Beruflich Dokumente
Kultur Dokumente
03 December 2010
U.K.
The Economic Monitor Series. Free Edition.
Stock recommendations and price targets from top Britain's top shares were almost flat approaching midday, a fall
brokerage firms among financials after recent gains offsetting strength in precious
metals miners ahead of jobs data from the United States. The FTSE
Analysis and views on Britons personal finances 100 was down 22.24 points, or 0.39 percent at 5,745.32.
and ECB liquidity program In the cash market, the yield on ten-year gilts was almost 2 basis
points lower at 3.395. The spread against Bunds tightened to
Economic Indicator Watch along with Graphs around 55 basis points.
List of companies earnings which hit and miss the Sterling was up 0.5 percent against the dollar to $1.5691, keeping
well above a two-month low of $1.5485 hit on Tuesday.
analysts’ expectations
Oil fell from two-year highs after closely watched U.S. jobs data
Important Events Scheduled on December 06 missed expectations, while North Sea Brent crude futures held
above $90 due to the extreme cold weather covering much of
Europe. ICE Brent crude futures were trading at $90.61 a barrel,
Economic Events & Indicators after briefly touching a fresh two-year high of $91.13 earlier today.
U.K. New Car Registrations (November) Gold jumped above $1,400 an ounce to a three-week high, after
U.S. jobs data disappointed the markets, knocking the dollar index
down 1 percent and dampening expectations for a self-sustaining
Corporate Events recovery. Spot gold rose to a high of $1,407.35 an ounce and was
bid at $1,402.60 an ounce at 1510 GMT, against $1,384.75 late in
Alternative Networks, Treatt final results New York on Thursday.
Qantas claims damages from Rolls-Royce over CAC 40* 3750.55 3.51 0.09
* CLOSING VALUES
Greene King confident on full year performance
CURRENCIES
Premier Foods in talks for sale of unit
INDEX LAST PRIOR
Berkeley profits rise on demand
Euro (EUR/USD) 1.3372 1.3224
BAE keen on its unit sale U.K. Pound (GBP/USD) 1.5715 1.5599
FUTURES
LAST CHANGE
Brewin Dolphin Raises target price to 216p from 206p Buy 155p
Oriel Securities
Rio Tinto Raises price target to 5000p from 4500p Strong Buy 4415p
Seymour Pierce
Greene King Raises price target to 486p from 456p Hold 460p
Goldman Sachs
Millennium & Copthorne Raises price target to 682P from 560p Buy 562p
Disclaimer: The views and investment tips expressed by investment experts are their own, and not that of IBTimes or its management. We advise users to check with certified experts before
taking any investment decisions.
Indeed, according to CreditAction, a British education charity, said that total personal debt at the end of October 2010 stood at 1.452-trillion pounds sterling, adding
that UK individuals owe more than what the whole country produces in a year. The personal debt figure has remained above the 1.4-trillion pound figure since
December 2007. (By comparison, total personal debt amounted to about 400-million pounds at the end of 1993). Or to put it another way, the average UK adult now
owes about 29,833 pounds (including mortgages), which is about 126 percent of average annual earnings. Moreover, average household debt in the UK is now
57,624 pounds (including mortgages).
R3’s survey also indicates that the number of people worried about their current debt levels has remained steady, with almost four in ten (39 percent) expressing
concern. Regionally, people in the West Midlands are most likely to worry, with half of those surveyed saying they are worried about their debts. In London, four in ten
are concerned. Credit card debts, R3 explained, continue to dominate the concerns of those who are worried about their debts. Of those concerned about their debts,
over a quarter (28 percent) of people are concerned about how far they are into their overdraft. Concern about mortgage repayments has increased by 4 percent --
from 19 percent to 23 percent -- since the last survey.
Since we last carried out the survey, the government has issued the Comprehensive Spending Review that announced job cuts and
welfare cuts, so it is unsurprising that fewer people are feeling optimistic about their financial outlook.”
“In many cases of personal insolvency the contributory factor is a sudden change in circumstance, such as losing a source of
income, which makes repaying outstanding debts difficult. With personal debt hitting record highs and job cuts looming, many
people will be feeling vulnerable.”
R3’s president, Steven Law. “I see many people who are concerned about their credit card debts as, worryingly, they rely on them for day-to-day purchases.”
“Unfortunately, I fear that the number of people worrying about their levels of credit card debt is set to grow.”
“The spike in the number of people worrying about their mortgage repayments “may be due to the fact that, typically, the value of
a mortgage repayment tends to be higher than the monthly repayment on a credit card. The higher value of this debt may make a
mortgage repayment seem more difficult to pay each month. Many may be concerned that their repayments will increase when
The ECB, which began purchasing bonds through the SMP in May, has spent about 67 billion euros so far on the program. Markets were expecting the bank to
increase its level of support, as the debt crisis in Europe deepens with Italy, Spain and Portugal expected to require financial assistance in the future. Earlier in the day,
the ECB announced that interest rates would be left unchanged at the record low of 1 percent, as expected.
Howard Archer, an economist at IHS Global Insight expects underlying inflationary pressures remain muted and are likely to remain so “given significant output gaps
and spare capacity, as well as muted wage growth amid high unemployment.”
The ECB expects inflation to hover around 1.9 percent for the euro area over the next few months. The low inflation rate gives the bank more room to hold the interest
rates low. The ECB expects HICB inflation to remain around the 1.5 percent to 1.7 percent rate in 2010, between 1.3 percent and 2.3 percent in 2011 and 0.7 percent
and 2.3 percent in 2012. Trichet forecast economic growth of the euro area to be between 1.6 percent and 1.8 percent for 2010, and between 0.7 percent to 2.1 percent
in 2011. However, Trichet refused to comment on the pressure for the Securities Market Program (SMP) to be increased and said that it is “ongoing.”
The halt on the phasing out of the program was inevitable, given the high dependence on ECB funding by banks in the more
vulnerable Euro zone countries.” “However, given that the extension was the minimum was what was expected or hoped for by the
markets, it is unlikely to ease tensions.”
Howard Archer, an economist “It was inconceivable that the ECB would do anything else but keep interest rates down at 1.0%. Not only do economic conditions
at IHS Global Insight in the Euro zone still warrant record low interest rates, but to have hiked rates at a time of such turmoil could only have made
matters worse for Greece, Ireland, Portugal and Spain.”
“The Euro zone is threatened by high unemployment, recurrent sovereign risk problems and slower global economic activity in the
coming months.”
The Intelligent Investor - U.K.
TOP STORIES
Rio Tinto and Aluminum Corporation of China have signed a non-binding memorandum of understanding for the formation of exploration joint
venture in China. The new company is expected to start its operation in the first half of next year and will explore mainland China for world-class
mineral deposits. Chinalco will hold a 51 percent interest in the JV and Rio Tinto will hold a 49 percent interest.
Economic Events
No major economic events scheduled to be released.
Company Events
Alternative Networks, a U.K. based company engaged in offering a complete communications portfolio of fixed line, mobile, voice, data, systems
and fully converged solutions, is expected to declare its final results. The company is estimated to report full year net profit (GAAP) of £6.70 million
for the year ended September 2010. Revenue is expected at £95 million with full year dividend at 8.60 pence while EPS (GAAP) is estimated at 14.70
pence.
Treatt, U.K. based manufacturer and supplier of ingredients to the flavor, fragrance and cosmetics industries, will announce its final results for FY
2010. Analysts expect the company to report full year profit of 29.20 pence per share, against 24.40 pence reported a year ago. Full year revenue is
estimated at £62.20 million, up from £56.31 million reported a year earlier, with a net profit of £3 million. The company is expected to declare a
dividend of 12.10 pence for the full year, revenue is expected at £10.8 million.
Workplace Systems International will announce its first half yearly results. In its trading update the company said that the challenging trading
conditions of 2009 have extended into the initial months of the current financial year. However its cash position remains healthy in spite of the
impact of the quiet trading. The company says that its SaaS solution continues to attract increasing interest and the company is undertaking a
number of pilot solutions in the U.K. and the U.S. which are planned to be rolled out across our customers’ estates during the second half of the
current financial year. The company has also received additional orders from existing customers to facilitate their planned expansion. The Company
continues to control its cost base in line with current and expected levels of trading. Analysts forecast the company to report a full year profit of 90
pence per share, while revenue is expected at £10.8 million.
Plastics Capital, the manufacturer of plastic products, will announce its interim results for FY 2011. The company is expected to report full year
revenue of £29.50 million, against £26.69 million reported a year ago. Analysts estimate the company to declare a full year profit of 7.54 pence per
share, against 6.31 pence, reported a year ago.
Sirius Real Estate, an investment and development of commercial property firm, will announce H1 results. The company is estimated to report full
year profit of 22 pence per share for FY 2011, down from 44 pence reported a year ago. Analysts expect the company to announce its full year
revenue of £29.96 million with pre-tax profits of £1.37 million in FY 2011.
Tricorn Group is expected to release its H1 results for FY 2011. Analysts expect the company to report its full year profit of 1.40 pence per share,,
against 0.45 pence reported a year ago. Full year revenue is estimated at £18.80 million, up from £15.03 million reported a year earlier, with a Net
profit of £0.40 million.
The new car market fell for a fourth successive month, with the 22.2
percent drop in October the steepest decline since May 2009.
Registrations fell to 131,495 units in October. SMMT said during the
release, that market remains 4.8 percent up over the first ten months of the
year, at 1,767,154 units. SMMT predicts further declines likely in remainder
of year, but 2010 market to be up 1.5 percent on 2009.
“There was a significant fall in October’s new car registrations, reflecting the
impact of the Scrappage Incentive Scheme (SIS) at this time last year and
some deterioration in consumer confidence. Total new car registrations in
2010 are forecast to be 2.026 million units, 1.5% up on 2009," said Paul
Everitt, SMMT chief executive. “The industry expects the coming months
to be challenging with slow, but steady, economic growth feeding through
to improved confidence and demand during 2011.”
This report is produced by
International Business Times
For questions or comments
reach us at
researchanalysis@ibtimes.com