The FTSE 100 closed up 77.16 points at 4,895.93 today, whilst the FTSE 250 closed up 72.82 points at 7,865.75, and for those that are interested, the FTSE Small Caps down 28.17 points at 2,424.72. Strength in the mining heavyweights helping the FTSE, which was still under pressure by the UK-bias banks. News over the pond and a reaction to the massive fall yesterday wasn't echoed, but concern is all over the markets.
Over the pond, Wall Street actually did well on opening, compared to the horrendous fall yesterday, of course. After the worst slide in more than 20 years, investors moved back in feeling that despite the rejection of the $700 bln bail-out there will be some sort of tweak to the plan to get something similar through. By the time London closed, the DJI was up 264 points at 10,629, whilst the S&P500 was up 25 points at 1,141, and the Nasdaq was up 64 points at nearly 2,048.
Back here in London, an initial fall was soon reversed, with the miners helping the FTSE keep steady. News that new mortgage loan approvals in July was at just £143m, down from well over £1bn last year, showed how the UK housing market is almost stagnant.
On to the banks, where the main news was with HBOS, who closed down 14.7p at 127.3p after rumours that Lloyds TSB are wanting to return to the negotiating table with regards to the merger deal. Lloyds TSB closed up 8.25p at 225.5p as investors felt a better deal would be gained. Peers varied, with RBS closing down 4.7p at 176.3p, and Barclays down 6p at 328.25p, but those not as exposed to the UK economy had much better days, with HSBC closing up nearly 32p at just shy of 897p, and Standard Chartered closing up 123p at 1,368p.
Satellite broadcaster BSkyB lost its appeal to keep its 17.9% stake in ITV, with further news that Ofcom has said that it sees the live premier League football as a major factor and importance to consumers, so it was now consulting on BSkyB's market power as to its wholesale supply of this content. Sky shares fell half a penny to 407p, although had been up 2p or 3p this morning.
ITV closed up a penny at 42p after announcing cost saving measures in that it will cut 1,000 jobs, with 430 from its news department.
Supermarket giant Tesco announced a 10.3% rise in H1 profits to £1.45bn, helping the shares close up 16.4p at 386.3p. Peers also liked the news, with Sainsburys closing up 4p at 346.25p, and Morrisons closing up 8p at 255.25p. B&Q owner Kingfisher closed up 2.7p at 131p.
On to the black stuff, where oil pushed above $100 bbl again, but this didn't help the majors. BP closed down 3p at 464p, whilst Cairn Energy closed down 1p at 2,072p.
With metal prices turning up again, the mining heavyweights had a good day. BHP closed up 27p at 1,259p, Rio up 161p at 3,471p, Xstarta up 138p at 1,716p, and Anglo American up 39p at 1,855p.
Computer and video games retailer Game Group closed up 10p att 205p after posting a decent rise in H1 profit with a rise in interim divvy too. The company lifted its expectations for the year as well, citing robust current trading.
Dairy Crest Group closed down 6.75p at 4-qiod after announcing a decent H1 performace, but said it would have to cut costs and raise prices, adding that it may have to close one plant due to the current commercial environment, despite a solid half-year performance.
Kitchen maker Galiform closed up 4p at 26p after saying it had adequate funds available just incase any of the MFI liabilitis will be felt in-house. The company broke away from MFI 2 years ago, creating an independent kitchen manufacturer.
Tuesday, 30 September 2008
Morning Market, Tuesday 30th September 2008
Funny morning, so far. Well, not 'laughing funny', just weird. the massive drop everyone assumed would happen didn't, yet Japan was down over 4%. London was just aboutr even after a couple of hours, with an up-down-up-even so far, type of thing. It does look positive, though, as
Last night over the pond, share node-dived with the rejection of the $700 bln bail-out the markets suffered, with the DJI closing down a massive 777.68 points at 10,365.45, whilst the S&P500 closed down 106.85 points at 1,106.42, and the Nasdaq down 199.61 points at 1,983.73. We expect the positive morning here in London to travel to Wall Street later today, with hopes that a revised plan will finally get through.
Back here in London, news that there was only abou £140m in new mortgages completed in July was a major surprise. This is compared to some £1 bln last year, showing the housing market really has ground to a halt.
On to the banks, where the major banks were fairly mixed, although nothing as bad as expected. HBOS was down the worst, though, as concerns that Lloyds TSB are planning to actually renegotiate the takeover deal. Other banks were mixed, with Standard Chartered doing the best as its UK exposure is limited.
Satellite broadcaster BSkyB lost its appeal to retain its 17.9% stake in ITV, with other news that Ofcom is saying that it sees live premier League football being a priority to consumers, adding that it was consulting on BSkyB's market power in the wholesale supply of this content. Sky shares didn't react much, surprisingly, stayig around even this mroning.
ITV was also about even after announcing plans to cut its satff headcount by around 1,000. 430 of these will come from its news department.
Supermarket giant Tesco revealed a 10.3% rise in H1 profits to £1.45bn, seeing the shareprice jump 10p to 380p. Peers liked the news, with Sainsburys up 5p at 347p, and Morrisons up 6p at 253p. B&Q owner Kingfisher was also up 3p at 131.3p.
Oil was on the wain too, still falling. This saw BP fall back 3p to 464p, and RD Shell down 10p to 1,564p.
Metals were up this morning, with BHP up 12p at 1,244p, Rio up a quid at 3,410p, Anglo up 25p to 1,841p, and Xstrata was up 90p at 1,668p.
Last night over the pond, share node-dived with the rejection of the $700 bln bail-out the markets suffered, with the DJI closing down a massive 777.68 points at 10,365.45, whilst the S&P500 closed down 106.85 points at 1,106.42, and the Nasdaq down 199.61 points at 1,983.73. We expect the positive morning here in London to travel to Wall Street later today, with hopes that a revised plan will finally get through.
Back here in London, news that there was only abou £140m in new mortgages completed in July was a major surprise. This is compared to some £1 bln last year, showing the housing market really has ground to a halt.
On to the banks, where the major banks were fairly mixed, although nothing as bad as expected. HBOS was down the worst, though, as concerns that Lloyds TSB are planning to actually renegotiate the takeover deal. Other banks were mixed, with Standard Chartered doing the best as its UK exposure is limited.
Satellite broadcaster BSkyB lost its appeal to retain its 17.9% stake in ITV, with other news that Ofcom is saying that it sees live premier League football being a priority to consumers, adding that it was consulting on BSkyB's market power in the wholesale supply of this content. Sky shares didn't react much, surprisingly, stayig around even this mroning.
ITV was also about even after announcing plans to cut its satff headcount by around 1,000. 430 of these will come from its news department.
Supermarket giant Tesco revealed a 10.3% rise in H1 profits to £1.45bn, seeing the shareprice jump 10p to 380p. Peers liked the news, with Sainsburys up 5p at 347p, and Morrisons up 6p at 253p. B&Q owner Kingfisher was also up 3p at 131.3p.
Oil was on the wain too, still falling. This saw BP fall back 3p to 464p, and RD Shell down 10p to 1,564p.
Metals were up this morning, with BHP up 12p at 1,244p, Rio up a quid at 3,410p, Anglo up 25p to 1,841p, and Xstrata was up 90p at 1,668p.
Monday, 29 September 2008
DOW CLOSES DOWN 7% AT 10,365.50
The Dow closed down 7% tonight at 10,365.5, down 777.68 points after the rejection of the planned $700 bln bail-out of the financial markets.
The vote resulted in a ‘no’ result, which the President said he was very disappointed at.
Here in London, Prime Minister Gordon Brown was said to be “watching the situation very closely.” Or translated to “doing naff all.”
London closed down heavily today even though it looked like the plan was going through, so now it didn’t one can expect a similar or worse reaction than that.
What will happen when London opens in the morning is anyone’s guess, with anyone guessing further falling due to the now very worrying uncertainty of the global financial situation. The repercussions for US tax payers could be worse now the plan is rejected than had the plan gone through, with bigger costs per head now likely, say sources trying to push the plan through.
The vote resulted in a ‘no’ result, which the President said he was very disappointed at.
Here in London, Prime Minister Gordon Brown was said to be “watching the situation very closely.” Or translated to “doing naff all.”
London closed down heavily today even though it looked like the plan was going through, so now it didn’t one can expect a similar or worse reaction than that.
What will happen when London opens in the morning is anyone’s guess, with anyone guessing further falling due to the now very worrying uncertainty of the global financial situation. The repercussions for US tax payers could be worse now the plan is rejected than had the plan gone through, with bigger costs per head now likely, say sources trying to push the plan through.
US REJECT the $700 bln Bail Out
News over the pond is that the vote has gone against the proposed $700 bln rescue by the US government on the financial markets. The Dow was down over 5% as a reaction.
Market Wrap, Tuesday 29th September 2008
The FTSE 100 closed down 269.7 points at 4,818.77, whilst the FTSE 250 closed down 481.51 points at 7,792.93, and for those that are interested, the FTSE Small Caps closed down 96.96 points at 2,452.89. Blame on today's falls was put at the Bradford & Bingley nationalisation, plus the supposed $700 bln bail out by the US government hasn't been taken as a real saviour.
Over the pond, by the time London closed the DJI was down over 251 points at 10,891, whilst the S&P500 was down 43 points at 1,170, and the Nasdaq down 94 points at 2,089. Wall Street opened down as the final tweaks were put to the US$700 bln rescue deal were finalised. The vote is later today, but this seems to be doing little to restore confidence in the health of the whole global financial system. Other news that Wachovia bank was sold to Citigroup adds another casualty to add to the growing list. Citigroup will acquire Wachovia's banking operations through an open bank deal done with assistance from the Federal Deposit Insurance Corporation (FDIC). Citigroup will take on the majority of Wachovia's assets and liabilities, with the FDIC part of a loss-sharing arrangement with Citigroup as part of the deal. Citigroup will take on up to US$42 bln of losses on Wachovia's US$312 bln loan book, with losses above US$42 bln covered by the FDIC. Citigroup have handed over $12 bln in preferred stock and warrants to the FDIC to compensate it for bearing the risk.
Back here in London, it was as said above, concern on the financial markets that was taking its toll. With the banks, it was Santander-owned Abbey that surfaced as the new owner of all of Bradford & Bingley's High Street branch network and savings deposit business, whilst the mortgage book is now part of the Nationalised part of the business. Other banks fell, with RBS closing down 27p at 181p, Barclays down 32.25p at 334.25p, Lloyds TSB down 33.75p at 217.25p, HBOS down 31.3p at 142p, and Standard Chartered down 155p at 1,245p.
On to the insurers, where Norwich Union owner Aviva closed down 41.25p at 476.75p, The Pru closed down 49.25p at 493.25p, and Admiral down 20.5p at 982.5p.
Staying with financials, the London Stock Exchange (LSE:LSE) closeed down 38p at 791p just as a reaction to the poor sentiment. ICAP, the world's largest interdealer broker, closed down 89.25p at 289.25p despite trying to reassure everyone with an update that said it expected full-year profits to be better than last year's. And hedge fund manager Man Group closed down another 68.25p at 305.5p despite saying today that H1 sales were up 25% on last year.
On to the black stuff, where oil w as still falling, and was getting closer to the US$100 bbl level, which affected the majors, with BP closing down 21.5p at 467p, RD Shell down 80p at 1,574p, and BG Group down 79p at 1,011p.
On to the miners, where metal prices fell back some more, with fears that global requirment may also fall as part of the economic situation. The heavyweights had a pressured day, with ENRC closing down almost 86p at 473.25p, BHP down 137p at 1,232p, Rio down 395p at 3,310p, Anglo down 165p at 1,816p, Xstrata down 334p at 1,578p, and Kazakhmys down 98p to 567p.
On to leisure, where travel group Thomas Cook closed where it opened at 202.75p after saying it had pulled out of talks with TUI Travel and Lufthansa about a merger of its charter airline with TUIfly and Germanwings. TUI closed down 8.5p at 212.5p as a reaction. Holidaybreak closed down 39p at 315p after a poor update, with Dresdner promptly cutting their price target to 460p from 530p, but did keep their 'buy' stance at these levels.
Compass Group, the contract caterer closed down half a penny at 331.25p after an update statment that said that it expects a strong year, with good growth across all regions, adding that currency fluctuation had been in the group's favour.
One positive today was Morrison Supermarkets, who closed up 1.25p at 247.25p as investors felt there was value there.
Cadburys closed down 14.5p to 567.5p as a reaction to the Chinese milk scare as the Hong Kong government's Centre for Food Safety recalled 11 chocolate products in Hong Kong, but said it was just a precautionary measure.
Jessops, the camera retailer, closed up 1.08p at 3.64p after news that it had rearanged and extended its bank loan arrangements with the HSBC.
Over the pond, by the time London closed the DJI was down over 251 points at 10,891, whilst the S&P500 was down 43 points at 1,170, and the Nasdaq down 94 points at 2,089. Wall Street opened down as the final tweaks were put to the US$700 bln rescue deal were finalised. The vote is later today, but this seems to be doing little to restore confidence in the health of the whole global financial system. Other news that Wachovia bank was sold to Citigroup adds another casualty to add to the growing list. Citigroup will acquire Wachovia's banking operations through an open bank deal done with assistance from the Federal Deposit Insurance Corporation (FDIC). Citigroup will take on the majority of Wachovia's assets and liabilities, with the FDIC part of a loss-sharing arrangement with Citigroup as part of the deal. Citigroup will take on up to US$42 bln of losses on Wachovia's US$312 bln loan book, with losses above US$42 bln covered by the FDIC. Citigroup have handed over $12 bln in preferred stock and warrants to the FDIC to compensate it for bearing the risk.
Back here in London, it was as said above, concern on the financial markets that was taking its toll. With the banks, it was Santander-owned Abbey that surfaced as the new owner of all of Bradford & Bingley's High Street branch network and savings deposit business, whilst the mortgage book is now part of the Nationalised part of the business. Other banks fell, with RBS closing down 27p at 181p, Barclays down 32.25p at 334.25p, Lloyds TSB down 33.75p at 217.25p, HBOS down 31.3p at 142p, and Standard Chartered down 155p at 1,245p.
On to the insurers, where Norwich Union owner Aviva closed down 41.25p at 476.75p, The Pru closed down 49.25p at 493.25p, and Admiral down 20.5p at 982.5p.
Staying with financials, the London Stock Exchange (LSE:LSE) closeed down 38p at 791p just as a reaction to the poor sentiment. ICAP, the world's largest interdealer broker, closed down 89.25p at 289.25p despite trying to reassure everyone with an update that said it expected full-year profits to be better than last year's. And hedge fund manager Man Group closed down another 68.25p at 305.5p despite saying today that H1 sales were up 25% on last year.
On to the black stuff, where oil w as still falling, and was getting closer to the US$100 bbl level, which affected the majors, with BP closing down 21.5p at 467p, RD Shell down 80p at 1,574p, and BG Group down 79p at 1,011p.
On to the miners, where metal prices fell back some more, with fears that global requirment may also fall as part of the economic situation. The heavyweights had a pressured day, with ENRC closing down almost 86p at 473.25p, BHP down 137p at 1,232p, Rio down 395p at 3,310p, Anglo down 165p at 1,816p, Xstrata down 334p at 1,578p, and Kazakhmys down 98p to 567p.
On to leisure, where travel group Thomas Cook closed where it opened at 202.75p after saying it had pulled out of talks with TUI Travel and Lufthansa about a merger of its charter airline with TUIfly and Germanwings. TUI closed down 8.5p at 212.5p as a reaction. Holidaybreak closed down 39p at 315p after a poor update, with Dresdner promptly cutting their price target to 460p from 530p, but did keep their 'buy' stance at these levels.
Compass Group, the contract caterer closed down half a penny at 331.25p after an update statment that said that it expects a strong year, with good growth across all regions, adding that currency fluctuation had been in the group's favour.
One positive today was Morrison Supermarkets, who closed up 1.25p at 247.25p as investors felt there was value there.
Cadburys closed down 14.5p to 567.5p as a reaction to the Chinese milk scare as the Hong Kong government's Centre for Food Safety recalled 11 chocolate products in Hong Kong, but said it was just a precautionary measure.
Jessops, the camera retailer, closed up 1.08p at 3.64p after news that it had rearanged and extended its bank loan arrangements with the HSBC.
Morning Market, Monday 29th September 2008
The FTSE 100 was down 150 points at 4,937 with the FTSE250 off 240 points at 8, 0023, and even the FTSE Small Caps were down 35 points at 2,514.
Over the pond, on Friday the DJI closed up 121.07 points at 11,143.13, whilst the S&P500 closed up 4.09 points at 1,213.27, but the Nasdaq closed down alightly, off 3.23 points at 2,183.34. It was two positive days in a row for the Dow, but all 3 indicies were down over the week. News over the weekend was the Congress had apparently approved the $700 bln bail-out of the financial sector, with the US government fund to buy bad debt. A final vote later today will confirm the deal is done. Even if it does go through, which is basically a certainty, this still doesn't give confidence in the whole US financial sector and system.
Back here in London, the banks were still under pressure, despite news from the US over the weekedn. News that Bradford & Bingley had been nationalised gave some concern, despite this being a cert at the end of last week. Santander-owned Abbey have taken the High Street savings side of the business, but the mortgage book goes to the government. The banks fell back, with RBS down 30p at 178p, Barclays down 25p at 341p, Lloyds TSB down nearly 30p at 221p, and HBOS down 17p to 156.3p.
On to the insurers, where Norwich Union owners Aviva was down 15p at 503p, and The Pru down 23p lower at 520p.
Staying with financials, the London Stock Exchange (LSE:LSE) was down 25p at 804p, just on general concerns. ICAP, the world's largest interdealer broker, was down nearly 60p at 320p after similar concerns, despite saying that it expected a better year than last year. Hedge fund manager Man Group was down nearly 40p at 334p despite saying that H1 sales were up 25% on last year.
On to the miners, where metal prices fell back some more, with concerns that the golbal economy may be in for a rude awakening and things may tail off, including the recent scramble for raw metals. ENRC was dwon 40p at 519p, Rio down 250p at 3,455p, Anglo down 81p at 19-quid, Xstrata down 180p at 1,732p, and Kazakhmys down 60p at 605p.
On to the black stuff, where oil was now about US$103 bbl, down 4-bucks, with BP down 10p at 479p, and RD Shell down 40p at 1,614p.
On to leisure, namely travel, Thomas Cook was up 6.5p at 210p after saying that it's pulled out of talks with TUI Travel and Lufthansa regarding the possible merger of its charter airline with TUIfly and Germanwings. TUI was down 5p at 216p as a reaction.
Compass Group, the catering giant, was up 3.5p at 335.25p after saying that it expects revenue and margin growth this year in all areas, with currency exchange helping the bottom line.
Cadburys was down 10.5p to 571.5p on a Chinese milk-related problem, with news that the Hong Kong government's Centre for Food Safety had recalled 11 chocolate products in Hong Kong as a precautionary measure.
Camera retailer Jessops was up 1.25p at 3.8p after saying that it has secured extended bank loan arrangements with HSBC.
Over the pond, on Friday the DJI closed up 121.07 points at 11,143.13, whilst the S&P500 closed up 4.09 points at 1,213.27, but the Nasdaq closed down alightly, off 3.23 points at 2,183.34. It was two positive days in a row for the Dow, but all 3 indicies were down over the week. News over the weekend was the Congress had apparently approved the $700 bln bail-out of the financial sector, with the US government fund to buy bad debt. A final vote later today will confirm the deal is done. Even if it does go through, which is basically a certainty, this still doesn't give confidence in the whole US financial sector and system.
Back here in London, the banks were still under pressure, despite news from the US over the weekedn. News that Bradford & Bingley had been nationalised gave some concern, despite this being a cert at the end of last week. Santander-owned Abbey have taken the High Street savings side of the business, but the mortgage book goes to the government. The banks fell back, with RBS down 30p at 178p, Barclays down 25p at 341p, Lloyds TSB down nearly 30p at 221p, and HBOS down 17p to 156.3p.
On to the insurers, where Norwich Union owners Aviva was down 15p at 503p, and The Pru down 23p lower at 520p.
Staying with financials, the London Stock Exchange (LSE:LSE) was down 25p at 804p, just on general concerns. ICAP, the world's largest interdealer broker, was down nearly 60p at 320p after similar concerns, despite saying that it expected a better year than last year. Hedge fund manager Man Group was down nearly 40p at 334p despite saying that H1 sales were up 25% on last year.
On to the miners, where metal prices fell back some more, with concerns that the golbal economy may be in for a rude awakening and things may tail off, including the recent scramble for raw metals. ENRC was dwon 40p at 519p, Rio down 250p at 3,455p, Anglo down 81p at 19-quid, Xstrata down 180p at 1,732p, and Kazakhmys down 60p at 605p.
On to the black stuff, where oil was now about US$103 bbl, down 4-bucks, with BP down 10p at 479p, and RD Shell down 40p at 1,614p.
On to leisure, namely travel, Thomas Cook was up 6.5p at 210p after saying that it's pulled out of talks with TUI Travel and Lufthansa regarding the possible merger of its charter airline with TUIfly and Germanwings. TUI was down 5p at 216p as a reaction.
Compass Group, the catering giant, was up 3.5p at 335.25p after saying that it expects revenue and margin growth this year in all areas, with currency exchange helping the bottom line.
Cadburys was down 10.5p to 571.5p on a Chinese milk-related problem, with news that the Hong Kong government's Centre for Food Safety had recalled 11 chocolate products in Hong Kong as a precautionary measure.
Camera retailer Jessops was up 1.25p at 3.8p after saying that it has secured extended bank loan arrangements with HSBC.
Friday, 26 September 2008
Market Wrap, Friday 26th September 2008
The FTSE100 was down 108.55 points at 5,088.47 with the FTSE250 off 160.21 points at 8,274.44 and the FTSE Smallcaps 49.63 points lower at 2,549.85. The poor end to the week was blamed on the uncertaincy of the planned US government $700 bln bail out of the financial sector, with the Sentate split over the plan. A fional decision has yet to be made, but noise was loud against the US taxpayer bailing out the US banking sector. The US dollar was also weakening, which affected commodity stocks.
Over the pond, by the time London closed the DJI was down 64 points to 10,957, the S&P500 down 17 points at 1,192, whilst the Nasdaq was down 35 points to 2,151. Wall Street was down on opening, but did recover despite the US government's proposed $700 bln bail out plan for the financial sector not being a certainty. News that WaMu, Washington Mutual, had been shut down by regulators was also a surprise. JP Morgan to the rescue again. WaMu being closed was the US's biggest bank failure ever.
Back here in London, it as the financial stocks that were hit by failing sentiment as US plans for a bail-out hit political snags and the US authorities shut down banking giant Washington Mutual.
The banks were under pressure again, with HSBC announcing 1,100 jobs were to go in its global banking and markets operation, which equates to 4% of the unit's total staff, with the bank citing the current economic crisis as the cause of the planned lay offs. HSBC close ddown 2p at 879p, with peers also down, starting with Lloyds TSB down 22.25p at 251p, HBOS closing down 10.7p to 173.3p, RBS down 12.5p to 208p, and Bradford & Bingley down another 1.25p at 20p, although B&B did recover a couple of pence in the afternoon.
Insurers were also down, with The Pru down 34.5p at 542.5p, Norwich Union owner Aviva down 22p at 518p, Admiral down 7p at 1,003p and Royal Sun Alliance down 8.5p at 150.9p.
Staying with financials, hedge fund manager Man Group closed down 9p at just shy of 374p as investors showed concenrs over the financial sector/banks short-selling ban.
On to the miners, where the weakening dollar saw some fall back with the heavyweighhts. Kazahkmys closed down 52.5p at 665p, ENRC down 36p at 559p, Xstrata down 134p at 1,912p and Vedanta Resources down 80p at 1,296p.
On to the black stuff, where a barrell was down over a dollar toi US$106 bbl, cauisng some pull back with the majors. BP closd down 95p at 488p, RD Shell down 21p at 1,654p and BG Group closed down 38p at 1,090p.
On to the pharmas, where US-based NPS Pharmaceuticals Inc. said that JV partner in an osteoporosis drug deelopment, GlaxoSmithKline, had decided to prematurely terminate the study. This has caused Glaxo to fall back this morning, but staying with Glaxo saw the earlier fallback due to the NPS news reversed on news that Glaxo has increased its stake in Swiss company Addex Pharmaceuticals to 3%. Glaxo shares added 0.5p to 1,220p.
On to the utilities, which were seen as a safe haven right now, with Centrica gaining 5p at 326.75p and International Power, the day's biggest FTSE riser, up 12.5p to 362p.
On to retail, where Supermarket chain Sainsburys closed up 11.5p at 363.25p, possibly on bid speculation again. Staying with retail, and in to the High Street, where Currys and PC World owner DSG International closed up half a penny at 58p after reacting sternly to rumours that it had asked the FSA to extend the short-selling ban to retail stocks by denying it flatly, adding that it thinks hedge funds shorting its shares would be proved wrong. Staying in the High Street, JJB Sports close down a massive 51.5p at 52.5p after posting a 1st half loss and said it won't be paying an interimn divvy, either.
A downbeat statment from property developer Eatonfield Group saw the shares close down 31.5p at 36p after saying it expects its full year pre-tax profit to be below market expectations, cisting very difficult conditions in the property sector (!).
And finally, news from HCL Technologies that it had made a 650p-a-share cash offer for Axon Group was taken well. the offer beats the 6-quid a share bid from fellow Indian software exporter Infosys Technologies. Axon shares closd up 48p at 682p in reaction, with hope of a bidding war.
Over the pond, by the time London closed the DJI was down 64 points to 10,957, the S&P500 down 17 points at 1,192, whilst the Nasdaq was down 35 points to 2,151. Wall Street was down on opening, but did recover despite the US government's proposed $700 bln bail out plan for the financial sector not being a certainty. News that WaMu, Washington Mutual, had been shut down by regulators was also a surprise. JP Morgan to the rescue again. WaMu being closed was the US's biggest bank failure ever.
Back here in London, it as the financial stocks that were hit by failing sentiment as US plans for a bail-out hit political snags and the US authorities shut down banking giant Washington Mutual.
The banks were under pressure again, with HSBC announcing 1,100 jobs were to go in its global banking and markets operation, which equates to 4% of the unit's total staff, with the bank citing the current economic crisis as the cause of the planned lay offs. HSBC close ddown 2p at 879p, with peers also down, starting with Lloyds TSB down 22.25p at 251p, HBOS closing down 10.7p to 173.3p, RBS down 12.5p to 208p, and Bradford & Bingley down another 1.25p at 20p, although B&B did recover a couple of pence in the afternoon.
Insurers were also down, with The Pru down 34.5p at 542.5p, Norwich Union owner Aviva down 22p at 518p, Admiral down 7p at 1,003p and Royal Sun Alliance down 8.5p at 150.9p.
Staying with financials, hedge fund manager Man Group closed down 9p at just shy of 374p as investors showed concenrs over the financial sector/banks short-selling ban.
On to the miners, where the weakening dollar saw some fall back with the heavyweighhts. Kazahkmys closed down 52.5p at 665p, ENRC down 36p at 559p, Xstrata down 134p at 1,912p and Vedanta Resources down 80p at 1,296p.
On to the black stuff, where a barrell was down over a dollar toi US$106 bbl, cauisng some pull back with the majors. BP closd down 95p at 488p, RD Shell down 21p at 1,654p and BG Group closed down 38p at 1,090p.
On to the pharmas, where US-based NPS Pharmaceuticals Inc. said that JV partner in an osteoporosis drug deelopment, GlaxoSmithKline, had decided to prematurely terminate the study. This has caused Glaxo to fall back this morning, but staying with Glaxo saw the earlier fallback due to the NPS news reversed on news that Glaxo has increased its stake in Swiss company Addex Pharmaceuticals to 3%. Glaxo shares added 0.5p to 1,220p.
On to the utilities, which were seen as a safe haven right now, with Centrica gaining 5p at 326.75p and International Power, the day's biggest FTSE riser, up 12.5p to 362p.
On to retail, where Supermarket chain Sainsburys closed up 11.5p at 363.25p, possibly on bid speculation again. Staying with retail, and in to the High Street, where Currys and PC World owner DSG International closed up half a penny at 58p after reacting sternly to rumours that it had asked the FSA to extend the short-selling ban to retail stocks by denying it flatly, adding that it thinks hedge funds shorting its shares would be proved wrong. Staying in the High Street, JJB Sports close down a massive 51.5p at 52.5p after posting a 1st half loss and said it won't be paying an interimn divvy, either.
A downbeat statment from property developer Eatonfield Group saw the shares close down 31.5p at 36p after saying it expects its full year pre-tax profit to be below market expectations, cisting very difficult conditions in the property sector (!).
And finally, news from HCL Technologies that it had made a 650p-a-share cash offer for Axon Group was taken well. the offer beats the 6-quid a share bid from fellow Indian software exporter Infosys Technologies. Axon shares closd up 48p at 682p in reaction, with hope of a bidding war.
Morning Market, Friday 26th September 2008
The FTSE 1000 was down 80 points this morning at 5,117, whilst the FTSE 250 was down 120 points at 8,315. The FTSE opened lower due to the uncertaincy over this planned bail out of the financial sector by the US government over the pond. Congress is mixed, some for and some against. News that Washington Mutual, the largest US savings bank had now also closed didn't help, especially the insurers. Looks like there is further to go tofday, before any possible late rally that may come with position closing.
On to the banks, where HSBC announcing 1,000 job had to go in the UK didn't help the esctor, with most going from its global banking and markets operation. This is some 4% of the total staff in that unit, with the world economic scenario being blamed, of course. Peers were down too, with RBS down 6p at 214.5p, Lloyds TSB down 16p at 257p, HSBC down 10p at 871p, HBOS down 7p at 177p, and troubled 2nd-liner Bradford & Bingley down another 3p at 18p.
On to the insurers, where The Pru was down 20p, Norwich Union owner Aviva also down 20p at 520p, Admiral down 40p at 970p, and Royal Sun Alliance down 5p at 154p.
Staying in financials, hedge fund manager Man Group was down another 7p at 376p on concerns that more cash will leave due to the short-selling ban on financial stocks.
With the price of oil falling back, so did the oil majors, with BP down 12p at 486p, RD Shell down 40p at 1,635p, and BG Group down 30pp at 1,098p.
The miners were also hit, with the weaker dollar affecting most. ENRC was down 35p at 560p, Xstrata down 90p at 1,956p, Kazahkmys down 40p at 677p, and Vedanta Resources down 60p at 1,316p.
Although Centrica was up 2p at 324p as the utilities were seen as safe, with peer International Power up a penny at 350p.
On to the High Street, where obviously the retailers took some pressure due to the current financial woes around. JJB Sports was down a massive 60p at 44p after posting a 1st half loss for the year, and adding that it won't be paying a divvy, either. Currys & PC World owner DSG International was down a penny at 56.5p after rumours that the company had not asked the FSA to extend the ban on short-selling to retail stocks, and that it said that hedge funds shorting its shares would be proved wrong. We'll see.
On to the pharmas, where Glaxo was down 5p at 1,214.5p after US-based NPS Pharmaceuticals Inc. said that Glaxo, its partner in an osteoporosis drug, had pulled out half-way through the study.
Property developer Eatonfield Group was down 30p at 38p after saying it expects profits to be below expected levels, saying that there very difficult conditions in the property sector, as if that could possibly be a surprise to those reading the news.
On to the banks, where HSBC announcing 1,000 job had to go in the UK didn't help the esctor, with most going from its global banking and markets operation. This is some 4% of the total staff in that unit, with the world economic scenario being blamed, of course. Peers were down too, with RBS down 6p at 214.5p, Lloyds TSB down 16p at 257p, HSBC down 10p at 871p, HBOS down 7p at 177p, and troubled 2nd-liner Bradford & Bingley down another 3p at 18p.
On to the insurers, where The Pru was down 20p, Norwich Union owner Aviva also down 20p at 520p, Admiral down 40p at 970p, and Royal Sun Alliance down 5p at 154p.
Staying in financials, hedge fund manager Man Group was down another 7p at 376p on concerns that more cash will leave due to the short-selling ban on financial stocks.
With the price of oil falling back, so did the oil majors, with BP down 12p at 486p, RD Shell down 40p at 1,635p, and BG Group down 30pp at 1,098p.
The miners were also hit, with the weaker dollar affecting most. ENRC was down 35p at 560p, Xstrata down 90p at 1,956p, Kazahkmys down 40p at 677p, and Vedanta Resources down 60p at 1,316p.
Although Centrica was up 2p at 324p as the utilities were seen as safe, with peer International Power up a penny at 350p.
On to the High Street, where obviously the retailers took some pressure due to the current financial woes around. JJB Sports was down a massive 60p at 44p after posting a 1st half loss for the year, and adding that it won't be paying a divvy, either. Currys & PC World owner DSG International was down a penny at 56.5p after rumours that the company had not asked the FSA to extend the ban on short-selling to retail stocks, and that it said that hedge funds shorting its shares would be proved wrong. We'll see.
On to the pharmas, where Glaxo was down 5p at 1,214.5p after US-based NPS Pharmaceuticals Inc. said that Glaxo, its partner in an osteoporosis drug, had pulled out half-way through the study.
Property developer Eatonfield Group was down 30p at 38p after saying it expects profits to be below expected levels, saying that there very difficult conditions in the property sector, as if that could possibly be a surprise to those reading the news.
Thursday, 25 September 2008
Market Wrap, Thursday 25th September 2008
The FTSE 100 closed up 101.45 points at 5,197.02 today, after a rollercoaster session, really, whilst the FTSE 250 up 27.29 points at 8,434.65, and for those that are interested, the FTSE Small Caps closed down 13.22 points at 2,599.48. Prsident Bush's speech, in which he basically told Congress they had to agree the $700 bln bail out or the world would end (errr, sort of) gave some confidence back. The US opened up this afternoon, with London bouyant as a reaction.
Over the pond, by the time London closed the DJI was up 223 points to 11,047, whilst the S&P500 as up nearly 23 points at 1,208, and the Nasdaq up nearly 36 points at 2,196. US stocks stormed higher in early trade, with hopes for the Bush administration's proposed purchase of $700bn in toxic debt and Nike's profit offsettin downbeat economic data.
Back here in London, it was the insurance guys that had the best day, with Norwich Union owner Aviva closing up 48.75p at 540p, Royal Sun Allliance up almost 16p at 159.4p, The Pru up 45p at 577p, Admiral up 53p at 1,010p, and Old Mutual up nearly 10p at 109.8p.
Staying in financials, the banks mostly did ok on the back of the almost certain agreement by US Congress on the Wall Street financial sector bail out. RBS closed up 10.5p at 220.5p, Barclays up 24.5p at 370p, HSBC up 15.5p at 881p, with Bradford & Bingley bucking the trend, closing down 03.75p to 21.25p after announcing 370 job cuts due to its closure of its mortage processing centre, plus the sale of all its remaining impaired mortgage-backed assets, all as part of a cost cutting exercise.
On to the High Street, where there was some pressure with concerns that the average Joe wasn't spending as much due to the credit crunch. Marks & Sparks closed down 3.25p at 228p, not helped with a new lower target of 230p from 315p by Morgan Stanley, whilst peer Next closed down 21p at 1,122p, and menswear chain Moss Bros closed down 0.25p at 24.75p after announcing a H1 loss of £1.6m to 26Jul, against a £0.7m loss for the same period last year, adding that it continued to feel the impact of slowing consumer spending and that it expects the remainder of the year to continue to be challenging.
The supermarkets were also under pressure with Tesco closing down 9.3p at 373p, and J Sainsburys down a penny at just shy of 372p.
With the price of oil up at US$106 bbl, those that use the stuff were under some pressure. Airline British Airways closed down 8.8p at 198.7p, whilst Thomas Cook closed down 9p lower at 214.5p.
On to mining, where Philex Mining Corporation, the Philippines' largest mining firm, said today that it is buying out JV partner Anglo American in a gold and copper venture for $55m. Anglo American closed up 50p at 2,058p in reaction. Highland Gold, partly owned by Chelsea FC owner Roman Abramovich, closed up 11p at 70p after announcing a 134% leap in H1 earnings.
United Utilities closed up 4p at 683p after saying it looks on track for H1 figures in-line with expectations, despite unforeseen costs during the first half of the year such as power problems and bad debts.
ITV closed up 1.25p at 43.5p after the UK regulator said that it could cut some of its expensive programming remit, which will also help the prospect of the broadcaster getting bought out.
Daily Mail & General Trust closed down 3p at 331.5p after saying that it expects full year figures to be at the lower end of expectations due to lower advertising revenue.
Luminar, the nightclubs operator, closed up 16.25p to 208p despite announcing a dip of 2.4% in sales in its first half trading update, but said it was as expected. The market, on the other hand, felt that this was actually better than expected.
3i closed up 14p at 812p after saying it reduced new investment by nearly 40% in the first five months of this financial year, adding that realisation proceeds were down to £560m, against £1.011bn a year earlier.
Penna Consulting closed up 32.5p at 155p after the human resources consultancy said that its annual results would be better than expected due to a decent first half.
Over the pond, by the time London closed the DJI was up 223 points to 11,047, whilst the S&P500 as up nearly 23 points at 1,208, and the Nasdaq up nearly 36 points at 2,196. US stocks stormed higher in early trade, with hopes for the Bush administration's proposed purchase of $700bn in toxic debt and Nike's profit offsettin downbeat economic data.
Back here in London, it was the insurance guys that had the best day, with Norwich Union owner Aviva closing up 48.75p at 540p, Royal Sun Allliance up almost 16p at 159.4p, The Pru up 45p at 577p, Admiral up 53p at 1,010p, and Old Mutual up nearly 10p at 109.8p.
Staying in financials, the banks mostly did ok on the back of the almost certain agreement by US Congress on the Wall Street financial sector bail out. RBS closed up 10.5p at 220.5p, Barclays up 24.5p at 370p, HSBC up 15.5p at 881p, with Bradford & Bingley bucking the trend, closing down 03.75p to 21.25p after announcing 370 job cuts due to its closure of its mortage processing centre, plus the sale of all its remaining impaired mortgage-backed assets, all as part of a cost cutting exercise.
On to the High Street, where there was some pressure with concerns that the average Joe wasn't spending as much due to the credit crunch. Marks & Sparks closed down 3.25p at 228p, not helped with a new lower target of 230p from 315p by Morgan Stanley, whilst peer Next closed down 21p at 1,122p, and menswear chain Moss Bros closed down 0.25p at 24.75p after announcing a H1 loss of £1.6m to 26Jul, against a £0.7m loss for the same period last year, adding that it continued to feel the impact of slowing consumer spending and that it expects the remainder of the year to continue to be challenging.
The supermarkets were also under pressure with Tesco closing down 9.3p at 373p, and J Sainsburys down a penny at just shy of 372p.
With the price of oil up at US$106 bbl, those that use the stuff were under some pressure. Airline British Airways closed down 8.8p at 198.7p, whilst Thomas Cook closed down 9p lower at 214.5p.
On to mining, where Philex Mining Corporation, the Philippines' largest mining firm, said today that it is buying out JV partner Anglo American in a gold and copper venture for $55m. Anglo American closed up 50p at 2,058p in reaction. Highland Gold, partly owned by Chelsea FC owner Roman Abramovich, closed up 11p at 70p after announcing a 134% leap in H1 earnings.
United Utilities closed up 4p at 683p after saying it looks on track for H1 figures in-line with expectations, despite unforeseen costs during the first half of the year such as power problems and bad debts.
ITV closed up 1.25p at 43.5p after the UK regulator said that it could cut some of its expensive programming remit, which will also help the prospect of the broadcaster getting bought out.
Daily Mail & General Trust closed down 3p at 331.5p after saying that it expects full year figures to be at the lower end of expectations due to lower advertising revenue.
Luminar, the nightclubs operator, closed up 16.25p to 208p despite announcing a dip of 2.4% in sales in its first half trading update, but said it was as expected. The market, on the other hand, felt that this was actually better than expected.
3i closed up 14p at 812p after saying it reduced new investment by nearly 40% in the first five months of this financial year, adding that realisation proceeds were down to £560m, against £1.011bn a year earlier.
Penna Consulting closed up 32.5p at 155p after the human resources consultancy said that its annual results would be better than expected due to a decent first half.
Morning Market, Thursday 24th September 2008
The FTSE was just about even again this morning, up 5 points at 5,100, whilst the FTSE 250 was up 23 points at 8,430. The FTSE had opened down, originally today, as everyone is still wondering about this US $700 bln bail out of the financial markets over there. The market turned up again, but seems to be wondering what to do. Oil was above US$106 bbl this morning.
Last night over the pond, the DJI closed down 29 points at 10,825.17, whilst the S&P500 closed down 2.35 points at 1,185.87, and the Nasdaq actually closed up 2.35 points at 2,155.68. It was a mixed day, although the bias was down, still blamed on this US$700 bln rescue package for the financial sector by the US government. It seems there are more and more negatives coming out surrounding the proposed bail out. There was some positive feeling on Warren Buffett's Berkshire Hathaway that will be buying a decent sized stake in Goldman Sachs, though.
Back here in London, the weakening dollar helped metal prices, with the m,ining heavyweights doing ok. Vedanta was up 2p at 1,426p and Anglo up 20p at 2,028p.
On to the banks, where Barclays was down a penny at 344.5p, HSBC down 5p at 860.5p, Lloyds TSB down 10p at 257p, and Bradford & Bingley down 2p at 23p after announcing job cuts as a result of its decision to close its mortage processing centre. B&B is also selling its remaining mortgage-backed assets as part of a cost cutting exercise.
Staying in financials, namely insurance, Norwich Union owner Aviva was up 20p at 511p, Royal Sun Alliance up 13p at 156.5p, the Pru was up 9p at 541p, and Admiral up 40p at 997p.
Oil majors were down this morning despite the price of the black stuff at over US$106 bbl, with this meaning those that use the stuff were down too. Airline British Airways was down 7p at 2-quid, and Thomas Cook down 10p at 213.5p.
United Utilities was down 5p at 674p after saying that it is on tarck for in-line results for H1 this year despite unexpected problmes like power problems and bad debts during the 6 month period.
Daily Mail & General Trust was down nearly 20p at 315p after saying expecxtes that its full year results will be at the lower end of expectations, citing the steep drop in advertising revenue due to current economic conditions.
Luminar, the nightclubs operator, was up 15p at 207p after reporting an in-line trading update, despite a 2.4% drop in sales, as this was seen as better than expected.
Penna Consulting was up 30p at 153p after the human resources consultancy said that its annual results would be better than originally expected after a good first half performance.
Highland Gold, which is partly owned by Chelsea FC owner Roman Abramovich, was up nearly 10p at 68.5p after reporting a 134% leap in H1 earnings.
Last night over the pond, the DJI closed down 29 points at 10,825.17, whilst the S&P500 closed down 2.35 points at 1,185.87, and the Nasdaq actually closed up 2.35 points at 2,155.68. It was a mixed day, although the bias was down, still blamed on this US$700 bln rescue package for the financial sector by the US government. It seems there are more and more negatives coming out surrounding the proposed bail out. There was some positive feeling on Warren Buffett's Berkshire Hathaway that will be buying a decent sized stake in Goldman Sachs, though.
Back here in London, the weakening dollar helped metal prices, with the m,ining heavyweights doing ok. Vedanta was up 2p at 1,426p and Anglo up 20p at 2,028p.
On to the banks, where Barclays was down a penny at 344.5p, HSBC down 5p at 860.5p, Lloyds TSB down 10p at 257p, and Bradford & Bingley down 2p at 23p after announcing job cuts as a result of its decision to close its mortage processing centre. B&B is also selling its remaining mortgage-backed assets as part of a cost cutting exercise.
Staying in financials, namely insurance, Norwich Union owner Aviva was up 20p at 511p, Royal Sun Alliance up 13p at 156.5p, the Pru was up 9p at 541p, and Admiral up 40p at 997p.
Oil majors were down this morning despite the price of the black stuff at over US$106 bbl, with this meaning those that use the stuff were down too. Airline British Airways was down 7p at 2-quid, and Thomas Cook down 10p at 213.5p.
United Utilities was down 5p at 674p after saying that it is on tarck for in-line results for H1 this year despite unexpected problmes like power problems and bad debts during the 6 month period.
Daily Mail & General Trust was down nearly 20p at 315p after saying expecxtes that its full year results will be at the lower end of expectations, citing the steep drop in advertising revenue due to current economic conditions.
Luminar, the nightclubs operator, was up 15p at 207p after reporting an in-line trading update, despite a 2.4% drop in sales, as this was seen as better than expected.
Penna Consulting was up 30p at 153p after the human resources consultancy said that its annual results would be better than originally expected after a good first half performance.
Highland Gold, which is partly owned by Chelsea FC owner Roman Abramovich, was up nearly 10p at 68.5p after reporting a 134% leap in H1 earnings.
Wednesday, 24 September 2008
Market Wrap, Wednesday 24th September 2008
The FTSE 100 closed down 40.55 points at 5,095.57, whilst the FTSE 250 closed down 47.22 points at 8,407.36, and for those that are interested the FTSE Small Caps closed down 4.13 points at 2,612.7. The mining sector pulled the FTSE down, whilst the banks had a mixed day and the news on British Energy was received well.
Over the pond, by the time London closed the DJI was down about 43 points at 10,811, despite opening up. Wall Street's concerns over this planned $700 bln bail out still worrying everyone, it seems. Mind you, the usual gap trade applied.
Back here in London, and carrying on from this morning, it was the French energy giant EDF's 774p per share offer for British Energy that that was taking alot of the attention. The offer values the UK nuclear power group ay £12.5 bln. When the deal completed British Gas supplier Centrica will more than likely own 25% of the new entity, it seems. British Energy closed up 41p at 765p, whilst Centrica closed up 0.5p at 331p.
On to the banks, where it was a mkixed day. RBS closed up nearly 7p at 210p, Lloyds TSB up 5.25p at 267p, HBOS up just 0.3p at 180.5p, whilst Barclays closed down nearly 12p at 345.5p, and HSBC down 9p at 865.5p.
Staying with financials, hedge fund manager Man Group closed up 10p at 408p after confirming the early rumours that it had gone to the FSA to ask that it wished to be included iun the stocks that are banned from being short-sold.
On to the miners, where there was also a mixed day. BHP closed up 5p at 1,440p and ENRC up 27p at 635p, but the others didn't fair as well. Anglo American closed down 128p at 2,008p, Rio Tinto down 31p at 3,992p, Antofagasta down nearly 19p at 472.25p, and Vedanta closed down 103p at 1,424p after announcing that it was dumping its planned reorganisation plans.
Imperial Tobacco closed up 60p at 1,818p after some fairly expected results that were in-line with expectations, whilst the company added that the recently acquired Altadis was blending in to the operations quite smoothly.
Smith Group closed down 3p at 1,016p after the engineering group announced a 10% rise in profits, which was at the upper end of expectations. The company added that it will up its research & development spending by 8% to £86m.
On to leisure, where the price of the black stuff affected those that use it. Cruise ship operator Carnival closed down 35p at 1,724p, whilst TUI Travel closed down 4p at 206p and peer Thomas Cook down over 10p at 223.5p.
Staying in leisure, but with pubs, JD Wetherspoon closed down 22.5p at 270.5p as news that Deutsche Bank cut its target prices for the whole pub sector after a review. Peer Mitchells & Butlers closed down 0.5p at 255p, Greene King down 28p at 510.5p, Enterprise Inns down 6p at 180p, and Marston's down 12p at 170.25p.
IG Group, the spreadbetting firm closed up 23.5p at 322p after announcing the acquisition of an 87.5% take in FXOnline Japan. The comapny will place 33m new shares to riase £82m which will help finance the deal.
Home furnisher Laura Ashley closed up 3.5p at 18p after announcing a 13% rise in H1 profit.
Over the pond, by the time London closed the DJI was down about 43 points at 10,811, despite opening up. Wall Street's concerns over this planned $700 bln bail out still worrying everyone, it seems. Mind you, the usual gap trade applied.
Back here in London, and carrying on from this morning, it was the French energy giant EDF's 774p per share offer for British Energy that that was taking alot of the attention. The offer values the UK nuclear power group ay £12.5 bln. When the deal completed British Gas supplier Centrica will more than likely own 25% of the new entity, it seems. British Energy closed up 41p at 765p, whilst Centrica closed up 0.5p at 331p.
On to the banks, where it was a mkixed day. RBS closed up nearly 7p at 210p, Lloyds TSB up 5.25p at 267p, HBOS up just 0.3p at 180.5p, whilst Barclays closed down nearly 12p at 345.5p, and HSBC down 9p at 865.5p.
Staying with financials, hedge fund manager Man Group closed up 10p at 408p after confirming the early rumours that it had gone to the FSA to ask that it wished to be included iun the stocks that are banned from being short-sold.
On to the miners, where there was also a mixed day. BHP closed up 5p at 1,440p and ENRC up 27p at 635p, but the others didn't fair as well. Anglo American closed down 128p at 2,008p, Rio Tinto down 31p at 3,992p, Antofagasta down nearly 19p at 472.25p, and Vedanta closed down 103p at 1,424p after announcing that it was dumping its planned reorganisation plans.
Imperial Tobacco closed up 60p at 1,818p after some fairly expected results that were in-line with expectations, whilst the company added that the recently acquired Altadis was blending in to the operations quite smoothly.
Smith Group closed down 3p at 1,016p after the engineering group announced a 10% rise in profits, which was at the upper end of expectations. The company added that it will up its research & development spending by 8% to £86m.
On to leisure, where the price of the black stuff affected those that use it. Cruise ship operator Carnival closed down 35p at 1,724p, whilst TUI Travel closed down 4p at 206p and peer Thomas Cook down over 10p at 223.5p.
Staying in leisure, but with pubs, JD Wetherspoon closed down 22.5p at 270.5p as news that Deutsche Bank cut its target prices for the whole pub sector after a review. Peer Mitchells & Butlers closed down 0.5p at 255p, Greene King down 28p at 510.5p, Enterprise Inns down 6p at 180p, and Marston's down 12p at 170.25p.
IG Group, the spreadbetting firm closed up 23.5p at 322p after announcing the acquisition of an 87.5% take in FXOnline Japan. The comapny will place 33m new shares to riase £82m which will help finance the deal.
Home furnisher Laura Ashley closed up 3.5p at 18p after announcing a 13% rise in H1 profit.
Morning Market, Wednesday 24th September 2008
The FTSE was downj about 6 points this morning at 5,130, as the market took on board last night's US rollercoaster session and concenrs on the planned US$700 bln financial market bail out.
Last night over the pond, the DJI eventually closed down 161.84 at 10854.17, whilst the S&P500 closed down 18.87 points at 1,188.22, and the Nasdaq down 25.64 points at 2,153.34. The Dow had been up and down all day, well into positive territory before the fall back. News that Warren Buffett's Berkshire Hathaway was putting in US$5 bln into Goldman Sachs helped earlier in the day.
Back here in London, it was British Energy that was top of the board, up nearly 6% after French power house launched a £12.5 bln bid for the UK nuclear power group. The deal isn't that easy, though, as EDF and Centrica, who own British Gas, are in talks about Centrica taking a 25% stake in the new British Energy if the EDF dela completes. Centrica jumped on the news, up 2.75% this morning.
However, the banks and oil majors didn't do so well this morning, although it was mixed. This planned or proposed $700 bln input of cash by the US government is giving some concern to many. It will have a long term effect on the economy. Basically, the government will be taking the debt from the main city houses. UK banks were down this morning, despite the Warren Buffett iput to goldman's, with HSBC, Lloyds TSB and Standard Chartered all down, but RBS, Barclays and HBOS up. Barclays were up 1.25% this morning after the head of Barclays's Italian unit said they are interested in bidding for 150 branches that Banca Monte dei Paschi di Siena have to sell due to anti-trust concerns.
Staying with financials, Man Group was down half of one per cent after news that the hedge fund had approached the FSA and asked them to add Man Group to the list of financial stocks that can't be shorted.
On to the oil majors, where BP, RD Shell, BG Group, and Tullow Oil were all down by as much as 3% this morning.
On to the miners, where metal prices helped the heavyweights, although it was a mixed bunch. BHP, Rio & Xstrata were up, whilst Kazakhmys, ENRC, Antofagasta, Anglo American, Vedanta and Lonmin were down. Media news that Xstrata may not go ahead with its planned £5 bln bid for Lonmin saw Lonmin down 0.75% today. Vedanta was down 3% after saying that it dropped plans to streamline its corporate structure into three units.
Imperial Tobacco was up 2% this morning after a decent update saying trading was in-line with expectations, adding that it had made decent headway with the integration of Altadis. Peer British American Tobacco followed up 1.25%.
Engineering firm, Smiths Group, was up 3% this morning after posting a 10% rise in annual profit, which was at the top-end of forecasts.
Last night over the pond, the DJI eventually closed down 161.84 at 10854.17, whilst the S&P500 closed down 18.87 points at 1,188.22, and the Nasdaq down 25.64 points at 2,153.34. The Dow had been up and down all day, well into positive territory before the fall back. News that Warren Buffett's Berkshire Hathaway was putting in US$5 bln into Goldman Sachs helped earlier in the day.
Back here in London, it was British Energy that was top of the board, up nearly 6% after French power house launched a £12.5 bln bid for the UK nuclear power group. The deal isn't that easy, though, as EDF and Centrica, who own British Gas, are in talks about Centrica taking a 25% stake in the new British Energy if the EDF dela completes. Centrica jumped on the news, up 2.75% this morning.
However, the banks and oil majors didn't do so well this morning, although it was mixed. This planned or proposed $700 bln input of cash by the US government is giving some concern to many. It will have a long term effect on the economy. Basically, the government will be taking the debt from the main city houses. UK banks were down this morning, despite the Warren Buffett iput to goldman's, with HSBC, Lloyds TSB and Standard Chartered all down, but RBS, Barclays and HBOS up. Barclays were up 1.25% this morning after the head of Barclays's Italian unit said they are interested in bidding for 150 branches that Banca Monte dei Paschi di Siena have to sell due to anti-trust concerns.
Staying with financials, Man Group was down half of one per cent after news that the hedge fund had approached the FSA and asked them to add Man Group to the list of financial stocks that can't be shorted.
On to the oil majors, where BP, RD Shell, BG Group, and Tullow Oil were all down by as much as 3% this morning.
On to the miners, where metal prices helped the heavyweights, although it was a mixed bunch. BHP, Rio & Xstrata were up, whilst Kazakhmys, ENRC, Antofagasta, Anglo American, Vedanta and Lonmin were down. Media news that Xstrata may not go ahead with its planned £5 bln bid for Lonmin saw Lonmin down 0.75% today. Vedanta was down 3% after saying that it dropped plans to streamline its corporate structure into three units.
Imperial Tobacco was up 2% this morning after a decent update saying trading was in-line with expectations, adding that it had made decent headway with the integration of Altadis. Peer British American Tobacco followed up 1.25%.
Engineering firm, Smiths Group, was up 3% this morning after posting a 10% rise in annual profit, which was at the top-end of forecasts.
Tuesday, 23 September 2008
Market Wrap, Tuesday 23rd September 2008
The FTSE 100 closed down 100.14 points today at 5,136.12, whilst the FTSE 250 close down 298.43 points at 8,454.58, and for those that are interested the FTSE Small Caps down 54.56 points at 2,616.83. Whilst 100 points looks bad, it was way of the low of the day as concerns about this US$700 bln bail out of the US financial sector by the US government gets scrutinised.
Over the pond, Wall Street opened up nicely and looked ok, but was starting to fall back by the time London closed, with the DJI up about 62 points at 11,078, the S&P500 up 4 points at 1,211, and the Nasdaq up nearly 16 points at 2,195.
The price of the black stuff was down and up today - it did jump and spike, with more interest at the Fed Reserve's speech on the financial sector bailout. The US Fed Res Chairman and Treasury Secretary are testifying in front of the Senate this afternoon.
Back here in London, inevitably it was the banking sector that took the pressure again, with RBS closing down nearly 13p at 205.25p, Barclays closing down nearly 16p at 357.25p, Lloyds TSB down 13.25p at just shy of 262p, and HBOS down nearly 29p at 180.2p.
Staying with financials, hedge fund manager Man Group close down 35.5p at 398p as concerns cash will move out due to the ban on shorting, whilst peer Schroders closed down 20p at 1,060p.
On to insurance, where The Pru closed down 36.5p at 520.5p, whilst Admiral was down 28p at 966.5p, and Norwich Union owner Aviva closed down 10p at 525p.
On to the miners, where the metals fell back, causing the mining heavyweights to pull back too. BHP closed down 44p at 1,435p, Rio down 217p at 4,023p, ENRC down 78.5p at 608p, Vedanta down 177p at 1,527p, and Anglo American down 191p at 2,136p.
Oi pulled back, but then spiked, meaning those that use the stuff were down. Airline British Airways closed down 8p at 210.5p, whilst cruise ship operator Carnival closed down 67p at 1,759p.
On to food, namely those that make the stuff, where Unilever closed up (yes, up) 35p at 1,487p as investors saw it as a safe haven. Peer Tate & Lyle didn't do so well, closing down 46.5p at 369.5p after news that it has lost a US patent case against manufacturers and importers of Chinese sucralose, its super sweetener sold under the name Splenda. Bakery firm Finsbury Food closed up 2.75p at 43p after saying that its adjusted full year pre-tax profit is up 68% on last year.
International Power also had a good day, closing up 8.5p at 364p, also seen as safe for now. Water utility Severn Trent didn't do so well, though, closing down 14p at 1,361p after its H1 figures failed to impress, in-line with expectations.
On to leisure, where pub operator Mitchells & Butlers closed down 17p at 255.5p after a fairly downbeat update, reporting a 1.3% rise in sales for August & September, but added that it only expects earnings for the year to be in-line with expectations.
On to the High Street, where JD Sports Fashion closed up nearly 25p at just shy of 3-quid after reporting a 54% rise in H1 pre-tax profit. A surprise in this sector.
Imperial Tobacco closed up 28p at 1,758p with decent figures expected to be reported tomorrow.
Over the pond, Wall Street opened up nicely and looked ok, but was starting to fall back by the time London closed, with the DJI up about 62 points at 11,078, the S&P500 up 4 points at 1,211, and the Nasdaq up nearly 16 points at 2,195.
The price of the black stuff was down and up today - it did jump and spike, with more interest at the Fed Reserve's speech on the financial sector bailout. The US Fed Res Chairman and Treasury Secretary are testifying in front of the Senate this afternoon.
Back here in London, inevitably it was the banking sector that took the pressure again, with RBS closing down nearly 13p at 205.25p, Barclays closing down nearly 16p at 357.25p, Lloyds TSB down 13.25p at just shy of 262p, and HBOS down nearly 29p at 180.2p.
Staying with financials, hedge fund manager Man Group close down 35.5p at 398p as concerns cash will move out due to the ban on shorting, whilst peer Schroders closed down 20p at 1,060p.
On to insurance, where The Pru closed down 36.5p at 520.5p, whilst Admiral was down 28p at 966.5p, and Norwich Union owner Aviva closed down 10p at 525p.
On to the miners, where the metals fell back, causing the mining heavyweights to pull back too. BHP closed down 44p at 1,435p, Rio down 217p at 4,023p, ENRC down 78.5p at 608p, Vedanta down 177p at 1,527p, and Anglo American down 191p at 2,136p.
Oi pulled back, but then spiked, meaning those that use the stuff were down. Airline British Airways closed down 8p at 210.5p, whilst cruise ship operator Carnival closed down 67p at 1,759p.
On to food, namely those that make the stuff, where Unilever closed up (yes, up) 35p at 1,487p as investors saw it as a safe haven. Peer Tate & Lyle didn't do so well, closing down 46.5p at 369.5p after news that it has lost a US patent case against manufacturers and importers of Chinese sucralose, its super sweetener sold under the name Splenda. Bakery firm Finsbury Food closed up 2.75p at 43p after saying that its adjusted full year pre-tax profit is up 68% on last year.
International Power also had a good day, closing up 8.5p at 364p, also seen as safe for now. Water utility Severn Trent didn't do so well, though, closing down 14p at 1,361p after its H1 figures failed to impress, in-line with expectations.
On to leisure, where pub operator Mitchells & Butlers closed down 17p at 255.5p after a fairly downbeat update, reporting a 1.3% rise in sales for August & September, but added that it only expects earnings for the year to be in-line with expectations.
On to the High Street, where JD Sports Fashion closed up nearly 25p at just shy of 3-quid after reporting a 54% rise in H1 pre-tax profit. A surprise in this sector.
Imperial Tobacco closed up 28p at 1,758p with decent figures expected to be reported tomorrow.
Morning Market, Tuesday 23rd September 2008
The FTSE was down 80 points this monrning at 5,156, whilst the FTSE 250 was down 200 points at 8,543. Concerns of financials still being apparent, with worries that the US government bail out is just covering fundamental problems. Like we said previously - 'Just papering over the cracks'.
RBS, Barclays, HSBC, Lloyds TSB, HBOS and Standard Chartered were all down between 1% and 3% this morning, with the US$700 bln input to the the financial sector on Wall Street now being scrutinised. There is even rumour that now short selling on financials has been banned, the retailers and housebuilders will be the next ones targeted.
Over the pond today, US Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke, Securities and Exchange Commission Chairman Christopher Cox and director of the Federal Housing Finance Agency, James Lockhart, will be presenting to the Senate Banking Committee at 2.30pm UK time. With Wall Street having a poor day last night, ears will be listening.
Back here in London, and continuing with financials, hedge fund Man Group was down nearly 6% this morning as it was said traders will be moving funds away now that short-selling is banned..
On to the miners, where recenbt runs on metals slowed, with prices falling back. BHP, Rio, Xstrata, Vedanta, ENRC, Anglo, and Kazakhmys were all down this morning between 2% and 6%.
On to the High Street, where Marks & Sparks was down 3.25% after a Deutsche Bank downgrade to 'hold' from 'buy'.
On to leisure, where Mitchells & Butlers was down over 5% this morning after saying sales were up 1.3% for August & September, and that it expects earnings for the year to be in line with its expectations. Peer Punch Taverns was down 10% this morning.
Food maker Tate & Lyle was down 12% this morning after saying it had lost a US patent case against manufacturers and importers of Chinese sucralose, its super sweetener sold under the name Splenda.
Just to confirm that some people seem to be desperate, the UK's largest pawn broker, Albemarle & Bond, reported revenue up 43% to £47m for y/e 30June, adding its pawn book is now at £24.8m, which is up 57% on 2007. Profit was about £10m, with EPS up 25% to 14.8p. Last year's acquisition of the Herbert Brown business helping there.
RBS, Barclays, HSBC, Lloyds TSB, HBOS and Standard Chartered were all down between 1% and 3% this morning, with the US$700 bln input to the the financial sector on Wall Street now being scrutinised. There is even rumour that now short selling on financials has been banned, the retailers and housebuilders will be the next ones targeted.
Over the pond today, US Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke, Securities and Exchange Commission Chairman Christopher Cox and director of the Federal Housing Finance Agency, James Lockhart, will be presenting to the Senate Banking Committee at 2.30pm UK time. With Wall Street having a poor day last night, ears will be listening.
Back here in London, and continuing with financials, hedge fund Man Group was down nearly 6% this morning as it was said traders will be moving funds away now that short-selling is banned..
On to the miners, where recenbt runs on metals slowed, with prices falling back. BHP, Rio, Xstrata, Vedanta, ENRC, Anglo, and Kazakhmys were all down this morning between 2% and 6%.
On to the High Street, where Marks & Sparks was down 3.25% after a Deutsche Bank downgrade to 'hold' from 'buy'.
On to leisure, where Mitchells & Butlers was down over 5% this morning after saying sales were up 1.3% for August & September, and that it expects earnings for the year to be in line with its expectations. Peer Punch Taverns was down 10% this morning.
Food maker Tate & Lyle was down 12% this morning after saying it had lost a US patent case against manufacturers and importers of Chinese sucralose, its super sweetener sold under the name Splenda.
Just to confirm that some people seem to be desperate, the UK's largest pawn broker, Albemarle & Bond, reported revenue up 43% to £47m for y/e 30June, adding its pawn book is now at £24.8m, which is up 57% on 2007. Profit was about £10m, with EPS up 25% to 14.8p. Last year's acquisition of the Herbert Brown business helping there.
Monday, 22 September 2008
Market Wrap, Monday 22nd September 2008
The FTSE closed down 75 points today at 5,236, whilst the FTSE 250 closed down almost 230 points at 8,753, and for those interested, the FTSE Small Caps closed down over 30 points at 2,671.39. It was a rollercoaster session for the FTSE 100 - Gap traders enjoyed the day, as we were down, up, then a late fall after the US opened. The commodity stocks had a good day, but not good enough to help the whole market, with swifter falls coming after the US kicked off.
Over the pond, by the time London closed the DJI was down 209 points at 11,179, whilst the S&P500 was down 29 points at 1,226, and the Nasdaq down 52 points at 2,221. Wall Street was down early doors as investors and traders digested the news that $700 bln will be input to the fianncial markets by the US govenrment. This 'papering over the cracks' jibe seems to be banted around. It's a lot of paper, thogh!
Back here in London, the banks were again being largely hit, with the exception of 2nd-tier bank Bradford & Bingley, who closed up half a penny at 28.25p after it was reported that the FSA were touting around for a major global bank with the prospect of a takeover for the troubled UK High Street bank. The bigger banks didn't fair as well, though, with Barclays closing down 16p at 373p, Lloyds TSB down nearly 11p at 275p, HSBC down 53p at 866.5p, and HBOS down 13.5p at 209p. News that Lloyds TSB is looking around for property agents to oversee the closure of 700 of its high street branches once its planned takeover of HBOS was also in the weekend press.
On to oil, where the price of the black stuff was up again, helping the majors. BP closed up 10p at 500.25, RD Shell up 41p at 1,636p, and BG Group up 50p at 1,175p.
However, with oil up, those that use the stuff weren't. Thomas Cook Group closed down 19p at 247p, although British Airways held up well, closing about even at 218.25p.
With the metal prices rising, Gold etc jumped as the dollar weakened again against the Yen & the €uro, and investors ran to the shiny stuff for safe haven & cover.
The miners did well, with BHP closing up 32p at 1,479p, Rio up 72p at 4,240p, ENRC up 24.5p at 686.5p, Vedanta Resources up 42p at 1,704p, and Xstrata closing up 78p at 2,422p.
Carrying on from this morning, building & plumbing supplies company, Wolseley, closed up 56p at 470p after posting final results that despite saying profits were down 30% to £527m said that the companmy is focusing on cost-cutting and hopes to ride the storm ok.
But more bad news from Rightmove about the UK housing market, where news that asking prices were down 1% again in September, meaning they were down 3.3% than this time last year. Rightmove said that the market remained very subdued.
This was reflected in the hosuebuilders, where the bigger guys all suffered. Taylor Wimpey closed down 7.25p at 47.75p, Persimmons down over 9p at 426p, Bovis Homes down 39.5p at 480p, and Redrow Home down 10p at 215p.
Also carrying on from this morning, Yell Group closed down 4.75p at 86.25p after the company said it wouldn't be paying a divvy as it is trying to reduce some of its £3.85 bln debt.
Restaurant group Clapham House closed up 3.5p at 90.5p after an upbeat statement accompanied results that were as expected.
Aero Inventory closed up nearly 26p at 440p after reporting a 60% rise in full-year pre-tax, adding that it is in talks for a number of potential major contracts.
Over the pond, by the time London closed the DJI was down 209 points at 11,179, whilst the S&P500 was down 29 points at 1,226, and the Nasdaq down 52 points at 2,221. Wall Street was down early doors as investors and traders digested the news that $700 bln will be input to the fianncial markets by the US govenrment. This 'papering over the cracks' jibe seems to be banted around. It's a lot of paper, thogh!
Back here in London, the banks were again being largely hit, with the exception of 2nd-tier bank Bradford & Bingley, who closed up half a penny at 28.25p after it was reported that the FSA were touting around for a major global bank with the prospect of a takeover for the troubled UK High Street bank. The bigger banks didn't fair as well, though, with Barclays closing down 16p at 373p, Lloyds TSB down nearly 11p at 275p, HSBC down 53p at 866.5p, and HBOS down 13.5p at 209p. News that Lloyds TSB is looking around for property agents to oversee the closure of 700 of its high street branches once its planned takeover of HBOS was also in the weekend press.
On to oil, where the price of the black stuff was up again, helping the majors. BP closed up 10p at 500.25, RD Shell up 41p at 1,636p, and BG Group up 50p at 1,175p.
However, with oil up, those that use the stuff weren't. Thomas Cook Group closed down 19p at 247p, although British Airways held up well, closing about even at 218.25p.
With the metal prices rising, Gold etc jumped as the dollar weakened again against the Yen & the €uro, and investors ran to the shiny stuff for safe haven & cover.
The miners did well, with BHP closing up 32p at 1,479p, Rio up 72p at 4,240p, ENRC up 24.5p at 686.5p, Vedanta Resources up 42p at 1,704p, and Xstrata closing up 78p at 2,422p.
Carrying on from this morning, building & plumbing supplies company, Wolseley, closed up 56p at 470p after posting final results that despite saying profits were down 30% to £527m said that the companmy is focusing on cost-cutting and hopes to ride the storm ok.
But more bad news from Rightmove about the UK housing market, where news that asking prices were down 1% again in September, meaning they were down 3.3% than this time last year. Rightmove said that the market remained very subdued.
This was reflected in the hosuebuilders, where the bigger guys all suffered. Taylor Wimpey closed down 7.25p at 47.75p, Persimmons down over 9p at 426p, Bovis Homes down 39.5p at 480p, and Redrow Home down 10p at 215p.
Also carrying on from this morning, Yell Group closed down 4.75p at 86.25p after the company said it wouldn't be paying a divvy as it is trying to reduce some of its £3.85 bln debt.
Restaurant group Clapham House closed up 3.5p at 90.5p after an upbeat statement accompanied results that were as expected.
Aero Inventory closed up nearly 26p at 440p after reporting a 60% rise in full-year pre-tax, adding that it is in talks for a number of potential major contracts.
Morning Market, Monday 22nd September 2008
The FTSE was down 30 points this morning at 5,283, although was turning up again after an opening fall.
Over the pond on Friday, Wall Street enjoyed the new found interest, together with lots and lots and lots of short position being woun d up. The markets had a great day, with the 3 major indices almost wiping out the losses for the rest of the week. The DJI closed up 368.75 points at 11,388.44, whilst the S&P500 closed up 48.57 points at 1,255.08, and the Nasdaq up 74.8 points at 2,273.9.
News from the US that is a surprise is that both Morgan Stanley & Goldman Sachs have agreed to give up their Investment Bank status in return for Federal Reserve help and protection. The US government is planning a US$700 bln bail out of the financial markets, so to create some sort of normality again. It could work out that the US government ends up making some serious cash on the deal, if this all turns round. Worth a thought. The dollar was falling against the Yen and the €uro, with the markets watching to see how this latest development from the US govenrment unfolds.
Back here in London, the banks were under a bit of pressure, mainly due to the uncertaincy of goings on in the US. Barclays was down 2.5% this morning after a downgrade to 'underweight' from 'neutral', with news that the bank would bid for parts of Lehman Brothers' European business as well as taking Lehman's core US broker-dealer business in a US$1.75 bln deal last week. Peer Lloyds TSB was down 1.5% after weekend press reports that the bank was out looking for property agents to oversee the closure of something like 700 high street branches once its planned takeover of HBOS is finalised. HBOS was down 3% this morning, with HSBC down 4.5% and Standard Chartered down 2%.
Bradford & Bingley was up 8%, though, as weekend press said the FSA had contacted three global banks to discuss a takeover of B&B, which is considered to be in trouble. JP Morgan kept its 'underweight rating', removing its price target, saying it was bearish on the stock. In fact, JP Morgan kept the UK banking sector at 'underweight', citing the fact that the British banks had a capital gap of £38 bln.
Staying in financials, the London Stock Exchange (LSE:LSE) was down 7% this morning after weekend press reports that Nasdaq OMX would begin limited trading in UK shares. THis will build up, and start another challenge to the LSE's position.
On to the miners, where the rising metal prices helping the heavyweights. BHP, Rio, Xstrata, Kazakhmys, Vedanta, and ENRC were all up between 1.9% and 4% this morning.
With oil now up above US$105 bbl, the oil majors were also doing well. BP, RD Shell, BG Group, and Cairn Energy were up between 0.85% and 2.3% this morning.
News from Wolseley, the heating and plumbing distributor, that it has a 77% decline in profits wasn't too much of a surprise, but the comapny did add that it won't have the begging bowl out to inevstors or need to refinmance its debt with its banks, either. This was taken well, with Wolseley up 3.5%, despite saying it could have to take one of the opions if market conditions continue to deteriorate. The bad news was obviously already in the price.
Yell Group, the Yellow Pages firm, has scrapped its dividend so it can try and take the edge off the £3.85 bln debt it is carrying. Yell was down 2.5% this morning on the news.
Carphone Warehouse was down over 2% after weekend press reported that the telephone and broadband group had put in an offer of under £450m for the British arm of Italian broadband operator Tiscali. Carphone Warehouse's venture into broadband has cost the group dearly to date.
Over the pond on Friday, Wall Street enjoyed the new found interest, together with lots and lots and lots of short position being woun d up. The markets had a great day, with the 3 major indices almost wiping out the losses for the rest of the week. The DJI closed up 368.75 points at 11,388.44, whilst the S&P500 closed up 48.57 points at 1,255.08, and the Nasdaq up 74.8 points at 2,273.9.
News from the US that is a surprise is that both Morgan Stanley & Goldman Sachs have agreed to give up their Investment Bank status in return for Federal Reserve help and protection. The US government is planning a US$700 bln bail out of the financial markets, so to create some sort of normality again. It could work out that the US government ends up making some serious cash on the deal, if this all turns round. Worth a thought. The dollar was falling against the Yen and the €uro, with the markets watching to see how this latest development from the US govenrment unfolds.
Back here in London, the banks were under a bit of pressure, mainly due to the uncertaincy of goings on in the US. Barclays was down 2.5% this morning after a downgrade to 'underweight' from 'neutral', with news that the bank would bid for parts of Lehman Brothers' European business as well as taking Lehman's core US broker-dealer business in a US$1.75 bln deal last week. Peer Lloyds TSB was down 1.5% after weekend press reports that the bank was out looking for property agents to oversee the closure of something like 700 high street branches once its planned takeover of HBOS is finalised. HBOS was down 3% this morning, with HSBC down 4.5% and Standard Chartered down 2%.
Bradford & Bingley was up 8%, though, as weekend press said the FSA had contacted three global banks to discuss a takeover of B&B, which is considered to be in trouble. JP Morgan kept its 'underweight rating', removing its price target, saying it was bearish on the stock. In fact, JP Morgan kept the UK banking sector at 'underweight', citing the fact that the British banks had a capital gap of £38 bln.
Staying in financials, the London Stock Exchange (LSE:LSE) was down 7% this morning after weekend press reports that Nasdaq OMX would begin limited trading in UK shares. THis will build up, and start another challenge to the LSE's position.
On to the miners, where the rising metal prices helping the heavyweights. BHP, Rio, Xstrata, Kazakhmys, Vedanta, and ENRC were all up between 1.9% and 4% this morning.
With oil now up above US$105 bbl, the oil majors were also doing well. BP, RD Shell, BG Group, and Cairn Energy were up between 0.85% and 2.3% this morning.
News from Wolseley, the heating and plumbing distributor, that it has a 77% decline in profits wasn't too much of a surprise, but the comapny did add that it won't have the begging bowl out to inevstors or need to refinmance its debt with its banks, either. This was taken well, with Wolseley up 3.5%, despite saying it could have to take one of the opions if market conditions continue to deteriorate. The bad news was obviously already in the price.
Yell Group, the Yellow Pages firm, has scrapped its dividend so it can try and take the edge off the £3.85 bln debt it is carrying. Yell was down 2.5% this morning on the news.
Carphone Warehouse was down over 2% after weekend press reported that the telephone and broadband group had put in an offer of under £450m for the British arm of Italian broadband operator Tiscali. Carphone Warehouse's venture into broadband has cost the group dearly to date.
Friday, 19 September 2008
Market Wrap, Friday 19th September 2008
The FTSE had a great day. The FTSE 100 closed up a very decent 431.3 points at 5,311.3, whilst the FTSE 250 closed up 645.9 points at 8,982.7, and for those interested the FTSE Small Caps closed up 58.2 points at 2,701.5. Boosted by the billions and trillions being pumped in to world markets, and the FSA ban on short selling, it was buying all round. Shorts were being closed quicker that a submarine hatch in a panic dive, whilst the banks enjoyed renewed interest from those wanting to see the shorters get burnt. We cynically speculate. News from the US that they wanted to sort out this credit crisis properly, once and for all, was taken well. Printing more money seems to be the answer - all of a sudden. Anyway, 'digs' aside, the financial sector responded positively.
Over the pond, by the time London closed the DJI was up 387 points at 11,406, whilst the S&P 500 was up 47 points at 1,254, and the Nasdaq up 70 points to 2,270. The news from the US Treasury that the Federal Reserve would be sorting out the current credit crisis was taken well. The anti-short-seller move was also taken well both sides of the pond. No matter what the plans are, cash wise, the markets liked the news.
Back here in London, news that the Financial Services Authority (FSA) had banned short selling on financial stocks was what most wanted to hear. The ban is until January 2009, and news from Wall Street was that the US Treeasury had imposed a similar stance, traying to stabilise stock prices. News from Ireland came in that they too had imposed a temporary ban on short-selling. It was spreading.
Anyway, it was obviously the banks that did well today, to say the least. RBS closed up 51.7p at 213.5p, a massive rise, and put RBS top of the mover's board. Barclays closed up 88p at 389p, Lloyds TSB up over 48p at just shy of 286p, and HBOS closed up 49.9p at 222.5p.
Staying with financials, The Pru closed up 114p at 6-quid, Norwich Union owner Aviva up over 87p at 565p, and Old Mutual closed up 13.4p at 82.4p, with exposures to the US insurance giant AIG being taken in stride.
The London Stock Exchange (LSE:LSE) ended up almost 15%, and had spiked up 80% earlier on. Interdealer broker ICAP closed up 16%.
On to commercial property, where the whole financial bounce was infectious. Land Securities closed up 103p at 1,320p, whilst peer British Land closed up 54.5p at 781p, Central London development specialist Quintain Estates & development closed up 21.5p at 204p, and regeneration specialist St. Modwen closed up 58.85p to 352.75p.
On to the black stuff, where oil was now just above the US$100 bbl level again, helping the majors there. BP closed up nearly 26p at 490.25p, RD Shell up 54p at 1,595p, BG Group closed up 89p at 1,125p, Cairn Energy up 259p at 2,368p, and Tullow Oil up 71p at 788p.
On to the minors, where metal prices were also picking up as the doillar weakened, not knowing which way to go. BHP closed up 130p at 1,447p, Rio up 513p at 4,168p, Anglo American up 265p at 2,381p, up and Xstrata 379p at 2,344p.
On to the High Street, where there was some bullish feeling around, as John Lewis said that sales were on the up, and everyone assuming that now billions (or is it trillions) being pumped into world markets by goivernments with massive deficits, all would be ok. Marks & Sparks closed up 12.75p at 244.75p, cloting peer Next up 135p at 1,247p, and supermarket chain and bid target Sainsburys up nearly 21p at 370.25p.
There were a few losers, though, which seems hard to believe, with Morrisons closing down 2.5p at 256p, ITV down 1.5p at 45p, British American Tobacco down 25p at 1,805p, and Unilever off 15p to 15-quid.
Anyone interested in small stuff...?
Informa closed up 1.5p to 343.5p on bid rumours, despite the Balckstone-led consortium pulling out of the bid running. Informa did say that it was trading in-line with expectations.
Pubs'n'bars closed down 2p at 9.5p, after announcing annual pre-tax profit will be lower than current market expectations, blaming increased operating and finance costs.
Consort Medical fell 26p to 574p as the inhaler manufacturer's announced that full year numbers will be in-line with its previous expectations.
Over the pond, by the time London closed the DJI was up 387 points at 11,406, whilst the S&P 500 was up 47 points at 1,254, and the Nasdaq up 70 points to 2,270. The news from the US Treasury that the Federal Reserve would be sorting out the current credit crisis was taken well. The anti-short-seller move was also taken well both sides of the pond. No matter what the plans are, cash wise, the markets liked the news.
Back here in London, news that the Financial Services Authority (FSA) had banned short selling on financial stocks was what most wanted to hear. The ban is until January 2009, and news from Wall Street was that the US Treeasury had imposed a similar stance, traying to stabilise stock prices. News from Ireland came in that they too had imposed a temporary ban on short-selling. It was spreading.
Anyway, it was obviously the banks that did well today, to say the least. RBS closed up 51.7p at 213.5p, a massive rise, and put RBS top of the mover's board. Barclays closed up 88p at 389p, Lloyds TSB up over 48p at just shy of 286p, and HBOS closed up 49.9p at 222.5p.
Staying with financials, The Pru closed up 114p at 6-quid, Norwich Union owner Aviva up over 87p at 565p, and Old Mutual closed up 13.4p at 82.4p, with exposures to the US insurance giant AIG being taken in stride.
The London Stock Exchange (LSE:LSE) ended up almost 15%, and had spiked up 80% earlier on. Interdealer broker ICAP closed up 16%.
On to commercial property, where the whole financial bounce was infectious. Land Securities closed up 103p at 1,320p, whilst peer British Land closed up 54.5p at 781p, Central London development specialist Quintain Estates & development closed up 21.5p at 204p, and regeneration specialist St. Modwen closed up 58.85p to 352.75p.
On to the black stuff, where oil was now just above the US$100 bbl level again, helping the majors there. BP closed up nearly 26p at 490.25p, RD Shell up 54p at 1,595p, BG Group closed up 89p at 1,125p, Cairn Energy up 259p at 2,368p, and Tullow Oil up 71p at 788p.
On to the minors, where metal prices were also picking up as the doillar weakened, not knowing which way to go. BHP closed up 130p at 1,447p, Rio up 513p at 4,168p, Anglo American up 265p at 2,381p, up and Xstrata 379p at 2,344p.
On to the High Street, where there was some bullish feeling around, as John Lewis said that sales were on the up, and everyone assuming that now billions (or is it trillions) being pumped into world markets by goivernments with massive deficits, all would be ok. Marks & Sparks closed up 12.75p at 244.75p, cloting peer Next up 135p at 1,247p, and supermarket chain and bid target Sainsburys up nearly 21p at 370.25p.
There were a few losers, though, which seems hard to believe, with Morrisons closing down 2.5p at 256p, ITV down 1.5p at 45p, British American Tobacco down 25p at 1,805p, and Unilever off 15p to 15-quid.
Anyone interested in small stuff...?
Informa closed up 1.5p to 343.5p on bid rumours, despite the Balckstone-led consortium pulling out of the bid running. Informa did say that it was trading in-line with expectations.
Pubs'n'bars closed down 2p at 9.5p, after announcing annual pre-tax profit will be lower than current market expectations, blaming increased operating and finance costs.
Consort Medical fell 26p to 574p as the inhaler manufacturer's announced that full year numbers will be in-line with its previous expectations.
Morning Market, Friday 19th September 2008
The FTSE was up 315 points at 5,195 in its first hour, as news that a ban by the FSA, the UK finanical regulators, on short-selling of some financial stocks helped the market respond. With shorters being blamed for the HBOS rushed sale, the markets took the stance by the relevant authorities as positive. The market is clawing back some of the 10% lost this week up 'til this morning, with the FTSE down 20% this year. The Financial Services Authority actually imposed a temporary ban on short-selling financial stocks from midnight last night until mid-January 2009, whilst the US did something similar.
Over the pond, last night the DJI tried to fight back, with the DJI closing up 410.03 points at 11,019.69, which is through that 11k level, whilst the S&P500 closed up 50.12 points at 1,206.51, and the Nasdaq up 100.25 points at 2,199.10. There was a late rally, with shares moving swiftly up during the last hour or so of trading. News that the US government is considering some sort of permanent solution to the current credit crisis was being discussed, with Treasury Secretary Henry Paulson touting around a proposal of some sort to professional lawmakers that would create an entity to deal with the billions of dollars of bad debt still clogging up the US financial system. This helped the rollercoaster ride at least move in the right direction. The end result, with a 410 point gain on the Dow, was the largest percentage gain in the last 6 years. In a similar move to the FSA ban on short selling banks, New York state's pension funds joined other public pensions that temporarily stopped lending bank and brokerage stocks to short sellers.
Back here in London, with the FTSE up 6.5% this morniong, further news from the US last night that the US government is trying to sort out a permanent solution to this credit crisis was adding to investors' smiles. And the rapid closing of short positions probably helped too.
The banks jumped this morning, with RBS, Barclays, HSBC, Lloyds TSB, HBOS and Standard Chartered all up by at least 10% and as much at 30%.
Staying in financials, Insurers were also up, with the Pru up 13% and Norwich Union owner Aviva up 20%.
The London Stock Exchange (LSE:LSE) was up over 10% this morning as well, whilst hedge fund Man Group was up 5%.
The oil majors and energy energy stocks were up again as crude edged up some more, with BP up nearly 6% this morning.
On to the High Street, where B&Q owner Kingfisher was up nearly 8% in the first hour of trading.
A much better day.
Over the pond, last night the DJI tried to fight back, with the DJI closing up 410.03 points at 11,019.69, which is through that 11k level, whilst the S&P500 closed up 50.12 points at 1,206.51, and the Nasdaq up 100.25 points at 2,199.10. There was a late rally, with shares moving swiftly up during the last hour or so of trading. News that the US government is considering some sort of permanent solution to the current credit crisis was being discussed, with Treasury Secretary Henry Paulson touting around a proposal of some sort to professional lawmakers that would create an entity to deal with the billions of dollars of bad debt still clogging up the US financial system. This helped the rollercoaster ride at least move in the right direction. The end result, with a 410 point gain on the Dow, was the largest percentage gain in the last 6 years. In a similar move to the FSA ban on short selling banks, New York state's pension funds joined other public pensions that temporarily stopped lending bank and brokerage stocks to short sellers.
Back here in London, with the FTSE up 6.5% this morniong, further news from the US last night that the US government is trying to sort out a permanent solution to this credit crisis was adding to investors' smiles. And the rapid closing of short positions probably helped too.
The banks jumped this morning, with RBS, Barclays, HSBC, Lloyds TSB, HBOS and Standard Chartered all up by at least 10% and as much at 30%.
Staying in financials, Insurers were also up, with the Pru up 13% and Norwich Union owner Aviva up 20%.
The London Stock Exchange (LSE:LSE) was up over 10% this morning as well, whilst hedge fund Man Group was up 5%.
The oil majors and energy energy stocks were up again as crude edged up some more, with BP up nearly 6% this morning.
On to the High Street, where B&Q owner Kingfisher was up nearly 8% in the first hour of trading.
A much better day.
Thursday, 18 September 2008
FSA Clamps down on Short Selling...
FSA clamps down on short-selling
The FSA said it was trying to protect the integrity of markets
The City regulator has announced restrictions on short-selling, whereby traders bet on share prices falling, in a bid to tackle market instability.
The Financial Services Authority (FSA) is clamping down on the practice that some believe contributed to the sharp falls in HBOS shares in recent days.
Some analysts have argued that short-selling had been a factor behind the £12.2bn takeover of HBOS by Lloyds TSB.
The changes will be introduced from midnight on Thursday.
"While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets," said FSA chief executive Hector Sants.
'Financial stability'
Short-selling is a technique that sees investors borrow an asset, such as shares, currencies or oil contracts, from another investor and then sell that asset in the relevant market hoping the price will fall.
The aim is to buy back the asset at a lower price and return it to its owner, pocketing the difference.
Anyone can short a position in a company's shares, but typically hedge funds are the main players.
The US financial regulator, the Securities and Exchange Commission (SEC), also announced restrictions on short-selling on Wednesday.
Chancellor Alistair Darling welcomed the move by the FSA.
"I have discussed this with the FSA and welcome their decisive action on short selling," Mr Darling.
"I believe it is the right things to do in the current market conditions and in the interests of financial stability," he said.
The FSA said it was trying to protect the integrity of markets
The City regulator has announced restrictions on short-selling, whereby traders bet on share prices falling, in a bid to tackle market instability.
The Financial Services Authority (FSA) is clamping down on the practice that some believe contributed to the sharp falls in HBOS shares in recent days.
Some analysts have argued that short-selling had been a factor behind the £12.2bn takeover of HBOS by Lloyds TSB.
The changes will be introduced from midnight on Thursday.
"While we still regard short-selling as a legitimate investment technique in normal market conditions, the current extreme circumstances have given rise to disorderly markets," said FSA chief executive Hector Sants.
'Financial stability'
Short-selling is a technique that sees investors borrow an asset, such as shares, currencies or oil contracts, from another investor and then sell that asset in the relevant market hoping the price will fall.
The aim is to buy back the asset at a lower price and return it to its owner, pocketing the difference.
Anyone can short a position in a company's shares, but typically hedge funds are the main players.
The US financial regulator, the Securities and Exchange Commission (SEC), also announced restrictions on short-selling on Wednesday.
Chancellor Alistair Darling welcomed the move by the FSA.
"I have discussed this with the FSA and welcome their decisive action on short selling," Mr Darling.
"I believe it is the right things to do in the current market conditions and in the interests of financial stability," he said.
Market Wrap, Thursday 18th September 2008
The FTSE 100 closed down 32.4 points at 4,880, despite breaking the 5k level to a peak of almost 5,016 during the session, whilst the FTSE 250 actually closed up 27 points at 8,336.8, and for those that are interested the FTSE Small Caps closed up 3.3 points at 2,643.3.
Over the pond, by the time London closed the DJI was down 8 points at 10,602, despite opening up with a mini-flurry. The S&P 500 was down a point at 1,155, and the Nasdaq down 7 points at 2,092. News that the Federal Reserve had been pumping billions of dollars into the financial system, with the major banks following suit, gave some early hope. This soon turned and the gap closed.
Back here in London, the Bank of England also said that it won't be rushing with any emergency interest rate cuts, as the US has done. They obviously are more concerned with the rising inflation figure, which is definitely looking like it's being 'cooked' to appear lower. So the hope of a reduction in rates next time out is quashed, then.
More to the concerns of most of the city traders right now is a speculative rumour that the FSA/LSE/God will be banning 'shorting' from midnight tonight. Errr, expect a massive rally tomorrow, then, with everyone closing their short positions. Seriously, though, we're not sure how that can be brought in on such a whim. It would be a help, though, if the market found it's real level on those that wanted to sell their stock, and not those borrowing and selling like mad, causing prices and auto-stop-losses to trigger, etc. We'll be looking around on this one this evening.
Back to the markets, namely banks, where news from Lloyds TSB that the 40k job losses is purely speculative provided some relief to their staff, but some concern was brought back with the statement adding that the bank couldn't rule out compulsory redundancies. The bank is also under some critisism for not even consulting shareholders over the HBOS acquisition, with many opponents citing weaker capital strength by spreading the bank thinner, so to speak.
Carrying on from this morning, the Lloyds TSB takeover of HBOS in a £12.2bn deal values HBOS at 232p per share. The new super bank will have some 38m customers and have 28% of the UK mortgage market, and a third of the UK's savings market. The split on loans is HBOS has 20% and Lloyds TSB 8%. HBOS closed up 25.5p at 172.6p, top of the board today, whilst Lloyds TSB fell over 42p to 237.5p on concerns of spreading itself thinly, and was it actually strong enough. Some shareholders complained that they had not even been asked about the deal.
Peer Barclays said that it had raised some £700m through a placing, which is on top of the £600m from existing shareholders as part of its purchase of select Lehman Brothers' assets. The new placing will be put together by Credit Suisse, Deutsche Bank and JPMorgan Cazenove, who will rush the begging bowl round the city and beyond. Barclays close down nearly 17p at 301p in response to the dilution planned, one might think. Other banks fell later in the day too, with RBS down 7.6p at 161.8p, HSBC down 5p at 796p, and Standard Chartered down 26p at 1,338p. The smaller duo were a bit confused, as (Santander's) Alliance & Leicester closed up 6p at 266p, whilst Bradford & Bingley closed down 4p at 25p.
Staying with financials, the London Stock Exchange (LSE:LSE) closed up 57.5p at 790p as it now appears that traders know where their bread is buttered, and their loyalties are, saying that the new Turqoise platform may suffer moving forward, possibly due to its backing by the investment banks that are now in problems.
On to insurance, where Aviva, who own Norwich Union, closed up 22.5p at just shy of 478p as investors see upside from the AIG problems in the US. Peer Old Mutual didn't do so well, closing down some 15% today after saying it had US$237m exposure with AIG.
On to the High Street, where B&Q owner Kingfisher closed up 11.6p at 131.4p after H1 results were much better than expected. Peer Home Retail Group grabbed its shirt tails, closing up 7.5p at 217.75p. Woolworths closed down 26% after its £100m loss.
On to the miners, where metals prices turned up, helping the heavyweights see some interest again. BHP closed up 27p at 1,317p, Rio up 5p at 3,655p, Anglo up 67p at 2,116p, and Xstrata up 39p at 1,965p.
With the black stuff breaking US$100 bbl, as everyone expected, the oil majors saw some gains, but some losses. BP and RD Shell both closed down, 7.75p at 464.5p and 21p at 1,541p respectively, whilst Tullow Oil closed up 22p at 717p and Cairn Energy up 32p at 2,109p.
With the price of oil on the up, those that use it turned down. Airline British Airways closed down 26.25p at 217p, whilst cruise ship operator Carnival close down 80p at 1,886p.
Tate & Lyle, the food maker, closed down 4p at 396p after mediocre H1 figures this morning, which were fairly flat.
On to leisure, where Enterprise Inns closed up 5.5% after a Goldman Sachs upgrade to 'neutral' from 'sell', keeping its 230p target.
Over the pond, by the time London closed the DJI was down 8 points at 10,602, despite opening up with a mini-flurry. The S&P 500 was down a point at 1,155, and the Nasdaq down 7 points at 2,092. News that the Federal Reserve had been pumping billions of dollars into the financial system, with the major banks following suit, gave some early hope. This soon turned and the gap closed.
Back here in London, the Bank of England also said that it won't be rushing with any emergency interest rate cuts, as the US has done. They obviously are more concerned with the rising inflation figure, which is definitely looking like it's being 'cooked' to appear lower. So the hope of a reduction in rates next time out is quashed, then.
More to the concerns of most of the city traders right now is a speculative rumour that the FSA/LSE/God will be banning 'shorting' from midnight tonight. Errr, expect a massive rally tomorrow, then, with everyone closing their short positions. Seriously, though, we're not sure how that can be brought in on such a whim. It would be a help, though, if the market found it's real level on those that wanted to sell their stock, and not those borrowing and selling like mad, causing prices and auto-stop-losses to trigger, etc. We'll be looking around on this one this evening.
Back to the markets, namely banks, where news from Lloyds TSB that the 40k job losses is purely speculative provided some relief to their staff, but some concern was brought back with the statement adding that the bank couldn't rule out compulsory redundancies. The bank is also under some critisism for not even consulting shareholders over the HBOS acquisition, with many opponents citing weaker capital strength by spreading the bank thinner, so to speak.
Carrying on from this morning, the Lloyds TSB takeover of HBOS in a £12.2bn deal values HBOS at 232p per share. The new super bank will have some 38m customers and have 28% of the UK mortgage market, and a third of the UK's savings market. The split on loans is HBOS has 20% and Lloyds TSB 8%. HBOS closed up 25.5p at 172.6p, top of the board today, whilst Lloyds TSB fell over 42p to 237.5p on concerns of spreading itself thinly, and was it actually strong enough. Some shareholders complained that they had not even been asked about the deal.
Peer Barclays said that it had raised some £700m through a placing, which is on top of the £600m from existing shareholders as part of its purchase of select Lehman Brothers' assets. The new placing will be put together by Credit Suisse, Deutsche Bank and JPMorgan Cazenove, who will rush the begging bowl round the city and beyond. Barclays close down nearly 17p at 301p in response to the dilution planned, one might think. Other banks fell later in the day too, with RBS down 7.6p at 161.8p, HSBC down 5p at 796p, and Standard Chartered down 26p at 1,338p. The smaller duo were a bit confused, as (Santander's) Alliance & Leicester closed up 6p at 266p, whilst Bradford & Bingley closed down 4p at 25p.
Staying with financials, the London Stock Exchange (LSE:LSE) closed up 57.5p at 790p as it now appears that traders know where their bread is buttered, and their loyalties are, saying that the new Turqoise platform may suffer moving forward, possibly due to its backing by the investment banks that are now in problems.
On to insurance, where Aviva, who own Norwich Union, closed up 22.5p at just shy of 478p as investors see upside from the AIG problems in the US. Peer Old Mutual didn't do so well, closing down some 15% today after saying it had US$237m exposure with AIG.
On to the High Street, where B&Q owner Kingfisher closed up 11.6p at 131.4p after H1 results were much better than expected. Peer Home Retail Group grabbed its shirt tails, closing up 7.5p at 217.75p. Woolworths closed down 26% after its £100m loss.
On to the miners, where metals prices turned up, helping the heavyweights see some interest again. BHP closed up 27p at 1,317p, Rio up 5p at 3,655p, Anglo up 67p at 2,116p, and Xstrata up 39p at 1,965p.
With the black stuff breaking US$100 bbl, as everyone expected, the oil majors saw some gains, but some losses. BP and RD Shell both closed down, 7.75p at 464.5p and 21p at 1,541p respectively, whilst Tullow Oil closed up 22p at 717p and Cairn Energy up 32p at 2,109p.
With the price of oil on the up, those that use it turned down. Airline British Airways closed down 26.25p at 217p, whilst cruise ship operator Carnival close down 80p at 1,886p.
Tate & Lyle, the food maker, closed down 4p at 396p after mediocre H1 figures this morning, which were fairly flat.
On to leisure, where Enterprise Inns closed up 5.5% after a Goldman Sachs upgrade to 'neutral' from 'sell', keeping its 230p target.
Morning Market, Thursday 18th September 2008
The FTSE 100 was up about 78 points at 4,991, still sub 5k level, although had receovered from an early fall to a worrying low of 4,883. Even at current levels, the FTSE is down 8.5% this week alone. However, news that the Fed Res and major central banks have input billions of dollars to the market to help liquidity was actually taken as positive.
Over the pond, last night the DJI closed down a very worrying 449.36 at 10609.66, whilst the S&P 500 down 57.21 at 1,156.39, and the Nasdaq down 109.05 at 2098.85. The indicies are down 20% this year alone. The US Fed Res $85 bln bail out of AIG has done nothing to appease the concern in the financial markets. The two strongest investmnet banks, Goldman Sachs and Morgan Stanley closed down 14% and 24% respectively, with Morgan Stanley down some 40% at one stage. AIG closed down $1.70 at $2.05. Wow. News that Washington Mutual has put itself up for sale just added to the woes, although JP Morgan and others have apparenlty listened. With gold up $60 an ounce, we can see were cash is returning now.
In the Far East the Hang Seng was recently down over 5%, and in Japan the Nikkei 225 closed down 3.6% at 11,332, and in China the Shanghai Composite closed down nearly 6% at 1,816. Even the Aussies were joining the slide, with Australia's S&P/ASX 200 down 3.5% to 4,555.
Back here in London, with Lloyds TSB paying £12.2 bln for HBOS, a super bank has been born. L-BOS...? Anyway, with something like 38m customers and 28% of UK mortgages, it's a force. Alistair Darling says the deal wasn't forced. What he didn't add was that he's over the moon that the government didn't have to get involved again with taxpayers' money. The government said the merger/takeover was 'in the public's interest', which is in contrast to the previous merger deals that were always refused. HBOS shares were up at 223p this morning, or 28% on yesterday's close price, which was also much higher than the spiked low of 88p hit yesterday, although whether this deal improves the sector, or the feeling towards the sector, we remain sceptical. Lloyds TSB was down some 7% this morning, as investors showed concern that they can weather such a takeover and new exposure. The Asian-related and bias banks, such as HSBC and Standarad Chartered, seem to be better options at the moment, although this morning Barclays was up 7% and RBS up 3%, with HSBC up 1.5%. HSBC is also rumoured to be in the frame as a possible buyer of US investment bank Morgan Stanley, although this wasn't confirmed, and said to be speculation.
Staying in financials, insurers Prudential and Aviva were allegedly in the frame for taking advatnage of some sort of fire sale auction of US giant AIG's assets. Aviva was up 1.25% and The Pru up 3.6%.
On to oil, where the price of the black stuff was on the rise again, now near US$97.50 bbl. BP and RD Shell were both up 1.5% this morning, whilst BG Group was up over 4%.
Gold fell back to about $860 ounce, down about 30-bucks as the dollar weakened against the €uro some more.
In to the High Street, where B&Q owner Kingfisher was up nearly 9% after posting H1 profits much better than expected, adding that with its cost cutting plan its forecasts would assist this time during tough trading conditions.
On to leisure, where Enterprise Inns was up 8.5% this morning after Goldman Sachs removed its curse of banish (the pan-Europe sell list).
Over the pond, last night the DJI closed down a very worrying 449.36 at 10609.66, whilst the S&P 500 down 57.21 at 1,156.39, and the Nasdaq down 109.05 at 2098.85. The indicies are down 20% this year alone. The US Fed Res $85 bln bail out of AIG has done nothing to appease the concern in the financial markets. The two strongest investmnet banks, Goldman Sachs and Morgan Stanley closed down 14% and 24% respectively, with Morgan Stanley down some 40% at one stage. AIG closed down $1.70 at $2.05. Wow. News that Washington Mutual has put itself up for sale just added to the woes, although JP Morgan and others have apparenlty listened. With gold up $60 an ounce, we can see were cash is returning now.
In the Far East the Hang Seng was recently down over 5%, and in Japan the Nikkei 225 closed down 3.6% at 11,332, and in China the Shanghai Composite closed down nearly 6% at 1,816. Even the Aussies were joining the slide, with Australia's S&P/ASX 200 down 3.5% to 4,555.
Back here in London, with Lloyds TSB paying £12.2 bln for HBOS, a super bank has been born. L-BOS...? Anyway, with something like 38m customers and 28% of UK mortgages, it's a force. Alistair Darling says the deal wasn't forced. What he didn't add was that he's over the moon that the government didn't have to get involved again with taxpayers' money. The government said the merger/takeover was 'in the public's interest', which is in contrast to the previous merger deals that were always refused. HBOS shares were up at 223p this morning, or 28% on yesterday's close price, which was also much higher than the spiked low of 88p hit yesterday, although whether this deal improves the sector, or the feeling towards the sector, we remain sceptical. Lloyds TSB was down some 7% this morning, as investors showed concern that they can weather such a takeover and new exposure. The Asian-related and bias banks, such as HSBC and Standarad Chartered, seem to be better options at the moment, although this morning Barclays was up 7% and RBS up 3%, with HSBC up 1.5%. HSBC is also rumoured to be in the frame as a possible buyer of US investment bank Morgan Stanley, although this wasn't confirmed, and said to be speculation.
Staying in financials, insurers Prudential and Aviva were allegedly in the frame for taking advatnage of some sort of fire sale auction of US giant AIG's assets. Aviva was up 1.25% and The Pru up 3.6%.
On to oil, where the price of the black stuff was on the rise again, now near US$97.50 bbl. BP and RD Shell were both up 1.5% this morning, whilst BG Group was up over 4%.
Gold fell back to about $860 ounce, down about 30-bucks as the dollar weakened against the €uro some more.
In to the High Street, where B&Q owner Kingfisher was up nearly 9% after posting H1 profits much better than expected, adding that with its cost cutting plan its forecasts would assist this time during tough trading conditions.
On to leisure, where Enterprise Inns was up 8.5% this morning after Goldman Sachs removed its curse of banish (the pan-Europe sell list).
Lloyds TSB and HBOS confirm an all-share deal
Who would have thought such a merger would have been allowed...? With mergers much, much smaller being turned down only a year or so ago, Brown turns a blind eye to this massive tie up - as long as the government (taxpayer) doesn't input cash, he's happy.
The new company will have something like 18m customers and 28% of UK morgages.
The new company will have something like 18m customers and 28% of UK morgages.
Wednesday, 17 September 2008
Market Wrap, Wednesday 17th September 2008
The FTSE 100 closed down 113.2 points today at 4,912.4, whilst the FTSE 250 was down 99.3 points at 8,309.8, and for those interested, the FTSE Small Caps closed down 27.1 points at 2,640.
A bit of a turn during the day, to say the least, with the market falling like a stone in the afternoon, after a fairly positive start in the morning. There ahd been some positive feeling and attitude towards news that Lloyds TSB and HBOS were in talks, which helped HBOS recover from a low share price spike of just 88p early doors. But then it all started, and once Wall Street opened everyone was looking for a parachute.
Over the pond, by the time London closed the DJI was down 340 points at 10,718, whilst the S&P 500 was down 40 points at 1,171, and the Nasdaq down nearly 80 points at 2,128. News from the US was that investors still weren't impressed by the Fed Reserve's $85 bln bail out of AIG, and that it was just wallpapering over the cracks.
Back here in London, the Lloyds TSB/HBOS possible deal was talk of the floors. HBOS's share price has fallen from £7 or £8 in a short time, with major concenrs over the bank's financial position and whether a Northern Rock situation will develop. News that Barclays had been over to the US to cherry pick the best bit of Lehman Bros was also worth a read, as Barclays has picked up the Lehman's New York stockbroking building, with all it's business. Barclays being one of the stronger banks around.
There was also news form the Bank of England that it has extended the drawdown period for its Special Liquidity Scheme to next 30th Jan due to the current bank and financial market scenario. The scheme had originally been due to close to new lending in the 3rd week of October, although any existing borrowing could be rolled over for up to 3 years. The BoE, not panicking, of course, said the extension to the facility would provide 'additional time for banks to plan their access to the Scheme in an orderly fashion.' Their fingers were crossed, we expect.
Back to HBOS, where despite saying it remains a strong bank (!) and continues to access wholesale funding markets, investors and traders didn't heed. HBOS has paid far more for its lending recently, risaing from 0.75% above the nornal inter-bank lending rate, with most recent loans 5% more than the market norm. That can't be sustained. News that more than half of its total loan book is accounted for by the slumping UK mortgage book does no favours. Talk today of a possible deal was all over the place, with the bank confirming that it was in advanced talks with Lloyds TSB this afternoon. HBOS closed down 34.9p (19%) to 147.1p, and actually hit 88p early doors. Lloyds TSB, meanwhile, closed the day where it started - unchanged at 297.75p.
As mentioned above, Barclays announced it had reached a deal to buy Lehman's US investment banking and capital markets businesses. The deal is worth US$250m, and subject to approval from the bankruptcy court, it would make Barclays the 3rd biggest investment bank in the USA. Barclays will now own Lehman Brothers' New York headquarters, together with its two data centres, at a cost of US$1.5 bln. The bank added that it may even pick up some more of Lehman assets in the fire sale. Barclays shares closed up 9.75p at 317.75p.
Banco Santander continued its acquisition trail, as the Abbey owner was pleased to hear that Alliance & Leicester shareholders had voted to accept the approved takeover by Banco Santander, with 96% agreeing (only 75% are required to approve an EGM item). The A&L CEO said that he had been concerned that due to the size of the bank it may not have been large or strong enough to get through this financial storm. He added that now he sees relative stability ahead. A&L closed down almost 18p at 260p.
As mentioned this morning, in the US the Fed Res bailed out AIG with US$85 bln, with the 'public' talking an 80% stake in the group. An almost complete nationalisation, then. UK insurers had been up this morning, but soon turned down. Standard Life closed down 2.25p at 239.75p, Aviva down 4.5p at 455.5p, and Friends Provident down 0.6p at 81.1p.
On to the black stuff, where oil was up nearly 3-bucks a barrel today at US$94 bbl. This didn't help the majors, though, with BP closing down 3.75p at 472.25p, RD Shell down 2p at 1,562p, BG Group down 1p to 1,028p, whilst Cairn Energy closed down 51p at 2,077p.
Users of the black stuff reacted, with British Airways closing down 15.5p at 243.25p, whilst easyJet closed down 8.25p at 350p. easyJet said that the outlook for this financial year ending 30Sep remained unchanged.
On to the miners, where early rises turned down with the market, ending with BHP closing down 86p at 1,290p, Rio Tinto down 222p to 3,650p, Xstrata down 179p at 1,926p, Anglo down 209p lower at 2,049p and ENRC down 46.5p at 547p.
On to the High Street, where Tesco closed up 14.2p at 361.75p after the supermarket giant announced a new low-cost range of products and price cuts as it fights back against budget supermarket rivals (like Lidl & Aldi) that have been taking some of its business, whilst peer Sainsburys followed by closing up nearly 8p at just shy of 362p. Marks & Sparks closed down nearly 9p at just shy of 227p, B&Q owner Kingfisher down over 6p at 119.8p, and Woolworths closed down 0.06p at 6p after the retailer announced record losses for its first half this morning, around the £100m mark.
Misys rose 2.5p to 140p after saying it had not been affected by the Lehman Bros collapse, prompting Investec to reiterate its buy recommendation and 194p target.
Minerva, the property developer, said that it had adjusted its net asset value per share down a third for the year to end to June due to real estate conditions. It added that it was in takeover talks with Limitless, Dubai outfit, prompting shares to close up 6.5p at 77p.
Chrysalis Group, the music company, announced that there had been some bid interest, with the company closing up 14.5p at 116.25p.
Morson Group closed up 3p at 107.5p after some decent reults, with Brewin Dolphin reiterating its 'buy' stance, adding a lower target of 190p, down from 240p.
A bit of a turn during the day, to say the least, with the market falling like a stone in the afternoon, after a fairly positive start in the morning. There ahd been some positive feeling and attitude towards news that Lloyds TSB and HBOS were in talks, which helped HBOS recover from a low share price spike of just 88p early doors. But then it all started, and once Wall Street opened everyone was looking for a parachute.
Over the pond, by the time London closed the DJI was down 340 points at 10,718, whilst the S&P 500 was down 40 points at 1,171, and the Nasdaq down nearly 80 points at 2,128. News from the US was that investors still weren't impressed by the Fed Reserve's $85 bln bail out of AIG, and that it was just wallpapering over the cracks.
Back here in London, the Lloyds TSB/HBOS possible deal was talk of the floors. HBOS's share price has fallen from £7 or £8 in a short time, with major concenrs over the bank's financial position and whether a Northern Rock situation will develop. News that Barclays had been over to the US to cherry pick the best bit of Lehman Bros was also worth a read, as Barclays has picked up the Lehman's New York stockbroking building, with all it's business. Barclays being one of the stronger banks around.
There was also news form the Bank of England that it has extended the drawdown period for its Special Liquidity Scheme to next 30th Jan due to the current bank and financial market scenario. The scheme had originally been due to close to new lending in the 3rd week of October, although any existing borrowing could be rolled over for up to 3 years. The BoE, not panicking, of course, said the extension to the facility would provide 'additional time for banks to plan their access to the Scheme in an orderly fashion.' Their fingers were crossed, we expect.
Back to HBOS, where despite saying it remains a strong bank (!) and continues to access wholesale funding markets, investors and traders didn't heed. HBOS has paid far more for its lending recently, risaing from 0.75% above the nornal inter-bank lending rate, with most recent loans 5% more than the market norm. That can't be sustained. News that more than half of its total loan book is accounted for by the slumping UK mortgage book does no favours. Talk today of a possible deal was all over the place, with the bank confirming that it was in advanced talks with Lloyds TSB this afternoon. HBOS closed down 34.9p (19%) to 147.1p, and actually hit 88p early doors. Lloyds TSB, meanwhile, closed the day where it started - unchanged at 297.75p.
As mentioned above, Barclays announced it had reached a deal to buy Lehman's US investment banking and capital markets businesses. The deal is worth US$250m, and subject to approval from the bankruptcy court, it would make Barclays the 3rd biggest investment bank in the USA. Barclays will now own Lehman Brothers' New York headquarters, together with its two data centres, at a cost of US$1.5 bln. The bank added that it may even pick up some more of Lehman assets in the fire sale. Barclays shares closed up 9.75p at 317.75p.
Banco Santander continued its acquisition trail, as the Abbey owner was pleased to hear that Alliance & Leicester shareholders had voted to accept the approved takeover by Banco Santander, with 96% agreeing (only 75% are required to approve an EGM item). The A&L CEO said that he had been concerned that due to the size of the bank it may not have been large or strong enough to get through this financial storm. He added that now he sees relative stability ahead. A&L closed down almost 18p at 260p.
As mentioned this morning, in the US the Fed Res bailed out AIG with US$85 bln, with the 'public' talking an 80% stake in the group. An almost complete nationalisation, then. UK insurers had been up this morning, but soon turned down. Standard Life closed down 2.25p at 239.75p, Aviva down 4.5p at 455.5p, and Friends Provident down 0.6p at 81.1p.
On to the black stuff, where oil was up nearly 3-bucks a barrel today at US$94 bbl. This didn't help the majors, though, with BP closing down 3.75p at 472.25p, RD Shell down 2p at 1,562p, BG Group down 1p to 1,028p, whilst Cairn Energy closed down 51p at 2,077p.
Users of the black stuff reacted, with British Airways closing down 15.5p at 243.25p, whilst easyJet closed down 8.25p at 350p. easyJet said that the outlook for this financial year ending 30Sep remained unchanged.
On to the miners, where early rises turned down with the market, ending with BHP closing down 86p at 1,290p, Rio Tinto down 222p to 3,650p, Xstrata down 179p at 1,926p, Anglo down 209p lower at 2,049p and ENRC down 46.5p at 547p.
On to the High Street, where Tesco closed up 14.2p at 361.75p after the supermarket giant announced a new low-cost range of products and price cuts as it fights back against budget supermarket rivals (like Lidl & Aldi) that have been taking some of its business, whilst peer Sainsburys followed by closing up nearly 8p at just shy of 362p. Marks & Sparks closed down nearly 9p at just shy of 227p, B&Q owner Kingfisher down over 6p at 119.8p, and Woolworths closed down 0.06p at 6p after the retailer announced record losses for its first half this morning, around the £100m mark.
Misys rose 2.5p to 140p after saying it had not been affected by the Lehman Bros collapse, prompting Investec to reiterate its buy recommendation and 194p target.
Minerva, the property developer, said that it had adjusted its net asset value per share down a third for the year to end to June due to real estate conditions. It added that it was in takeover talks with Limitless, Dubai outfit, prompting shares to close up 6.5p at 77p.
Chrysalis Group, the music company, announced that there had been some bid interest, with the company closing up 14.5p at 116.25p.
Morson Group closed up 3p at 107.5p after some decent reults, with Brewin Dolphin reiterating its 'buy' stance, adding a lower target of 190p, down from 240p.
Morning Market, Wednesday 17th September 2008
The FTSE 100 was up some 70 points early doors at 5,095, but don't hold your breath. HBOS fell out of bed and hit 88p at one stage, but recovered. Expect worse. Yes, the top stock all opened positive, especially after the US closed up last night, but there is a distict feeling and certaincy, almost, that we are sub-5k soon. Today, maybe.
In the Far East it was positive, but they are prown to follow the US. It takes London to open and make a stance, and whilst early doiors it looks positive, the calls we are party to and listenting to say it is negative. The US$80 bln bail out of AIG by the Fed Res over in ther US is papering over the cracks, basically.
Back here on London news was that Barclays has offered to buy Lehman's US investment banking and capital markets businesses for US$250m. This would make Barclays the 3rd largest broking house in the States. Barclays and peers were all up, early doors, with RBS, Lloyds TSB, Barclays and Standard Chartered up 3% to 6% already, BUT take note - the HBOS reactionj this morning - down 40%, is not good. Lloyds TSB are apparently in advanced talks with HBOS, so things are serious. Back to Lehamn's and Barclays, where it is said that Barclays will pay US$1.75 bln for a selection of Lehamn Bros' assets, with the New York base included. Nice.
Staying in financials, the insurers were also positive. The Pru was up 4%, Old Mutual up nearly 3%, Standard Life up 2.5%, Friends Provident up over 3%, and Aviva up 4.5%.
On to the oil stocks, which despiote oil at US$94 bbl are seen as fairly safe, with BP, RD Shell, BG Group, Cairn Energy and Tullow Oil all up between 1% and 2.5% this monring.On to the miners, where BHP was up 2.5%, Rio up 4.5%, ENRC up 3.5%, Anglo up 3%, Xstrata up 2.5%.
On to the users of the black stuff, where airline British Airways was up over 1%, whilst peer easyJet was up a decent 4% after announcing that its outlook for the year was unchanged.
On to the High Street, where Tesco supermarket king was up nearly 1% after announcing a reaction to the cut-price budget supermarkets with a stream of price cut plans via a new range. Lidl & Aldi watch out. Peer Sainsburys was also up this monring, and staying in the High Street with clothes and food saw Marks & Sparlks also up nearly 1%. B*&Q owner Kingfisher was also up, as was mobile outlet Carphone Warehouse.
With all this said, we are still bearish on the short-to-medium term. Who can call the bottom...? If we break 5k for a close, we could see the next line at 4,600. In our opinion. It will atke some decent cash and real fundamentals, govern,ent intervention and reassurance, to see any real ('real') and honest reaction. It's a long way from the home investors getting confidence back, and only a few will be trying to guess the bottom. Good luck to them. It's close. Hopefully.
In the Far East it was positive, but they are prown to follow the US. It takes London to open and make a stance, and whilst early doiors it looks positive, the calls we are party to and listenting to say it is negative. The US$80 bln bail out of AIG by the Fed Res over in ther US is papering over the cracks, basically.
Back here on London news was that Barclays has offered to buy Lehman's US investment banking and capital markets businesses for US$250m. This would make Barclays the 3rd largest broking house in the States. Barclays and peers were all up, early doors, with RBS, Lloyds TSB, Barclays and Standard Chartered up 3% to 6% already, BUT take note - the HBOS reactionj this morning - down 40%, is not good. Lloyds TSB are apparently in advanced talks with HBOS, so things are serious. Back to Lehamn's and Barclays, where it is said that Barclays will pay US$1.75 bln for a selection of Lehamn Bros' assets, with the New York base included. Nice.
Staying in financials, the insurers were also positive. The Pru was up 4%, Old Mutual up nearly 3%, Standard Life up 2.5%, Friends Provident up over 3%, and Aviva up 4.5%.
On to the oil stocks, which despiote oil at US$94 bbl are seen as fairly safe, with BP, RD Shell, BG Group, Cairn Energy and Tullow Oil all up between 1% and 2.5% this monring.On to the miners, where BHP was up 2.5%, Rio up 4.5%, ENRC up 3.5%, Anglo up 3%, Xstrata up 2.5%.
On to the users of the black stuff, where airline British Airways was up over 1%, whilst peer easyJet was up a decent 4% after announcing that its outlook for the year was unchanged.
On to the High Street, where Tesco supermarket king was up nearly 1% after announcing a reaction to the cut-price budget supermarkets with a stream of price cut plans via a new range. Lidl & Aldi watch out. Peer Sainsburys was also up this monring, and staying in the High Street with clothes and food saw Marks & Sparlks also up nearly 1%. B*&Q owner Kingfisher was also up, as was mobile outlet Carphone Warehouse.
With all this said, we are still bearish on the short-to-medium term. Who can call the bottom...? If we break 5k for a close, we could see the next line at 4,600. In our opinion. It will atke some decent cash and real fundamentals, govern,ent intervention and reassurance, to see any real ('real') and honest reaction. It's a long way from the home investors getting confidence back, and only a few will be trying to guess the bottom. Good luck to them. It's close. Hopefully.
Federal Reserve Bails Out AIG - $85 bln
News overnight comes from over the pond that the Fed Res has bailed out the American insurance giant AIG to the tune of US$85 bln.
Errr, directors, last year's bonuses repaid, please...
Errr, directors, last year's bonuses repaid, please...
Tuesday, 16 September 2008
Market Wrap, Tuesday 16th September 2008
What a day. The FTSE 100 closed down 178.6 points at 5,025.6, whilst the FTSE 250 closed down 299.3 points at 8,409.1, and for those interested, the FTSE Small Cap down 79.9 points at 2,667.1. One can note the FTSE as still being above the 5k mark, but it wasn't this afternoon, just a late rally back above the 5k level. This could also partly be helped due to day traders closing short positions as well.
Over the pond, by the time London closed the DJI was down about 36 points at 10,881, whilst the S&P500 was down 6 ponts at 1,187, and the Nasdaq down 10 pooints at 2,169, although Wall Street appeared to not know which way to go early doors. The AIG begging bowl at the Fed Res was concerning everyone, as were the downbeat figures from Goldman Sachs.
Back here in London news that inflation was now at its highest level in 16 years was taken hard, with the market falling like a stone. Annual inflation was at 4.7% for the month of August, up 0.6% on July, which was worse than expected. It is hoped that the Bank of England will lower interest rates next time out, but that will only fuel the inflation fire more.
The banks took the hit the hardest, although everything was a sea of red, with just one or two turning back positive at the close. HBOS had the worst day, closing down over 20%, after recovering from over 30% down during mid afternoon. HBOS closed down 50.5p at 182p. Credit ratings agency Standard & Poor's downgraded HBOS's credit rating on the mortgage lender by one level to 'A+' from 'AA-'. Barclays closed down 8p at 308p despite saying that it was still in talks with failed US bank Lehamn Brothers about acquisition of certain assets. HSBC closed down nearly 15p at just shy of 840p, whilst RBS closed down 21.4p at 189.1p. A late rally saw Lloyds TSB actually close up 6p at just shy of 280p, and Standard Chartered close up a penny at 1,386p.
With American insurance giant AIG looking for a $50 bln injection from the Fed Res, UK insurers were hit. The Pru closed down 13.25p at just shy of 487p, Aviva down 29.5p at 460p, Admiral down 22.5p at 857.5p, and Royal Sun Alliance down 6p at 152.1p. Only Friends Provident stayed positive, closing up 0.7p at 81.7p.
On to the miners, which were also all down heavily as metal prices continued to fall back. Kazakhmys closed down almost 10% on the day, BHP closed down 4.5%, Rio closed down 322p (7.7%) at 3,872, Xstrata down 169p at 2,105p, Anglo American down 151p at 2,258p, Antofagasta down 35p at 458.25p, and Lonmin down 278p at 2,542p.
The oil majors also had a poor day as the price of the black stuff remained under US$100 bbl, with BP closing down 15.5p at 476p, RD Shell down 84p at 1,564p, and BG Group down 67p at 1,029p.
Only the utilities seemed amune, with gas supplier Centrica closing up 10p at 332p.
On to the housebuilders, where Redrow closed down 2.5p at 203p, Bovis down 13p to just shy of 456p, Bellway down 13p to 635p, and Berkeley Group down 17.5p at 839p. Berkeley announced a 50% sales slump this morning. Two of the sector did well, though, with Persimmons closing up 23p at 383p and Taylor Wimpey up 0.25p at 46p.
News that Adecco will be making an offer for Michel Page International saw the latter close down nearly 72p at 250p, although Adecco did say that it does reserve the right to make an offer within the next 6 months.
Over the pond, by the time London closed the DJI was down about 36 points at 10,881, whilst the S&P500 was down 6 ponts at 1,187, and the Nasdaq down 10 pooints at 2,169, although Wall Street appeared to not know which way to go early doors. The AIG begging bowl at the Fed Res was concerning everyone, as were the downbeat figures from Goldman Sachs.
Back here in London news that inflation was now at its highest level in 16 years was taken hard, with the market falling like a stone. Annual inflation was at 4.7% for the month of August, up 0.6% on July, which was worse than expected. It is hoped that the Bank of England will lower interest rates next time out, but that will only fuel the inflation fire more.
The banks took the hit the hardest, although everything was a sea of red, with just one or two turning back positive at the close. HBOS had the worst day, closing down over 20%, after recovering from over 30% down during mid afternoon. HBOS closed down 50.5p at 182p. Credit ratings agency Standard & Poor's downgraded HBOS's credit rating on the mortgage lender by one level to 'A+' from 'AA-'. Barclays closed down 8p at 308p despite saying that it was still in talks with failed US bank Lehamn Brothers about acquisition of certain assets. HSBC closed down nearly 15p at just shy of 840p, whilst RBS closed down 21.4p at 189.1p. A late rally saw Lloyds TSB actually close up 6p at just shy of 280p, and Standard Chartered close up a penny at 1,386p.
With American insurance giant AIG looking for a $50 bln injection from the Fed Res, UK insurers were hit. The Pru closed down 13.25p at just shy of 487p, Aviva down 29.5p at 460p, Admiral down 22.5p at 857.5p, and Royal Sun Alliance down 6p at 152.1p. Only Friends Provident stayed positive, closing up 0.7p at 81.7p.
On to the miners, which were also all down heavily as metal prices continued to fall back. Kazakhmys closed down almost 10% on the day, BHP closed down 4.5%, Rio closed down 322p (7.7%) at 3,872, Xstrata down 169p at 2,105p, Anglo American down 151p at 2,258p, Antofagasta down 35p at 458.25p, and Lonmin down 278p at 2,542p.
The oil majors also had a poor day as the price of the black stuff remained under US$100 bbl, with BP closing down 15.5p at 476p, RD Shell down 84p at 1,564p, and BG Group down 67p at 1,029p.
Only the utilities seemed amune, with gas supplier Centrica closing up 10p at 332p.
On to the housebuilders, where Redrow closed down 2.5p at 203p, Bovis down 13p to just shy of 456p, Bellway down 13p to 635p, and Berkeley Group down 17.5p at 839p. Berkeley announced a 50% sales slump this morning. Two of the sector did well, though, with Persimmons closing up 23p at 383p and Taylor Wimpey up 0.25p at 46p.
News that Adecco will be making an offer for Michel Page International saw the latter close down nearly 72p at 250p, although Adecco did say that it does reserve the right to make an offer within the next 6 months.
Morning Market, Tuesday 16th September 2008
The FTSE was down 90 points at 5,114 in its first hour of trading. The banks taking hits, and worse looks likely to follow today. Lehman Brothers Chapter 11 bankruptcy protection and the US insurance giant American International Group (AIG) asking for a massive $40 bln from the Fed Res were killing the financial markets around the globe, with the markets continuing yesterday's fall. AIG has received some emergency funding from the New York state to the tune of $20 bln, but had its debt downgraded by the ratings agencies.
Here in London the banks were falling fast. RBS, Barclays, HBOS, Lloyds TSB and HSBC were all down by as muchg as 12% already. Barclays was down 5% after news that the bank is still in talks with failed US investmnet bank Lehman Bros. Barclayts wants to cherry pick some of its assets, including its core broker-dealer business.
The banks were also hit with the fact that in the interbank market the cost of borrowing overnight dollar funds had jumped to over 10%, which was 5-times the Fed Res target rate. The Fed Res will announce its interest rate decison at 7:15pm London Time, with a 0.25% cut expected.
In the Far East the Nikkei 225 closed down 5% and touched its lowest level in three years on Tuesday. Wall Street had its worst day on Monday since markets reopened after the September 11 attacks.
On to oil, where the price of the black stuff down at $92 bbl at one stage causing investors to look elsewhere. BP, RD Shell, BG Group, Tullow Oil and Cairn Energy were all down 2% to nearly 10% already this morning. News from Tullow Oil that it had plugged and abandoned one of its Indian wells after a failure to find hydrocarbons.
On to the miners, who were all down as metal prices fell. All the majors were off 3 to 6% already.
Michael Page was down 25% early doors on news that Adecco, the world's largest staffing firm, had said that it wouldn't be making an offer. This has been up in the air for months.
On to the High Street where Carphone Warehouse was up 3.5% already as news that the US peer Best Buy was set to take out digital music service Napster Inc for US$121m. Carphone Warehouse has a JV with Best Buy.
British Airways was up 4% early doors, as was easyJet, as a lower oil price helped the users of the stuff.
The utilities were also immune this morning, with Centrica, United Utilities and Scottish & Southern Energy all up.
Here in London the banks were falling fast. RBS, Barclays, HBOS, Lloyds TSB and HSBC were all down by as muchg as 12% already. Barclays was down 5% after news that the bank is still in talks with failed US investmnet bank Lehman Bros. Barclayts wants to cherry pick some of its assets, including its core broker-dealer business.
The banks were also hit with the fact that in the interbank market the cost of borrowing overnight dollar funds had jumped to over 10%, which was 5-times the Fed Res target rate. The Fed Res will announce its interest rate decison at 7:15pm London Time, with a 0.25% cut expected.
In the Far East the Nikkei 225 closed down 5% and touched its lowest level in three years on Tuesday. Wall Street had its worst day on Monday since markets reopened after the September 11 attacks.
On to oil, where the price of the black stuff down at $92 bbl at one stage causing investors to look elsewhere. BP, RD Shell, BG Group, Tullow Oil and Cairn Energy were all down 2% to nearly 10% already this morning. News from Tullow Oil that it had plugged and abandoned one of its Indian wells after a failure to find hydrocarbons.
On to the miners, who were all down as metal prices fell. All the majors were off 3 to 6% already.
Michael Page was down 25% early doors on news that Adecco, the world's largest staffing firm, had said that it wouldn't be making an offer. This has been up in the air for months.
On to the High Street where Carphone Warehouse was up 3.5% already as news that the US peer Best Buy was set to take out digital music service Napster Inc for US$121m. Carphone Warehouse has a JV with Best Buy.
British Airways was up 4% early doors, as was easyJet, as a lower oil price helped the users of the stuff.
The utilities were also immune this morning, with Centrica, United Utilities and Scottish & Southern Energy all up.
Monday, 15 September 2008
Market Wrap, Monday 15th September 2008
The FTSE 100 closed down 212.5 points at 5,204.2 today, whilst the FTSE 250 closed down 268.3 points at 8,708.4, and for those interested the FTSE Small Caps down 52.1 points at 2,747. It was all a reflection on the US bank news.
Over the pond, by the time London closed the DJI was down 276 points at 11,146, whilst the S&P500 down 27 points at 1,224, and the Nasdaq down 33 points at 2,228. The Lehman Brothers bankruptcy news had almost bgeen expected, but most assumed there would be a bail out. Lehman Brothers has apparently a total debt book of US$613bn, with total assets of US$639bn, according to the Chapter 11 filing papers filed yesterday. Merrill Lynch was taken over by Bank of America, which was a surprise. Massive deal, that, with the world's largest broking house now at BoA. AIG managed to secure a US$40 bln loan from the Federal Reserve, though, so they were helped out. Wall Street looks like falling some mkore.
Back here in London, the Bank of England tried to reassure the UK markets by saying that it is 'monitoring conditions' in the sterling money markets, and said it will 'act' to stabilise them if necessary. That didn't really help, to be truthful, with the banking stocks among the major casualties today. HBOS closed down 49.5p at 232.5p as it is far more reliant than any other UK bank on borrowing in the wholesale markets for its funding, meaning that with Lehman's going under the cost of funding could now rise again. Barclays closed down 34.5p at 316p despite showing some strength by being in the running to take over Lehman's, whilst RBS closed down over 29p at 210.5p, and Lloyds TSB down nearly 16p at 273.25p.
Staying in finance, the fund managers were also hit. Man Group closed down nearly 46p at just shy of 477p, whilst Schroders closed down 53.5p at 977.5p.
Also in financials, the insurance sector was hit, mainly due to the fall out from the hurricane Ike in the Gulf of Mexico, but also due to the AIG emergency $40 bln loan secured, causing some worries this side of the pond. Aviva close ddown 44p at 489.5p, whilst the Pru closed down 51p at a fiver-even, and Legal & General closed down 7.3p at 92.1p and Friends Provident down 17.6p to 81p.
On to oil, where the price of the black stuff was now back at US$96 bbl, a far cry from the speculative and dizzy heights of $147 bbl a couple of months ago. BP closed down 18.5p at 491.5p, RD Shell down 70p at 1,648p, whilst BG Group closed down 71p at 1,096p.
IOn contrast, those that use the stuff did well. British Airways closed up nearly 4p at 261.25p, whilst travel groups Thomas Cook closed up 4.75p at 255.5p, and TUI Travel up a penny at 239p. Meanwhile, cruise ship operator Carnival closed up 34p at 2,108p,
On to commodities of metallic properties, were the price of copper was down again, as too with lead, zinc and nickel. This was reflected in the miners, where BHP closed down 68p at 1,441p, Rio down 296p at 4,194p, Anto down over 34p at 493.25p, Kazakhmys down 121.5p at 780p, and Anglo down 93p at 2,409p.
The utilities did well, considering, with Centrica up 4.25p at 322p, whilst National Grid closed up a penny at 718p, Scottish & Southern Energy up 18p at 1,398p, and United Utilities up 5.5p at 694p.
On to the housebuilders, where Taylor Wimpey closed down 8.25p at 45.75p, Barratts down 11.25p at 134.25p, Persimmon down over 40p at 360p, and Bovis Homes down over 27p at just shy of 469p.
Capita had the best day on the board, closing up 17p at 719.5p.
Over the pond, by the time London closed the DJI was down 276 points at 11,146, whilst the S&P500 down 27 points at 1,224, and the Nasdaq down 33 points at 2,228. The Lehman Brothers bankruptcy news had almost bgeen expected, but most assumed there would be a bail out. Lehman Brothers has apparently a total debt book of US$613bn, with total assets of US$639bn, according to the Chapter 11 filing papers filed yesterday. Merrill Lynch was taken over by Bank of America, which was a surprise. Massive deal, that, with the world's largest broking house now at BoA. AIG managed to secure a US$40 bln loan from the Federal Reserve, though, so they were helped out. Wall Street looks like falling some mkore.
Back here in London, the Bank of England tried to reassure the UK markets by saying that it is 'monitoring conditions' in the sterling money markets, and said it will 'act' to stabilise them if necessary. That didn't really help, to be truthful, with the banking stocks among the major casualties today. HBOS closed down 49.5p at 232.5p as it is far more reliant than any other UK bank on borrowing in the wholesale markets for its funding, meaning that with Lehman's going under the cost of funding could now rise again. Barclays closed down 34.5p at 316p despite showing some strength by being in the running to take over Lehman's, whilst RBS closed down over 29p at 210.5p, and Lloyds TSB down nearly 16p at 273.25p.
Staying in finance, the fund managers were also hit. Man Group closed down nearly 46p at just shy of 477p, whilst Schroders closed down 53.5p at 977.5p.
Also in financials, the insurance sector was hit, mainly due to the fall out from the hurricane Ike in the Gulf of Mexico, but also due to the AIG emergency $40 bln loan secured, causing some worries this side of the pond. Aviva close ddown 44p at 489.5p, whilst the Pru closed down 51p at a fiver-even, and Legal & General closed down 7.3p at 92.1p and Friends Provident down 17.6p to 81p.
On to oil, where the price of the black stuff was now back at US$96 bbl, a far cry from the speculative and dizzy heights of $147 bbl a couple of months ago. BP closed down 18.5p at 491.5p, RD Shell down 70p at 1,648p, whilst BG Group closed down 71p at 1,096p.
IOn contrast, those that use the stuff did well. British Airways closed up nearly 4p at 261.25p, whilst travel groups Thomas Cook closed up 4.75p at 255.5p, and TUI Travel up a penny at 239p. Meanwhile, cruise ship operator Carnival closed up 34p at 2,108p,
On to commodities of metallic properties, were the price of copper was down again, as too with lead, zinc and nickel. This was reflected in the miners, where BHP closed down 68p at 1,441p, Rio down 296p at 4,194p, Anto down over 34p at 493.25p, Kazakhmys down 121.5p at 780p, and Anglo down 93p at 2,409p.
The utilities did well, considering, with Centrica up 4.25p at 322p, whilst National Grid closed up a penny at 718p, Scottish & Southern Energy up 18p at 1,398p, and United Utilities up 5.5p at 694p.
On to the housebuilders, where Taylor Wimpey closed down 8.25p at 45.75p, Barratts down 11.25p at 134.25p, Persimmon down over 40p at 360p, and Bovis Homes down over 27p at just shy of 469p.
Capita had the best day on the board, closing up 17p at 719.5p.
Morning Market, Monday 15th September 2008
The FTSE was down some 180 points at 5,236 this morning, wityh the banks taking hits, as expected. The collapse of Lehman Brothers bank has been taken hard, as was the takeover of Merrill Lynch by the Bank of America. News that American insurer AIG had done to the Fed Res for a $40 bln handout, or bridging loan (?!) was also the talk of the town. It was a sea of red on the boards today, with none of the 100 in positive territory.
In the US the top 10 banks have set up a $70 bln emergency fund, to be used to help ailing situations, is a start. The US Fed Res have also said they will accept stocks and shares in payment for cash owed, which is another first.
Bank of America buying Merrill Lynch, in an all-stock deal worth US$50 bln, has created the world's largest stockbroking firm.
Over the pond on Friday the DJI closed down 11.72 points at 11,421.99, whilst the S&P500 closed up 2.65 points at 1,251.70, and the Nasdaq up 3.05 points at 2,261.27, but don't expect a positive day this afternoon when the US opens again.
Here in London this morning the banks were down, with RBS, Barclays and Lloyds TSB down between 5% and 9% already this morning, whilst HBOS was down a worrying 13% at 246p.
Staying in financials, insurance giant Friends Provident was down 9% this morning, whilst the Pru was down 6.5%, both as a reaction to the whole scenario, and with the AIG news from the US also giving investors reason to try and exit.
The London Stock Exchange (LSE:LSE) was down 4.5% this morning too, again as a general reaction.
On to oil, where the price of the black stuff was now sub-US$100 bbl, despite OPEC reducing production and the Gulf of Mexico trying to get going again after Hurricane Ike. The majors were down, with BP off 1.5% this morning, RD Shell nearly 2% this morning, and BG Group down nearly 3%.
Nuclear power group British Energy was also down this morning after weekend pres reports that EDF, the French power giant, was sniffing with intent again to make an offer for British Energy this week.
On to the High Street, where supermarket chain Sainsburys was down nearly 4% this morning after press reports that the chief executive, Justin King, had said that consumer sentiment was even worse than it had ever been on the run up to last Xm,as.
On to leisure, where pub operator Enterprise Inns was down over 5% this morning, with its kicking out of the FTSE 100 now almost a foregone conclusion. Press reports that the British Beer and Pub Association report that 36 pubs are closing each week in the UK, with beer sales at thier lowest levels since the depression back in the 1930s.
In the US the top 10 banks have set up a $70 bln emergency fund, to be used to help ailing situations, is a start. The US Fed Res have also said they will accept stocks and shares in payment for cash owed, which is another first.
Bank of America buying Merrill Lynch, in an all-stock deal worth US$50 bln, has created the world's largest stockbroking firm.
Over the pond on Friday the DJI closed down 11.72 points at 11,421.99, whilst the S&P500 closed up 2.65 points at 1,251.70, and the Nasdaq up 3.05 points at 2,261.27, but don't expect a positive day this afternoon when the US opens again.
Here in London this morning the banks were down, with RBS, Barclays and Lloyds TSB down between 5% and 9% already this morning, whilst HBOS was down a worrying 13% at 246p.
Staying in financials, insurance giant Friends Provident was down 9% this morning, whilst the Pru was down 6.5%, both as a reaction to the whole scenario, and with the AIG news from the US also giving investors reason to try and exit.
The London Stock Exchange (LSE:LSE) was down 4.5% this morning too, again as a general reaction.
On to oil, where the price of the black stuff was now sub-US$100 bbl, despite OPEC reducing production and the Gulf of Mexico trying to get going again after Hurricane Ike. The majors were down, with BP off 1.5% this morning, RD Shell nearly 2% this morning, and BG Group down nearly 3%.
Nuclear power group British Energy was also down this morning after weekend pres reports that EDF, the French power giant, was sniffing with intent again to make an offer for British Energy this week.
On to the High Street, where supermarket chain Sainsburys was down nearly 4% this morning after press reports that the chief executive, Justin King, had said that consumer sentiment was even worse than it had ever been on the run up to last Xm,as.
On to leisure, where pub operator Enterprise Inns was down over 5% this morning, with its kicking out of the FTSE 100 now almost a foregone conclusion. Press reports that the British Beer and Pub Association report that 36 pubs are closing each week in the UK, with beer sales at thier lowest levels since the depression back in the 1930s.
Pre-Market News - US Banking News, Monday 15th Sep 2008
What a weekend. Over the pond there has been some serious stuff going on, which no doubt you've heard most.
Lehman Brothers filed for Chapter 11 Bankruptcy protection as it could reach a deal over the last 3 days. Barclays and Bank of America were in the frame, trying to do a deal, but both wanted reassurances and guarantees on the exposure of future debt of Lehman's as it's impossible to calculate. This is serious stuff. Had the Fed Reserve or US government guaranteed a level of maximum write-backs by the buyer then a deal would have been done, but the government refused.
Then... Merrill Lynch was bought out by Bank of America for US$50 bln. Yes - $50 bln. BoA want all thier broking clients, is the word. We presume they'll continue to trade with the Merrill's name, albeit owned by Bank of America.
AIG, the massive US insurance firm is touting around trying to find the small matter of a US$40 bln bridging loan so to sure up its own finances and prevent a credit rating write-down. For any Man United fans, this isn’t quite the same level as the XL Holidays failure that affected West Ham’s shirt sponsoring, although could possibly be the same result, in that AIG may have to drop expenditure like that. But in the scale of things, AIG won’t be ‘going under’, so no need to fret. Yet.
Goldman Sachs & JP Morgan are the only two remaining independent major banks that remain intact.
Needless to say, there will be repercussions throughout the sector in all world sessions today.
Let us also not forget that the US government has massive deficits, mainly due to the tax cuts by the US administration years ago, which weren't accompanied by less spending. In fact the opposite, spending went up., So the US government has massive loans with Japanese and Chinese banks.
Lehman Brothers filed for Chapter 11 Bankruptcy protection as it could reach a deal over the last 3 days. Barclays and Bank of America were in the frame, trying to do a deal, but both wanted reassurances and guarantees on the exposure of future debt of Lehman's as it's impossible to calculate. This is serious stuff. Had the Fed Reserve or US government guaranteed a level of maximum write-backs by the buyer then a deal would have been done, but the government refused.
Then... Merrill Lynch was bought out by Bank of America for US$50 bln. Yes - $50 bln. BoA want all thier broking clients, is the word. We presume they'll continue to trade with the Merrill's name, albeit owned by Bank of America.
AIG, the massive US insurance firm is touting around trying to find the small matter of a US$40 bln bridging loan so to sure up its own finances and prevent a credit rating write-down. For any Man United fans, this isn’t quite the same level as the XL Holidays failure that affected West Ham’s shirt sponsoring, although could possibly be the same result, in that AIG may have to drop expenditure like that. But in the scale of things, AIG won’t be ‘going under’, so no need to fret. Yet.
Goldman Sachs & JP Morgan are the only two remaining independent major banks that remain intact.
Needless to say, there will be repercussions throughout the sector in all world sessions today.
Let us also not forget that the US government has massive deficits, mainly due to the tax cuts by the US administration years ago, which weren't accompanied by less spending. In fact the opposite, spending went up., So the US government has massive loans with Japanese and Chinese banks.
Friday, 12 September 2008
Market Wrap, Friday 12th September 2008
The FTSE 100 closed up 98.3 points today at 5,416.7, whilst the FTSE 250 closed up 101.8 points at 8,976.7. For those that are interested, the FTSE Small Caps closed up 7.3 points at 2,799.1.
Over the pond, whilst Wall Street opened down, it sooned rallied (GAP!), and buy the time London closed was only down about 8 points at 11,426, whilst the S&P500 down just 1 point at 1,250, and the Nasdaq up 2 points at 2,260. News that US retail sales were down caused the early fall, but the financial sector took a turn for the better, mainly after news that investment bank Leham Brothers was talking with the US government about a number of options, with a positive result expected.
Back here in London, news that XL Leisure Group, owners of XL Airways, had gone belly up helped its peers. The mining stocks were also strong today.
Staying with the news, Thomas Cook closed up nearly 16p at just shy of 251p, whilst TUI Travel closed up over 16p at 238p. Holidaybreak, the smaller travel firm, closed down 6p at 350p as investors felt this one wasn't as strong, despite Lanbanski giving all 3 the thumbs up with 'buy' ratings. Anite was also down 1.5p at 39p as investors felt this one wasn't as strong as others, as well, wary that the company could be owed bundles by XL, which is now in administration.
The miners were all strong after a Dresdner Kleinwort upgrade for the sector to to 'neutral' from 'underweight', saying that metal prices rising again was a good reason to get in again. ENRC closed up 60p at 722p, Xstrata up 165p at 2,440p, Anglo up 194p at 2,502p and Anto up nearly 34p at 527.5p.
With OPEC dropping production, and the hurricane Ike almost at landfall in the Gulf of Mexico, oil was up at US$102 bbl. The majors were up, with BP up 8p at 510p, BG Group up 67p at 1,167p, and Tullow OIl up 38p at 789p.
On to financials, where the news on Lehman helped the UK banks too. RBS closed up 5.5p at just shy of 240p, Barclays closed up 12p at 350.5p, and Lloyds TSB up 6.5p at just shy of 290p.
Building materials group Wolseley closd down nearly 21p at 445.25p after a Citibank downgrade to 'sell' from 'buy', adding a 310p target.
On to retail, namely supermarkets, where Sainsburys closed up nearly 20p at 365p as rumours continued of a possible buyout. Peer Morrisons closed up nearly 6p at 259.5p despite saying that H2 trading would be tough, but it did meet targets for H1. Morrisons is still on Citi's favoured list, though, as their property and share buy-back programme are very positive points for investors. Citi has a target of 320p down from 375p.
BAE Systems closed down 3p at 456p after saying it will extend its offer for Detica Group until 25Sep.
French Connection Group closd down a penny at 64.5p after a cautious outlook and higher 1st-half losses.
Over the pond, whilst Wall Street opened down, it sooned rallied (GAP!), and buy the time London closed was only down about 8 points at 11,426, whilst the S&P500 down just 1 point at 1,250, and the Nasdaq up 2 points at 2,260. News that US retail sales were down caused the early fall, but the financial sector took a turn for the better, mainly after news that investment bank Leham Brothers was talking with the US government about a number of options, with a positive result expected.
Back here in London, news that XL Leisure Group, owners of XL Airways, had gone belly up helped its peers. The mining stocks were also strong today.
Staying with the news, Thomas Cook closed up nearly 16p at just shy of 251p, whilst TUI Travel closed up over 16p at 238p. Holidaybreak, the smaller travel firm, closed down 6p at 350p as investors felt this one wasn't as strong, despite Lanbanski giving all 3 the thumbs up with 'buy' ratings. Anite was also down 1.5p at 39p as investors felt this one wasn't as strong as others, as well, wary that the company could be owed bundles by XL, which is now in administration.
The miners were all strong after a Dresdner Kleinwort upgrade for the sector to to 'neutral' from 'underweight', saying that metal prices rising again was a good reason to get in again. ENRC closed up 60p at 722p, Xstrata up 165p at 2,440p, Anglo up 194p at 2,502p and Anto up nearly 34p at 527.5p.
With OPEC dropping production, and the hurricane Ike almost at landfall in the Gulf of Mexico, oil was up at US$102 bbl. The majors were up, with BP up 8p at 510p, BG Group up 67p at 1,167p, and Tullow OIl up 38p at 789p.
On to financials, where the news on Lehman helped the UK banks too. RBS closed up 5.5p at just shy of 240p, Barclays closed up 12p at 350.5p, and Lloyds TSB up 6.5p at just shy of 290p.
Building materials group Wolseley closd down nearly 21p at 445.25p after a Citibank downgrade to 'sell' from 'buy', adding a 310p target.
On to retail, namely supermarkets, where Sainsburys closed up nearly 20p at 365p as rumours continued of a possible buyout. Peer Morrisons closed up nearly 6p at 259.5p despite saying that H2 trading would be tough, but it did meet targets for H1. Morrisons is still on Citi's favoured list, though, as their property and share buy-back programme are very positive points for investors. Citi has a target of 320p down from 375p.
BAE Systems closed down 3p at 456p after saying it will extend its offer for Detica Group until 25Sep.
French Connection Group closd down a penny at 64.5p after a cautious outlook and higher 1st-half losses.
Morning Market, Friday 12th September 2008
The FTSE 100 was up about 75 poiints this morning at 5,393, with the oil majors and mining heavyweights helping the index.
Over the pond, last night the DJI closed up 164.79 at 11,433.71, whilst the the S&P500 closed up 17.01 points to 1,249.05, and the Nasdaq up 29.52 points at 2,258.22. News that Lehman Brothers is actually touting around trying to get itself bought out was seen as positive.
Back here in London, with gold and other metal prices were up again, with gold now coming off the floor. This was all reflected in the mining heavyweights, with ENRC, BHP, Xstrata, Anglo all up this morning by as much as 5%.
The oil majors also did well early doors as the price of the black stuff was above US$101 bbl again, helped by concerns over hurricane Ike and also OPEC's decision to cut back production.
On to the banks, where there were some smiles. Barclays was up 2.5% already, mainly due to rumours they were in the frame for taking out US Investment Bank Lehman Brothers, whilst RBS, Lloyds TSB, and HBOS were also all up 1% to nearly 3% this morning.
On to travel, leisure, where TUI Travel and Thomas Cook were both much stronger after news that XL had gone belly up. News that XL had gfailed with some re-financing plans, blaming fuel costs, saw the stronger chgarter airlines rally. We think it could be that it wasn't just oil that caused the problem, as re-financing right now isn't easy. We won't know, but the banks could have made any re-finance deal unmanageable, or even called in some of the debt. Just speculation.
Plumbing supplies firm Wolseley didn';t have such a good morning so far, though, with a Citigroup downgrade to 'sell' from 'hold' causing a 4% fall this morning, despite a 310p target.
On to the High Street, where Next received a Morgan Stanley downgrade to 'equal-weight' from 'overweight' seeing 1.5% fall in price this morning. Peers also suffered, with Morrison Supermarkets down over 2% after yesterday's 1st half results failed to impress, and Marks & Sparks also down nearly 1% thius morning, following Next. B&Q owner Kingfisher was also down 2% this morning, as was Kesa Electricals, as 1st quarter sales reported earlier this week failed to impress, and a UBS downgrade to 'neutral' from 'buy', with a 135p target, down from 240p, took its toll on the discount retailer.
Over the pond, last night the DJI closed up 164.79 at 11,433.71, whilst the the S&P500 closed up 17.01 points to 1,249.05, and the Nasdaq up 29.52 points at 2,258.22. News that Lehman Brothers is actually touting around trying to get itself bought out was seen as positive.
Back here in London, with gold and other metal prices were up again, with gold now coming off the floor. This was all reflected in the mining heavyweights, with ENRC, BHP, Xstrata, Anglo all up this morning by as much as 5%.
The oil majors also did well early doors as the price of the black stuff was above US$101 bbl again, helped by concerns over hurricane Ike and also OPEC's decision to cut back production.
On to the banks, where there were some smiles. Barclays was up 2.5% already, mainly due to rumours they were in the frame for taking out US Investment Bank Lehman Brothers, whilst RBS, Lloyds TSB, and HBOS were also all up 1% to nearly 3% this morning.
On to travel, leisure, where TUI Travel and Thomas Cook were both much stronger after news that XL had gone belly up. News that XL had gfailed with some re-financing plans, blaming fuel costs, saw the stronger chgarter airlines rally. We think it could be that it wasn't just oil that caused the problem, as re-financing right now isn't easy. We won't know, but the banks could have made any re-finance deal unmanageable, or even called in some of the debt. Just speculation.
Plumbing supplies firm Wolseley didn';t have such a good morning so far, though, with a Citigroup downgrade to 'sell' from 'hold' causing a 4% fall this morning, despite a 310p target.
On to the High Street, where Next received a Morgan Stanley downgrade to 'equal-weight' from 'overweight' seeing 1.5% fall in price this morning. Peers also suffered, with Morrison Supermarkets down over 2% after yesterday's 1st half results failed to impress, and Marks & Sparks also down nearly 1% thius morning, following Next. B&Q owner Kingfisher was also down 2% this morning, as was Kesa Electricals, as 1st quarter sales reported earlier this week failed to impress, and a UBS downgrade to 'neutral' from 'buy', with a 135p target, down from 240p, took its toll on the discount retailer.
Thursday, 11 September 2008
Morning Market, Thursday 12th September 2008
The FTSE 100 was down 17 points at 5,349 this morning, with the miners actually holding it up from falling more.
Over the pond, US stocks actually rose yesterday, as the decision by OPEC to trim oil production and hold up the oil price to around US$100 bbl helped the majors there. News from Texas Instruments also was positivbe as well, which was taken well.
On to the High Street, where retailers were down after some disappointing results. Morrison Supermarkets was down some 5% after the supermarket chain reported 1st half results that were just in-line with expectations, but failed to give much hype for the future. Home Retail, who own Argos & Homebase, was down nealry 8% this morning after reporting figures that were actually worse than expected. B&Q owner Kingfisher was down 2.5% after a broker downgrade to 'market perform' from 'outperform'.
On to the miners, where the heavyweights were all up, as commodity prices rose. ENRC, Xstrata, Kazakhmys and Anto were also all up between 2% and 4% early doors. Ferrexpo was up 4% after news that it will demoted from the FTSE 100 in the enxt reshuffle, despite only joining the top 100 in the last quarter.
Gold was up, which was seen as possibly the start of a recovery from its 11-month low, which it hit yesterday.
Oil was still just above US$100 bbl, rising above the critical level afetr OPEC announced that cut in production. BG Group was up nearly 4% as news that Brazilian state-run oil firm Petrobras had said that it estimates the recoverable oil and gas reserves in the subsalt Iara field at 3 bln to 4 bln bbl. BG Group owns part of this field. Runours around BG Group of some sort of possile deal were again doing the rounds after the energy group asaid that it had given up hope of doing a deal or taking over Origin Energy of Australia.
Recent rumours on ITV gained even more strength, as bid hopes from the Italian broadcaster Mediaset looked hopeful, with ITV shares up 6% this morning already. A new rumours is that a priovate equity group may move in at the 11th hour to bid as well.
Over the pond, US stocks actually rose yesterday, as the decision by OPEC to trim oil production and hold up the oil price to around US$100 bbl helped the majors there. News from Texas Instruments also was positivbe as well, which was taken well.
On to the High Street, where retailers were down after some disappointing results. Morrison Supermarkets was down some 5% after the supermarket chain reported 1st half results that were just in-line with expectations, but failed to give much hype for the future. Home Retail, who own Argos & Homebase, was down nealry 8% this morning after reporting figures that were actually worse than expected. B&Q owner Kingfisher was down 2.5% after a broker downgrade to 'market perform' from 'outperform'.
On to the miners, where the heavyweights were all up, as commodity prices rose. ENRC, Xstrata, Kazakhmys and Anto were also all up between 2% and 4% early doors. Ferrexpo was up 4% after news that it will demoted from the FTSE 100 in the enxt reshuffle, despite only joining the top 100 in the last quarter.
Gold was up, which was seen as possibly the start of a recovery from its 11-month low, which it hit yesterday.
Oil was still just above US$100 bbl, rising above the critical level afetr OPEC announced that cut in production. BG Group was up nearly 4% as news that Brazilian state-run oil firm Petrobras had said that it estimates the recoverable oil and gas reserves in the subsalt Iara field at 3 bln to 4 bln bbl. BG Group owns part of this field. Runours around BG Group of some sort of possile deal were again doing the rounds after the energy group asaid that it had given up hope of doing a deal or taking over Origin Energy of Australia.
Recent rumours on ITV gained even more strength, as bid hopes from the Italian broadcaster Mediaset looked hopeful, with ITV shares up 6% this morning already. A new rumours is that a priovate equity group may move in at the 11th hour to bid as well.
Wednesday, 10 September 2008
Market Wrap, Wednesday 10th September 2008
Another negative day today, after the hype of the Fannie Mae & Freddie Mac bail outs had sunken in. Here at home the FTSE 100 closed down 49.4 points today at 5,366.2, whilst the FTSE 250 closed down 171 points at 8,967.2, and for those interested the FTSE Small Caps closed down 14 points at 2,831.2.
Over the pond, by the time London closed the DJI was up 24 points at 11,254, whilst the S&P500 was down just over a point at 1,223, whilst the Nasdaq was up 3 points at 2,213. News on Wall Street that the Lehman Brothers said it plans to sell a majority stake in its investment management unit as well as its spin off commercial real estate assets didn't give much confidence as it was accompanied by news of a 3rd quarter loss of US$3.93 billion. This put pressure on UK banks too.
So, back here in London the banks reacted to Lehman's statement and figures, with Barclays closing down over 19p at 346.5p, Lloyds TSB down nearly 13p at 295p, Standard Chartered down 54p at 1,456p and Alliance & Leicester down 15p to 295.5p.
Staying in financials, Insurance group Old Mutual closed down 3.5p to 97.4p after a surprise announcement that its CEO, Jim Sutcliffe, had departed. The immediate replacement with Julian Roberts, the former head of Skandia, was accepted fairly well, though, although the addition to the statement that Old Mutual would also be writing down US$135m to cover the stock held by Old Mutual's US life business of Fannie Mae and Freddie Mac.
Falling metal prices hit commodity shares, with gold at a new low for the year, and copper also down again. This was reflected in the heavyweights, with BHP Billiton closing down 20p at 1,385p, Rio down 114p at 4,151p, Kazakhmys down nearly 80p at 825p, Xstrata down 133p at 2,225p, Vedanta down 43p to 1,513p, Anglo American down 59p at 2,195p, Lonmin down 9p at 3,066p, and Antofagasta off almost 7p at 488p.
On to the black stuff, where the oil majors fought back after OPEC decided to actually reduce oil production, albeit not by much. RD Shell closed up 6p at 1,686p, Tullow Oil up 3p at 733p, and Cairn Energy closed up 40p at 2,517p.
On to the High Street, where retail shares were under pressure too. Next closed down 23p, some 2%, at 1,120p after posting a 12% fall in 1st-half pre-tax profit of £173.5m. The fashion retailer did add that its full year forecast stayed on track with market expectations. Peer Marks & Sparks closed down 4% on the day. Kesa Electricals closed down 15.5p, or almost 10% to 142.5p, after reporting weaker than expected 1st-quarter sales. In contrast to most, Thorntons, the chocolate specialist, posted a nigh-on 20% rise in annual profit, adding that this year had started well, with the shares closing up 6p at 118p.
ITV was up another 6.6%, still on the back of this ongoing bid speculation. Speculation was gaining strength as the appointment to the board of cable group Virgin Media was seen as making something like a bid or takeover far more likely. You may recall that Virgin Media had previously failed with a bid for the broadcaster.
On to the pharmas, where GlaxoSmithKline closed up 2% on the day after news that the pharma giant will pay as much as US$1.5 bln to develop new drugs against inflammatory disease, but will be doing this in conjunction with the Anglo-German biotech company Cellzome. Other pharmaceuticals also did well, with many investors seeing the sector as safe.
Commercial property was on the up, with British Land closing up 37.5p at 812.5p, Land Securities up 45p at 1,420p, Hammersons up 20.5p at 994.5p and Liberty International up 28p at 991p.
On to leisure, where Enterprise Inns closed down nearly 31p at 234.25p as it seems inevitable that demotion from the FTSE 100 is now on the cards at the next reshuffle.
On to the housebuilders, where Barratt Developments said it won't be paying a final divvy as the 13% fall in annual profit put paid to that. The builder added that the market remains difficult, and that selling prices are under pressure. Peer Taylor Wimpey announced that it has sold its Taylor Woodrow Construction business for £74m, allowing the builder to concentrate on its core housebuilding business whilst continuing to cut costs. Barratts closed down half a penny at 156p and Taylkor Wimpey down nearly 2p at just shy of 56p, whilst peers were mixed, with Bovis closing up 6.5p at 500p, Redrow up over 13p at 218.25p, Persimmon down 9p to 422.5p, and Bellway Home down 8p at 686.5p.
Finally, RAB Capital closed up 0.25p to 29.5p after announcing plans to restructure its flagship Special Situations fund, which has not performed well after gambles with smaller mining and development stocks backfired.
Over the pond, by the time London closed the DJI was up 24 points at 11,254, whilst the S&P500 was down just over a point at 1,223, whilst the Nasdaq was up 3 points at 2,213. News on Wall Street that the Lehman Brothers said it plans to sell a majority stake in its investment management unit as well as its spin off commercial real estate assets didn't give much confidence as it was accompanied by news of a 3rd quarter loss of US$3.93 billion. This put pressure on UK banks too.
So, back here in London the banks reacted to Lehman's statement and figures, with Barclays closing down over 19p at 346.5p, Lloyds TSB down nearly 13p at 295p, Standard Chartered down 54p at 1,456p and Alliance & Leicester down 15p to 295.5p.
Staying in financials, Insurance group Old Mutual closed down 3.5p to 97.4p after a surprise announcement that its CEO, Jim Sutcliffe, had departed. The immediate replacement with Julian Roberts, the former head of Skandia, was accepted fairly well, though, although the addition to the statement that Old Mutual would also be writing down US$135m to cover the stock held by Old Mutual's US life business of Fannie Mae and Freddie Mac.
Falling metal prices hit commodity shares, with gold at a new low for the year, and copper also down again. This was reflected in the heavyweights, with BHP Billiton closing down 20p at 1,385p, Rio down 114p at 4,151p, Kazakhmys down nearly 80p at 825p, Xstrata down 133p at 2,225p, Vedanta down 43p to 1,513p, Anglo American down 59p at 2,195p, Lonmin down 9p at 3,066p, and Antofagasta off almost 7p at 488p.
On to the black stuff, where the oil majors fought back after OPEC decided to actually reduce oil production, albeit not by much. RD Shell closed up 6p at 1,686p, Tullow Oil up 3p at 733p, and Cairn Energy closed up 40p at 2,517p.
On to the High Street, where retail shares were under pressure too. Next closed down 23p, some 2%, at 1,120p after posting a 12% fall in 1st-half pre-tax profit of £173.5m. The fashion retailer did add that its full year forecast stayed on track with market expectations. Peer Marks & Sparks closed down 4% on the day. Kesa Electricals closed down 15.5p, or almost 10% to 142.5p, after reporting weaker than expected 1st-quarter sales. In contrast to most, Thorntons, the chocolate specialist, posted a nigh-on 20% rise in annual profit, adding that this year had started well, with the shares closing up 6p at 118p.
ITV was up another 6.6%, still on the back of this ongoing bid speculation. Speculation was gaining strength as the appointment to the board of cable group Virgin Media was seen as making something like a bid or takeover far more likely. You may recall that Virgin Media had previously failed with a bid for the broadcaster.
On to the pharmas, where GlaxoSmithKline closed up 2% on the day after news that the pharma giant will pay as much as US$1.5 bln to develop new drugs against inflammatory disease, but will be doing this in conjunction with the Anglo-German biotech company Cellzome. Other pharmaceuticals also did well, with many investors seeing the sector as safe.
Commercial property was on the up, with British Land closing up 37.5p at 812.5p, Land Securities up 45p at 1,420p, Hammersons up 20.5p at 994.5p and Liberty International up 28p at 991p.
On to leisure, where Enterprise Inns closed down nearly 31p at 234.25p as it seems inevitable that demotion from the FTSE 100 is now on the cards at the next reshuffle.
On to the housebuilders, where Barratt Developments said it won't be paying a final divvy as the 13% fall in annual profit put paid to that. The builder added that the market remains difficult, and that selling prices are under pressure. Peer Taylor Wimpey announced that it has sold its Taylor Woodrow Construction business for £74m, allowing the builder to concentrate on its core housebuilding business whilst continuing to cut costs. Barratts closed down half a penny at 156p and Taylkor Wimpey down nearly 2p at just shy of 56p, whilst peers were mixed, with Bovis closing up 6.5p at 500p, Redrow up over 13p at 218.25p, Persimmon down 9p to 422.5p, and Bellway Home down 8p at 686.5p.
Finally, RAB Capital closed up 0.25p to 29.5p after announcing plans to restructure its flagship Special Situations fund, which has not performed well after gambles with smaller mining and development stocks backfired.
Tuesday, 9 September 2008
Market Wrap, Tuesday 9th September 2008
After a really decent day yesterday (LSE trading system excluded), and a decent start this monring, realism soon came back in and the banks were under pressure again. The FTSE 100 closed down 30.7 points at 5,415.6, whilst the FTSE 250 closed down 131.8 points at 9,138.2. For those interested, the FTSE Small caps closed down 10.5 points at 2,845.2.
Over the pond, by the time London closed the DJI was down 85 points at 11,426, whilst the S&P500 was down 16 points at 1,252, and the Nasdaq down 15 points at 2,255. The US government's bailing out of the two mortgage giants, Fannie Mae and Freddie Mac, had helped the markets greatly yesterday, but maybe the one-day gains were an over reaction. Today saw a report that showed a worse than expected US home sales figure for July. Lehman Brothers Holdings shares were down about 1/3rd after fears that the bank struggle to raise cash, and could also struggle to sell its asset management business, which had looked like being wanted by many.
Back here in London, news that UK manufacturing output fell for the again for the 5th month in a row in July, which is the worst run for 7 years, soon put traders and investors back in their thinking caps. The Office for National Statistics (ONS) said that manufacturing output fell 0.2% in July, and was 1.4% lower on the year. Production of optical and electrical equipment was down, affecting the figure which was wice as bad as the -0.1% that was expected.
The banks did have a positive day, but backed off from some of the hype this morning. RBS closed up 4.5p at 249p, Barclays up 10.75p at just shy of 366p, HSBC closed up 12.25p at just over 906p, and HBOS up 1.5p at 308.5p. There were rumours doing the rounds that HSBC could be sniffing with intent to bid for UBS, which was a surprise, but the bank declined to comment.
Staying with finance, but on to insurance, where The Pru closed up some 3% on the day, whilst Legal & General closed up over 2.5% on the day and Old Mutual closed up 1.25%.
On to the miners, which didn't have such a good day. With commodities still weakening, the mining heavyweights fell back some more. Well, they have out-performed the rest of the index so far this year, we suppose. BHP closed down 80p at 1,405p, Rio down 225p at 4,265p, Xstrata down 206p at 2,358p, Antofagasta down nearly 37p at just shy of 495p, and Vedanta down 29p at 1,556p.
On to oil, where the price of the black stuff was down to about US$105 bbl, a 5-month low. It is expected that OPEC will leave output as it is as the hurricane Ike looked like being another damp squid. BP closed down nearly 10p at 507.25p, RD Shell down 32p at 1,680p, BG Group down 47p at 1,046p, Tullow Oil down 43p at 730p, and Cairn Energy down 209p at 2,477p. BG Group admitted defeat in its $11 billion hostile bid for Australia's Origin Energy. Oil services firm Petrofac fell nearly 6% on the day after a Deutsche Bank downgrade to 'hold' from 'buy', whilst Goldman Sachs removed Petrofac from its preferred "conviction buy" list.
Whilst oil was falling, those that use the stuff rose. Airline British Airways closed up 10.25p at 263.25p, whilst peer easyJet closed up nearly 27p at 375.5p, and cruise ship operator Carnival closed up 81p at 2,099p.
On to the High Street, where the retail sector news mentioned earlier wasn't taken on board by many, as Next closed up 9p at 1,143p, whilst supermarket chain Sainsburys closed up nearly 7p at 369.5p.
On to the housebuilders, where Redrow announced that it had secured a new £450m debt facility until 2011. This was taken well, but the addition that its final divvy wouldn't be paid due to the current housing market depression wasn't. Redrow still closed up 15.25p at 205p, whilst peers liked the news of the debt re-finance with Bovis closing up nearly 19p at 493.5p, Bellway up 22p at 694.5p and Persimmons closing up 11.5p at 431.5p.
IG Group closed up 12.5p at 345p after a decent update with its first quarter figures up 29%, adding that its customer base was continuing to grow.
On to the pharmas, where Shire closed down nearly 3% after a Goldman Sachs downgrade to 'neutral' from 'buy'. Dechra Pharmaceuticals had a good day, closing up 33.5p to 425p.
ITV was still the subject of bid speculation, as mentioned yesetrday with the Itlians sniffing with intent, helping the UK broadcaster to close up over 4% on the day. News that Ian Griffiths, the ex-finance director of publishing and events group EMAP, had been appointed as the new chief financial officer was also taken well by investors and traders alike.
Over the pond, by the time London closed the DJI was down 85 points at 11,426, whilst the S&P500 was down 16 points at 1,252, and the Nasdaq down 15 points at 2,255. The US government's bailing out of the two mortgage giants, Fannie Mae and Freddie Mac, had helped the markets greatly yesterday, but maybe the one-day gains were an over reaction. Today saw a report that showed a worse than expected US home sales figure for July. Lehman Brothers Holdings shares were down about 1/3rd after fears that the bank struggle to raise cash, and could also struggle to sell its asset management business, which had looked like being wanted by many.
Back here in London, news that UK manufacturing output fell for the again for the 5th month in a row in July, which is the worst run for 7 years, soon put traders and investors back in their thinking caps. The Office for National Statistics (ONS) said that manufacturing output fell 0.2% in July, and was 1.4% lower on the year. Production of optical and electrical equipment was down, affecting the figure which was wice as bad as the -0.1% that was expected.
The banks did have a positive day, but backed off from some of the hype this morning. RBS closed up 4.5p at 249p, Barclays up 10.75p at just shy of 366p, HSBC closed up 12.25p at just over 906p, and HBOS up 1.5p at 308.5p. There were rumours doing the rounds that HSBC could be sniffing with intent to bid for UBS, which was a surprise, but the bank declined to comment.
Staying with finance, but on to insurance, where The Pru closed up some 3% on the day, whilst Legal & General closed up over 2.5% on the day and Old Mutual closed up 1.25%.
On to the miners, which didn't have such a good day. With commodities still weakening, the mining heavyweights fell back some more. Well, they have out-performed the rest of the index so far this year, we suppose. BHP closed down 80p at 1,405p, Rio down 225p at 4,265p, Xstrata down 206p at 2,358p, Antofagasta down nearly 37p at just shy of 495p, and Vedanta down 29p at 1,556p.
On to oil, where the price of the black stuff was down to about US$105 bbl, a 5-month low. It is expected that OPEC will leave output as it is as the hurricane Ike looked like being another damp squid. BP closed down nearly 10p at 507.25p, RD Shell down 32p at 1,680p, BG Group down 47p at 1,046p, Tullow Oil down 43p at 730p, and Cairn Energy down 209p at 2,477p. BG Group admitted defeat in its $11 billion hostile bid for Australia's Origin Energy. Oil services firm Petrofac fell nearly 6% on the day after a Deutsche Bank downgrade to 'hold' from 'buy', whilst Goldman Sachs removed Petrofac from its preferred "conviction buy" list.
Whilst oil was falling, those that use the stuff rose. Airline British Airways closed up 10.25p at 263.25p, whilst peer easyJet closed up nearly 27p at 375.5p, and cruise ship operator Carnival closed up 81p at 2,099p.
On to the High Street, where the retail sector news mentioned earlier wasn't taken on board by many, as Next closed up 9p at 1,143p, whilst supermarket chain Sainsburys closed up nearly 7p at 369.5p.
On to the housebuilders, where Redrow announced that it had secured a new £450m debt facility until 2011. This was taken well, but the addition that its final divvy wouldn't be paid due to the current housing market depression wasn't. Redrow still closed up 15.25p at 205p, whilst peers liked the news of the debt re-finance with Bovis closing up nearly 19p at 493.5p, Bellway up 22p at 694.5p and Persimmons closing up 11.5p at 431.5p.
IG Group closed up 12.5p at 345p after a decent update with its first quarter figures up 29%, adding that its customer base was continuing to grow.
On to the pharmas, where Shire closed down nearly 3% after a Goldman Sachs downgrade to 'neutral' from 'buy'. Dechra Pharmaceuticals had a good day, closing up 33.5p to 425p.
ITV was still the subject of bid speculation, as mentioned yesetrday with the Itlians sniffing with intent, helping the UK broadcaster to close up over 4% on the day. News that Ian Griffiths, the ex-finance director of publishing and events group EMAP, had been appointed as the new chief financial officer was also taken well by investors and traders alike.
Morning Market, Tuesday 9th September 2008
Another bright start to the morning, this morning, but let's hope the LSE trading and reporting system holds up (he says, sarcastically). The FTSE was up about 65 points at 5,512, which is on top of the 205 point rise yesterday. The banks were still in fashion, with the US government's decision to help (help??!!!) the whole situation with the bail out of US mortgage giants Fannie Mae & Freddie Mac.
Media reports today have said that UK finance minister Alistair Darling is also debating to jump in to stimulate Britain's current dormant housing finance market as well. This was also taken well by the UK banks' investors. RBS, Barclays, and HSBC were all up.
On to oil, where it continued on from yesetrday with the same reasons. BP was up nearly 1%.
On to the pharmas, where a Credit Suisse target upgrade helped AstraZeneca jump nearly 2% this monring. Peer Shire was down 2%, though, after a Goldman Sachs downgrade to 'neutral' from 'buy'.
Media reports today have said that UK finance minister Alistair Darling is also debating to jump in to stimulate Britain's current dormant housing finance market as well. This was also taken well by the UK banks' investors. RBS, Barclays, and HSBC were all up.
On to oil, where it continued on from yesetrday with the same reasons. BP was up nearly 1%.
On to the pharmas, where a Credit Suisse target upgrade helped AstraZeneca jump nearly 2% this monring. Peer Shire was down 2%, though, after a Goldman Sachs downgrade to 'neutral' from 'buy'.
Monday, 8 September 2008
Market Wrap, Monday 8th September 2008
What a day... a weird, weird day. After the FTSE opened and rushed north, giving everyone a breath of hope that the US government's intervention with the Freddie Mac and Fannie Mae financial situations, the London Stock Exchange closes due to a system failure for nearly 7 hours. Yes, nearly 7 hours, that's more than 6 hours. Hello...??!!! You couldn't make it up. Trading halted at 09:13 until 4pm. Continuous trading came back on-line at 4pm. The LSE blamed connectivity. Those holding large positions were sweating.
The FTSE 100 was up 5.5% on the day, and actually closed up a very healthy 205.6 points at 5,446.3, whilst the FTSE 250 closed up 303.2 points at 9,270. For those interested in the smaller stuff, the FTSE small cap closed up 29.2 points at 2,842.6.
Over the pond, by the time London closed the DJI was up 189 points at 11,410, whilst the S&P500 was up over 15 points at 1,258, and the Nasdaq up nearly 7 points at 2,263. As we said this morning, news that the US govenrment was moving in, or bailing out, Fannie Mae and Freddie Mac with a STG £110 bln input as required, gave a much needed boost to the troubled fianncial sectors, both in the US and UK.
Back here in London it was the banks that had a good day, as expected. RBS, Barclays, and HSBC were all up over 3% to 11% on the day.
Staying in financials, but on to insurance, the larger groups were also doing well so far. The Pru, Standard Life, and Old Mutual were all up 3% to 5%.
On to oil, where the price of the black stuff was over US$107 bbl and Hurricane Ike is walking towards the Gulf of Mexico over Cuba today and tomorrow. The oil heavyweights were in demand, with BP closing up 17.8p at 517p, and peers also doing well, with RD Shell, BG Group, Tullow Oil, and Cairn Energy all up healthily, between 2% and 5% on the day.
Metal prices were also up, as the dollar weakened over the weekedn against the €uro. The heavyweights did well, with Rio closing up 175p at 4,490p, and most peers did similar, with BHP, ENRC, Xstrata, and Anglo all up between 3.5% and 5%. News from BHP Billiton that its final divvy would be 41 cents per share helped, as did the mining giant adding that it is confident for the medium term. Takeover target Lonmin was also up some 2.5% this morning after weekend press reports that it is exploring a 'triple merger' with two other rivals, which will create the world's 2nd largest platinum mining company, so to prevent being taken over by Xstrata.
ITV closed up 1.8p, or over 4% at 44p on news that Mediaset SpA, the Italian independent broadcaster, is sniffing with intenet to bid.
On to the pharmas, and to finish on a negative, GlaxoSmithKline closed down 1.5%, recovering from a 3% drop early doors, and peer AstraZeneca closing up slightly after a 1.5% ddrop this morning, before the market trading was suspended.
On to the High Street, where PC World & Currys Digital owner DSG International closed up 4p, some 7% higher, at 59.7p after confirming at the weekend that it was not in talks with German rival Metro AG about a possible takeover after all. Staying in the High Street with clothing, where Next closed up 51p at 1,134p, which was welcome after recent fall backs.
The FTSE 100 was up 5.5% on the day, and actually closed up a very healthy 205.6 points at 5,446.3, whilst the FTSE 250 closed up 303.2 points at 9,270. For those interested in the smaller stuff, the FTSE small cap closed up 29.2 points at 2,842.6.
Over the pond, by the time London closed the DJI was up 189 points at 11,410, whilst the S&P500 was up over 15 points at 1,258, and the Nasdaq up nearly 7 points at 2,263. As we said this morning, news that the US govenrment was moving in, or bailing out, Fannie Mae and Freddie Mac with a STG £110 bln input as required, gave a much needed boost to the troubled fianncial sectors, both in the US and UK.
Back here in London it was the banks that had a good day, as expected. RBS, Barclays, and HSBC were all up over 3% to 11% on the day.
Staying in financials, but on to insurance, the larger groups were also doing well so far. The Pru, Standard Life, and Old Mutual were all up 3% to 5%.
On to oil, where the price of the black stuff was over US$107 bbl and Hurricane Ike is walking towards the Gulf of Mexico over Cuba today and tomorrow. The oil heavyweights were in demand, with BP closing up 17.8p at 517p, and peers also doing well, with RD Shell, BG Group, Tullow Oil, and Cairn Energy all up healthily, between 2% and 5% on the day.
Metal prices were also up, as the dollar weakened over the weekedn against the €uro. The heavyweights did well, with Rio closing up 175p at 4,490p, and most peers did similar, with BHP, ENRC, Xstrata, and Anglo all up between 3.5% and 5%. News from BHP Billiton that its final divvy would be 41 cents per share helped, as did the mining giant adding that it is confident for the medium term. Takeover target Lonmin was also up some 2.5% this morning after weekend press reports that it is exploring a 'triple merger' with two other rivals, which will create the world's 2nd largest platinum mining company, so to prevent being taken over by Xstrata.
ITV closed up 1.8p, or over 4% at 44p on news that Mediaset SpA, the Italian independent broadcaster, is sniffing with intenet to bid.
On to the pharmas, and to finish on a negative, GlaxoSmithKline closed down 1.5%, recovering from a 3% drop early doors, and peer AstraZeneca closing up slightly after a 1.5% ddrop this morning, before the market trading was suspended.
On to the High Street, where PC World & Currys Digital owner DSG International closed up 4p, some 7% higher, at 59.7p after confirming at the weekend that it was not in talks with German rival Metro AG about a possible takeover after all. Staying in the High Street with clothing, where Next closed up 51p at 1,134p, which was welcome after recent fall backs.
Morning Market, Monday 8th September 2008
The FTSE started the week with a decent jump up after the weekend news that the US government would take conrtrol of Fannie Mae & Freddie Mac had leaked out on Friday. News that some £110 bln would be put in to the two US mortgage giants will no doubt be taken positive. Between them, these two are behind about half the home loans in the US.
However, one wonders whether the weekend announcement was leaked Friday afternoon, as over the pond on Friday, after a nigh-on 150 fall in the morning, the DJI recovered to actually finish up 32 points at 11,220 (Fade the Gap!). The S&P500 closed down 5.4 points at 1,242, whilst the Nasdaq down 3 points at 2,255. It was a poor week overall, though, with many short positions being closed too, one feels, plus the news about Fannie Mae & Freddie Mac could possibly have been leaked. The unemployment figures had previously painted a downbeat picture and negative feeling on Thursday.
In the Far East today the Nikkei 225 also closed up some 3% on the day.
Back here in London, The FTSE was up 3.5% already this morning on the news from the US. The FTSE 100 was up 185 points at 5,426, a decent jump, wiping out halfd the 7% loss last week.
The banks were doing well early doors, with RBS, Barclays, HSBC, Stanbdard Chartered, Lloyds TSB and HBOS all up between 5% and 13% already today.
Staying in financials, but on to insurance, the larger groups were also doing well so far. The Pru, Standard Life, and Old Mutual were all up 4% or 5%.
On to oil, where the price of the black stuff was over US$107 bbl and Hurricane Ike is walking towards the Gulf of Mexico over Cuba today and tomorrow. The oil heavyweights were in demand, with BP, RD Shell, BG Group, Tullow Oil, and Cairn Energy all up healthily, between 2% and 5% this morning.
On to the miners, where commodities were up, as the dollar weakened against the €uro. BHP, Rio, ENRC, Xstrata, and Anglo all up between 5% and 7% this morning already. News from BHP Billiton that its final divvy would be 41 cents per share helped, as did the mining giant adding that it is confident for the medium term. Takeover target Lonmin was also up some 2.5% this morning after weekend press reports that it is exploring a 'triple merger' with two other rivals, which will create the world's 2nd largest platinum mining company, so to prevent being taken over by Xstrata.
On to the High Street, where PC World owner DSG International was up 5% this morning after saying that it was not in talks German rival Metro AG about a takeover.
ITV was up over 4% this morning on news that Mediaset SpA, the Italian independent broadcaster, is sniffing with intenet to bid.
On to the pharmas, and to finish on a negative, GlaxoSmithKline was down 3% this morning and peer AstraZeneca was down nearly half that.
However, one wonders whether the weekend announcement was leaked Friday afternoon, as over the pond on Friday, after a nigh-on 150 fall in the morning, the DJI recovered to actually finish up 32 points at 11,220 (Fade the Gap!). The S&P500 closed down 5.4 points at 1,242, whilst the Nasdaq down 3 points at 2,255. It was a poor week overall, though, with many short positions being closed too, one feels, plus the news about Fannie Mae & Freddie Mac could possibly have been leaked. The unemployment figures had previously painted a downbeat picture and negative feeling on Thursday.
In the Far East today the Nikkei 225 also closed up some 3% on the day.
Back here in London, The FTSE was up 3.5% already this morning on the news from the US. The FTSE 100 was up 185 points at 5,426, a decent jump, wiping out halfd the 7% loss last week.
The banks were doing well early doors, with RBS, Barclays, HSBC, Stanbdard Chartered, Lloyds TSB and HBOS all up between 5% and 13% already today.
Staying in financials, but on to insurance, the larger groups were also doing well so far. The Pru, Standard Life, and Old Mutual were all up 4% or 5%.
On to oil, where the price of the black stuff was over US$107 bbl and Hurricane Ike is walking towards the Gulf of Mexico over Cuba today and tomorrow. The oil heavyweights were in demand, with BP, RD Shell, BG Group, Tullow Oil, and Cairn Energy all up healthily, between 2% and 5% this morning.
On to the miners, where commodities were up, as the dollar weakened against the €uro. BHP, Rio, ENRC, Xstrata, and Anglo all up between 5% and 7% this morning already. News from BHP Billiton that its final divvy would be 41 cents per share helped, as did the mining giant adding that it is confident for the medium term. Takeover target Lonmin was also up some 2.5% this morning after weekend press reports that it is exploring a 'triple merger' with two other rivals, which will create the world's 2nd largest platinum mining company, so to prevent being taken over by Xstrata.
On to the High Street, where PC World owner DSG International was up 5% this morning after saying that it was not in talks German rival Metro AG about a takeover.
ITV was up over 4% this morning on news that Mediaset SpA, the Italian independent broadcaster, is sniffing with intenet to bid.
On to the pharmas, and to finish on a negative, GlaxoSmithKline was down 3% this morning and peer AstraZeneca was down nearly half that.
Friday, 5 September 2008
Market Wrap, Friday 5th September 2008
Not a good week. In fact, the worst week for 6 years. The FTSE lost 7% this week, in 5 days' trading, with 2.3% of the drop today. The FTSE closed down 121.4 points at 5,240.7, whilst the FTSE 250 closed down 183.2 points at 8,966.8. The FTSE is down 19% this year alone.
Over the pond, by the time London closed, the DJI was down 77 points at 11,111, whilst the S&P500 was down 13 points at 1,224, and the Nasdaq down nearly 30 points at 2,230. The non-farm payroll figures were poor, showing US unemployment at 6.1% for August, which is the worst figure for 5 years. There were lay offs, in as much that employers cut payroll numbers for the 8th straight month.
Back here in London, it was the banks and the miners that pulled the index down, all due to general world economic concerns, with the US non-farm figures summarising the world economic situation and direction.
The banks had a poor day, with yesterday's comments from the ECB President still ringing in everyone's ears. Barclays closed down 12p at 317p, whilst RBS, HSBC, Standard Chartered, and HBOS were also all down today by as much as 3.5%.
On to telecoms, where Vodafone was down 6.2p, or 4.5% to 131.7p after news from Nokia that the world economical situation would weigh on the mobile phone maker's performance. Nokia added that there was now tougher competition and that their own handset portfolio choice was weaker, which would hit its market share in the 3rd quarter. Nokia shares were down 10% on the day.
On to the miners, where the heavyweights were all down, with metal prices also falling back. BHP, Rio, ENRC, Xstrata, Ferrexpo, and Anglo all falling between 3% and 7.5% on the day. Ferrexpo, the Ukrainian iron ore miner, was also hit by concerns about the rising political tensions in the Ukraine.
On to the oil majors, where BP closed down 6.3p at 499.3, under the 5-quid level, whilst RD Shell, and BG Group were both down today by 2% to 3% over the session.
Royal Sun Alliance had a better day than most, closing up nearly 3% on the day on rumours that peer Allianz was sniffing with intent to make a bid.
Supermarket giant Sainsburys was down over 3% on the day after a Deutsche Bank downgrade to 'sell' from 'hold'.
Confectionary King Cadburys also had a good day, up 14p, or some 2.3%, to 636p after news that it had decided to sell its Aussie drinks business, which is valued at £600m. UBS had been appointed to handle the sale.
Consumer goods group Unilever was also up over half of one per cent after a UBS upgrade to 'neutral' from 'sell', as the news of the new Chief Executive was still seen as very positive.
JD Wetherspoon closed up 7.5p at 268.5p, a rise of 7.5%, despite reporting an 11% drop in full year pre-tax profit, after investors felt this one had been oversold. The pub operator blamed the smoking ban and lower consumer spending.
Over the pond, by the time London closed, the DJI was down 77 points at 11,111, whilst the S&P500 was down 13 points at 1,224, and the Nasdaq down nearly 30 points at 2,230. The non-farm payroll figures were poor, showing US unemployment at 6.1% for August, which is the worst figure for 5 years. There were lay offs, in as much that employers cut payroll numbers for the 8th straight month.
Back here in London, it was the banks and the miners that pulled the index down, all due to general world economic concerns, with the US non-farm figures summarising the world economic situation and direction.
The banks had a poor day, with yesterday's comments from the ECB President still ringing in everyone's ears. Barclays closed down 12p at 317p, whilst RBS, HSBC, Standard Chartered, and HBOS were also all down today by as much as 3.5%.
On to telecoms, where Vodafone was down 6.2p, or 4.5% to 131.7p after news from Nokia that the world economical situation would weigh on the mobile phone maker's performance. Nokia added that there was now tougher competition and that their own handset portfolio choice was weaker, which would hit its market share in the 3rd quarter. Nokia shares were down 10% on the day.
On to the miners, where the heavyweights were all down, with metal prices also falling back. BHP, Rio, ENRC, Xstrata, Ferrexpo, and Anglo all falling between 3% and 7.5% on the day. Ferrexpo, the Ukrainian iron ore miner, was also hit by concerns about the rising political tensions in the Ukraine.
On to the oil majors, where BP closed down 6.3p at 499.3, under the 5-quid level, whilst RD Shell, and BG Group were both down today by 2% to 3% over the session.
Royal Sun Alliance had a better day than most, closing up nearly 3% on the day on rumours that peer Allianz was sniffing with intent to make a bid.
Supermarket giant Sainsburys was down over 3% on the day after a Deutsche Bank downgrade to 'sell' from 'hold'.
Confectionary King Cadburys also had a good day, up 14p, or some 2.3%, to 636p after news that it had decided to sell its Aussie drinks business, which is valued at £600m. UBS had been appointed to handle the sale.
Consumer goods group Unilever was also up over half of one per cent after a UBS upgrade to 'neutral' from 'sell', as the news of the new Chief Executive was still seen as very positive.
JD Wetherspoon closed up 7.5p at 268.5p, a rise of 7.5%, despite reporting an 11% drop in full year pre-tax profit, after investors felt this one had been oversold. The pub operator blamed the smoking ban and lower consumer spending.
Morning Market, Friday 5th September 2008
The FTSE was down this morning some 75 points at 5,287, whilst the FTSE 250 was down 160 points at 8,990, and the FTSE All Share down nearly 40 points at 2701.
Over the pond, last night the DJI closed down 344.65 at 11188.23, whilst the S&P500 down 38.15 points at 1,236.83, and the Nasdaq down 74.69 points at 2,259.04. Not a good day, to say the least. News that jobless claims were up, amongst much else, took its toll on the US markets. It's the non-farm payroll figures today, too.
Rumours that hedge fund Atticus Capital could be closing, and was already actually liquidating positions was doing the rounds. The Fund denied that this was the case, though. Lehman brothers bank is involved in that one.
Here in London the oil stocks were up again due to the two new hurricanes meandering over to the Gulf of Mexico. BP was up 3p at 508.5p, and BG Group up 4.5p at 1,059.5p. Oil services company, AMEC, was down 30p, though, at 761p.
The Miners were also off this morning, with Kazakhmys down 60p at 1,002, and Xstrata down 80p at 2,31p, and Antofagasta down 17p at 523.5p.
The banks were all down again due to yesterday's poor session in the US and everything else that went with it, such as job figures etc. Barclays was off 13p at 316p, whilst RBS was down 8p at 220p.
In the High Street, supermarket chain Sainsburys was down 11p at 336p after a recent bid speculation run.
Some interest was coming back in the the land companies, with Hammerson up 3p at 913p and Land Securities up 4p at 1285p.
Over the pond, last night the DJI closed down 344.65 at 11188.23, whilst the S&P500 down 38.15 points at 1,236.83, and the Nasdaq down 74.69 points at 2,259.04. Not a good day, to say the least. News that jobless claims were up, amongst much else, took its toll on the US markets. It's the non-farm payroll figures today, too.
Rumours that hedge fund Atticus Capital could be closing, and was already actually liquidating positions was doing the rounds. The Fund denied that this was the case, though. Lehman brothers bank is involved in that one.
Here in London the oil stocks were up again due to the two new hurricanes meandering over to the Gulf of Mexico. BP was up 3p at 508.5p, and BG Group up 4.5p at 1,059.5p. Oil services company, AMEC, was down 30p, though, at 761p.
The Miners were also off this morning, with Kazakhmys down 60p at 1,002, and Xstrata down 80p at 2,31p, and Antofagasta down 17p at 523.5p.
The banks were all down again due to yesterday's poor session in the US and everything else that went with it, such as job figures etc. Barclays was off 13p at 316p, whilst RBS was down 8p at 220p.
In the High Street, supermarket chain Sainsburys was down 11p at 336p after a recent bid speculation run.
Some interest was coming back in the the land companies, with Hammerson up 3p at 913p and Land Securities up 4p at 1285p.
Thursday, 4 September 2008
Market Wrap, Thursday 4th September 2008
After a slightly promising start this morning, the FTSE 100 closed down 137.6 points at 5,362.1, a rather poor turn down, to say the least. The FTSE 250 closed down 219.7 points at 9,150.
Pound Sterling was down again, now at a 12-year low against the €uro, and also down again against the dollar at about US$1.77.
UK interest rates stayed at 5% again, for the 5th month, as expected, but comments from the European Central Bank (ECB), together with other economy concerns, and the US opening down so much, just put paid to anything positive that had been tried this morning. The ECB President, Jean-Claude Trichet, said that the european economic zone data suggested that there was weakening growth and that the mid-year with inflation figure was still high, which pulled the economy down. He added that there will need to be fresh input next year from some counterparties to bring forward and input extra collateral. This was taken badly.
Over the pond, by the time London closed the DJI was down some 250 points at 11,282, whilst the S&P500 was down 25 points at 1,249, and the Nasdaq down 48 points at 2,285. News that the weekly US government figures were showing a more than expected rise in jobless benefit claims didn't help the markets there. The non-farm payroll figures are out tomorrow in the US, so that will also see a strong reaction if they are worse than expected too.
Back here in London, the banks were under pressure. Carrying on from this morning, Barclays, HSBC, Lloyds TSB and HBOS all closed down between 3 and 7%.
On to commodities, where metal prices continued to back off as the dollar gained stregnth, with the heavyweights pulling back some more. ENRC, Rio, and Anglo were all down some 3% to 5% today, whilst an even worse day for Ferrexpo, who look like exiting the FTSE 100 in the next reshuffle, closed down some 6% as investors looked elsewhere.
On to oil users, where airline British Airways closed down nearly 5% as new concerns over two new hurricanes were on their way to the Gulf of Mexico could affect the price of the black stuff were taken into consideration, whilst sector peer and cruise ship operator Carnival closed down 3% on the day for similar reasons.
Staying with oil, BP and RD Shell had a poor day, but BG Group closed up nearly 1% on the day after rumours that Exxon Mobil were sniffing with intent to make a bid.
On to retail, in the High Street, where Marks & Sparks had another poor day, closing down 14p, or 5.5% at 247p after news that as a reaction to the sacking of an employee for gross misconduct who blew the whistle on some redundancy payment cuts had been met by the GMB union responding with plans for a series of protests against the retailing group.
On to housing, where data showed that British house prices fell for the 7th month running last month, with the average price some 12.7% lower than the same month last year.
To try and finish on a positive note, carrying on from this morning, consumer goods and food group Unilever closed up 91p, or 6% at 1,581p after learning that Paul Polman was the new Chief Executive, joining from Swiss group Nestle.
Pound Sterling was down again, now at a 12-year low against the €uro, and also down again against the dollar at about US$1.77.
UK interest rates stayed at 5% again, for the 5th month, as expected, but comments from the European Central Bank (ECB), together with other economy concerns, and the US opening down so much, just put paid to anything positive that had been tried this morning. The ECB President, Jean-Claude Trichet, said that the european economic zone data suggested that there was weakening growth and that the mid-year with inflation figure was still high, which pulled the economy down. He added that there will need to be fresh input next year from some counterparties to bring forward and input extra collateral. This was taken badly.
Over the pond, by the time London closed the DJI was down some 250 points at 11,282, whilst the S&P500 was down 25 points at 1,249, and the Nasdaq down 48 points at 2,285. News that the weekly US government figures were showing a more than expected rise in jobless benefit claims didn't help the markets there. The non-farm payroll figures are out tomorrow in the US, so that will also see a strong reaction if they are worse than expected too.
Back here in London, the banks were under pressure. Carrying on from this morning, Barclays, HSBC, Lloyds TSB and HBOS all closed down between 3 and 7%.
On to commodities, where metal prices continued to back off as the dollar gained stregnth, with the heavyweights pulling back some more. ENRC, Rio, and Anglo were all down some 3% to 5% today, whilst an even worse day for Ferrexpo, who look like exiting the FTSE 100 in the next reshuffle, closed down some 6% as investors looked elsewhere.
On to oil users, where airline British Airways closed down nearly 5% as new concerns over two new hurricanes were on their way to the Gulf of Mexico could affect the price of the black stuff were taken into consideration, whilst sector peer and cruise ship operator Carnival closed down 3% on the day for similar reasons.
Staying with oil, BP and RD Shell had a poor day, but BG Group closed up nearly 1% on the day after rumours that Exxon Mobil were sniffing with intent to make a bid.
On to retail, in the High Street, where Marks & Sparks had another poor day, closing down 14p, or 5.5% at 247p after news that as a reaction to the sacking of an employee for gross misconduct who blew the whistle on some redundancy payment cuts had been met by the GMB union responding with plans for a series of protests against the retailing group.
On to housing, where data showed that British house prices fell for the 7th month running last month, with the average price some 12.7% lower than the same month last year.
To try and finish on a positive note, carrying on from this morning, consumer goods and food group Unilever closed up 91p, or 6% at 1,581p after learning that Paul Polman was the new Chief Executive, joining from Swiss group Nestle.
Morning Market, 4th September 2008
The FTSE 100 was up about 26 points this morning at 5,526, whilst the FTSE 250 was actually around even at 9,370.
Interest rates are expected to stay at 5% today, when the decision is announced by the Bank of England. It's the US non-farm payroll figurtes tomorrow too, so that may cause some action over the pond. Two new hurricanes are on their way to the Gulf of Mexico as well, so that could cause some interest in the already speculative oil market too.
Back here in London, it was consumer goods and food group Unilever that was having a good morning, up some 6% after news from the Anglo-Dutch group announced that Paul Polman as the new Chief Executive. Polman was head of the Americas at Nestle SA.
On to the price of the black stuff, meanwhile, which was still around the S$109 bbl level, with everyone waiting to see what these next two hurricanes do, possibly. On to the black stuff majors, where BP was up some 2% early doors after news that it would be finally sorting out the mess relating to the Russian 50/50 JV with TNK, of the TNK-BP business, which would also include board member changes. Not sure who. Peers also edged up, with BG Group up nearly 1.5% and Tullow Oil up over half of one per cent.
Some interest in the miners, or large short position closing (the cynic in us there), saw the heavyweights have a better morning than of late. Kazakhmys did the best, up some 2.2% this morning after news that the Kazakhstan government has said that it will bring in mineral extraction tax rates for oil producers in the region of 7% to 20% on market value, starting in 2011. The higher percentage taxes will be aimed at those produicing the most of the black stuff.
On to financials, namely insurance, where Friends Provident was up 2.5% this morning after Clive Cowdery, the insurance enterpreneur, is sniffing with intent to move in and break it all up.
On to banks, where there was still some worries, which was reflected with further sell offs, despite interest rates expected to stay at 5% today.
On to the High Street, where Marks & Sparks was down 1.25% after media reports that in reaction to the whistkle-blower employee that was sacked yesterday the GMB union plans to launch a series of protests against the retailer.
On to leisure, where recently hit Whitbread had a better day, up nearly 4% this morning after saying sales were up 7% in the 24 weeks up to 14 Aug. There was a special mention for the Premier Inn pub outlets.
Capital goods group Invensys was up nearly 2% after a JP Morgan upgrade to 'neutral' from 'underweight' after a review of the sector.
Engineering firm Smiths Group didn't do so well, though, down some 2.2% after a JP Morgan downgrade to 'underweight' from 'neutral'.
Interest rates are expected to stay at 5% today, when the decision is announced by the Bank of England. It's the US non-farm payroll figurtes tomorrow too, so that may cause some action over the pond. Two new hurricanes are on their way to the Gulf of Mexico as well, so that could cause some interest in the already speculative oil market too.
Back here in London, it was consumer goods and food group Unilever that was having a good morning, up some 6% after news from the Anglo-Dutch group announced that Paul Polman as the new Chief Executive. Polman was head of the Americas at Nestle SA.
On to the price of the black stuff, meanwhile, which was still around the S$109 bbl level, with everyone waiting to see what these next two hurricanes do, possibly. On to the black stuff majors, where BP was up some 2% early doors after news that it would be finally sorting out the mess relating to the Russian 50/50 JV with TNK, of the TNK-BP business, which would also include board member changes. Not sure who. Peers also edged up, with BG Group up nearly 1.5% and Tullow Oil up over half of one per cent.
Some interest in the miners, or large short position closing (the cynic in us there), saw the heavyweights have a better morning than of late. Kazakhmys did the best, up some 2.2% this morning after news that the Kazakhstan government has said that it will bring in mineral extraction tax rates for oil producers in the region of 7% to 20% on market value, starting in 2011. The higher percentage taxes will be aimed at those produicing the most of the black stuff.
On to financials, namely insurance, where Friends Provident was up 2.5% this morning after Clive Cowdery, the insurance enterpreneur, is sniffing with intent to move in and break it all up.
On to banks, where there was still some worries, which was reflected with further sell offs, despite interest rates expected to stay at 5% today.
On to the High Street, where Marks & Sparks was down 1.25% after media reports that in reaction to the whistkle-blower employee that was sacked yesterday the GMB union plans to launch a series of protests against the retailer.
On to leisure, where recently hit Whitbread had a better day, up nearly 4% this morning after saying sales were up 7% in the 24 weeks up to 14 Aug. There was a special mention for the Premier Inn pub outlets.
Capital goods group Invensys was up nearly 2% after a JP Morgan upgrade to 'neutral' from 'underweight' after a review of the sector.
Engineering firm Smiths Group didn't do so well, though, down some 2.2% after a JP Morgan downgrade to 'underweight' from 'neutral'.
Wednesday, 3 September 2008
Market Wrap, Wednesday 3rd September 2008
The FTSE had a poor day, off over 2% in all. The FTSE closed down 121 points at 5,499.7, just under that 5,500 level. With Pound Sterling nbow at a 12-year low, and the miners off due to commodity prices falling back, it was a bear's day.
There is also the general expectation that the Bank of England will leave interest rates at 5% again in their announcement tomorrow, which doesn't do much for the retail sector or the economy, and not does it tackle inflation worries. They must have splinters from all this time on the fence, we think.
With the mining heavyweights being weighted, it hit the FTSE harder still. Gold and other metals were down again, following the dollar's strength, meaning the mining stocks took hits. Rio, Kazakhmys and Ferrexpo all had bad days, with the latetr off 15%.
On to oil, where BP closed down over 1%, RD Shell closed down nearly 1%, and BG Group closed down over 6% after investors showed concern that there could be a $12 billion bid for Australia's Origin Energy.
On to the banks, where the recent concerns all returned. Barclays closed down almost 4% on the day after an RBS downgrade to 'sell' from 'hold', whilst Lloyds TSB, Standard Chartered, and HBOS all closed down between half of one per cent and over 2% on the day. The feeling that a UK recession is now here, or inevitable and imminent seems to be the general concensus. With growth forecasts lower and more an more write-downs, higher unemployment, gloomy and negative outlooks by usually bouyant major heavyweight firms, it is now a foregone conclusion.
Carrying on from this morning, Schroders closed down almost 2% after a Morgan Stanley downgrade to 'underweight' from 'equalweight', and moving its target down 5p to 970p.
Insurance group Friends Provident also had a poor day, down nearly 3% on the session after a Panmure Gordon downgrade to 'hold' from 'buy', with the share price now at the 102p target set.
On to communications, where Vodafone closed down nearly 2% on the day after a Credit Suisse downgrade to 'neutral' from 'outperform', whilst lowering its target from 180p to 160p.
Building materials group Wolseley closed down 2.5% after a Deutsche Bank downgrade to 'hold' from 'buy', with too much exposure in the US being a concern.
On to leisure, namely pubs, Punch Taverns closed down a worrying 12% after annoucing a fall in sales and that it wouldn't be paying a final divvy. Peers also fell as a reaction, with Enterprise Inns down nearly 9% after concenrs it could be booted out of the 100 at thenext reshuffle, whilst JD Wetherspoon and Whistbread closed down about 4% each and Mitchells & Butlers was down over 5% on the day.
On to the High Street, where Marks & Sparks closed down 1.5% on the day, Next closed down over 3.5% on the day, and supermarket chain J Sainsbury close down over 4% on the day. Rumours that Sainsburys was one of those in the frame for a bid on the Irish supermarket chain Superquinn wasn't taken as positive.
There is also the general expectation that the Bank of England will leave interest rates at 5% again in their announcement tomorrow, which doesn't do much for the retail sector or the economy, and not does it tackle inflation worries. They must have splinters from all this time on the fence, we think.
With the mining heavyweights being weighted, it hit the FTSE harder still. Gold and other metals were down again, following the dollar's strength, meaning the mining stocks took hits. Rio, Kazakhmys and Ferrexpo all had bad days, with the latetr off 15%.
On to oil, where BP closed down over 1%, RD Shell closed down nearly 1%, and BG Group closed down over 6% after investors showed concern that there could be a $12 billion bid for Australia's Origin Energy.
On to the banks, where the recent concerns all returned. Barclays closed down almost 4% on the day after an RBS downgrade to 'sell' from 'hold', whilst Lloyds TSB, Standard Chartered, and HBOS all closed down between half of one per cent and over 2% on the day. The feeling that a UK recession is now here, or inevitable and imminent seems to be the general concensus. With growth forecasts lower and more an more write-downs, higher unemployment, gloomy and negative outlooks by usually bouyant major heavyweight firms, it is now a foregone conclusion.
Carrying on from this morning, Schroders closed down almost 2% after a Morgan Stanley downgrade to 'underweight' from 'equalweight', and moving its target down 5p to 970p.
Insurance group Friends Provident also had a poor day, down nearly 3% on the session after a Panmure Gordon downgrade to 'hold' from 'buy', with the share price now at the 102p target set.
On to communications, where Vodafone closed down nearly 2% on the day after a Credit Suisse downgrade to 'neutral' from 'outperform', whilst lowering its target from 180p to 160p.
Building materials group Wolseley closed down 2.5% after a Deutsche Bank downgrade to 'hold' from 'buy', with too much exposure in the US being a concern.
On to leisure, namely pubs, Punch Taverns closed down a worrying 12% after annoucing a fall in sales and that it wouldn't be paying a final divvy. Peers also fell as a reaction, with Enterprise Inns down nearly 9% after concenrs it could be booted out of the 100 at thenext reshuffle, whilst JD Wetherspoon and Whistbread closed down about 4% each and Mitchells & Butlers was down over 5% on the day.
On to the High Street, where Marks & Sparks closed down 1.5% on the day, Next closed down over 3.5% on the day, and supermarket chain J Sainsbury close down over 4% on the day. Rumours that Sainsburys was one of those in the frame for a bid on the Irish supermarket chain Superquinn wasn't taken as positive.
Morning Market, Thursday 3rd September 2008
The FTSE was down this morning, about 80 points at 5,540. The FTSE 250 was down 100 points at 9,443, although looked liked getting lower, as it looks like the US will open down after rumours a Hedge Fund that the Lehman Brothers bank is involved in may be closing down.
Back here in London the banks were suffering, with RBS down 7p at 234p, barclays down 15p at 349p, and HBOS down 10p at 3-quid.
Fund manager Schroders was down 25p at 1,009p after a Morgan Stanley downgrade to 'underweight' from 'equal weight' with a target of 970p, down from 975p.
On to insurance, where Friends Provident was down 3.4p at 98.6p after saying unless it was offered a decent price it wouldn't be selling either its Luxembourg based Lombard unit and its stake in F&C Asset Management.
On to the miners, where commodity prices remained weak. Rio was off 110p at 4,710p, Kazakhmys down 40p at 1,144p, Anglo down 35p at 2,611p, and Ferrexpo down 30p at 220p. Ferrexpo looks like being dumped out the FTSE 100 on the next reshuffle.
With oil now down at US$105 bbl the majors were not doing too much, but the over panic on the hurricane Gustav was over. BP was up nearly a penny at 512p, and Tullows was up 2.5p at 753p.
On to communications, namely telecoms giant Vodafone, which was down 2.4p at 141.8p after a Credit Suisse downgrade to 'neutral' from 'overweight', adding a target down 20p to 160p.
On to leisure, namely pubs, the recent rises were now seeing some profit taking and amongst some negative news from Punch Taverns, down 42p at 274p, after reporting a drop in sales and that it won't be paying a final divvy. Peers reacted, both to that news and to some profit taking, with Enterprise Inns off 30p at 277p as fears of demotion from the top 100, marstons down a penny at 121p, Mitchell & Butlers down 20p at 283p, and Whitbread down 50p at 1,114p.
On to retail, where Currys owner DSG International was up 3p at 56p after reporting lower sales, but not as bad as expected.
Back here in London the banks were suffering, with RBS down 7p at 234p, barclays down 15p at 349p, and HBOS down 10p at 3-quid.
Fund manager Schroders was down 25p at 1,009p after a Morgan Stanley downgrade to 'underweight' from 'equal weight' with a target of 970p, down from 975p.
On to insurance, where Friends Provident was down 3.4p at 98.6p after saying unless it was offered a decent price it wouldn't be selling either its Luxembourg based Lombard unit and its stake in F&C Asset Management.
On to the miners, where commodity prices remained weak. Rio was off 110p at 4,710p, Kazakhmys down 40p at 1,144p, Anglo down 35p at 2,611p, and Ferrexpo down 30p at 220p. Ferrexpo looks like being dumped out the FTSE 100 on the next reshuffle.
With oil now down at US$105 bbl the majors were not doing too much, but the over panic on the hurricane Gustav was over. BP was up nearly a penny at 512p, and Tullows was up 2.5p at 753p.
On to communications, namely telecoms giant Vodafone, which was down 2.4p at 141.8p after a Credit Suisse downgrade to 'neutral' from 'overweight', adding a target down 20p to 160p.
On to leisure, namely pubs, the recent rises were now seeing some profit taking and amongst some negative news from Punch Taverns, down 42p at 274p, after reporting a drop in sales and that it won't be paying a final divvy. Peers reacted, both to that news and to some profit taking, with Enterprise Inns off 30p at 277p as fears of demotion from the top 100, marstons down a penny at 121p, Mitchell & Butlers down 20p at 283p, and Whitbread down 50p at 1,114p.
On to retail, where Currys owner DSG International was up 3p at 56p after reporting lower sales, but not as bad as expected.
Market Wrap, Tuesday 2nd September 2008
The FTSE 100 closed up 17.9 points at 5,620.7, whilst the FTSE 250 closed up 134.1 points at 9,543.6, both finishing the day positive, after a negative start.
With Gordon Brown & Alistair Darling announcing a Stamp Duty break for house purchases up to £175k, the builders flourished. However, metal prices and oil fell back.
Straight to this tax break, albeit temporary, it was the Prime Minister, Gordon Brown, who explained the break for first timers, with the stamp duty being cut out of the equation on home purchases as part of the governments's rescue package to boost the country's housing market. Trying to gain some support for the party also looks on the agenda, but we are cynics here. The sectors that did well were spin offs, namely the house builders, construction coimpanies, the banks, home wear retailers, etc.
Here in London, only 11% of home buyers will benefit, but all-in-all, there are many, many other areas of the country where more will. Like they say, one needs the bottom of the market to buy to complete the chain moving up, so hopefully we'll see some return to first time buyers now.
The banks were up, with RBS, Barclays, HSBC, Lloyds TSB and Standard Chartered all up by as much as 2.5%, whilst HBOS didn't fair as well, down 2% on the day.
On to the housebuilders, where Persimmons, Taylor Wimpey, Barratts, Bellway Homes and Bovis Homes all jumped from 5% to 11% on the day. Building materials giant, Wolseley, closed up over 5%.
On to the High Street, where B&Q owner Kingfisher also did well as a reaction to the tax break news, closing up 4%, whilst Home Retail Group closed up 2.5% on the day.
On to Forex, where £ Sterling was at a 2 and a half year low against the US Dollar, and 2 year low against the €uro. Fears that the UK was entering recession really not helping Sterling at all, although a positive spin off is for those that have earnings overseas, in dollars.
The price of the black stuff was now back to US$105 bbl, a far cry from the dizzy heaights of US$147 bbl we were seeing onbly a couple of months ago. A support level will be found soon, we feel. The lower price of the black stuff helped those that use it, with aurline British Airways having a good day, up nearly 5%, whilst TUI Travel was also up a similar amount, and cruise ship operator Carnival doing even better.
In contrast, the oil producers didn't fair as well, obviously, with BP, RD SHell, BG Group, Tulow Oil, and Cairn Energy all down on the day between 1% and 4%.
With metal prices falling back the miners also fell, with BHP Billiton, Rio Tinto, Xstrata, ENRC, Antofagasta, Vedanta, and Anglo American all down 2.5% to 5% on the day, but Lonmin had a good day after rejecting the hostile takeover bid from Xstrata saying US$10 bln was too cheap.
Despite turnover being down, pub group Greene King said it will meet its expectations for this year, closing up 6% on the day. This all helped sector peers, with Enterprise Inns, Punch Taverns, Whitbread and Mitchells & Butlers all ujp between 4% and 9% on the day.
With Gordon Brown & Alistair Darling announcing a Stamp Duty break for house purchases up to £175k, the builders flourished. However, metal prices and oil fell back.
Straight to this tax break, albeit temporary, it was the Prime Minister, Gordon Brown, who explained the break for first timers, with the stamp duty being cut out of the equation on home purchases as part of the governments's rescue package to boost the country's housing market. Trying to gain some support for the party also looks on the agenda, but we are cynics here. The sectors that did well were spin offs, namely the house builders, construction coimpanies, the banks, home wear retailers, etc.
Here in London, only 11% of home buyers will benefit, but all-in-all, there are many, many other areas of the country where more will. Like they say, one needs the bottom of the market to buy to complete the chain moving up, so hopefully we'll see some return to first time buyers now.
The banks were up, with RBS, Barclays, HSBC, Lloyds TSB and Standard Chartered all up by as much as 2.5%, whilst HBOS didn't fair as well, down 2% on the day.
On to the housebuilders, where Persimmons, Taylor Wimpey, Barratts, Bellway Homes and Bovis Homes all jumped from 5% to 11% on the day. Building materials giant, Wolseley, closed up over 5%.
On to the High Street, where B&Q owner Kingfisher also did well as a reaction to the tax break news, closing up 4%, whilst Home Retail Group closed up 2.5% on the day.
On to Forex, where £ Sterling was at a 2 and a half year low against the US Dollar, and 2 year low against the €uro. Fears that the UK was entering recession really not helping Sterling at all, although a positive spin off is for those that have earnings overseas, in dollars.
The price of the black stuff was now back to US$105 bbl, a far cry from the dizzy heaights of US$147 bbl we were seeing onbly a couple of months ago. A support level will be found soon, we feel. The lower price of the black stuff helped those that use it, with aurline British Airways having a good day, up nearly 5%, whilst TUI Travel was also up a similar amount, and cruise ship operator Carnival doing even better.
In contrast, the oil producers didn't fair as well, obviously, with BP, RD SHell, BG Group, Tulow Oil, and Cairn Energy all down on the day between 1% and 4%.
With metal prices falling back the miners also fell, with BHP Billiton, Rio Tinto, Xstrata, ENRC, Antofagasta, Vedanta, and Anglo American all down 2.5% to 5% on the day, but Lonmin had a good day after rejecting the hostile takeover bid from Xstrata saying US$10 bln was too cheap.
Despite turnover being down, pub group Greene King said it will meet its expectations for this year, closing up 6% on the day. This all helped sector peers, with Enterprise Inns, Punch Taverns, Whitbread and Mitchells & Butlers all ujp between 4% and 9% on the day.
Monday, 1 September 2008
Market Wrap, Monday 1st September 2008
The FTSE 100 closed down 33.8 points today at 5,602.8, whilst the FTSE 250 closed up 27.7 points at 9,409.5. It was mainly the miners that pulled the 100 down, with the oil price falling too easing the majors back. The psychological 5,600 level just being held.
Over the pond it was a holiday, with the markets closed for Labor Day. Labour without the 'u'. They're back on-line tomorrow.
With the Hurricane Gustav in the Gulf of Mexico now being downgraded to a cat 2 tropical storm, some of the panic on oil supplies was eased and the price pulled back a little, down about 4 bucks bbl.
Here in London the oil majors reflected this, with RD Shell, BG Group, Tullow Oil and Cairn Energy all down as much as 5% on the day. BP was down 7.8p to 521p, off 1.5% on the session.
As mentioned earlier, the miners were also down as the dollar got stronger meaning metal prices fell. BHP Billiton, Rio Tinto, Kazakhmys, Xstrata, Anglo American and Antofagasta were all down 4 or 5% on the day.
Chancellor Alastair Darling did no favours with his comments, although the banks did recover as the session moved on. His very downbeat comments over the weekend on the outlook for the UK economy guarnteed a negative day on the markets today. The Pound was at a 2-year low against the US Dollar and €uro. News that house prices were down 5.3% on August last year added to the gloom as well. That's 11 straight months house prices have fallen.
Back to oil, well, oil users, we saw positive reaction to the pull back in the price of the black stuff. Airline British Airways had a good day, up over 4%, whilst TUI Travel walso had a good day, up 2.5%, as those that need oil liked the lower price per barrel. Even FirstGroup, the bus operator, was up 2.5% on the day too.
On to pubs, sort of, in Enterprise Inns, where there were some comments that the figures due this week won't be very good, resulting in the share price falling back nearly 2.5%. The reaction to the results could affect the pub group's FTSE status, with the reshuffle coming along next week.
On to financials, where the London Stock Exchange (LSE:LSE) had a poor day. With the share price up over 20-quid a year ago, we were now down well under 8-quid. Press reports that heay cuts in fees by the exchange will be brought in next week saw the share price fall 2.5% today.
Staying with financials, but moving positive, was insurance giant RSA Insurance, who reacted to more rumours that Zurich Financial servbices was sniffing with intent saw the shares close up over 4% today, meaning a rise of some 10% in a couple of days' trading.
Plumbing supply giant Wolseley did well in reaction to the stronger dollar, as it is heavily exposed in the USA.
Other stocks that are linked somwhat to dollar strength also did well, with aero-engine maker Rolls Royce up 2% today, British American Tobacco also up 2%, and Food and product giant Unilever also up today as the dollar gained some strength.
Over the pond it was a holiday, with the markets closed for Labor Day. Labour without the 'u'. They're back on-line tomorrow.
With the Hurricane Gustav in the Gulf of Mexico now being downgraded to a cat 2 tropical storm, some of the panic on oil supplies was eased and the price pulled back a little, down about 4 bucks bbl.
Here in London the oil majors reflected this, with RD Shell, BG Group, Tullow Oil and Cairn Energy all down as much as 5% on the day. BP was down 7.8p to 521p, off 1.5% on the session.
As mentioned earlier, the miners were also down as the dollar got stronger meaning metal prices fell. BHP Billiton, Rio Tinto, Kazakhmys, Xstrata, Anglo American and Antofagasta were all down 4 or 5% on the day.
Chancellor Alastair Darling did no favours with his comments, although the banks did recover as the session moved on. His very downbeat comments over the weekend on the outlook for the UK economy guarnteed a negative day on the markets today. The Pound was at a 2-year low against the US Dollar and €uro. News that house prices were down 5.3% on August last year added to the gloom as well. That's 11 straight months house prices have fallen.
Back to oil, well, oil users, we saw positive reaction to the pull back in the price of the black stuff. Airline British Airways had a good day, up over 4%, whilst TUI Travel walso had a good day, up 2.5%, as those that need oil liked the lower price per barrel. Even FirstGroup, the bus operator, was up 2.5% on the day too.
On to pubs, sort of, in Enterprise Inns, where there were some comments that the figures due this week won't be very good, resulting in the share price falling back nearly 2.5%. The reaction to the results could affect the pub group's FTSE status, with the reshuffle coming along next week.
On to financials, where the London Stock Exchange (LSE:LSE) had a poor day. With the share price up over 20-quid a year ago, we were now down well under 8-quid. Press reports that heay cuts in fees by the exchange will be brought in next week saw the share price fall 2.5% today.
Staying with financials, but moving positive, was insurance giant RSA Insurance, who reacted to more rumours that Zurich Financial servbices was sniffing with intent saw the shares close up over 4% today, meaning a rise of some 10% in a couple of days' trading.
Plumbing supply giant Wolseley did well in reaction to the stronger dollar, as it is heavily exposed in the USA.
Other stocks that are linked somwhat to dollar strength also did well, with aero-engine maker Rolls Royce up 2% today, British American Tobacco also up 2%, and Food and product giant Unilever also up today as the dollar gained some strength.
Morning Market, Monday 1st September 2008
The FTSE 100 was down about 50 points at 5,585 this morning, mainly due to a reaction to the Chancellor's weekend views on the UK economy. The oil price eased back too, giving the FTSE more strain as the oil majors are weighted, as are the miners, which also fell back on metal prices easing due to the stronger dollar.
With Alister Darling saying that the downturn in the economy could be the worst for 60 years, the banks reflected the feeling, with all the big banks falling back. He painted a real gloomy picture with his comments over the weekend.
News from over the pond that the US investment bank, Lehman Brothers, has stepped up its talks with the Korea Development Bank was taken as both positive and negative, With talk of about US$6 bln of stock in the bank being issued, investors moved out, with the US markets falling on Friday. News from PC maker and retailer, Dell, that it feels that worlkdwide companies are not rushing to replace their PCs as often now, and that general technology and IT budgets are being squeezed didn't help, either.
In the Far East today the Nikkei 225 had a poor day too, down nearly 2% on the day.
Back here in London, the oil majors were mainly down as the price of the black stuff fell back after initially rising due to the hurricane in the Gulf of Mexico. News from Petrofac of a JV helped the oil services firm have a good start.
The miners were all down due to the stronger dollar meaning metal prices fell.
The London Stock Exchange (LSE:LSE) also had a poor start, down 3% on news it will be discounting fees from next week due to competition in its field.
House prices are down for the 11th straight month to be at 5.3% less than last August.
With Alister Darling saying that the downturn in the economy could be the worst for 60 years, the banks reflected the feeling, with all the big banks falling back. He painted a real gloomy picture with his comments over the weekend.
News from over the pond that the US investment bank, Lehman Brothers, has stepped up its talks with the Korea Development Bank was taken as both positive and negative, With talk of about US$6 bln of stock in the bank being issued, investors moved out, with the US markets falling on Friday. News from PC maker and retailer, Dell, that it feels that worlkdwide companies are not rushing to replace their PCs as often now, and that general technology and IT budgets are being squeezed didn't help, either.
In the Far East today the Nikkei 225 had a poor day too, down nearly 2% on the day.
Back here in London, the oil majors were mainly down as the price of the black stuff fell back after initially rising due to the hurricane in the Gulf of Mexico. News from Petrofac of a JV helped the oil services firm have a good start.
The miners were all down due to the stronger dollar meaning metal prices fell.
The London Stock Exchange (LSE:LSE) also had a poor start, down 3% on news it will be discounting fees from next week due to competition in its field.
House prices are down for the 11th straight month to be at 5.3% less than last August.
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