| | Tuesday 16 October 2012 THOUGHT FOR THE DAY  Hello Share Mates,
The weather is terrible here. But as I live in Wales, can I expect any better? Shares are like that. If we invest in banks, can we look forward to an easy ride to riches? Or if we put our faith in supermarkets, can we expect them to steer clear of price wars. And we know price wards bring down profits more than anything else.
The thing is: we have to expect falls in share prices in every sector. What we count on is that the overall trend is up.
Now, we cannot do without banks. So they will always be with us. In that sense, they are a safer haven for share punters than internet software firms. What the latter does can become out of date and unsaleable in two shakes of a lambs tale. But banks will always be with us.
Click here to view the rest of the article
Paper round RBS, British economy, BP
The Royal Bank of Scotland is considering suing Santander amid fears that its decision to ditch the deal buy 316 branches could cost the part-nationalised lender as much as 1 bn pounds. Lawyers and advisers at RBS are "looking at the legality" of Spanish bank's reversal after its shares fell and as much as £800m was wiped off the value of the branch deal. The bank faces additional costs of re-running the sale process, or preparing the business for a stockmarket listing, as well as additional penalities from the European Union if the deal takes longer than 2013 to complete. Shares in RBS fell 1 per cent to 268p as traders had their first chance to react to the collapse of the 1.65bn poundsdeal which emerged on Friday night, according to The Telegraph.
France is sliding into a grave economic crisis and risks a full-blown "hurricane" as investors flee rocketing tax rates, the country's business federation has warned. "The situation is very serious. Some business leaders are in a state of quasi-panic," said Laurence Parisot, head of employers' group MEDEF. "The pace of bankruptcies has accelerated over the summer. We are seeing a general loss of confidence by investors. Large foreign investors are shunning France altogether. It's becoming really dramatic." MEDEF, France's equivalent of the CBI, said the threat has risen from "a storm warning to a hurricane warning", adding that the Socialist government of François Hollande has yet to understand the "extreme gravity" of the crisis, The Telegraph writes.
The Government's pursuit of austerity is "fundamentally mad" and could cast a shadow over the British economy for up to 15 years, Nobel prize-winning economist Paul Krugman has warned. Mr Krugman said that there was a "clear and present risk" that George Osborne's austerity policies would damage Britain's future."The shadow won't just be cast on the present, but on the longer term," he said. "[Britain] will be a weaker economy ten years or even 15 years from now because [it has] failed to provide adequate demand now." Speaking at a debate organised by the London School of Economics, Mr Krugman also said that the fact that government borrowing had increased was not necessarily evidence that George Osborne's Plan A wasn't working, as shadow chancellor Ed Balls has argued, The Telegraph explains.
The reputation of Nat Rothschild was in tatters last night after the billionaire financier resigned as a non-executive director of the Indonesian coal miner he floated in London. In his resignation letter, Mr Rothschild said he had been forced to quit Bumi plc because his Indonesian partners, the Bakrie family, were "abusing" and "oppressing" minority investors. Mr Rothschild had lent his name and his money to the task of bringing the FTSE 250-listed miner to the London stock market in 2010, promising to impose Western standards of corporate governance and to protect minority shareholders' interests. "It is a matter of great regret for me that I was a party, with our advisers, to bringing the Bakries to London," he wrote, according to The Telegraph.
Only a year and a half after sinking $7.2bn into the project, BP has surrendered control of nearly half of the oil and gas exploration blocks it was developing through a joint venture with India's Reliance Industries. It bought a 30 per cent stake in Reliance's deepwater oilfields in the Bay of Bengal in February 2011, making one of the largest foreign investments in India's history in a deal billed as a cornerstone of David Cameron's plans to build closer trade ties between London and Delhi. But BP said yesterday that after a detailed appraisal by its geologists and engineers, nine of the twenty-one licence areas earmarked for possible development had been rejected because they did not contain enough oil and gas to justify the expense, according to The Times.
Average pay rises for top FTSE 250 executives have been held at 3 per cent for a second successive year, in a further sign that shareholder power is taking its toll on boardroom deals. Almost a third of the constituent companies in the index gave their bosses no pay increase at all this year and, for financial services businesses, that figure rose to more than half. The chief executive of a FTSE 250 business valued at between £750 million and £1.2 billion can expect to receive an average annual salary of just under £519,000, according to Deloitte, the consultancy, The Times reports
The future of ATH Resources, which employs more than 300 at its five Scottish open cast mines, was thrown into doubt yesterday after it called in Deloitte to look at options including restructuring or a sale of the business.The company, which has blamed a slump in coal prices for its difficulties, warned that the level of its debts meant shareholders were likely to see the value of their stakes wiped out in any rescue move for the firm. The news came just two weeks after Doncaster-headquartered company announced that it was in discussions with its key backers to secure support for a proposed refinancing plan, The Scotsman says.
FREE SHARE TIP OF THE DAY  A report by GECR - office2office, the leading supplier of office supplies and business services in the UK, announced on 5th October that its operating division Banner Managed Communication (BMC) has won a major contract with the UK's fifth largest Life and Pensions Company, Friends Life.
- BMC, the group's business process and communications outsourcing division, has been appointed as Friends Life's new marketing print and warehousing services partner.
- As well as winning this contract, we understand that BMC has had a string of notable wins throughout 2012, attributed to the high quality of its people and services.
- With the shares trading at 128.50p, we maintain our stance of buy and our 219p target price.
Click here to view the rest of the article
THE LATEST ON THE CRAZY BOARD The top 5 hot company threads on the Bulletin Board: St Ives Black Mountain May Gurney Integrated Services Falkland Gas & Oil The Running Trading Thread
Click here to discuss shares with other ShareCrazy members
BOOK OF THE WEEK  By Zak Mir
A book review by Luka Lukic of t1ps.com Zak Mir, editor of the UK's leading technical analysis website t1ps.com, has shot straight to the top of the investment charts with his new Kindle ebook 101 Charts for Trading Success. 101 Charts offers readers an insight into some of the most significant events to affect the financial markets in history, from the Wall Street Crash of 1929 to the Dot-com bubble of the late 1990s, and explains how traders could have used technical analysis to have made big profits in these volatile markets.
Click here to view the rest of the article |
|
| | | |
| | |
|
If you do not wish to receive such emails please use the following link to unsubscribe. Sharecrazy.com Limited is an Appointed Representative (FSA registered number 245145) of Rivington Street Corporate Finance Limited which is authorized and regulated by the Financial Services Authority (FSA registered number 184761). Sharecrazy.com Limited is ultimately owned by Rivington Street Holdings PLC, 39 Athol Street, Douglas, Isle of Man IM1 1LA, the holding company for other regulated entities such as t1ps.com Limited and Rivington Street Corporate Finance Limited. Sharecrazy.com Limited does not offer investment advice and the ShareCrazy Trader service we provide is administered by Jarvis Investment Management Plc, which is authorised and regulated by the Financial Services Authority. The website and the articles on it are for general guidance only and we cannot assume legal liability for any errors or omissions they might contain. The value of investments can go down as well as up and you may not get back the full amount you invested. If you are in any doubt about investing, seek the guidance of a suitably qualified and regulated financial adviser.
No comments:
Post a Comment