BEST OF THE BROKERS March 20, 2012 ARM HOLDINGS Barclays has upgraded the Cambridge-based chipmaker from “equalweight” to “overweight” and raised its target price to 725p, saying it sees smartphone and tablet growth driving an upside to its expectations, as well as a return to positive estimate momentum. The broker expects ARM to maintain the upper hand versus Intel in tablets, and [...]
FTSE SUFFERS BIGGEST FALL IN TWO WEEKS March 20, 2012 BRITAIN’S top share index suffered its sharpest fall in two weeks yesterday, as concerns over materials demand in top consumer China hit commodities-linked sectors, marring a rally that had been part-driven by hopes for improving global growth. The benchmark FTSE 100 index closed down 69.7 points, or 1.2 per cent, at 5,891.41, having rallied more [...]
CHINA SENDS WALL ST DOWN March 20, 2012 A warning about China’s growth sparked selling in energy and industrial shares yesterday, but the broad market’s losses were contained, a sign of resilience for US stocks. The S&P energy index fell 1.4 per cent and ranked as the worst performer among the S&P 500 sectors. Global mining giant BHP Billiton said it saw signs [...]
George Osborne’s plans for government-backed credit will be a terrible mistake March 20, 2012 TODAY is Budget day and I fear the chancellor is about to announce some really bad proposals to offer extra credit to house-buyers, small business owners and school-leavers. These are based on ideas spawned from the financial crisis’s original sin: the fallacy that what ails the economy is too much free-market capitalism, rather than too [...]
Ken Livingstone is blameless in his tax planning March 20, 2012 GEORGE Osborne will stand up today and announce a major clampdown on tax avoidance. Despite what some would have us believe, this should not target Ken Livingstone or people like him. I’ll be clear from the outset – I have no affection for Livingstone. I disagree with his policies, his personal views and the relationships [...]
Ideological companies are not the way to go March 20, 2012 APPLE has accumulated a “cash pile” of about $100bn. Until yesterday, when its chief executive, Tim Cook, announced a plan to pay out $45 billion in dividends, there was speculation about how the money might be spent. Some suggested philanthropy. Cook should be proud of resisting the temptation. “Corporate philanthropy” is one of those expressions [...]
RAPID RESPONSES March 20, 2012 Land in sight [Re: Rebalancing taxes towards consumption will let our thwarted youth flourish, yesterday] VAT is not a tax on consumption – it is carried primarily by the producer, reducing economic activity. If a business can sell widgets at £10 and be profitable, but not at £12, that business is destroyed. Far better to [...]
Predicting post-budget direction for sterling March 20, 2012 IG MARKETS CHRIS BEAUCHAMP Given that the Chancellor has engaged in the now obligatory routine of leaking almost the entire Budget ahead of the actual speech, there seems little chance of much excitement for sterling. A slight increase in UK growth forecasts from the Office for Budgetary Responsibility will be welcome news, but Osborne remains [...]
AUSSIE DOLLAR CAUGHT IN A TUG-OF-WAR March 20, 2012 FINANCIAL FEATURES WRITER GIVEN its usual position as a proxy for risk and its draw as a high-yielding currency in a sea of near-zero yields, the Aussie dollar ought to be surging against its pairs. A tug-of-war is ongoing between carry trade demand for yield and European economic weakness on the one side and a [...]
THE TIPSTER March 20, 2012 A BIT of risk aversion set in yesterday causing the euro to suffer some losses. Euro-dollar couldn’t add to the decent gains it has seen so far this week, as a sell off in equity markets, driven by concerns about Portugal, knocked the shine off the single currency. Capital Spreads quotes a price of $1.3200-$1.3201 [...]
