The Special Report:
*Our best of the 2007 vintage (10 top contenders for the Sunday Times annual boss of the year award).
The Agenda Column:
*Footsie shake-up reflects our changing world - A decade after Hanson acquired Consolidated Goldfields in 1989, there was only one miner in the FTSE-100 index, namely Rio Tinto Zinc, or RTZ, since renamed Rio Tinto (RIO). At the time, the industry was then seen as an investment backwater, how times have changed. Today there are 7 miners in the index and there will soon be eight, as Kazakhstan’s Eurasian Natural Resources Corporation will soon be eligible to join, but listed in London only last week, too late for this month’s quarterly review when the constituents of the index is decided.
*Tables turned – Today Prudential’s (PRU) share price shows that Sir David Clementi, the Pru’s chairman, and his chief executive, Mark Tucker, were right to give Aviva’s (AV.) approach 20-months ago short shrift. Aviva’s share price is down from 850p to 686p while the Pru’s is some 20p up at 696p.
*Candle power – Guy Hands’ censorious messages to EMI staff have made the company a bit of a laughing stock in recent weeks, what with details about the amount the previous regime spent on candles and strict rules on bonus limits introduced by the new management. It’s all good fun, but not for EMI’s employees, who could probably do without the company’s internal agonies being displayed in the press. So Guy, stop the messages from on high and get on with what you do best, turning firms round.
The Economic Outlook Column:
*Well-judged jab of confidence for UK (rate cut).
Focus:
*Can Luqman Arnold save Northern Rock (NRK)?
The Andrew Davidson Interview:
*Anthony Bolton – Fidelity’s star keeps playing.
Feature:
*Carlsberg’s boss keeps S&N (SCTN) bid brewing.
The Inside the City Column:
*BP (BP.) goes for the unconventional - Forget the semantics about evolution. Tony Hayward is showing a much-needed and smart pragmatism.
*Raid on insurers - Kiln (KIN), Novae (NVA) and Hardy (HDU) all look like targets, and worth buying, after their shares fell in the past three months.
The Director’s Deals Column (The Money Section):
*Sofa chief, Mike Browne, chairman of SCS Upholstery (SUY) pays £525-million to buy 500,000 in the troubled sofa firm.
Feature (Money Section):
*Funds to snap up when shares fall: - Blackrock Absolute Alpha, Invesco Perpetual Distribution, Merrill Lynch Gold & General and Old Mutual Corporate Bond.
Further news:
*Renault (RNT) takes a 25% stake in Russian carmaker Avtovaz.
*Sir John Gieve is the first in the firing line over Northern Rock (NRK) debacle.
*Cruddas duo net £35-million.
*EMAP (EMA) shareholders to fight big asset sell-off.
*Rail rivals line up Chiltern Railways.
*Investors turned off by returns on digital radio.
The Business Commentary Column:
*Fined for offering the milk of human kindness - Asda (WAL), Sainsbury (SBRY), Safeway (now owned by William Morrison (MRW)), Robert Wiseman Dairies (RWD), Dairy Crest (DCG) and The Cheese Company received chunky discounts to fines imposed by the Office of Fair Trading for illegally colluding to increase the prices of milk, butter and cheese in 2002. But the stores have their reasons and feel they are not understood.
*Murdoch, don’t slash and burn - The overriding fear among Journal staffers is that having spent $5bn buying Dow Jones Murdoch will cut costs throughout the company and somehow dumb down the hallowed newspaper. But this is to misunderstand what Dow Jones's problems are.
*High Street horror story - A senior City figure tells us that he expects 10 retail chains to go bust by Christmas Eve. The banks provide retailers with funding should, in theory at least. But banks are becoming increasingly nervous about the terms at which they lend to store groups, particularly when their lending is not secured on a company's assets.
*There will soon be no bosses left - The average length of time in the job for a FTSE chief exec is now 4.6 years, according to Russell Reynolds, the headhunters, down from around 5.7 years in 2002.
Feature:
*National Express (NEX) back on track with rail win.
Feature:
*Property funds: the new liquidity crisis – Stern reminders of earlier crashes – Hedge funds insulated from worst but more pain is on the way.
The City Profile Column:
*Tim Mason, chief executive of Fresh & Easy (Tesco’s (TSCO) US convenience chain).
The Real Business Column:
*Counter-cyclical Penna (PNA) will thrive in a downturn.
Share Tips:
*Moss Bros (MOSB) - As ever, Christmas will not be as bad as some suggest but it is unlikely to be a cracker either.
*Morgan Crucible (MGCR) – Buy.
*Sepura (SEPU) – Buy.
*Connaught (CNT) – Still worth buying.
Further news:
*Renault (RNT) freezes out competition to buy a quarter of the Lada estate.
*Baugur moves in on Moss Bros (MOSB) as retail share prices slide.
The Lead Story of the Business Section:
*City warns of 10% slump in house prices.Feature:
*Murdoch jnr’s News Corp graduation signals new era for ‘Times’ and ‘Sun’.
Analysis:
*Indian dynasties have sharpened their acts, but siblings are stabbing each other as the Western giants advance.
The Rupert Steiner Column:
*Shine a light on shadowy state investors - This is the one time of year when most of us open our doors and spread a bit of festive cheer to friends and neighbours. But in the City, such welcoming bonhomie is a year-long affair, few M&A suitors, if any, ever get turned away from the inn that is corporate Britain. As a country we pride ourselves on our liberal approach to our assets. We wholeheartedly embrace market forces, with no exception. Other countries are less welcoming. Last year America blocked the sale of several of its ports to Dubai Ports World, and in 2005 it stopped the sale of petroleum company Unocal for £9.2-billion to the state-run China National Offshore Oil Corporation. Last week it emerged that another British firm, the London-based Rio Tinto (RIO), the world's third-largest mining company, is being stalked by the Chinese. So while the sale of Rio to a government-backed firm might go through in the current climate, it is only a matter of time before we see more blocked deals. That is unless governments, along with their front companies, adopt some form of corporate governance.
*New dawn in Murdochland - Having earned his stripes James is now number 3 in the News Corp empire, a relief for his father, who has always been determined to leave the business in the hands of a Murdoch.
The Expert View Column:
*Justice is the loser as the taxman insists on tribunal secrecy – Freedom of information is not much appreciated by the civil service.
The Hamish McRae Economic View Column:
*Homeowners aren’t sitting on a goldmine anymore, but they’re still better placed than the Chancellor – The risk is that even sound borrowers will find it hard to raise money. We have not had a turning point in the real economy, nor are we near it.
The City Eye Column:
*Pensions are a free lunch. So where are the diners?
Interview:
*Jon Olafsson, of Glacial Spa.
Further news:
*‘The Plumber’ is back, promising a ruthless acquisition spree.
The Lead Story of the Financial Mail:
*Companies rush to ‘sell’ £2-billion pensions – Ten schemes will transfer to takeover firms.
Feature:
*The fast car and a search for a smoking gun – Gavin Hayward, a salesman at City broker Blue Oar (BLUE) is said to have become friendly with client Mark Worthington, then chief executive of Worthington Nicholls (WNG), which saw Gavin’s wife receive a Porsche as a present for him.
Interview:
*Mark Wood, founder and chief executive of Paternoster.
The Midas Column:
*ITE (ITE) – Buy.
*Oxford Instruments (OXIG) – Buy and be patient.
Further news:
*Carlsberg and its advisers accused of sharing inside information ahead of a proposed 750p-a-share bid for Scottish & Newcastle (SCTN).
*Asda (WAL) takes its clothes upmarket.
*New setback at Equitable.
The Lead Story of the Financial Express:
*Rock (NRK) seeks exclusive talks with Branson.
Focus:
*Roman Abramovich – Russian oligarch joins the gold rush.
Further news:
*Pensions put C&W (CW.) break-up on the cards.
*Airbus to take on work for Boeing (BOE).
*Assura (AGR) to invest £750-million in new surgeries.
*This week when the FTSE-100 steering committee meet to assess the constituents 7 of the current shares could fall out of the major index, these include: - Northern Rock (NRK), DSG International (DSGI), Mitchells & Butlers (MAB), Punch Taverns (PUB), Tate & Lyle (TATE), Daily Mail & General Trust (DMGO) and Barratt Developments (BDEV). Those stocks which could join the index include: - Admiral (ADM), Burberry (BRBY), Cairn Energy (CNE), Kelda Group (KEL), Group 4 Security (GFS), TUI Group (TUI) and First Group (FGP).
*Property mogul, Nick Leslau, is taking a £234-million bet that the UK housing market will rise over the next 10-years.
*Phone giants line up for $17-billion Orascom deal.
*Baugur raiders set to launch bid for limping Moss Bros (MOSB).
*Mercedes’ Smart Car is winning hearts and minds in America.
*Leading West Country property developers the Johnson family have secretly amassed a 9.3% stake in Rank Group (RNK).
*Scottish & Newcastle (SCTN) speeds up brewing row as it prepares to inform its shareholders about legal arguments relating to its Russian joint venture, BBH, as early as next month, several months earlier than expected.
*Wobbly Woolworths (WLW) moves to tackle its debt mountain.
*The owners of Oddbins and Threshers have held talks about a possible merger.
*The three banks being lined up to provide £15-billion to bidders for Northern Rock (NRK) are refusing to sign off on any bail-out deal until the New Year at the earliest, according to senior banking sources.
*Paul "The Plumber" Davidson, the millionaire inventor who won an historic victory over the FSA, is to return to the market with an £80-million company he claims will "start the next industrial revolution". He plans to float Fluid Leader Group, on Plus Markets before graduating to AIM early next year.
*Chief executive of Johnston Press (JPR), Tim Bowdler, is to retire in 2009.
*FTSE-100 sees record turnover of bosses.
*Bonanza return for Andy Stewart as Cenkos floats Guernsey arm.
*BBC aims to buy Virgin UKTV stake.
*Share price goes into overdrive as Game Group (GMG) is cleared to buy competitor Game Station.
*HBOS (HBOS) and Lloyds TSB (LLOY) tipped to deliver no nasty shocks to the City.
*‘Plumber’ Paul Davidson will take control of Plus Market listed Anca C in a £90-million deal.
*Sharp rise in failing firms.
*Goldman on prowl for talent.
*Betfred shelves plans of a £600-million market flotation due to market turbulence.
*Security camera’s able to see through masks, veils and disguises are being developed by US defence giant General Dynamics and the Home Office.
*The US private equity firm stalking Jaquar and Land Rover is considering floating the car marques on the stock market should it succeed in buying them.
*Sisu Capital set to score with £45-million bid for Coventry City.
*Waste management group Sterecycle in £100-million float.
*Sportswear retailers (thought to be Sports Direct (SPD) and JJB Sports (JJB)) square up to Nike.
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*Taleban fighters in Afghanistan have pulled back to take up new positions defending the town of Musa Qala, in southern Helmand province. A fierce battle has been raging around the town as Nato troops and Afghan army forces fight to retake the town. One British soldier was killed during the operation early on Saturday, the UK Ministry of Defence has said. Twelve insurgents and two children have died so far in the assault, the Afghan defence ministry says.
*Great Britain’s equality chief has attacked “politically correct” critics of traditional Christmas festivities for undermining diversity in society. Trevor Phillips, chairman of the Equality and Human Rights Commission, has condemned attempts to “brush Christmas under the carpet” for fear of offending other religions.
*Hopes of rescuing tens of thousands of pensioners whose employers went bust have been dashed after Gordon Brown overruled plans for a £725-million Government bail-out.
*Great Britain’s £10-billion property fund industry is balancing on the edge of a liquidity crisis that could force funds to turn away investors looking to withdraw cash, according to new figures.
*Britain's biggest accountants have held a crisis meeting with the Government to ask it how to value billions of pounds of debt stuck on UK banks' balance sheets by the credit crunch.
*James Watson, the DNA pioneer who claimed Africans are less intelligent than whites, has been found to have 16-times more genes of black origin than the average white European. An analysis of his genome shows that 16% of his genes are likely to have come from a black ancestor of African descent. By contrast, most people of European descent would have no more than 1%.
*A new poll shows that 7-in-10 English people want to retain the historic Union between England and Scotland, with only 24% wanting the two to seperate.
*According to Citigroup (CGP) analysis, Great Britain faces the weakest growth in consumer spending since 1992, due of the impact of the credit crisis on household interest payments and the downturn in the housing market, according to a new analysis. The analysis suggests spending will rise just over 1% in 2008, after an increase of more than 3% this year.
*Citigroup (CGP) analysis also says 1.7-million households will face a “reset shock” in the coming months, with the interest they pay rising more than 1%, as existing fixed-rate and discount mortgages have to be renegotiated.
*Further economic analysis, this time from Fathom Consulting, suggests that Great Britain runs a high risk of “stagflation,” weak growth and high inflation next year. It calculates the probability of UK growth of less than 1% in 2008 at 35%.
*This week the Government is expected to announce significant changes to controversial reforms in capital gains tax, unveiled 2-months ago in the pre-budget.
*The Metropolitan police has installed two “light boxes” at its headquarters in a pilot study to see if stressed officers can improve their “wellbeing” and alleviate the symptoms of Seasonal Affective Disorder (SAD). The boxes are installed in the canteen and emit a light which is the same intensity and quality as bright sunshine.
*A Sunday Telegraph investigation finds that Christmas shoppers are being charged up to double the price for the same goods in different branches of some chain stores.
*The US justice department and the CIA are launching a joint inquiry into the CIA's destruction of two videotapes of interrogations of al-Qaeda suspects. CIA chief General Mike Hayden said the agency would co-operate fully with the preliminary inquiry, to decide whether a full investigation is necessary.
*Ricky Hatton counted out in the 10th round in title fight in Las Vegas.
Compiled in association with HB PLC and WH Ireland Ltd
