Restructuring charges drag down Pearson profits July 26, 2013 British publisher Pearson has reported a 26 per cent drop in adjusted operating profit to £137m following £27m of gross resturcutring charges and investment in new product launches. Adjusted earnings per share fell to 4.9 pence from 9.9 pence, below analyst expectations of 10.6 pence. However, sales showed a strong five per cent growth, coming [...]
Three charts: French consumer confidence up, expected unemployment down, and inflation fears resurface July 26, 2013 (Source: INSEE) French consumer confidence has risen from 79 (revised from 78) to 82 in July, while economists forecast just a one point increase from that unrevised figure to 79 (release). In July, households were largely less numerous than in June to forecast an increase in unemployment. The corresponding balance lost 17 points and reached [...]
Before the open – 26/07 July 26, 2013 The FTSE is expected up slightly after a strong US earnings season yesterday. Grant Lewis, Daiwa Capital Markets: Yet more good data vindicating Abenomics overnight, with the latest CPI data coming in a little stronger than expected. Headline national CPI came in at 0.2%Y/Y in June, taking this index back into positive territory for the [...]
Sky announces £500m share buyback as dividend sees ninth consecutive rise July 26, 2013 British Sky Broadcasting has announced a £500m capital return to shareholders via share buy-back, as it releases results for the year ended 30 June (release). The firm saw profit before tax rise to £1,257m from £1,189m in the same period last year and has seen 150,000 customers sign up for its new Sky Go Extra [...]
Miner Rio Tinto announces £670m investment in water supply project July 26, 2013 Rio Tinto has announced a $1.30bn (£670m) investment in a new 2,500 litre per sector seawater desalination facility to supply water to Escondida mine in Chile, in which Rio Tinto has a 30 per cent interest (release). The project will provide a sustainable supply of water for the new OGP1 copper concentrator approved in February [...]
Fed goes after Wall St giant July 25, 2013 US FEDERAL prosecutors yesterday criminally indicted a top Wall Street hedge fund over allegations that years of spectacular performance were partly based on insider trading. SAC Capital Advisors was charged by a court in New York on four counts of securities fraud and one count of wire fraud following a seven-year investigation by regulators. No [...]
Church of England launches probe into link with Wonga July 25, 2013 THE CHURCH of England’s plan to take on payday lender Wonga took an embarrassing turn for the worse last night, as it was revealed to have invested in a venture capital firm – Accel Partners – that has itself given financial backing to Wonga. Archbishop of Canterbury Justin Welby was forced to launch an immediate review [...]
City fears UK’s growth will be unsustainable July 25, 2013 THE UK economy grew by 0.6 per cent in the second quarter, doubling its pace of growth and giving a boost to George Osborne, who hopes he is at last escaping the stagnation that has dogged the coalition since it took office in 2010. Services, manufacturing and construction all grew in the three-month period, a [...]
Economy grows but is still smaller than peak in 2008 July 25, 2013 EVERY sector of the British economy recorded growth in the second quarter of the year, but the economy still has a long way to go before it reaches its 2008 peak, official figures showed yesterday. GDP increased by 0.6 per cent in the three-month period, and is 1.4 per cent bigger than it was a [...]
What the other papers say this morning – 26 July 2013 July 25, 2013 FINANCIAL TIMES Berkshire Hathaway derided for deal Warren Buffett’s Berkshire Hathaway has been branded “foolish” by an insurance executive for blindly following underwriting decisions taken by Lloyd’s of London rivals. An unusual deal that Berkshire has struck with the insurance broker Aon is likely to “end in tears”, warned Richard Brindle, founder and chief executive [...]