Analyst Views: What did you make of African Barrick Gold’s results? January 21, 2014 HUNTER HILLCOAT | INVESTEC African Barrick has perfected the art of under-promising and over-delivering and the fourth quarter delivered more of that. But it finished the year [with a far lower cash balance] and we cannot be overly encouraged by the company’s operational improvements until it becomes cash generative. ROB BROKE | WESTHOUSE SECURITIES The [...]
Brand Index: Ryanair’s charm offensive starting to win round flyers January 21, 2014 THIS year, Ryanair is changing. At least that’s what the budget airline’s boss, Michael O’Leary, claims in a new TV advert, which is part of multi-pronged marketing effort to convince consumers that it is turning over a new leaf. To get out the message that it is now a kinder, gentler company, it has appointed [...]
Fiat completes purchase of US car firm Chrysler January 21, 2014 FIAT has completed its buyout of Chrysler, making the US business a wholly-owned subsidiary of the Italian car-maker as it gears up to use their combined resources to turn around its loss-making operations in Europe. The company announced on 1 January that it had struck a $4.35bn (£2.6bn) deal – cheaper than analysts had expected [...]
Melrose and IMI return £1.2bn to shareholders after selling assets January 21, 2014 IT WAS a good day for investors in Melrose Industries and IMI yesterday, after both FTSE 100-quoted engineering firms said separately that they would be returning cash to shareholders. IMI – which makes valves and other equipment for controlling liquids and gas flows – is returning £620m to shareholders after it completed the sale of [...]
Cairn Energy unveils nine-well expansion programme for 2014 January 21, 2014 CASH-RICH oil explorer Cairn Energy yesterday said it plans to drill nine new wells this year, while its programme to buy back up to $300m (£182.2m) in shares is still ongoing. “Cairn plans to drill nine wells in its 2014 exploration programme across an attractive mix of frontier and mature basins,” said chief executive Simon [...]
City Moves for 22 January 2014 | Who’s switching jobs January 21, 2014 Sidley Austin The law firm has announced the appointment of James Oussedik as counsel and senior member of its investment funds practice. Oussedik was most recently at Simmons & Simmons, where he was a managing associate. Partnership Giles Offen has joined the insurance company as chief technology officer. He was formerly at Advanced Payment Solutions, where [...]
Best of the Brokers for 22 January 2014 January 21, 2014 To appear in Best of the Brokers, email your research to notes@cityam.com ADMIRAL Berenberg rates the insurer a sell with a price target of 1,080p. The broker thinks the motor insurance sector is not likely to see a rise in premiums soon, and that Admiral will not enjoy a boost from an eventual rise in [...]
London Report: FTSE chases record after rallying to an eight month high January 21, 2014 THE UK’S top shares consolidated near an eight-month high yesterday as reassuring news about economic conditions in emerging markets boosted consumer staples and financials, although miners weakened. The FTSE 100 touched its highest since May 2013, before pulling back in the afternoon, with traders citing caution on Wall Street as US markets reopened after a [...]
New York Report: Bad earnings drag on Dow January 21, 2014 US STOCKS mostly rose yesterday, with the S&P 500 snapping a two-session decline as the materials sector rallied, though the Dow fell on disappointing earnings by three of its components. The Dow fell as Travelers Cos, Verizon Communications and Johnson & Johnson – all bellwethers for their sectors – tumbled following results. Travelers fell 1.7 [...]
Any Other Business – 22/01 January 21, 2014 BORIS Johnson’s underling Kit Malthouse gave away some interesting restaurant tips at a breakfast event for the Mayor’s Fund For London and the Berkeley Foundation yesterday. The event was to celebrate the launch of “Creativity Works” which aims to help young Londoners into creative jobs – the deputy mayor reminisced about his own career journey [...]