The Lex Column:
*Citi slicker – JPMorgan Chase held on to its dividend in 2001 and 2002 as earnings were trampled by the technology bust. Citigroup is in a different position – it needs capital.
*Power play – Reliance Power, which is seeking to trump previous Indian initial public offerings by raising $3-billionn later this month, is lamentably short on earnings and long on risks.
The Tony Jackson on Monday Column:
*Unsustainable paradox threatens to bring ugly results – Corporate profitability across most of the world is at an all-time high, yet equities are cheaper in relation to Treasury bonds than they have been for more than 20-years. Investors may be prepared for the earnings bubble to pop in principle, but they are ill-prepared for the specifics.
Feature:
*EMI chief confident of ability to call a new tune.
Further news:
*Northern Rock
(NRK) sale less than even chance.
*Australian investor (Babcock & Brown
(BBPP) ) buys Forth Ports
(FPT) stake.
*Theo Fennell loses n one of its lustre.
*Shareholders now a target for begging bowl, as more companies could turn to rights issues to raise funds.
The Economic View Column:
*Goodbye to all that: the worst is over for the global credit crunch – the credit crunch is almost over and the stock markets are near the bottom, but the pound still has a long way to fall.
Feature:
*Banks hope ‘dream team’ of top QC’s will secure victory in overdraft fees test case.
Business Big Shot:
*Ron Sadler.
The Viewpoint Column:
*Economy may be slowing but it is changing for the better – The outlook is more challenging but we’re far from doom and gloom.
The Monday Manifesto:
*Lord Jones of Birmingham – Peer, Minister, cheerleader-in-chief for UK plc – What Digby did next.
Further news:
*S&N (SCTN) intends to return billions to shareholders.
The Comment Column:
*High street faces hard time, whichever way you look at it.
Feature:
*Wall Street prepares for Citi hit.
Feature:
*Louis Gallois, a French civil servant of the old school, is plotting a survival path for aerospace group EADS – Boss hedging his reputation on US moves.
The AIM Market Column:
*Failing to name fined companies is not so transparent.
*Market Profile – Tommy Jensen, executive chairman of Vyke Communications
(VYKE).
Further news:
*ITV (ITV) to tackle advertisers on airtime charges.
*Service sectors facing explosion in frauds by ‘desperate’ bosses.
The Stephen King Column:
*If the Fed is busy mobilising its economic weapons, why is the Bank holding back?
Further news:
*New McDonald’s deal marks Torex recovery.
*SCi (SEG) in need of hero to avoid ‘game over’ screen.
*TurfTrax to debut this week on AIM.
*Tesco (TSCO)set to give some much-needed retail cheer.
The Investment Analysis Column:
*Why UK shareholders could be driven to drink – In an environment of slowing consumer activity, beverage stocks are traditionally “defensive”.
The AIM Market:
*PVAXX – Pallet firm looks for £50-million to carry off new business.
*Designcapital – Dash of high life backed by oligarch.
From The FT
*Guy Hands plans sweeping EMI staff cuts and 300-million in new equity (p1).
*Wal-Mart takes on Tesco’s
(TSCO) challenge (p1).
*UBS (UBS) woos staff by allowing bonus sales (p17).
*The head of Great Britain’s private equity trade body, Simon Walker, says that private equity has a year to prove itself on disclosure (p17).
*Kazakhstan reaches Kashagan accord with Eni-led
(ENA) consortium (p17).
*S&N (SCTN) in Baltic ploy to push up takeover bid (p20).
*Close Brothers
(CBG) sale prospects increase (p20).
*Deadline for BSkyB
(BSY) appeal on ITV stake (p20).
*UBS (UBS) under pressure to find investment chief (p21).
*Reliance Power IPO spurs excitement (p21).
*GE to double its investment in renewable (p23).
From The Times
*Darling’s plan to cut debt by asset sales makes slow start (p38).
*WPP (WPP)
staff top list of British donors to US candidates (p38).
*BT (BT.A) forced to delay £10-billion national network upgrade (p44).
*Forth Ports
(FPT) fuels bid talk as Babcock raises stake (p44).
*Blackstone in the wings as Cenkos
(CNKS) raises Close Brothers
(CBG) bid to £1.5-billion (p44).
*InterContinental Hotels
(IHG) identifies land of opportunity in Abu Dhabi (p47).
*Kuwait key to Merrill and Citigroup funding plans (p47).
From The Daily Telegraph
*Babcock & Brown
(BBPP) full steam ahead for Forth Ports
(FPT) (Business Section).
*Bidders in sale of Angel Trains combine forces (B2).
*The historic Illustrated London News could be relaunched as a magazine after the company that owns the rights was bought out by its managing director and some of the City’s leading communications chiefs (B2).
*Close Bros
(CBG) and Cenkos
(CNKS) could be set for exclusive talks after meeting (B2).
*Shake-up at EMI may end artists’ advances (B3).
From The Independent
*American banks set for further big write-downs (p38).
*High flying New Star
(NSAM) executive, James Ridgewell, falls to earth as his fund is axed (p39).
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*Treasury loses £290-million tax from takeovers, as scheme allows buyers to avoid stamp duty.
*The Home Secretary is facing a backbench rebellion over the police pay row with more than 100 Labour MPs calling on her to back down.
*Tories say give the Bank of England more power, with a new Bank Act designed to prevent a re-run of the Northern Rock crisis.
*The pound suffers the biggest fall among currencies of major economies.
*Lloyd’s of London to stress test insurers on UK flooding.
*Housebuilders warn Gordon Brown that looming slump will hit the Government’s ambitious key homes target plans.
*Banks and their customers are awaiting the start of a High Court test case which could bring a fundamental change to UK High Street banking. The outcome may decide how much banks can charge millions of account holders who go overdrawn without permission. The Office of Fair Trading (OFT) is challenging seven leading retail banks and the Nationwide building society. The regulator claims the banks' overdraft charges are unfair, but the banks say they are entirely legal.
*Alan Thompson, a 61-year-old British sailor seriously injured during a transatlantic voyage was rescued after he called his local pub for help. Alan was left in agony after falling on deck and breaking his pelvis on Saturday while sailing 600 nautical miles north-east of Bermuda. Sixty-two year old Roger Pocock, the landlord of The Bull's Head in Fishbourne, Sussex, said: "We received a call from him saying he was in trouble. I don't know why he didn't put out an SOS."
*Twenty crew have been rescued from a cargo ship which got into difficulties about 35 miles off the coast of Devon. The Greek-registered Ice Prince, which is carrying 5,258 tonnes of timber, is drifting in the English Channel. Twelve of the crew have been airlifted to Portland by coastguard helicopter. One person is being treated in Dorset County Hospital with a broken leg. The eight remaining crew were taken by the Torbay lifeboat to Brixham, where they have been landed safely. Coastguards at Falmouth say the situation remains on-going, as the vessel is currently drifting.
*Israeli and Palestinian negotiators will begin discussions on what are regarded as the core issues in the peace process when they meet on Monday. These include the status of Jerusalem, the borders of a Palestinian state, Jewish settlements in the West Bank, refugees, security and water resources. The negotiations will be led by Israeli Foreign Minister Tzipi Livni and former Palestinian Prime Minister Ahmed Qurei.
*Eight Thai soldiers have been killed by suspected Muslim separatist rebels in the violence-hit south, according to an army spokesman. The soldiers were on escort duty in Narathiwat province, which borders Malaysia, when the ambush took place. The attack was one of the deadliest in the current conflict in the south, where separatist rebels are fighting for an Islamic state.
Compiled in association with HB PLC and WH Ireland Ltd
