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Beaufort Securities Breakfast Alert - US shutdown: Senators trade blame ahead of Monday vote

Beaufort Securities Breakfast Alert - US shutdown: Senators trade blame ahead of Monday vote

Markets

Europe
The FTSE-100 finished Friday's session 0.39% higher at 7,730.79, whilst the FTSE AIM All-Share index was up 0.38% at 1,067.89. In continental Europe, the CAC-40 finished 0.58% higher at 5,526.51 whilst the DAX was up 1.15% at 13,434.45.

Wall Street
Last night in New York, the Dow closed the week 53.91 points higher at 26,071.72, the S&P-500 climbed 12.27 points to reach 2,810.30 and the Nasdaq gained 40.33 points to stand at 7,336.38.

Asia
In Asian markets this morning, the Nikkei 225 was 26.36 points lower at 23,781.70, heading into the close, but the Hang Seng was up 89.41 points at 32,344.30. 

 

Oil
In early trade today, WTI crude was 0.22% higher at $63.51 per barrel and Brent was up 0.25% at $68.78 per barrel.

 

 Headlines

US shutdown: Senators trade blame ahead of Monday vote
US senators are struggling to agree on a bill to fund the government, which is in its second day of shutdown. A Senate session session adjourned late on Sunday and a vote has been postponed to midday (05:30 GMT) on Monday. Democratic and Republican senators have so far traded blame for the shutdown. Democrats want President Trump to negotiate over immigration as part of a budget deal, but Republicans say no deal is possible while federal government services are closed. Mr Trump has called for a simple majority vote to end the impasse. Under Senate rules, the bill needs 60 votes in the 100-member chamber to overcome blocking tactics by opponents. The Republicans currently have 51 senators and would need some Democratic support to pass a budget. But Mr Trump said the "nuclear option" of a simple-majority vote was necessary. The initial vote on a bill to fund the government until 8 February had been scheduled for 01:00 on Monday (06:00 GMT). But it was postponed as Sunday's session ended. On Monday the closure of many federal services will be felt around the country and hundreds of thousands of federal staff face unpaid leave. The last government shutdown was in 2013, and lasted for 16 days.

Source: BBC News

 

Company news

 

Altus Strategies (LON:ALS) 8.00p – Speculative Buy
Altus Strategies announced results from its reconnaissance exploration at its 100% owned Daro exploration licence in Ethiopia. Daro is prospective for VMS copper-gold deposits and is located in the Tigray Regional state of northern Ethiopia. A two-kilogramme float sample returned 34.3% Cu and 0.54g/t Au. The sample is from a 2.5km long series of alluvial and hard rock gold workings intermittent with gossans and gossanous float material. The licence covers an area of 412km2 and located 100km from the regional capital Mekele. In terms of geology, the licence is situated within the Nakfa Terrane which hosts a number of significant VMS deposits and mines including the Bisha polymetallic mine operated by Nevsun.

Our view: A float sample containing 34.3% Cu and 0.54g/t Au is very encouraging although not surprising given the area hosts a number of significant VMS-type deposits and mines. Daro is in the same geological domain as Nevsun’s polymetallic Bisha mine as well as several other VMS-type discoveries. The nearest are East Africa Metals’ (EAM.TSX-V) two VMS discoveries located 35km west of Daro. Altus’ next step is a stream sediment sampling programme across 165km2. We look forward to further updates from the exploration programme. In the meantime, we maintain a Speculative Buy recommendation.

Beaufort Securities acts as corporate broker to Altus Strategies Plc

 

Solo Oil (LON:SOLO) 4.62p – Speculative Buy
Solo has published an update on Helium One in which it has a 15% interest. Two significant pieces of news, the first is that Helium One is planning an ASX IPO this year (targeting mid 2018); secondly, Helium One is currently planning for first drilling in 2H18. The RNS also notes that Helium One has circa 100 billion cubic feet of “helium resource potential” and high grade helium concentrations over 10%, independently calculated.

Our view: These are two clear catalysts this year from Solo’s Helium One investment, especially the drilling. Bearing in mind Solo is also expecting drilling of the NT-3 well at the Ntorya gas discovery. So plenty of positive newsflow to look forward to in 2018. We maintain our Speculative Buy recommendation.

Beaufort Securities acts as corporate broker to Altus Strategies Plc

 

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