BEST of the BROKERS June 28, 2012 EVRAZ Goldman Sachs rates the steel maker “buy” but has slashed its target price from 700p to 410p. The broker has cut its forecasts for commodity prices, resulting in a four per cent fall in assumptions across the industry this year. However, Goldman remains positive about steel, and thinks Evraz is well-positioned to improve as [...]
Libor scandal drags FTSE 100 into the red as banking stocks plunge June 28, 2012 BANKING shares dragged Britain’s FTSE 100 into negative territory yesterday, battered by concerns over the financial impact of an investigation into the fixing of interbank lending rates that has already engulfed Barclays. Barclays slumped 15.5 per cent in its worst daily fall since 2009, with four times the usual number of shares traded in London. [...]
Stocks volatile over EU, banks and Obamacare June 28, 2012 US stocks fell yesterday but pared back sharp losses late in the session on talk of progress by European leaders in easing the region’s debt crisis, while the Supreme Court’s ruling upholding a landmark healthcare law hit large health insurers. Markets are especially skittish about any shift in expectations for the Eurozone as European Union [...]
Barclays’ reputation is severely damaged but it will not be alone June 28, 2012 THERE can be little that is more precious to a bank than a reputation for integrity. The revelation that Barclays has paid a £290m fine for “misconduct” with regard to the setting of benchmark interest rates affecting trillions of pounds of financial contracts is a big blow for the bank’s reputation. Cue politicians calling for [...]
Steve Jobs made the right call: Apple’s ingenious iPhone turns five today June 28, 2012 FIVE years ago, the makers of BlackBerry didn’t believe the iPhone was possible. According to a former employee, they held internal meetings on 10 January 2007, the day after the unveiling but six months before it went on sale on 29 June, arguing that Apple was fudging the truth: it was simply impossible for a [...]
Coalition policy is damaging longer term productivity June 28, 2012 BRITAIN’S businesses and working families are paying a heavy price for the government’s mistakes. Abandoning the last Labour government’s balanced plan for deficit reduction, and raising taxes and cutting spending too far and too fast, has choked off recovery and pushed the UK into recession. As the only G20 country other than Italy already in [...]
Is News Corporation’s decision to split itself into two separate companies a good move? June 28, 2012 YES Alex DeGroote News Corp’s plan to split its entertainment and publishing assets should help resolve the conglomerate discount which undermines its equity value. Over time, it will allow capital to be allocated more rationally across the businesses. We imagine growth-oriented investors will favour the much larger, higher margin entertainment business. The publishing entity is [...]
RAPID responses June 28, 2012 Victim of Libor? [Re: Libor manipulation scandal is a disastrous own goal for City, yesterday] Back in the 1990s, my business had a Libor-linked loan with Barclays Commercial. Every quarter, when we came to settle, it mysteriously jumped 0.125 per cent or 2.5 per cent. After the first few times this happened, I started to [...]
You wouldn’t buy a car without a few gadgets in it – why should it be any different for your home? June 28, 2012 The “internet of things” is big news right now. It’s the idea that anything with an electrical plug can become a “smart” device, connected to the web. Companies like Intel have been busy showcasing everything from smart gas metres to intelligent washing machines but it is only recently this smart technology is moving out of [...]
The Olympics could be a great chance for the savvy to tap foreign investors June 28, 2012 DIRECTOR DOUGLAS & GORDON Q Do you think the Olympics are going to put a brake on the property market and should I withdraw my flat while they’re on? A It seems to have become fashionable to assume that everything is going to grind to a halt. Whilst this may be true of the traffic [...]
