Monday 4 March
QUOTE OF THE DAY
"If you are rich, you have to be an idiot not to stay rich. And if you are poor, you have to be really smart to get rich."
John Green
THIS MORNING IN LONDON
FTSE 100
6,356.63
-21.97 -0.34%
FTSE 250
13,674.07
-76.48 --0.56%
FTSE 350
3,414.42
-12.83 -0.37%
FTSE All Share
3,346.03
-12.26 -0.37%
AIM 100
3,289.70
-2.53 -0.08%
AIM All Share
738.67
-0.99 -0.13%
13:45 pm
THOUGHT FOR THE DAY
Hello Share Fans,
The Footsie is still pretty high. Which rather astounds me, considering all the bad news that has been coming out in the last few weeks. A comic holding the cards in the Italian government, the down grading of the UK’s triple A rating and British banks losing more money.
I think the Footsie is being held up by the rising Dow. That and the fact other big countries have good growth, like China, India and Brazil. Though even here the momentum is dying down a little.
CLICK HERE for the full article
It was almost rather sad this week to see Pursuit Dynamics ignominiously raise the white flag. The company, for whom the term “permascam” was practically invented had managed to keep going for a full twelve years of bluster and hot air, regularly tapping shareholders for cash with a chutzpah that made the jaw drop.
Which brings me to Proteome Sciences (PRM) which has defied gravity now for approaching eighteen years....
CLICK HERE for the full article
REPORT OF THE DAY
It has been a big week chart wise for Jupiter in the technical sense given the 2 day island bottom for the share price at the floor of a 2012 rising trend channel currently at 41p.
It has been a big week chart wise for Jupiter in the technical sense given the 2 day island bottom for the share price at the floor of a 2012 rising trend channel currently at 41p.
CLICK HERE TO READ THE FULL REPORT
THIS MORNING IN LONDON
Chinese mortgage policy puts FTSE in the red
UK stocks were sitting firmly in negative territory by midday on Monday, pushed into decline by concerns over a stricter mortgage policy introduced in China in an effort to curb soaring property prices.
The news prompted declines amongst resources stocks on fears demand for building materials could be affected.
Meanwhile, it was also revealed this morning that just £13.8bn was drawn down from the Bank of England (BoE) Funding-for-Lending Scheme (FLS) last year. The research also showed that net lending to UK households and business by FLS participants fell by £2.4bn during the three month period, compared to a rise of £0.9bn the previous quarter.
In a statement the BoE said that funding costs have "fallen significantly" since the announcement of the scheme and there are indications of an improvement in credit conditions, with loan rates falling.
"But it will take time for this to feed through to lending volumes, given the typical lags involved in the loan application, approval and drawdown process," it admitted. The news helped push Lloyds and Barclays into the red.
Also affecting the mood was the news that Markit's construction PMI fell at its quickest pace in three years in February, down to 46.8, compared to 48.7 the previous month. The consensus had been for 49.0. Anything below 50 indicates a contraction.
In other news, the budget sequester in the US is in 'full-swing' after US President Barack Obama and Republicans failed to reach an agreement to avoid 85bn dollars in automatic federal budget cuts which will come into effect throughout what remains of this fiscal year.
On a more positive note, and according to The Sunday Times, France and Germany may be willing to show flexibility on caps for bankers' bonuses. The proposal from Brussels, last week, could see thousands of jobs lost in the British financial sector, as foreign institutions look to avoid the limits by moving outside of London and the European Union. As well, European institutions may be placed at a very serious disadvantage versus foreign competitors.
Acting as a backdrop, and highlighting the political risk which exists in the Eurozone, according to The Wall Street Journal Portugal is now seeking to renegotiate parts of its international bail-out agreement. This comes on the heels of comments to the press from the Chief Economist of Germany's IFO institute, Hans Werner Sinn, regarding the possibility that Greece and Portugal may be forced to leave the single currency area.
CLICK HERE FOR THE DAY'S FASTEST MOVING STOCKS
FTSE 100: GKN leaps on upgrade
GKN shares rose into the top spot after Goldman Sachs raised its target price from 195p to 272p and upgraded the stock from sell to neutral.
Emerging markets focused lender HSBC has this morning reported a profit before tax of $20.6bn (£13.73bn), down 6% on 2011, including $5.2bn of adverse fair value movements on own debt. The consensus estimate had been calling for a profit before tax of £14.272bn. The group reported a record year in commercial banking, with reported profit before tax of $8.5bn, up 7%. Underlying revenues for the group were valued at $63.5bn (£42.3bn), up 7%. This was slightly below consensus expectations.
Miners were generally weaker this morning on the back of news out from China. Anglo American was a big faller after analysts at Nomura lowered their rating on the shares to reduce from neutral.
Distribution and outsourcing group Bunzl has acquired Brazilian outfit Labor Import Comercial Importadora Exportadora.
Revenue rose by 17% to £2.1bn in the full year ended December 31st at safety services provider Intertek, prompting shares to rise. The company reported that operating profit increased by 19% to £335m with constant currency organic profit growth of 11.2%.
FTSE 250: Debenhams tumbles on profit warning
High Street retailer Debenhams has admitted its UK business had been 'severely disrupted' by the snow in the latter part of January. The group said that whilst group like-for-like sales grew by around 3.0% for the 26 weeks to March 2nd, during the snow-affected period of January 14th-27th UK like-for-like sales were down by around 10%.
Defence, security and energy outfit Ultra Electronics has announced full year underlying pre-tax profits of £115.6m, with revenues up 4.0% at £760m.
Specialist insurance and reinsurance underwriting group Amlin announced it has entered into an agreement to acquire RaetsMarine, a managing general agent ranked in the top three global providers of fixed premium P&I business.
CLICK HERE FOR THE DAY'S FASTEST MOVING STOCKS
WHAT THE BROKERS SAY
A two-person team of analysts at UBS has upgraded Bunzl to neutral with a target price of 1,250p. Risk over the medium term for industrial engineering outfit Weir's share price lies to the upside, analysts at Investec wrote to clients on Monday morning. However, the company's share price is now almost at its target price, hence their decision to move to a 'hold' stance from 'buy.'
Aggreko: JP Morgan takes target price from 1845p to 1870p, while reiterating a neutral rating.
A four-strong team of research analysts at Credit Suisse have increased their target price for International Airlines Group (IAG) and given the global airline group an "outperform" rating.
Click here for the rest of the broker recommendations
THE LATEST ON THE CRAZY BOARD
The top 5 hot company threads on the Bulletin Board:
Weatherly International (WTI)
ESSAR ENERGY LTD - To float in London.
Gulfsands Petroleum - New to AIM in March
ROXI PETROLEUM ( RXP ) Already talk of 10 bagging
BRIDGE ENERGY(BRDG)-Norwegian reg'd E&P to AIM.
Click here to discuss shares with other ShareCrazy members
Regards,
ShareCrazy
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