Trying to second-guess stocks is harder than ever October 4, 2009 EQUITY investors haven’t had much time for cliché this year. Earlier this year, they ignored dire predictions – coming from anyone with a keyboard or a microphone – that financial markets might never recover. Instead, they seized upon historically low valuations – and the trillions spent by governments around the world – and began the [...]
Tesco set to report slower sales growth October 4, 2009 TESCO, Britain’s biggest retailer, is set to report slower underlying UK sales growth than rival J Sainsbury for the fifth quarter in a row this week, alongside a small rise in first-half profit. But analysts expect Tesco to flag a stronger second-half profit performance, and some see signs it is beginning to close the gap [...]
RSA axes plans to tap markets for extra cash October 4, 2009 GENERAL insurer RSA, which operates the More Than brand in the UK, has abandoned its plans for an ambitious rights issue of around £628m. Chief executive Andy Haste is said to have told its bankers, JP Morgan and Merrill Lynch, to drop the capital raising after his plans to buy out insurance rivals with the [...]
ITV RACE RUMBLES ON October 4, 2009 ITV is moving closer to naming its new chairman, with shareholders said to be backing Bmi founder Sir Michael Bishop for the role. The broadcaster is also considering ex-Reed Elsevier chief executive Sir Crispin Davis as a replacement for Michael Grade, but some investors have said that they would be unhappy if he were to [...]
Kettle Foods sale likely October 4, 2009 Kettle Foods could be put up for sale this autumn for $700m (£440m). Owner Lion Capital, which also owns Weetabix and the Wagamama chain, bought the firm in 2006 for $270m but since then the brand, which makes the upmarket Kettle Chips, has become more popular. Lion is preparing to consult NM Rothschild bankers.
Duke Street to offload Oasis stake October 4, 2009 Buyout firm Duke Street is looking for an investor to take a stake of up to £50m in the dentist group Oasis. Duke Street, which acquired the group two years ago, wants a backer to help expand the 175-strong portfolio. Duke Street has already sounded out a number of pension funds and private equity backers.
Woolworths vs Wellworths October 4, 2009 Lawyers for Shop Direct, which bought the rights to the Woolworths brand name, have threatened legal action against Wellworths store owner Claire Robertson if she opens another store under the name. They say the Dorchester-based variety store’s name is too similar to Woolworths.
BoE to hold on rates and QE October 4, 2009 ECONOMISTS expect the Bank of England’s Monetary Policy Committee to hold fast on interest rates and quantitative easing (QE) at its October meeting later this week, as the economy continues to chug slowly back towards health. City experts predict that the Bank will keep interest rates on hold at 0.5 per cent well into next [...]
Output expectations tumble for first time in seven months October 4, 2009 HOPES for a speedy economic recovery will be dealt a blow today when a report shows that output expectations have fallen for the first time in seven months. The latest Business Trends report from BDO shows a decrease in the Output Index from 96.3 to 95.8, while the Optimism Index also dropped from 96 to [...]
WHAT ACTION WILL BE TAKEN BY THE MPC ON RATES AND QE THIS MONTH? October 4, 2009 HOWARD ARCHER IHS GLOBAL INSIGHTWe do not expect any major policy changes. Pressure for immediate action has been alleviated by the economy’s probable return to growth in the third quarter, evidence suggesting banks will increase lending in the fourth quarter and the fact that QE will last until the November meeting.GEORGE BUCKLEY DEUTSCHE BANKI’m not [...]