BEST of the BROKERS July 10, 2012 SSE Investec has upped its target price to 1479p from 1226p and upgraded SSE to “buy” from “hold” following an “upbeat” capital markets day last month and prospects of improved profit growth. WPP JP Morgan Cazenove has upgraded the communications giant, to “overweight” from “neutral” as it believes management changes at its market research arm [...]
Aviva trashes Moss as it sells off weak businesses July 5, 2012 INSURANCE giant Aviva yesterday unveiled radical plans to dispose of a quarter of its business units in a damning indictment of the strategy pursued by former chief executive Andrew Moss. Aviva said it will sell or close down 16 underperforming divisions, including its South Korean business and several of its Italian partnerships. Although it declined [...]
Backing Bob backfires badly July 3, 2012 Heaven knows, we’ve all been there before, but imagine Ian Gordon’s reaction at breakfast time yesterday morning as he digested the news that Bob Diamond had resigned. Not 24 hours earlier, Investec analyst Gordon had published a research note entitled: Back Bob! “We urge investors to back Bob, and take full advantage of Barclays’ recent [...]
UK GDP deeper in recession on newest figures June 28, 2012 THE UK recession was deeper than previously thought, showed revised estimates released by the Office for National Statistics yesterday. The growth estimates for the fourth quarter 2011 were revised down to -0.4 per cent, rather than the 0.3 per cent shrinkage previously estimated. On the other hand, the new data estimates a 6.3 per cent [...]
Shell again extends its offer deadline in bid to buy Cove June 28, 2012 OIL major Shell again extended a deadline for Cove Energy shareholders to accept its $1.8bn (£1.1bn) takeover offer, leaving the way open to trump a higher bid from rival Thai group PTT Exploration and Production. The two suitors have been battling to buy Cove since February, attracted by the company’s position in huge gas fields [...]
HAS DEBENHAMS WEATHERED THE RETAIL STORM? June 28, 2012 BETHANY HOCKING INVESTEC We turned buyers of Debenhams last week, given the transformation that the company has undergone, increasing cash returns to shareholders and significant growth avenues…This potential is not reflected in the share price. JOHN STEVENSON PEEL HUNT Debenhams has announced a strong third quarter interim statement. Forecasts remain unchanged for now as sales [...]
Bank warns borrowing costs will rise June 28, 2012 BRITISH banks expect to significantly raise borrowing costs for businesses and home-buyers over the next three months as the cost of their funding rises, the Bank of England said yesterday. The Bank’s latest quarterly credit conditions survey shows the challenge faced by the central bank and the coalition to lower the cost of credit to [...]
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. [...]
Palazzo Bianco to cap off an incredible month for Gosden June 28, 2012 JOHN Gosden was crowned leading trainer at last week’s Royal Ascot for the first time in his illustrious career. It was an incredible feat to notch five winners during the most competitive racing week of the year and he looks to have an excellent chance of claiming his second Northumberland Plate tomorrow afternoon (3.20pm). I [...]
RBS customers may reach for the switch after fiasco June 25, 2012 Furious customers were searching for a way out of their relationship with part-nationalised banking group RBS yesterday as promises of further extensions to normal opening hours failed to reassure. Comparison site Moneynet.co.uk reported a 10 per cent jump in hits from those searching for alternative current account providers. One business leader told City A.M.: “This [...]