Newspaper Briefing, including Greek debt crisis: Eurozone Ministers delay ...
Newspaper Briefing informs you of what is happening in the news before the market opens. We believe our Newspaper Briefing is an invaluable tool to set up your trading day, therefore giving you an edge. Our Newspaper Briefing is just the start of our trading day at Guardian. We work with our clients to provide them with information and guidance to enhance their trading decisions. Guardian will provide you with an individual service together with the most suitable and expert advice at a fair and reasonable cost. Britain not open for business, say voters: Britain has a worse tax regime than France, India and China, according to a Populus poll for The Times that reveals the scale of the challenge facing the Government on growth. The U.K. has been ranked bottom of six key competitors on personal and business taxation in a poll of voters that suggests they do not yet regard Britain as being “open for business”. Householders borrow to pay the bills as incomes dwindle: Businesses dependent on non-essential spending by consumers are facing a grim summer, with new data showing the biggest deterioration in household finances in two years. As shareholders brace for poor trading figures from Curry’s and Comet, a poll of British householders published shows consumers becoming sharply more downbeat. Caught in the crossfire of petrol price war: Independently owned filling stations could be wiped out if the supermarkets and big oil companies continue their price war at the pump, the Office of Fair Trading will be warned this week. The Independent Petrol Retailers Association, which represents about 6,000 of the country’s 8,800 filling stations run by small businesses or families, is also calling on the Government to launch a wider investigation into the two-tier fuel-pricing that is becoming widespread. A testament to man’s willingness to con his fellow man: It’s a service many wrongly assume to be highly regulated and carefully policed. In fact, the will-writing industry has been entirely unregulated and anyone can set themselves up as a will-writer — until now. The Legal Services Board, which regulates lawyers in England and Wales, is stepping up an investigation into the sector in the face of a barrage of stories of cowboy operators abusing vulnerable consumers. Fighting for business, street by street: The swish new offices say much about the success of Lebara. Here, by London Wall deep in the heart of the City, is the headquarters of a business set to breach €1 billion in revenue this year, one that through its sponsorship of the Mobo Awards and of Test match cricket has become a familiar name in households nationwide. France lays down demands to combat global food price crisis: Agriculture Ministers will meet in Paris this week to discuss how to tackle soaring food prices amid growing concern about speculation in the commodity markets. This will be the first meeting of the G20 group of Ministers — including the Environment Secretary Caroline Spelman — who have been asked by President Sarkozy to come up with a plan to curb volatile food prices. Troubled East Coast’s return to private sector is subject to delay: The search for a new London-to Scotland East Coast rail operator has been put on hold, keeping the lucrative intercity operation in national ownership for at least another two years. East Coast Trains, which carries 18 million passengers a year between London, Leeds, Newcastle and Edinburgh, has been in government hands since the Department for Transport stripped a struggling National Express of its franchise to run the service in November 2009. The cut-price route to providing pensions for all: Employers are drawing up plans for cut-price staff pension schemes as they prepare for a radical shake-up of workplace retirement provision. So-called auto-enrolment requires all employers in Britain automatically to enrol all employees over the age of 22 in a staff pension scheme of minimum quality. The aim is to “nudge” low and moderate earners into saving for retirement. Builders step up to help first-time buyers: Details of a scheme that could help thousands of first-time buyers on to the housing ladder will be unveiled by the Government. The Housing Minister Grant Shapps is expected to announce the housebuilders selected to join its £500 million FirstBuy shared equity scheme — its first significant housing initiative since taking office. Silverstone on track to pay £20 million annual F1 fee: Silverstone, the Northamptonshire-based race track, will have to pay almost £20 million annually by the end of the decade to host Formula One’s British Grand Prix, according to new research. This comes after it emerged that the BBC is considering dropping its coverage of F1 racing, because of the cost of the rights. JC Flowers backs U.K. house market venture: JC Flowers confirmed it is to back a venture focusing on the U.K. housing market. The U.S. group, which is considering a bid for Northern Rock’s 70 branches, revealed it is behind the launch of Castle Trust which is seeking authorisation from the Financial Services Authority (FSA) to allow people to invest in house prices and apply for innovative mortgages. Research in Motion’s month gets worse as it faces Dolby lawsuit: More bad news for Research in Motion (RIM) after it emerged the group faces a lawsuit from Dolby, just days after its numbers disappointed the market. RIM, which makes the BlackBerry smartphones, is facing a lawsuit from Dolby, which alleges that its devices use audio compression technology without the proper licenses. SuperGroup seeks to rally support for shares: SuperGroup will on Monday attempt to revive support for its shares at an analyst and investor event staged at the fashion chain’s Cheltenham headquarters. Since the owner of the SuperDry and Cult brands floated at £5 a share in March 2010, raising £120 million, its shares have gone in and out of fashion. Dairy Crest’s modern cathedral of cheddar: Nuneaton is best known for its associations with George Eliot, the 19th-century author, and Larry Grayson, the 20th-century television presenter. But its status as an exemplar of middle England – in a geographical rather than cultural sense – has also won it the role of hosting the biggest cheese storage and packing house in the country. Whistleblowers gaining OFT leniency double: The number of whistleblowers gaining leniency in U.K. price-fixing investigations has nearly doubled in the last year, data show. Twenty-five whistleblowers exchanged information for reduced fines or for immunity from prosecution by the Office of Fair Trading in 2010, compared with 13 in 2009, according to statistics from a Freedom of Information request submitted by Reynolds Porter Chamberlain. A call for resourceful nationalism: Spend money on digging a hole in the ground while convincing the locals that it is good for them. As resource nationalism grows, that is the conundrum mining, oil and gas companies face the world over. Although they invest millions of dollars to develop projects and pay their dues to host governments, rising commodity prices prompt governments to ask for more, alarming investors. Ollanta Humala’s election as Peru’s president this month, amid talk of a mining windfall tax, raises concerns that he might imitate the resource nationalism of Hugo Chavez, his Venezuelan hero. Elsewhere, Tanzania is considering a super-profit tax on miners. Resource companies, meanwhile, must show humility. BHP Billiton might have succeeded in its visionary bid for PotashCorp in Canada if Chief Executive Marius Kloppers had spent time on the ground building relationships with politicians in Saskatoon. Rio Tinto might have had an easier entry to its Simandou iron ore project in Guinea, avoiding a $700 million upfront tax, if Tom Albanese, Chief Executive, had made a similar commitment earlier, albeit with four different governments. Verizon and Vodafone: relations are thawing: Relations are thawing between Verizon and Vodafone. Verizon has hinted that Verizon Wireless, the U.S. mobile venture it formed with Vodafone 11 years ago, will start paying dividends again next year, which should please Vodafone. The companies also plan to adopt the same technology platform for the first time and co-operate more on procurement and services for corporate customers. Could the friendlier mood be the prelude to a deeper commitment? Investment bankers have long fantasised about a Verizon-Vodafone mega-merger. Such an entity would be worth about $233 billion at current market prices, making it the biggest company in the FTSE 100 and the third biggest in the S&P 500 after ExxonMobil and Apple. There are some strategic reasons to merge and (probably more) reasons not to bother, particularly if dividends resume. But there is also a financial factor: Vodafone has £90 billion in tax losses stashed in Luxembourg, thanks to its overvalued acquisition of Mannesmann a decade ago. Turkish banks: sector not for faint-hearted: Turkish bankers boast that they have navigated the global banking crisis unscathed. No taxpayer-funded bail-outs or emergency liquidity. Now, with a booming economy – output expanded by about 9% last year – a young population and relatively low household debt, the sector’s growth prospects look enticing. Investors should exercise caution. Wildly over banked a decade ago, Turkey’s financial sector is far slimmer (from more than 80 banks in 2000 to about 40, with the top seven banks controlling 80% of the sector’s assets of about $626 billion), fitter (an average 19% capital adequacy ratio at the end of 2010), and more profitable (16% return on equity for the sector, though it is falling). Loan growth, nearly 35% in 2010, is being squeezed by policymakers’ efforts to limit it to 25% to cool the roaring economy. The last round, in 2005-07, saw a wave of foreign investors enter the market, but it is not over. Investment bankers in Istanbul scent blood around Finansbank, the jewel in National Bank of Greece’s tarnished crown. NBG is looking to float a 25% stake but do not rule out a direct sale. Cape shares have risen 739% but are still a buy: In the past eight years, earnings per share have increased by more than 500%, debt has been slashed and dividends have resumed. Cape provides a range of non-mechanical industrial services, including fire-protection, scaffolding and cleaners to energy companies in large industrial assets such as oil refineries and liquefied natural gas (LNG) plants. The transformation has been evident in the company’s share price. Investors who bought into the shares when Questor first recommended a purchase on 22 March, 2009, at 65½p would be sitting on gains of 739%, although Questor has suggested “top slicing” this investment. The shares have been recommended a number of times since then and all investors should be sitting on substantial gains. In 2010, Cape reported flat revenues of £650.1 million and pretax profits that were up 13.8% to £71.7 million. The shares are trading on a December 2011 earnings multiple of 12.2, falling to 10.7 next year. The prospective yield after dividends were restarted last year is 2.4%. The fact that 56% of the group’s revenues are maintenance spending rather than capital expenditure makes the group’s business defensive – as was shown in the downturn. Cape. 550p. Questor Says “Buy”. Xstrata is a buy for organic growth: Ivan Glasenberg said that a combination of his recently listed commodities behemoth with Xstrata “makes a lot of sense”. Glencore is currently Xstrata’s largest shareholder with more than 34% and a takeover has been widely anticipated. Takeovers usually come with a premium. However, Glencore’s opening salvo is going to be a proposal for a nil-premium merger. For sector watchers like Questor this is amusing. It will see Mick Davis, Xstrata’s, Chief Executive, put in the same position he forced on Cynthia Carroll, Anglo American’s Chief Executive, a couple of years ago. The company has a clear and ambitious growth plan, which it detailed in a strategy presentation in December. Xstrata is targeting a 36% increase in copper production between now and 2014. Production will remain flat until 2012, when the first projects come on stream. Between now and 2014, platinum production is expected to rise by 114%, nickel by 168% and ferrochrome by 110%. The shares are trading on a December 2011 earnings multiple of 7.4, falling to 6.9 next year. Recommended on 11 February last year at £10.13, they are up 24% compared with a FTSE 100 up 11% over the same period. Xstrata. £12.56. Questor Says “Buy”. Europe’s top industrial firms have a cache of 240 million pollution permits: Some of Europe’s largest industrial companies gained billions of Euros from the carbon emission rules they lobbied fiercely against, new analysis reveals. Ten steel and cement companies have amassed 240 million carbon pollution permits from generous allocations, according to a report by Sandbag, the carbon trading think-tank, seen by the Guardian. Greek debt crisis: Eurozone Ministers delay decision on €12 billion lifeline: Europe’s single currency governments have postponed a final decision on whether to throw Greece a summer lifeline, saying Athens must force through harsh austerity measures before they would disburse €12 billion (£10.6 billion) by next month to keep the debt-stricken country from going broke and triggering an international crisis. Russia aims to speed up privatisation of oil group Rosneft: The Russian government wants to speed up and increase the size of the planned further privatisation of Rosneft, in the wake of the collapsed share swap with BP. Ministers were planning to sell down more of their 85% stake in the oil group on the Moscow and London stock markets in 2013 if the BP deal had gone through. Small investors ignore worries to keep buying: Private investors have been piling into the stock market despite the volatility caused by worries of a debt crisis in Eurozone countries. Poor returns on savings due to record low interest rates helped push retail shareholdings to £237 billion in May, the highest since before the credit crunch, according to a study by Capita Registrars. Qatar keen on Santander: Qatar is eyeing up the purchase of a major stake in the British arm of Spain’s Santander as it is groomed for a £15 billion stock market listing. Britain’s fifth biggest bank, Santander UK, which bought Abbey, Alliance & Leicester and Bradford & Bingley, is set for a flotation later this year. Qatar Holdings, which also owns Harrods and has a stake in Sainsbury’s, is reported to be keen on becoming a big shareholder in the bank, though Santander said it was not in talks. Santander could raise as much as £3 billion from listing the UK business, headed by Ana Botin. MCB plans expansion in the east: Online personal lender MCB Finance is eyeing international expansion after surviving the depths of the credit crunch. The AIM-listed group, which provides loans to customers in Finland, Latvia, Lithuania and Estonia, hopes to set up new operations in two or three more Eastern European countries over the next three years. Private equity group mulls over £1 billion bid for Northern Rock: A U.S. based private equity group is mulling over a £1 billion bid for Northern Rock, the stricken bank nationalised by the previous Labour government at the height of the financial crisis. Blackstone, headed by billionaire Stephen Schwarzman, is hoping it can repeat its successful investment in BankUnited of Florida, which it acquired with partners during the financial meltdown. Mixed messages as pay rises but jobs growth slows down: Pay rose at its fastest for three years during May but growth in the number of candidates finding jobs slowed again, sending out mixed messages about Scotland's labour market. Placements for temporary posts grew at their slowest pace for nine months, while the growth in the rate at which permanent positions are being filled dropped to a four-month low, according to Bank of Scotland's monthly jobs report published. The slowdown caused the bank's labour market barometer to edge down from 56.6 in April to 56.5 in May, where a reading above 50 indicates positive conditions in the jobs market. Euro-zone 'will break up within five years': The euro-zone will break up within the next five years and possibly as soon as 2013 because of weak economic growth in southern Europe, says the Centre for Economic & Business Research (CEBR). In a report published, the consultancy firm claims that, without a euro break-up, growth in Mediterranean countries will be below 1.5% in every year until 2015. US private equity fund to pump £17 million in Scotland: Scotland's energy sector stands to benefit from a £17 million investment after an American private equity firm revealed that it was still looking to pump funds into the industry. Simmons Parallel Energy Fund was launched in 2008 to make minority co-investments in Europe-based oilfield services, technology, development and production businesses working in the eastern hemisphere. Big guns want cut in Trinity Boss's pay: Institutional investors in Trinity Mirror are urging Chief Executive Sly Bailey to halve her base pay to £375,000 from £750,000 in light of the newspaper group's difficult trading. Trinity's stock market value has halved to £106 million in the past year as the newspaper industry has been hit by factors including falling advertising and higher newsprint costs. Sorrell set to join Stanhope as adviser: Sir Martin Sorrell, Chief Executive of advertising giant WPP, is set to join the advisory board of boutique wealth management group Stanhope Capital in September. Sorrell, a doyen of the advertising sector, will sit alongside former BP Boss Lord Browne, who was appointed as Chairman of Stanhope's advisory board in October. The week ahead: Electrical giants flickering in the gloom-pervaded high street: Tough times for Britain's electricals market will be highlighted this week when two of the biggest high street players, Kesa Electricals and Dixons Retail, are set to report flickering numbers. City analysts expect Kesa Electricals, owner of the Comet brand, to unveil a dip in full-year profits on Wednesday to about £79 million from £82 million the previous year.Blackberry 8800 Cases - News
The Independent Petrol Retailers Association, which represents about 6000 of the country's 8800 filling stations run by small businesses or families, is also calling on the Government to launch a wider investigation into the two-tier fuel-pricing that
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