WHAT DO YOU EXPECT THE PURCHASING MANAGERS’ INDICES TO SHOW? August 2, 2009 PHILIP SHAW INVESTECRecent trends in the services PMI have been highly encouraging in recent months. The problem is that this revival is still not fully reflected in the official data, which showed the service sector contracting by 0.6 per cent over the second quarter. The MPC is likely to place some weight on the readings [...]
WILL WE SEE A RETURN TO GROWTH LATER THIS YEAR? July 26, 2009 MICHAEL SAUNDERS CITIGROUP We expect that the second quarter will indeed turn out to be the last quarter of recession – ie, falling GDP. But we expect a slow recovery, held back by high private debts and poor credit availability. We expect it will take about 20 quarters before GDP regains its pre-recession peak.VICKY REDWOOD [...]
BEST OF THE BROKERS June 29, 2009 ADMIRALCredit Suisse said that Admiral is ideally positioned to take advantage of the improving price conditions in the UK personal car market and upgraded the stock from “neutral” to “outperform” with a target price of 1,097p. The broker said the firm offers a defensive alternative within the insurance sector. DSG INTERNATIONALJP Morgan upgraded its earnings [...]
How to profit by turning the FTSE changes on their heads September 7, 2009 TOMORROW evening after the market close the FTSE 100 will undergo its quarterly reshuffle, which sees the UK’s leading blue-chip index updated to reflect fully the changing market capitalisation and liquidity of Britain’s listed companies. While the process is deliberately as transparent as possible and well publicised in advance in order to minimise any dramatic [...]
BEST OF THE BROKERS July 21, 2009 CABLE & WIRELESSCable & Wireless maintained guidance at both division and group levels in its first-quarter interim management statement, and Royal Bank of Scotland still considers the equity story one of the most compelling of European telecoms companies. The broker has a “buy” recommendation on the stock, with a target price of 200p. AUTONOMYInvestec believes [...]
Small rise for July surveys August 2, 2009 FURTHER improvements are expected in the forward-looking CIPS/Markit purchasing managers’ indices (PMI) due out this week, although economists caution that the rises will only be modest at best, indicating a weak recovery for the UK economy in the second half of 2009. The service sector, which accounts for about 60 per cent of UK GDP [...]
BEST OF THE BROKERS June 30, 2009 ARRIVAInvestec was disappointed by Arriva’s trading update, which showed a weakening in all areas of the business, especially the Cross Country rail franchise. The broker said that further deterioration in trading is likely to emerge in time and it expects to downgrade its estimates. Despite a poor share price performance, Investec remains cautious on the [...]
BEST OF THE BROKERS July 23, 2009 LONMINInvestec said Lonmin reported solid third-quarter operational results, but has reduced its full-year 2009 sales guidance to 680-700 ounces, from 700 ounces. The broker had already cuts its forecast to 674 ounces but the news did not change its recommendation that investors “hold” the stock with a target price of 1,050p. BAE SYSTEMSAhead of BAE [...]
BEST OF THE BROKERS July 23, 2009 LONMINInvestec said Lonmin reported solid third-quarter operational results, but has reduced its full-year 2009 sales guidance to 680-700 ounces, from 700 ounces. The broker had already cuts its forecast to 674 ounces but the news did not change its recommendation that investors “hold” the stock with a target price of 1,050p. BAE SYSTEMSAhead of BAE [...]
CADBURY RIVALS SET FOR BID WAR September 7, 2009 CADBURY, the maker of some of Britain’s best-loved confectionery brands, yesterday rejected a £10.2bn takeover approach from Kraft Foods, sparking speculation that the US food giant and its rivals may soon enter a spiralling bidding war for the firm. Kraft Foods, which owns confectionery brands Toblerone, Milka and Oreo, said a deal would create a [...]