Only registred members can create thier own customized alerts.
Newspaper Briefing, including 'U.S. authorities investigate Standard & Poors' - Daily Telegraph
The Times
Gilts: U.K. government bonds jumped as worries about the global economy and the European debt crisis sent investors rushing towards safer assets. September gilts futures settled 136 ticks higher at 130.40 as the Footsie tumbled and Wall Street opened sharply lower. Yields on ten-year gilts fell by 13 basis points to 2.31%, after touching a new low earlier.
Bet of the day: As the stock markets fragile calm of the previous few days was broken on rekindled concern about the health of the global economy and the debt crisis in Europe, still far from resolved, banks and miners were marked sharply lower and spread-betters again sold the Footsie. ETX Capital quoted 5,082 to 5,084 points for its U.K. 100 daily rolling contract.
Deal of the day: SQS Software Quality Systems, one of the few German companies whose shares are listed in London, rose 4p to 195p, after landing contracts worth 22 million (19 million). SQS tests software to make sure it works and is free from bugs. It has won contracts from a U.K. supermarket and three other retailers, a media company and a big European logistics group.
Shares take a battering amid rising fears the bank system is freezing up: European leaders are under increasing pressure to head off a new banking crisis after stock markets plunged amid fears of a 2008-style financial seizure. Shares on the FTSE 100 lost 62 billion in a day of punishing falls.
Gaddafi turns to Ilford law firm to unlock his frozen assets: Colonel Gaddafis regime has turned to a law firm in East London in an attempt to regain control of its frozen assets. The Times has learnt that the besieged Libyan administration has instructed Edwards Duthie, a small high street practice, rather than one of the numerous high-priced City firms known for handling complex international asset recovery cases.
Hiding costly new building projects off the books has to end, warn MPs: A blistering report by MPs criticises the Government for its addiction to private finance initiative contracts, warning that they are an inefficient and costly way to build new roads, schools and hospitals. The Treasury Select Committee said that, far from shying away from the model championed by Gordon Brown, departments may remain tied to it as Ministers look for ways to push through capital spending without driving up official debt figures.
Coke fizzes with excitement over growth in China: Coca-Cola will more than double its exposure to the Chinese sweet tooth after promising to pour more than $4 billion of investment into the worlds second-largest economy. In an effort to bolster its name in China, the Atlanta-based soft-drinks group also said that it would be interested in listing on the Shanghai stock exchange, if and when the authorities open that avenue to foreign companies.
U.S. regulator closed fraud inquiry before Chief swapped sides: U.S. securities regulators are being investigated over allegations that the Securities and Exchange Commission improperly closed down a fraud investigation into Deutsche Bank in 2001 shortly before the its Chief Enforcement Officer joined the bank.
TalkTalk hit with record 3 million bill for incorrectly billing its customers: TalkTalks Tiscali headache has continued to weigh on the company after Ofcom hit the broadband provider with the largest fine in history against a U.K. telecoms company for incorrectly billing customers. The telecoms regulator has fined Britains second-largest broadband provider 3 million after the company incorrectly billed tens of thousands of customers for internet access while it merged the dozens of payment systems it inherited as part of its 2009 acquisition of rival Tiscali.
Shell sends in divers to contain oil spillage: Shells struggle to stop Britains worst oil spill for a decade moved into the tenth day. The company sent in divers to work out how to close a faulty valve that is believed to be responsible for a second leak from the pipeline feeding into the Gannet platform in the North Sea, 112 miles off the coast of Aberdeen.
At last, China Mobile falls under Apples spell: Apples overflowing coffers are set to bulge even more after China Mobile said that it was planning to offer the Apple iPhone to its 616 million subscribers. The move by the largest mobile phone operator in the world is expected to transform a market that has fallen in love with Apple products, but that regularly has to content itself with long waiting lists for new products, iPhones smuggled in from abroad and, in many cases, fakes.
The Independent
Banks plunge amid worries over Eurozone exposure: European banks bore the brunt of the market sell-off amid reports that regulators in the U.S. have stepped up their oversight of the companies, in case a new market panic causes disruption to their operations.
Treasury committee demands overhaul of poor value PFI: An influential committee of MPs launched a stinging attack on the private finance initiative (PFI) and claimed it offered taxpayers poor value for money. The Treasury select committee also called for debts built up through the initiative to be brought on to Britains balance sheet a move that would increase the national debt.
Energy firms rapped but still no action on high prices: Gas and electricity suppliers were ordered to explain how they calculate bills by energy regulator Ofgem, as they came under increasing pressure from customers facing price hikes this week. Ofgem made the demands following allegations that many energy users have been overcharged without clear explanation from their suppliers.
Ofgem tells suppliers to explain their bills: The energy regulator Ofgem has demanded that suppliers explain how they calculate bills amid allegations that customers have been overcharged following price rises. Ofgem has received complaints that when a bill covers a period in which prices increase, suppliers have incorrectly calculated the number of units consumed at the higher rate.
Mortgage lending falls away in July: A mini revival in the mortgage market fell away during July amid a subdued property sector, the Council for Mortgage Lenders said. Gross lending was estimated at 12.6 billion in the month, 1% lower than in June and 6% down on a year ago, the CML said. Lending in June hit its highest level for nearly a year as landlord activity in the buy-to-let market picked up.
Facebook gets access to emails: A U.S. judge has given Facebook access to the email accounts of a man suing for half-ownership of the social networking website and ordered him to explain why he cannot produce documents its lawyers believe are evidence.
Lenovo profits mired in gloom: Chinas Lenovo, the worlds No 3 PC brand, has joined rivals in flagging up its concerns about the weak global economy and Eurozone debt crisis, overshadowing a doubling in first quarter profits to $109 million (66 million).
Financial Times
Loosen bank capital requirements, says BoE official: Banking regulators should consider temporarily lowering capital requirements in an effort to boost the feeble supply of credit to the economy, according to a top official at the Bank of England. In a powerful paper that drew parallels with President Franklin D. Roosevelts handling of the U.S. economy and bank regulation in the 1930s, Andrew Haldane, Executive Director for financial stability at the Bank and a member of its new macro-prudential financial policy committee (FPC), said the situation in the U.S. in 1938 was eerily reminiscent of today.
Star traders, rip-offs and old-style bankers: The high-profile departure this week of a team of commodity traders from Barclays Capital to set up a hedge fund provides modest cause for celebration, as does the wider retreat from banks own-account trading prompted by Americas Dodd-Frank Act.
Media group sues over F1 series sale to CVC: A German media group has filed a multi-million dollar lawsuit against Bernie Ecclestone and several other defendants, presenting the billionaire Formula 1 Boss with another legal challenge over the controversial sale of the racing series almost six years ago.
U.S. oil sanctions send strong signal to Syria: The measures certainly look punitive Washington has prohibited any Syrian petrol products from being imported into the U.S., and has forbidden any U.S. citizens and companies from involvement in Syrias oil sector or exporting any products to Syria.
Lex:
HP/Autonomy: cue embarrassed applause: Its been a long wait, but chief executive Mike Lynch looks to have found someone willing to buy Autonomy for a price approaching the dizzy heights reached during the dot.com boom. He has done extremely well to get Hewlett-Packard to pay an enterprise value of $11 billion for the Cambridge-based software company. Over the past five years, by contrast, the average European Software Company has sold for 10 times earnings before interest, taxes, depreciation and amortisation, according to Bloomberg data. Although an agreed deal with HP, Autonomy may even fetch a higher price from another bidder. Specialist software makers at the lunatic end of the valuation spectrum trade at similar multiples to HPs offer, and the truth is that Autonomys data search technology fits more snugly with the likes of Oracle, SAP or IBM. Then again, if HP ends up selling its personal computer business which currently accounts for 19% of operating profit it is slowly earning the right to become whatever type of company it wants to be. Gloom is the appropriate response to a lowering of earnings guidance for the fourth quarter and to the memory of $1.2 billion so recently paid for Palm. But on balance HPs management should be applauded for making some difficult decisions, however embarrassing.
U.S. producer prices: cold comfort: Every month the U.S. Bureau of Labour Statistics collects data on 9,000 products and groups of products to create producer price indices. Core PPI, released on Wednesday for July, rose at the fastest rate for six months. But line-by-line analysis reveals some interesting nuggets. The PPI has been trying to catch up with the rise of services. Computer training entered in 2007 and dental offices last January. The details also show the effect of high commodity prices through the economy. Transportation prices are up between 5 and 10% versus a year ago, no doubt due to higher fuel costs. These also make Americans travel less, which might explain why amusement park prices are rising (up 5%) and prices at travel agencies are down. Then again, the stay-at-home trend is not doing much for prices at golf courses and country clubs (up 1.3%) or fitness centers (up 1.4%). The long-standing downward trend in technology prices plus a recent weakness in demand has reduced prices at electrical stores by almost a fifth. On the other hand, the soft economic news probably amplified the long-standing decline of florists. Their wholesale prices were down 4.8% from last year, and they have lagged behind the overall index by 19% points since the beginning of 2007.
Markets mayhem: wait and see: The terror of adulthood is having to make your own choices without knowing how theyll work out. Similarly, investors would love to know if the return of market mayhem on Thursday should be dismissed or if it is a portent of things to come. Unfortunately, for all the plunging equities and bond yields, it is still too early to say. Certainly there were some soggy economic numbers out of America on Thursday; the Philadelphia-area factory index falling to minus 31 in August versus a consensus of positive 2 was particularly soft. So were housing starts. But the U.S. recovery has been characterised by fits and starts since coming out of recession more than two years ago. There has also been better news recently. July U.S. retail sales, for example, looked pretty good, as did the recent earnings season. Likewise, the Eurozone mess rumbles on and, while the German economy may have stalled, the growth engines of China and other emerging markets are still humming. That the European Central Bank had to supply $500 million of dollar funding to one local bank sounds ominous, but may prove exceptional.
Lombard:
U.K. tech sector set to lose its Autonomy, lucratively: It is hard to know whether to applaud or lament the proposed $11 billion (6.7 billion) purchase of Autonomy, the U.K.s biggest listed Software Company, by Hewlett-Packard of the U.S. The transaction, at an impressive premium to Thursdays closing price of about 78%, would trigger handsome pay-outs. These would be just reward for investors loyal to a data business whose value has gyrated with the tech cycle ever since it floated during the 90s tech boom. It is also apt recognition of the value created by founder and chief executive Mike Lynch, who would reap a personal windfall of more than $800 million. It is hard to know whether to applaud or lament the proposed $10 billion-plus purchase of Autonomy, the U.K.s biggest listed Software Company, by Hewlett-Packard of the U.S. The transaction, at an impressive premium of 75%, would trigger handsome pay-outs. These would be just reward for shareholders loyal to a data business whose value has gyrated with the tech cycle ever since it floated during the 1990s tech boom. It is also appropriate recognition of the value created by founder and chief executive Mike Lynch, who would reap a personal windfall of some $800 million.
Tut-tut TalkTalk: Is the 3 million fine levied on TalkTalk by Ofcom disproportionate, as Dido Harding, chief executive of the broadband and telephone company claims? Not in a punitive environment where whey-faced yoof get four year jail terms for abortively inciting riots on Facebook. By that vengeful benchmark, the communications watchdog should have bulldozed TalkTalks headquarters and exiled Ms Harding to a penal colony off Belize. But by Ofcoms modest standards, the fine for overcharging is a stiff one. Ms Harding, brought in to tackle chaos from the integration of Tiscalis U.K. business, was wrong to imagine that refunds and compensation of 2.5 million would satisfy the regulator. Needling coverage of the fine by journalists of a consumerist bent will do little to burnish TalkTalks battered brand.
The Daily Telegraph
Autonomy board backs 7 billion Hewlett-Packard offer: Hewlett-Packard has made a recommended offer for Autonomy, valuing Britains most successful software company at 7 billion. Mike Lynch, Autonomys Chief Executive, who co-founded the business 13 years ago, stands to make 500 million from his stake in the FTSE 100 Company.
Exports keep U.K. car production motoring: Car production rose in the U.K. last month despite the economic gloom engulfing Europe. New figures from the Society of Motor Manufacturers and Traders shows the number of cars manufactured in the U.K. rose 1.3% in July compared to the same month last year.
U.S. authorities investigate Standard & Poors: Ratings agency Standard & Poors is reported to be under investigation by U.S. authorities over whether its positive verdicts on the investment rating of mortgage-backed debt which later collapsed helped deepen the financial crisis.
ExxonMobil sues U.S. government over seizure of oil leases: Oil major ExxonMobil is suing the U.S. government for cancelling some of its deepwater exploration permits in the Gulf of Mexico. The case comes after the U.S. authorities took away three out of five of Exxons leases for the Julia field, which is thought to contain billions of barrels of oil.
The Questor Column:
Asian arm keeps Savills insulated from economic chill: The housing market is in decline, the financial markets are once again flirting with paralysis and international economies are labouring under the weight of their massive debts. It raised its interim dividend by 5% and revealed a healthy balance sheet with 26 million of cash in the bank. The yield is 2.9%, not generous but not bad for property companies. On top of this the company revealed healthy growth in both top and bottom lines. Revenue was up 10% to 335.8 million, profit was up 39% to 20 million. The reliance on overseas buyers has been highlighted before but it is concerning. Usually the average for Savills is 50% of buyers being from overseas, but in recent months this has increased to above 65%. These buyers have always been part of the London market but then there has also always been the feeling the money is not wedded to London and could flow elsewhere if conditions change. The other question is how changes in the global economy will affect the company. After all, the company cannot be bomb-proof forever. The answers are linked. As the global economy deteriorates as Questor believes it will over the short term there will be a flight to safety. Gold is the obvious answer but high quality property is another. The problem is this could produce a property bubble of its own. Savills at 314.1p +1.6p.Questor Says Buy.
Cineworld Group a buy after investing in 3D: Cinema businesses are enormously dependent on what Hollywood has to offer - a scrappy slate amounts to scrappy takings, while a Harry Potter or Twilight blockbuster is a sure-fire winner all round. The companys first-half results were dented by a dearth of 3D blockbusters but it has spent this time preparing for the slew of 3D films set to follow, by investing heavily in technical upgrades. These will enable it to screen 3D films at the same time as reducing its running costs. Pretax profits at Cineworld fell more than 40% to 6.9 million, due in part to 5.4 million of exceptional charges largely relating to this expenditure, as well as a slight decline in the average customer spend. However, its revenues were broadly flat at 163.3 million as admissions edged up, putting it slightly ahead of analysts expectations. The chain had fallen behind with its target of three new openings a year but Stephen Wiener, Chief Executive, told analysts that it could accelerate to six openings a year as bank financing for property developers returned. Cineworld Group at 183p -2p. Questor Says Buy.
The Guardian
Markets in meltdown amid new global recession fears: Financial markets on both sides of the Atlantic were convulsed by a fresh wave of selling amid fears that the world economy is sliding back towards recession. The FTSE 100 closed down 239 points, or 4.5%, at 5092, wiping more than 62 billion off its value. In the U.S., the Dow Jones closed down 419 points, or 3.7%, at 10,991.
U.K. gilt yields at lowest since 1890s: U.K. government bond yields the rate at which the U.K. government borrows money plunged to their lowest levels since the 1890s. Ten year gilts were paying an interest rate of 2.24% at one stage. The last time a U.K. Chancellor could borrow so cheaply, his name was Sir Michael Hicks Beach, and Queen Victoria was celebrating her diamond jubilee.
Retail sales growth weak: British consumers spent less than expected on the high street last month, triggering fresh fears about the nations economic recovery. Experts said the weakness of consumer spending, which accounts for two-thirds of the economy with 40% of that from retail sales highlighted how close the country was to sliding back into recession.
Liam Foxs friend set up crucial legal meeting: Liam Fox relied on a close personal friend rather than his team of official advisers to broker a crucial meeting at the heart of an explosive legal battle involving the defence secretary, it has emerged.
Daily Mail
Investors in safe haven stampede amid growing market turmoil: Investors ploughed cash into gold and treasury bonds as the gathering turmoil on global stock markets triggered a stampede towards the last remaining safe havens. The price of gold reached an all-time high of more than $1829.70, adding credibility to suggestions by some City analysts that the precious metal could hit $2000 by the end of the year.
Gloomy outlook as America and Europe now in double-dip danger zone: Fears over the state of the British and U.S. economies mounted after a slew of gloomy economic data. Lingering hopes of a strong rebound in the worlds biggest economy were quashed by a grim snapshot of Americas manufacturing industry and disappointing data on the U.S. housing and jobs markets.
Markets mayhem is fulled by fear says Bank of England source: Andrew Haldane, Executive Director for financial stability at the Bank of England, said an exaggerated sense of fear is rampant in the markets and may be holding back the recovery.
Broker Views:
Rotork: Goldman Sachs upgraded the stock to Buy/Neutral and increased the target price to 2300.00p
Britvic: Goldman Sachs upgraded the stock to Neutral and increased the target price to 388.00p
BowLeven: Barclays Capital maintained an Overwt/Positive rating on the stock, with a target price of 385.00p
Ceres Power Holdings: Jefferies maintained a Hold rating on the stock, with a target price of 85.00p
Andes Energia: Arbuthnot Securities maintained a Strong Buy rating on the stock, with a target price of 59.00p
Mitie Group: Goldman Sachs downgraded the stock to Neutral and decreased the target price to 288.00p
Daily Express
Blockbusters boost for Cineworld: A strong line-up of 3D titles in the second half of the year should help Cineworld Group regain some of the ground lost during a relatively quiet start to 2011. Britains biggest cinema chain said it had already seen the benefits from new blockbusters such as Harry Potter And The Deathly Hallows Part 2, Rise Of The Planet Of The Apes and Cowboys And Aliens.
Banks in the firing line as markets dive: Nearly 14 billion was wiped from the value of Britains big five banks amid further fears for the sectors financial strength and prospects for the global economy. The banks were hit by a toxic mix of industry specific and general economic fear.
Speculators give Savills a capital property boost: International speculators are using the best property in the U.K. to fend off global turmoil, helping Savills boost profits but it warned markets would probably get tougher. The upmarket property adviser said overseas investors targeted premium London housing as a haven from Eurozone and U.S. debt crises.
The Scottish Herald
Scotland ready to make most of buoyant oil and gas sector: AMID all the uncertainty affecting the economy and the labour market, Scotland has reasons to be grateful for the fact it is home to a buoyant oil and gas industry. While firms in many sectors have been laying people off, the talk in Aberdeen oil and gas circles is all about how difficult firms are finding it to recruit the people they need.
Understanding cows holds key to quick milking: Dairy farmers and their staff have been advised that if they want to help to reduce the level of lameness in their herds and make their milking easier and quicker, then understanding cow behaviour is the key.
Year-on-year drop in retail sales fuels recovery fears: U.K. retail sales volumes rose by only 0.2% during July, and were 0.2% lower last month than a year earlier excluding fuel, according to official data which will add to worries over the momentum of U.K. economic recovery.
The Scotsman
Bloodbath on the bourses as recession fears spark slump: Global recession fears turned trading screens red as Britain's benchmark share index suffered the 12th-largest points fall in its history. The fresh sell-off, which wiped some 62 billion from the value of the 100 biggest companies, was triggered by a warning that the United States and eurozone economies are "dangerously close to recession".
Norway's Aker creates 500 oil jobs across U.K.: Europe's oil capital will receive a jobs boost when Norwegian oil services giant Aker unveils plans to create 300 jobs in Aberdeen to cope with a surge in orders. The Oslo-listed group, which is also opening an office in London and recruiting 200 staff south of the Border, already has some 2,500 workers in Scotland, spread across a range of sectors including engineering, underwater technology and well intervention.
Shareholders in battle for control of Promethean: A battle for control has broken out at the listed private equity vehicle founded by former Bank of Scotland Chief Executive Sir Peter Burt and his son Michael. Promethean, which raised 50 million when it listed on Aim five years ago to take stakes in underperforming companies, is currently in the process of being wound up and its investments realised.
Farm borrowing rise is 'a positive move': Newly released figures showing Scottish farmers increasing their borrowing requirements by 105 million to a new record height of 1.6 billion should be seen positively according to a leading banker.
Walker to head NFU Scotland: An internal promotion announced by NFU Scotland sees their current policy Director Scott Walker appointed as Chief Executive. He takes over from current holder, James Withers who moves to the Scotland Food and Drink organisation early next month. Walker has been with NFUS for 17 years and has progressed through a number of roles, starting as Commodity Director in 1994. He has headed up the Union's policy team since 2004.
Campbells sales bounce back after factory fire: Campbells Prime Meat, the Linlithgow-based food service business, has seen a strong recovery in sales following a major fire at its main plant in 2009. The company, which supplies fresh meat, fish and delicatessen products to hotels and restaurants, saw turnover rise by 10% to 46.9 million last year with operating profits edging up by 6,000 to 552,089, accounts at Companies House reveal.
Camping surge helps holiday firm: Travel specialist Holidaybreak has seen a rush of late bookings for camping trips help prop up group performance in a tough economic climate. The group, which owns school trips businesses PGL, said that its Eurocamp and Keycamp businesses saw strong demand towards the end of the five months to 13 August from British and Dutch holidaymakers.
New life in Life & Style: Stricken fashion and homewares chain Life & Style has been sold out of administration in a deal that will save nearly 500 jobs and return all the business to its original Ethel Austin branding. The firm went into administration in June and 29 of its 91 stores were closed.
