Forget energy companies: Blame the regulator for distorting competition March 18, 2014 OFGEM, the Office of Fair Trading (OFT) and the Competition and Markets Authority (CMA) will shortly issue an assessment of how well competition in the markets for gas and electricity is serving the interests of households and small firms. But as I argue in the March/April 2014 edition of the European Competition Journal, Ofgem’s regulatory [...]
Best of the Brokers for 18 March 2014 March 17, 2014 To appear in Best of the Brokers, email your research to notes@cityam.com MICRO FOCUS Barclays upgraded Micro Focus from “equal weight” to “overweight” yesterday with a raised target price of 900p (from 800p). The broker expects that Micro Focus is soon to return to organic growth of up to five per cent now that its [...]
Tesco shares slump on BoAML downgrade March 17, 2014 Analysts at Bank of America Merrill Lynch have downgraded Tesco today to “underperform” on the back of rival Morrisons’ announcement last week to invest £1bn in slashing prices, causing the grocer’s share to fall to the bottom of investors’ shopping lists. The bank said the implications of the shock announcement from Morrisons were “substantial” and [...]
The week in brief March 16, 2014 Reebok unveils new logo In the second overhaul of the sportswear company’s logo in its 121-year history, Reebok has unveiled a new design to reflect its focus on fitness. Chief marketing officer Matt O’Toole said: “The new brand mark signals a clear purpose for our brand.. It is a symbol of change – an invitation [...]
Morrisons’ woes wipe £2.6bn off supermarkets March 13, 2014 FEARS of a new supermarket price war wiped around £2.6bn off the combined value of Britain’s major grocers yesterday after Morrisons launched a major assault on its discount rivals. Shares in Morrisons plunged 12 per cent – to their lowest level since 2008 – after it revealed it would invest £1bn in slashing prices over [...]
Morrisons cuts prices after new profit warning March 13, 2014 MORRISONS sent shockwaves through the food retail industry yesterday after warning that underlying profits would halve this year and announced plans to spend £1bn on cutting prices over the next three years. Chief executive Dalton Philips said it will invest £300m this year to narrow the price gap with discounters, following similar moves by Tesco, [...]
Bottom Line: This is the end of the big four supermarkets March 13, 2014 DALTON Philips kicked off more than just a price war yesterday. By promising to slash prices in an effort to turn around Morrisons’ fortunes, he also exposed a growing schism at the heart of the British grocery market. For years, supermarket analysts have talked about the big four (Tesco, Asda, Sainsbury’s and Morrisons) but with [...]
London Report: Supermarket fears lead FTSE to a fifth consecutive drop March 13, 2014 BRITISH shares fell for a fifth straight session yesterday, dragged down by supermarket stocks after WM Morrison cut its profit outlook, as well as by escalating tensions between Russia and the West over Ukraine. Morrison’s was the worst performer on the FTSE 100 index, plunging 11.9 per cent, and its revised outlook triggered a sell-off [...]
Letters to the Editor – 14/03 – Splitting debts, Best of Twitter March 13, 2014 Splitting debts [Re: The big independence lie: Scotland could keep the pound, Wednesday] Is Scotland walking away from its “share” of UK debt really that absurd? Did the Baltic states take any Russian debt after the breakup of the Soviet Union? No. Of course, independence supporters have proposed that Scotland would indeed take on its [...]
Scarlett fever: Under The Skin is a classic March 13, 2014 FILMUNDER THE SKINCert 15 | By Alex DymokeFive Stars IF YOU were considering the filmic potential of Scotland, first to come to mind would probably be the highlands; the dramatic barrenness of the western isles, the bronze light that illuminates the Grampians every evening. You probably wouldn’t think of Asda, Tescos, or obscure ring-roads on [...]