Best of the Brokers for 20 September 2013 September 19, 2013 GO-AHEAD Morgan Stanley has upgraded the bus and rail group from “equalweight” to “overweight” and raised its target price from 1,545p to 1,860p. The broker is enthused by Go-Ahead’s improving bus unit and sees an attractive free cash flow yield of 14 per cent from 2015. DAIRY CREST Make whey while the sun shines and [...]
London Report: Fed pledge lifts FTSE as mining shares tick up September 19, 2013 BRITAIN’S top share index climbed on yesterday, with the US Federal Reserve’s decision to delay a reduction in its monetary stimulus boosting investors’ appetite for risk-sensitive sectors such as miners. The FTSE 100 index tracked a rally in global equities after the Fed surprised markets on Wednesday night by saying it wanted to wait for [...]
New York Report: Wall St pauses as Fed-driven rally peters out September 19, 2013 US stocks retreated slightly yesterday as investors paused after the Federal Reserve’s decision to keep its stimulus intact sparked a rally that lifted the Dow and S&P 500 to record highs. Major US stock indexes oscillated between modest gains and losses on the heels of Wednesday’s rally, with the S&P showing a swing of less [...]
Any other business – 20/09 September 19, 2013 Market commentators were musing yesterday on the coincidence that Nomura downgraded supermarket Tesco from a ‘buy’ rating to ‘neutral’, just a day after the food superstore ended the brokership relationship between the pair. While Nomura insisted to The Capitalist yesterday that the brokerage was a completely separate part of the firm and the incidents were [...]
RBS offloading £630m worth of stake in Direct Line September 19, 2013 State-backed bank RBS is offloading a 20 per cent stake in Direct Line, expected to net around £630m (release). City AM understands the bank could get 207p to 210p for the stock, a discount of four to five per cent on the trading price. That's an 18 to 20 per cent premium on the insurer's [...]
Nokia boss Elop takes £15.8m golden handshake to move back to Microsoft September 19, 2013 A Nokia announcement to shareholders has shown boss Stephen Elop received a €18.8m (£15.8m) sum to move to Microsoft (release). Tech giant Microsoft snapped up Nokia's mobile devices deal in a €5.33bn (£4.5bn) deal at the start of September. Elop's new role is as Microsoft's vice president of devices and services. That's a little more [...]
Good data for the US real estate market in August September 19, 2013 The US existing home sales index has risen 1.7 per cent in August following expectations of a 2.6 per cent fall. Number of sales is at 5.48m, up from July's 5.39m and the 5.25m consensus. Change in July was positive with an increase of 6.5 per cent.
US manufacturing indicator booms in September to 30 month high September 19, 2013 US manufacturing data just smashed expectations. The Philadelphia Fed manufacturing survey is in at 22.3 for September, up from 9.3 prior. Analysts had forecast a rise of just 0.7 points to 10. Amna Asaf, economist, Capital Economics: The surge in September's US Philly Fed manufacturing index to a two-and-a-half-year high suggests that the recent improvement [...]
Regulator hits JP Morgan with £137,610,000 fine over London Whale scandal September 19, 2013 Banking giant JP Morgan has been hit with a fine of £137,610,000 from the Financial Conduct Authority (FCA) following the charging of traders who lost the company more than £3.9bn. The fine is the second-largest to be given by the FCA and much higher than expected, with estimations of around £50m. Compared with the amount the bank [...]
Better than expected US jobs data this week September 19, 2013 Some nice initial jobless claims numbers for the US, They've risen from 294,000 (revised up from 292,000) to 309,000 this week. Worse raw data, but below forecasts of a rise to 330,000. Continuing jobless claims up, from 2.815m (revised down from 2.871m) to 2.787m. Analysts had been expecting them all the way up to 2.9m. [...]