Stocks rocked by Rolls-Royce growth warning February 13, 2014 ROLLS-ROYCE said its profits fell more than a third in the last year, and warned there will be no growth in 2014 either, sending its shares tumbling almost 14 per cent and dragging the FTSE 100 lower yesterday. The engineering giant reported pre-tax profits of £1.76bn, down 36 per cent on the previous year, though [...]
Rio Tinto hikes dividend after slashing costs February 13, 2014 RIO TINTO chief executive Sam Walsh proved his mettle with the miner’s full-year results yesterday, which showed higher earnings and production, larger-than-expected cost savings and a 15 per cent dividend increase. Walsh has slashed costs and divested non-core assets at the FTSE 100 Anglo-Australian firm since he took up the role a year ago, as [...]
Tullow refutes takeover talk after dry spell February 12, 2014 TULLOW Oil’s chief executive yesterday denied that the energy explorer had become a takeover target, after a swathe of exploration write-offs led to a 72 per cent drop in full-year profits. The FTSE 100-quoted firm reported pre-tax profits of $313m (£189.5m), down from $1.12bn the previous year, hit by a $200m increase in exploration write-offs [...]
City prepares for Merlin Entertainments results magic show February 12, 2014 Merlin Entertainments is set to announce its maiden set of results on 27 February since its successful return to the market in November, sparking a flurry of analyst notes this week predicting good things from the Alton Towers owner. In a note from Deutsche Bank, analysts have restated a “buy” recommendation and target price [...]
Analyst Views: Are there business lines Barclays rely on for solid future growth? February 11, 2014 IAN GORDON | INVESTEC Fourth quarter investment bank revenues of £2.1bn were up two per cent quarter on quarter. Fixed income, currencies and commodities was up 12 per cent, which compares favourably with investment bank peers. The broad absence of negative one-offs is in stark contrast to loss-making UK domestic peers. SHAILESH RAIKUNDLIA | ESPIRITO [...]
Bottom Line: Beware of history repeating itself February 11, 2014 CAST your mind back to October 2008. As the financial crisis took hold, governments across the world unveiled multi-billion bank recapitalisation plans, while central banks simultaneously slashed interest rates to record lows and the FTSE plunged lower – falling a full 10 per cent in one single session. Over in Ukraine, meanwhile, the hryvnia was [...]
Best of the Brokers for 12 February 2014 February 11, 2014 To appear in Best of the Brokers, email your research to notes@cityam.com IMAGINATION TECHNOLOGIES Investec maintained its “hold” rating for the processor maker with a target price of 170p. The broker said that the battle between Mediatek’s smartphone platform, containing Imagination’s chip, and rivals would be a risk during 2014 as Mediatek is its second [...]
Barclays profits up despite legal cost increases February 10, 2014 BARCLAYS’ profits edged up on the year, the bank said yesterday, in another sign the lender is benefiting from the economic recovery. In a surprise early announcement, the lender said it made a statutory pre-tax profit of £2.9bn in 2013, up from £2.46bn in 2012. It comes after the bank revealed another £330m of legal [...]
City Moves for 11 February 2014 | Who’s switching jobs February 10, 2014 IFDS The outsourcing and technology firm has appointed Simon Moorhead as global chief information officer. He joins from the Bank of England, where he was chief information officer. Moorhead has also held roles at Reuters, Ernst & Young, Cap Gemini and HSBC. Coutts Arne Hassel has been appointed head of investments at the private bank. [...]
Statoil expected to cut spending and output February 6, 2014 Norway’s Statoil will be the latest of the energy giants to show its cards tomorrow, as it unveils its fourth-quarter results and a strategy update. Statoil’s rivals – Shell, BG Group and BP – have failed to ignite the market with their results, as weak oil prices, low US gas prices and poor refining margins [...]