Morning Meeting 4 August 2020

Index +/- % change Currencies +/- 12 month range FTSE 100 6032.9 135.1 2.3 £:$ 1.303 -0.01 1.15 1.33 FTSE All-Share 3349.5 67.5 2.1 Y:$ 106.095 0.37 102.55 112.09 DJ Industrial Average 26664.4 236.1 0.9 E:£ 1.110 0.00 1.07 1.20 S&P 500 3294.6 23.5 0.7 E:$ 1.174 -0.01 1.07 1.18 NASDAQ Composite Index 10902.8 157.5 1.5 10 Yr Bond Yld % +/- -3 months -12 months Nikkei Japan 1000 Index 1822.6 32.1 1.8 UK 0.10 0.00 0.25 0.67 Hang Seng Index 24458.1 -137.2 -0.6 US 0.56 0.02 0.64 1.86 EURO STOXX 50 (EUR) 3248.3 74.0 2.3 Germany -0.52 0.01 -0.59 -0.51 Switzerland SMI (PR) 10229.7 223.8 2.2 Price (p) +/- 12 month range France CAC 40 4875.9 92.2 1.9 Germany DAX (TR) 12647.0 333.6 0.0 plc 150.85 0.35 128.8 498.0

Matrix Winners Price +/- % change Sector Winners % change Mkt Wt ITM Power PLC 259.5 18.5 7.7 FTSE All-Share / General Industrials - SEC 4.0 1.5 Lloyds Banking Group plc 27.9 1.6 6.0 FTSE All-Share / Life Insurance - SEC 3.61 1.5 International plc 291.9 14.8 5.3 FTSE All-Share / Forestry & Paper - SEC 3.34 0.4 plc 1163.5 55.0 5.0 FTSE All-Share / Support Services - SEC 3.2 5.6 NatWest Group PLC 111.1 5.1 4.8 FTSE All-Share / Construction & Materials - SEC 3.1 1.5

Matrix Losers Price +/- % change Sector Losers % change Mkt Wt Ltd 755.2 -26.4 -3.4 FTSE All-Share / Real Estate Investment & Services - SEC -0.3 0.4 Carnival plc 802.0 -24.6 -3.0 FTSE All-Share / Technology Hardware & Equipment - SEC -0.3 0.1 HSBC Holdings Plc 332.3 -9.95 -2.9 FTSE All-Share / Tobacco - SEC -0.1 3.6 Plc 287.0 -8.2 -2.8 FTSE All-Share / Real Estate Investment Trusts - SEC 0.0 2.5 Secure Income REIT PLC 258.0 -5.5 -2.1 FTSE All-Share / Banks - SEC 0.1 6.5

Stocks Hitting Relative High Stocks Hitting Relative Low Bunzl plc BT Group plc DCC Plc Equiniti Group Plc Ferguson Plc plc IMI plc HSBC Holdings Plc Keywords Studios plc Stock Exchange Group plc Imperial Brands PLC Reckitt Benckiser Group plc ITV PLC Rio Tinto plc Rolls-Royce Holdings plc plc Royal Dutch Shell Plc Class A Sage Group plc Royal Dutch Shell Plc Class B Group plc -

Companies discussed in Morning Meeting UK Equities Company Update BP Quarterly Results

British American Update Tobacco/Imperial Brands

Diageo Full-Year Results Direct Line Full-Year Results EasyJet Quarterly Results Keywords Studios Interim Results Rotork Interim Results International Equities Bayer Quarterly Results

Overview

 Monday 3rd August saw equity markets rally strongly, driven higher in particular by encouraging Purchasing Manager Index results pointing to an economic recovery. In the United States, the July manufacturing Purchasing Manager Index (PMI) survey produced a reading of 50.9 (where a number above 50 indicates expansionary economic conditions). The ISM manufacturing survey produced a reading of 54.2. The new orders component of that survey came in especially strong, with a reading of 61.5. PMI survey data from Europe was also encouraging: Spain’s July manufacturing PMI survey came out at 53.5, while the Sweden, Italy, and France surveys also produced readings above 50.

 Equity markets responded positively to this news. In the United States, the S&P 500 index rose 0.7%, while the NASDAQ index rose 1.5%. Remarkably, the NASDAQ is now up 23.3% year-to- date in sterling terms. European markets were also strong: the Eurostoxx 50 index and FTSE 100 both rose 2.3%, while Germany’s DAX index rose 2.7%. We also had a strong showing from the Asia-Pacific region this morning: Tokyo’s Nikkei index rose 1.8%, Australia’s ASX 200 index rose 1.9%, while Hong Kong’s Hang Seng is trading up around 2%.

 Bond markets were largely unchanged yesterday. We have the US 10-year Treasury Bond yielding 0.554%, the UK 10-year Gilt yields 9.7bps, while the German 10-year bund yields minus 52bps.

 Commodity markets were relatively quiet yesterday, although oil did trade off around 1%. West Texas Intermediate crude oil closed at $40.65 per barrel, while Brent closed at $43.74. Gold traded roughly flat at $1,975 per ounce.

 In currency markets, the pound is trading at $1.3073, while the euro is trading at $1.1772.

 Turning to coronavirus, the rate of new infections seems to be gradually falling in the US, while concerns in Europe are increasing as daily case growth is beginning to accelerate from low levels. Norway has banned cruise ships from entering all ports for two weeks after an outbreak on a cruise liner. This comes as the UK is apparently looking at plans to lock London down in case of another surge in cases. The Australian state of Victoria is battling to control an outbreak there, and has announced spot fines of as much as A$ 5,000 for anyone disobeying isolation rules. Growth in cases appears to be slowing in the southern United States: California reported the fewest new cases in four weeks, while Arizona also had new cases reach the lowest levels since the end of June.

 Today looks fairly quiet on the economic news front. In the United States, we’re expecting Factory Orders (consensus +5.0%) and Durable Goods Orders (consensus +7.3%), while in Europe, we’re expecting Eurozone Producer Price Inflation data (consensus 0.6% MoM/-3.8% YoY).

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Events Calendar

Date Company Event Flag Consensus Analyst Firm Holdings RPPIN RPPIB GLP RPPUK 03 August 2020 HSBC Holdings Plc Q2 2020 Earnings Release Blue HOLD TM/JH £107,993,695 3.33

03 August 2020 Siemens Healthineers AG Q3 2020 Earnings Release ############################################################################################################################################################################################################################################################### Hold JMu £64,535 04 August 2020 BP Plc Q2 2020 Earnings Release Green OUTPERFORM ZB £93,330,565 2.07 04 August 2020 easyJet Plc Q3 2020 Earnings Release Spec Sit OUTPERFORM SL £7,339,652 04 August 2020 Rotork Plc Q2 2020 Earnings Release R HOLD ZB £2,376,615 04 August 2020 Plc Q2 2020 Earnings Release R HOLD JMu £2,005,819 04 August 2020 Bayer AG Q2 2020 Earnings Release Spec Sit Overweight JMu £4,756,941 04 August 2020 Direct Line Insurance Group Plc Q2 2020 Earnings Release R OUTPERFORM TM/JH £654,010 04 August 2020 Diageo Plc Q4 2020 Earnings Release Blue HOLD GE £275,564,961 2.88 1.98 1.93 3.97 04 August 2020 Beyond Meat, Inc. Q2 2020 Earnings Release Spec Sit Hold ASh £4,389,345 04 August 2020 The Walt Disney Co. Q3 2020 Earnings Release Green Overweight SL £41,781,941 2.90 3.06 2.28 05 August 2020 Hill & Smith Holdings Plc Q2 2020 Earnings Release R BUY JMu £3,601,812 05 August 2020 Legal & General Group Plc Q2 2020 Earnings Release R HOLD TM/JH £39,958,307 05 August 2020 SEGRO Plc Q2 2020 Earnings Release R OUTPERFORM TBC £13,899,715 05 August 2020 William Hill Plc Q2 2020 Earnings Release R OUTPERFORM GE £402,638 05 August 2020 Continental AG Q2 2020 Earnings Release #N/A NM NM £567,125 05 August 2020 Costco Wholesale Corp. July 2020 Sales and Revenue Release Green Overweight EH £3,757,191 06 August 2020 Plc Q2 2020 Earnings Release R UNDERPERFORM TBC £203,890 06 August 2020 Ibstock Plc Q2 2020 Earnings Release R OUTPERFORM GE £8,896,237 06 August 2020 ITV Plc Q2 2020 Earnings Release R OUTPERFORM SL £7,337,934 06 August 2020 Mondi Plc Q2 2020 Earnings Release Green OUTPERFORM CP £26,822,837 3.39 06 August 2020 Serco Group Plc Q2 2020 Earnings Release R BUY GE £5,780,182 06 August 2020 Dentsply Sirona, Inc. Q2 2020 Earnings Release - Overweight JMu £214,264 06 August 2020 Novo Nordisk A/S Q2 2020 Earnings Release Green Overweight JMu £11,333,277 06 August 2020 AXA SA Q2 2020 Earnings Release - Overweight TM/JH £4,920,235 06 August 2020 ING Groep NV Q2 2020 Earnings Release Green Overweight TM/JH £3,274,134 06 August 2020 Aviva Plc Q2 2020 Earnings Release Green OUTPERFORM TM/JH £43,376,576 06 August 2020 Glencore Plc Q2 2020 Earnings Release R OUTPERFORM ZB £684,877 06 August 2020 Zoetis, Inc. Q2 2020 Earnings Release Green Overweight JMu £8,315,991 2.46 06 August 2020 Booking Holdings, Inc. Q2 2020 Earnings Release Spec Sit Overweight ASh £2,105,270 1.37 06 August 2020 EOG Resources, Inc. Q2 2020 Earnings Release Sunset/Other Overweight ZB £3,435,052 1.20 1.27 07 August 2020 Hargreaves Lansdown Plc Q4 2020 Earnings Release R HOLD TM/JH £5,825,014 07 August 2020 Standard Life Aberdeen Plc Q2 2020 Earnings Release R HOLD TM/JH £16,552,979 07 August 2020 Rightmove Plc Q2 2020 Earnings Release R HOLD SL £1,801,041 11 August 2020 Plc Q2 2020 Earnings Release R OUTPERFORM TBC £9,534,087 11 August 2020 Domino's Pizza Group Plc Q2 2020 Earnings Release R HOLD EH £363,250 11 August 2020 InterContinental Hotels Group Plc Q2 2020 Earnings Release Green HOLD GE £7,351,414 11 August 2020 Polypipe Group Plc Q2 2020 Earnings Release R OUTPERFORM GE £112,535 11 August 2020 Zalando SE Q2 2020 Earnings Release Spec Sit Overweight ASh £10,981,352 11 August 2020 Prudential Plc Q2 2020 Earnings Release Blue OUTPERFORM TM/JH £176,279,365 3.34 3.53 2.25 5.07 12 August 2020 Admiral Group Plc Q2 2020 Earnings Release R HOLD TM/JH £1,044,139 12 August 2020 Spirax-Sarco Engineering Plc Q2 2020 Earnings Release Green HOLD JMu £10,413,548 12 August 2020 Admiral Group Plc Q2 2020 Earnings Release R HOLD TM/JH £1,044,139 12 August 2020 Cisco Systems, Inc. Q4 2020 Earnings Release Green Overweight SL £16,982,480 2.74 1.93 2.38 13 August 2020 Q4 2020 Earnings Release Spec Sit UNDERPERFORM JMu £4,461,948 13 August 2020 TUI AG Q3 2020 Earnings Release Sunset/Other NM GE £154,798 13 August 2020 Deutsche Telekom AG Q2 2020 Earnings Release Blue Overweight SL £6,488,420 13 August 2020 Tapestry, Inc. Q4 2020 Earnings Release Spec Sit Overweight TD 0 14 August 2020 The Charles Schwab Corp. July 2020 Sales and Revenue Release Blue Overweight TM/JH £1,412,716 17 August 2020 Q1 2021 Earnings Release Spec Sit BUY EH £6,735,542 4.36 18 August 2020 Pandora AS Q2 2020 Earnings Release Spec Sit Overweight TD £29,692 18 August 2020 Q2 2020 Earnings Release R OUTPERFORM GE £11,313,948 18 August 2020 Plc Q2 2020 Earnings Release R BUY ZB £2,885,495 18 August 2020 BHP Group Plc Q4 2020 Earnings Release Green OUTPERFORM CP £77,893,230 18 August 2020 The Home Depot, Inc. Q2 2020 Earnings Release Green Overweight EH £29,878,875 3.24 20 August 2020 CRH Plc Q2 2020 Earnings Release Green OUTPERFORM ZB £33,015,282 2.93 20 August 2020 John Laing Group Plc Q2 2020 Earnings Release R BUY GE £7,946,332 20 August 2020 Phoenix Group Holdings Plc Q2 2020 Earnings Release R OUTPERFORM TM/JH £18,631,814 20 August 2020 Premier Oil Plc Q2 2020 Earnings Release Sunset/Other HOLD ZB £101,378 20 August 2020 The Estee Lauder Companies, Inc. Q4 2020 Earnings Release Blue Overweight EH £28,575,019 2.07 2.03 2.61 21 August 2020 Deere & Co. Q3 2020 Earnings Release Spec Sit Overweight JMu £3,955,050 2.03

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Monday Tuesday Wednesday Thursday Friday 3rd August 4th August 5h August 6th August 7th August CIPS Manufacturing PMI CIPS Services PMI SA CIPS Construction PMI SA Halifax House Price SA 3- SA (Final) (Final) BoE Official Bank Rate M/Y Bank of England Interest UK Rate Announcement, MPC Minutes Publication and Inflation Report Markit PMI Durable Orders ex- BEA Domestic Auto Sales New York Federal Reserve Hourly Earnings SA M/M Manufacturing SA (Final) Transportation SA M/M SAAR Executive Vice President (Preliminary) Construction Spending (Final) BEA Domestic Light Truck Singh speaks in Webinar Hourly Earnings Y/Y SA M/M Durable Orders SA M/M Sales SAAR Continuing Jobless Claims (Preliminary) ISM Manufacturing SA (Final) BEA Total Light Vehicle SA Average Workweek SA Factory Orders SA M/M Sales Initial Claims SA (Preliminary) ADP Employment Survey Manufacturing Payrolls SA US SA Nonfarm Payrolls SA Trade Balance SA Private Nonfarm Payrolls PMI Composite SA (Final) Unemployment Rate Markit PMI Services SA Wholesale Inventories SA (Final) M/M (Final) ISM Non Manufacturing Consumer Credit SA SA FR – Markit PMI FR - Markit PMI Services GE - Manufacturing Orders GE - Export SA M/M Manufacutring SA (Final) SA (Final) SA M/M GE - Industrial Production GE - Markit PMI GE - Markit PMI Services GE - Manufacturing Orders SA M/M Manufacturing SA (Final) SA (Final) WDA Y/Y GE - Trade Balance SA RoW GE - Manufacturing FR - Industrial Production Turnover M/M SA M/M GE - PMI Construction FR - Industrial Production SA Y/Y FR - Trade Balance SA

Central Bank Meetings

Bank of England 6th August 2020 European Central Bank 10th Sept 2020 Federal Reserve 16th Sept 2020

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Disclaimer

The information in this document is for private circulation and is believed to be correct but cannot be guaranteed. Opinions, interpretations and conclusions represent our judgement as of this date and are subject to change. The Company and its related Companies, directors, employees and clients may have positions or engage in transactions in any of the securities mentioned. Past performance is not necessarily a guide to future performance. The value of shares, and the income derived from them, may fall as well as rise. The information contained in this publication does not constitute a personal recommendation and the investment or investment services referred to may not be suitable for all investors; therefore we strongly recommend you consult your Professional Adviser before taking any action. Copyright Investec Wealth & Investment Limited. Reproduction prohibited without permission.

Member firm of the . Authorised and regulated by the Financial Conduct Authority. Investec Wealth & Investment Limited is registered in England. Registered No. 2122340. Registered Office: 2 Gresham Street, London EC2V 7QP.

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