American markets may be closed for the Independence Day holiday but investors ought to own US Treasuries ahead of this weekend’s fireworks, according to UBS strategist Themos Fiotakis.
He says as the Greek population prepare to poll the country’s European future the risk-reward in the market favours long positions in US government debt, as well as German Bunds.
“Relative to current levels, and adjusted for the probability of contagion due to GRexit, we find that risks are not priced symmetrically,” he said in a note.
BP’s (LON:BP.) US$1bn-a-year legal settlement with the Americans is, on balance, a good outcome to a tricky situation, according to Jefferies.
The oil ‘supermajor’ yesterday revealed the US$18.7bn settlement, which will be paid over 18 years.
Analyst Jason Gammel, in a note, said: “The settlement should resolve BP's largest remaining legal exposures while also providing clarity on costs and timing of payment.”
Jefferies repeated a ‘buy’ recommendation with a 480p price target, suggesting around 10% upside to the current price.
JP Morgan Cazenove upgraded BP to ‘overweight’ from ‘neutral’. The American investment bank also upgraded aerospace and defence engineering group Cobham (LON:COB) to ‘overweight’ from ‘neutral’.
Investec warmed to property website Rightmove (LON:RMV) which was upgraded to ‘hold’ from ‘sell’.
BAE Systems (LON:BA.) is now a ‘buy’, according to UBS, which said the aerospace group’s from the economic cycle is attractive.
UBS, meanwhile, has turned negative on Firstgroup (LON:FGP) because the coach and rail group’s cash flow remains below its peers. The Swiss bank cuts to ‘sell’ from ‘neutral’.