Proactive Investors - Run By Investors For Investors

In the papers: Still no real plan for RBS


The Times

Gilts: U.K. Government bonds traded within a narrow range. Investors were unwilling to take meaningful positions ahead of the outcome of a two-day policy meeting by the U.S. Federal Reserve. The September gilt future settled 15 ticks higher at 114.86. In the cash market, the yield on ten-year gilts fell three basis points to 2.11%.

Bet of the day: Spread-betters were buying Stagecoach’s share price, already nearly 8% higher in less than a fortnight, before annual results next week. Punters backed economic recovery to lift demand for travel on its buses and trains and to drive Stagecoach’s recent rally further still.

Deal of the day: Canny punters kept a close eye on MediaZest, up 16.2% at 0.215p. The outdoor display advertising specialist is raising £358,000 by selling new shares at a 35% premium to Tuesday’s closing price. Those who follow this one were betting that a £1 million-plus contract unveiled this month may be linked to the 2014 World Cup in Brazil.

Five years later, there’s still no real plan for RBS: George Osborne has admitted that the Treasury still does not have a plan for how it wants to return Royal Bank of Scotland to the private sector, five years after it was saved by a £45.5 billion taxpayer bailout.

Welsh whisky maker Penderyn secures £900,000 loan to triple production: A distillery at the foot of the Brecon Beacons is to treble production of its malt whisky in an attempt to crack the export market after securing bank funding of £900,000.

FedEx cuts U.S. flights to Asia as customers seek cheaper deliveries: FedEx has cut its capacity on flights between the United States and Asia as customers trade down and opt for the slow boat to China.

Falling fixed-rates give fresh hope to homebuyers: Mortgage rates have tumbled to new lows as the average cost of five-year deals dropped below 4% for the first time. The average five-year fixed rate fell to 3.96% in May, down from 4.86% last year, according to the Mortgage Advice Bureau.

Cuadrilla’s West Sussex fracking row flares up again: Cuadrilla Resources, the shale oil and gas explorer, has applied for a flaring permit from the Environment Agency when it drills its first exploration well in West Sussex this year.

The Independent

Hong Kong firm buys into London site: A historic Hong Kong hotel business is poised to make its first move into London after agreeing to spend £132.5 million on a half-share of a new site near Hyde Park Corner.

Record fine for rogue property trader: A financial salesman who arranged sale and rent-back deals and lied about property values has been fined nearly £1 million by the Financial Conduct Authority for misleading customers.

Swiss bill to counter tax charges fails: The Swiss lower house of parliament has dealt a final death blow to a draft law aimed at protecting the country’s banks from criminal charges in the United States for helping wealthy Americans to evade tax.

Price-cutting hits profits at H&M: Hennes & Mauritz has blamed poor weather and cash-strapped shoppers for a 4% fall in sales in the first six months of the year.

AgustaWestland trial starts: Two former Chief Executives of Anglo-Italian helicopter maker AgustaWestland went on trial in Italy, accused of corruption over a €560 million (£479 million) deal to sell helicopters to India.

United Airlines 787 in latest setback: A month after Boeing’s 787 Dreamliner returned to the skies after a four-month grounding, a United Airlines 787 flight from Denver to Tokyo has been diverted to Seattle due to an oil-filter problem.

Sainsbury’s boosts clothing sales through Tu brand: Sainsbury’s has seen a 15% rise in the number of customers buying clothing, as its fashion sales head towards the £700 million barrier.

The Daily Telegraph


RBS, Lloyds and Barclays ‘make up 90% of £25 billion black hole’: The City regulator is to trigger one of the biggest ever capital raising efforts after laying bare funding gaps that amount to a £25 billion black hole hidden in Britain’s banks.

IFRS is illegal, investors claim: A group of powerful investors has demanded an urgent review of Britain’s accounting rules after being given a legal opinion that they not only distort bank accounts but also fall foul of Company Law.

Bumi’s directors criminally liable for poor records, claims Pirc: All of Bumi’s 11 directors may have committed a “criminal offence” by failing to ensure that the coal mining group’s Indonesian businesses keep proper accounting records, shareholder lobby firm Pirc has claimed.

Microsoft ‘was in talks to buy Nokia’: Microsoft was in talks to boost its position in the mobile phone market by buying the devices business from Nokia but failed to seal a deal, according to reports.

The Questor Column:

Prospects building for Crest Nicholson: Since Crest Nicholson rejoined the London market in February, shares in the company are up more than 50%. The increase has been driven by wider gains in global equity markets, but also expectations that the housing market in Britain is improving, particularly in the south east of England, where Crest is focused. Data on mortgage approvals, housing transactions and house prices are all going the right way in the U.K. Official data from the Office for National Statistics said that house prices are 2.6% higher than a year ago. The recovery in the market was confirmed by Crest’s half year results for the six months to 30 April. Revenues rose 39% to £192 million, while pretax profits rose from £16 million to £22.2 million, despite £5.9 million of costs from the flotation. Stephen Stone, Chief Executive, was bullish for the future, revealing that Crest’s forward sales are up 50% on last year. Crest may be trading at a dividend yield of just 1.4%, but it is trading at a more attractive 11.3 times estimated 2014 profits. Crest Nicholson at 39½p +1½. Questor says “Buy”.

The Guardian

China diversifies U.K. interests as Dalian Wanda invests £1 billion in luxury brands: China’s second-richest man has acquired the British yacht maker Sunseeker and announced plans for a luxury hotel in London in a £1 billion investment that broadens the Chinese corporate footprint in the U.K.

Royal Mail staff vote against privatisation: Royal Mail workers have voted overwhelming against the government’s controversial plan to sell off the 497-year-old postal service. More than 96% of postal workers who voted opposed the privatisation despite the government promising them each about £1,500 in shares as part of the flotation plan.

North-south negative equity divide ‘widening’: Ratings agency S&P says that 13.5% of mortgage borrowers in North-West England are in negative equity, against 0.9% in London and the south-east.

Berkeley reports 26% jump in profits: Housebuilder Berkeley has reported a 26% jump in annual pretax profits on the back of the surging property market in London and the south-east.

Daily Mail

Rolls-Royce lands orders worth £1.5 billion at Paris Air Show: Rolls-Royce celebrated the aviation industry’s Paris Air Show by announcing orders worth £1.5 billion in the space of a single day. First Rolls unveiled a memorandum of understanding with Air France-KLM to provide the Franco-Dutch carrier with engines to power up to 50 Airbus 350s.

Imagination Technologies is looking for Chinese to chip in after annual profits fall: Chip designer Imagination Technologies will tap Chinese companies for new custom after posting a fall in profits last year. On an underlying basis, profits fell 7% to £34.3 million as revenues rose 19% to £151.5 million. Shares rose 6% to close 19p higher at 324.2p.

Daily Express

Ryanair in £10 billion deal for Boeings: Budget carrier Ryanair made an order worth up to £10 billion for 175 Boeing aircraft and said it might buy 200 more. Ryanair said the order for 737-800 jets will help it to expand its fleet to 400 aircraft by 2019 from 305 now.

A sporting chance for Millets and Blacks sales: The group, which bought Millets Owner Blacks Leisure out of administration for £20 million early last year, said the two brands had returned to positive like-for-like sales growth in the 18 weeks to 08 June.

Spirit’s high as profits climb at pub group: The group, with 800 managed pubs and which owns chains including Fayre & Square, said more seasonal weather had helped sales rise 2.6% in the six weeks to 25 May with food sales up 4.4%.

The Scottish Herald

Souter benefits from Sunseeker sell-off:Sir Brian Souter’s investment vehicle is thought to have made tens of millions of pounds after luxury yacht maker Sunseeker International was sold to Dalian Wanda Group in a deal worth £320 million.

Aer Arann targeting growth on Scottish routes: Aer Arann, the Dublin-based carrier that operates flights for Aer Lingus between Scotland and Ireland, is aiming to boost passenger numbers on those routes by 10% this year.

SVM trust back on track after major overhaul: The former SVM Global Trust, which was switched from Edinburgh’s SVM boutique to London-based Henderson in April, had a clutch of supposedly “deep value” investments which were almost worthless, the new managers have said.

Manufacturing staff ‘may escape ClydeUnion cuts’: Engineering and manufacturing staff are likely to escape the redundancy programme being proposed at ClydeUnion.

Wolfson Finance Chief joins Cooper Software: Former Wolfson Microelectronics Finance Chief George Elliott has become board advisor at Fife-based Cooper Software as it prepares to raise more finance and eyes a possible move onto the stock market.

The Scotsman

£1 billion Chinese luxury yacht swoop nets Souter £100 million: BUS tycoon Sir Brian Souter has pocketed more than £100 million in profits on investments in recent months after the latest deal saw his stake in yacht maker Sunseeker International sold to a Chinese billionaire.

Watchdog to examine SME banking : Regulators followed-up the Parliamentary Commission on Banking Standard’s final report by yesterday launching a probe into lending to small businesses.

App brings new technology down to earth: Ground-breaking technology can now be used to identify the amount of organic matter in the soil, a free soil carbon app – SOCiT (soil organic carbon information) – providing farmers with a quick, cost-effective source of information about the fertility of their soil.

City A.M.

Commerzbank to cut 5,200 jobs: Commerzbank said 12% of full time staff will be laid off, as the major German lender restructures itself up to 2016.

Malaysian infrastructure group buy One Crown Place for £55 million: A Malaysian infrastructure group was confirmed as the successful buyer of investment bank UBS’s development site at One Crown Place.

Tesla shares rise despite Model S car recall due to seat defects: Electric car maker Tesla Motors will recall 1,228 of its 2013 Model S cars manufactured due to a defect in the mounting bracket of the rear seat.

ITV spends £19 million on U.S. producer Thinkfactory: ITV bought a controlling stake in a U.S. reality television specialist, in the firm’s latest overseas programming purchase. The company will pay $30 million (£19.2 million) for a 65% stake in Thinkfactory Media, and has an option to buy the remaining 35%.

LVMH to sue Hermes over stake building: Hermes launched a fresh round of legal proceedings against arch-rival LVMH to obtain the cancellation of equity swaps LVMH used to stealthily amass its stake in the French luxury goods maker.

Expansion plan lifts DFS results: Sofa maker DFS posted a 7.8% rise in sales in the first nine months of the year, thanks to launching new products, stores and boosting its online service.


Darty hurt by revenue drop: Darty, Europe’s third-largest electrical goods retailer, posted an expected slump in full year profit, hit by weak economic conditions in the Eurozone and a structural shift to online sales. 

Disclaimer: Any  research has been produced by an independent third party provider.  Further details can be provided on request.  Guardian Stockbrokers Limited is authorised and regulated by the Financial Services Authority (FSA Ref: 492519).

Any report has been prepared using information available from public sources, which are believed to be reliable as at the date of this report.  However, Guardian Stockbrokers, its employees and its independent third party provider make no representation as to the accuracy or completeness of this report.  This report should therefore not be relied on as accurate or complete.  The facts and opinions on this report are subject to change without notice.  Guardian Stockbrokers, its employees and its independent third party provider have no obligation to modify or update this report in the event that any information on this report becomes inaccurate.

Any report is prepared for informational purpose only, with no recommendation or solicitation to buy or to sell.  The background of any individual or other investor has not been considered in providing this report.  Individuals and other investors should seek independent financial advice which considers their specific risks, objectives and specific constraints, and make their own informed decisions.  Individuals and other investors should note that investing in shares carries a degree of risk and the value of investments can go up or down.  Past performance is not a reliable indicator of future performance.   Investments should be made with regard to an investor’s total portfolio.  Guardian Stockbrokers, its independent third party provider and its employees make no representation or guarantee with regard to any investment noted on this report, and shall therefore not be liable with regard to any loss.


No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.


© Proactive Investors 2015

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.