),Ebitda 116.6m(111.75).......+0.5%

*FERROVIAL-Sales 6.06b(5.92),Net 240m(156),Ebitda 469m(460)..........+2%

*L'OREAL-Rev 13.4b(13.8),OP 2.53b(2.58),L-F-L Grth 4.3%(4.7).........-2%

*IAG-Q2 Rev 5.95b(5.78),OP 805m(746.7),Sees ticket Rev up H2.........+3%