The Lex Column:
*Winter’s tail – With about a fortnight to go, European equities may well end the final period of this year down for a fourth time, ending a run of seasonal cheer unbroken since 2000.
*Citigroup’s (CGP) SIV’s – With unwanted assets suddenly appearing on its balance sheet for a second time, Citigroup’s knack for landing in the market’s blackest spots looks hard to match.
*JetBlue’s new investor - JetBlue has bought itself some breathing space by selling a 19 per cent stake to Lufthansa, the German flag carrier.
The Lombard Column:
*Watch out when chief executives take the chair.
*High Street, low spirits.
*So Close and yet so far (Orix/Tata/Close Bros (CBG)).
Feature:
*General Retailers – Little to lighten Christmas gloom.
The Weekend Share Watch:
*Davis Service Group (DVSG) – The dividend is well supported, but the shares are unlikely to rise far.
*United Business Media (UBM) looks oversold.
*Urals Energy (UEN) – As long as the East Siberian Pacific Ocean pipeline is completed on time and tariffs are not too high, a share price of 330p is possible.
The Neil Hume on London Column:
*City fears mining prop will be removed.
Further news:
*Don’t break-up Citigroup (CGP), Weill tells Pandit.
*BUT, the furniture arm of Kesa Electricals (KESA), competes with Ikea and Conforma in the French low to mid-market.
*Cash injection plan exacerbates investors’ fears.
*Morrison (MRW) racks up 20% improvement in past five weeks.
*Cannabis group, GW Pharmaceuticals (GWP), on a high.
Business Big Shot:
*Anthony Bolton – Fidelity manager puts faith in property stocks as he says share values will build.
Feature:
*The economy – Despite signs of foreboding, recession is not a certainty.
The Tempus Column:
*Vodafone (VOD) has made good calls in emerging markets – Although the shares can no longer be called cheap, Vodafone’s strong cash generation and defensive qualities mean they should be held onto.
The Comment Column:
*Greenspan’s prophecy is self-fulfilling - Greenspan has joined the rising chorus of influential voices who are predicting that recession in the US is a distinct possibility. He told listeners that he thought there was a 50:50 chance of recession in the US.
*Evidence suggests economic pessimism is not misplaced.
Economics Feature:
*Scything through the normal banking rules.
Profile:
*Nick Mather, chief executive Hamleys.
Stock Feature:
*Pizza Purchase – Northern Foods (NFDS) is buying back a slice of its shares.
The Questor Column:
*Northgate (NTG) – It is worth holding on.
*Hiscox (HSX) – The shares look cheap. Buy.
The Citywire Column:
*Bleaker prospect for funds as property values stumble.
Further news:
*Citigroup (CGP) boss plans £24-billion SIV rescue.
*Talk brings miners down but lifts brokers.
The Derek Pain, “No Pain, No Gain” Column:
*Myhome (MYH) swept away in the small-caps retreat.
The Outlook Column:
*Bear market that dares not speak its name – This is not the time to swim against the current. The negative news flow is too powerful to allow for a meaningful bounce.
*Italian flavour to LSE (LSE) Christmas lunch – Guest speaker at an LSE lunch was Tommaso Padoa-Schioppa.
*Alistair Darling has asked Goldman Sachs to help put together a financing package to rescue Northern Rock (NRK) in a last-ditch attempt to find a private-sector solution to the troubled bank’s crisis.
*Close Bros (CBG) in takeover talks.
*KNOC ruled out of Burren (BUR) contest.
*FSA bans former Insure & Go chief James Richardson.
*Capital & Regional (CAL) fund falls 24%.
*Strike threat adds to Alitalia’s woes.
*Google to tackle Wikipedia with new knowledge service.
*Buoyant China expected to lead growing demand for oil.
*Simplified version of Airmiles launched.
*Post-nationalisation plan ready for the Rock (NRK).
*Blackstone rumoured to have approached Close Brothers (CBG) about possible takeover.
*Gala Coral bets on Chinese bingo as it steps up international expansion.
*Pound falls on remark by MPC member, economist Kate Barker, who said she was unconcerned by a decline in the value of sterling and added that she did not believe the UK was moving back towards a high-inflation environment.
*Tokio Marine to buy Kiln (KIN) for £442-million.
*Watch out for New Britain Palm Oil, which comes to the market on Monday, floated by Kaupthing. It’s said to be heavily oversubscribed - placed at 250p and dealers expect a 10p-plus premium.
*State on standby to take control of Northern Rock (NRK).
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*The Dow Jones closed down 178.11-points to 13339.85, the Nasdaq fell 32.75-points to 2635.74, while the S&P declined 20.46-points to 1467.95.
*A suicide bomber on a bicycle killed five people as he blew himself up outside an army base checkpoint in north-west Pakistan. Two soldiers and three civilians died, in addition to the bomber. The attack, which left six injured, happened at the gates of an army services centre in Nowshehra, 75 -miles north-west of Islamabad.
*A rocket attack near the Kabul governor's residence has killed five people and injured five more. The blast, which happened at 0820 (0350GMT) on Saturday, was heard throughout the Afghan capital. A car parked near the house, contained five rockets, but only two detonated, firing up to 20 metres across the street and falling short of buildings.
*Pakistani President Pervez Musharraf has lifted a state of emergency and restored the country's constitution. The move, which will be welcomed by Western nations, comes ahead of national elections on 8th January. Mr Musharraf imposed the emergency in November, arresting hundreds of people and replacing Supreme Court justices.
*Delegates at the UN summit in Bali have agreed a deal on curbing climate change after days of bitter wrangling. Agreement was reached after a U-turn from the US, which had wanted firmer commitments from developing countries. Earlier, the EU and US agreed that industrialised countries would not set firm emissions targets at this stage. The "Bali roadmap" initiates a two-year process of negotiations designed to agree a new set of emissions targets to replace those in the Kyoto Protocol.
*Banks are being accused of pressurising customers who have financial problems to take out expensive loans to try to ease their debts. Some banks are repeatedly telephoning customers to try to get them to take out costly loans, against the advice of debt charities. Citizens Advice said it has received many complaints about the increasingly aggressive tactics being used. Banks say interest rate charges are up to them.
*Centrica (CNA) warns on rising energy bills unless wholesale prices fall.
*The Government must suspend a set of key banking regulations at the heart of the current financial crisis or risk seeing the economy spiral towards a future that could "make 1929 look like a walk in the park", one of Britain's leading economists, Peter Spencer of the Ernst & Young Item Club, has warned.
*Farmers and lorry drivers are set to take part in protests across the UK against the rising cost of fuel. The day of action comes after fuel prices on garage forecourts rose above the £1 per litre mark in recent weeks. A Road Haulage Association convoy of about 30 vehicles is also due to create a rolling blockade on major roads in Scotland from 10am today. The Government has warned unlawful blockades should not be tolerated. Police plan to monitor the situation.
*According to UK researchers, targeting a key protein may help overcome the malaria parasite's increasing resistance to conventional drugs. The protein triggers the release of the parasite from red blood cells enabling it to invade neighbouring cells. Blocking the protein stops the parasite in its tracks and could lead to the development of new anti-malaria drugs, a study in Cell suggests. Malaria causes around three million deaths worldwide each year.
*Two supermarkets have recalled various naan bread products over fears they could contain glass. Shoppers at Sainsbury's (SBRY) and Morrisons (MRW) are being urged to return packets of own brand naan, made by Patak's Breads Limited in Cumbernauld, Scotland. Those listed include Sainsbury's Taste the Difference two plain naan (best before 20th December) and Morrisons two plain naan (best before 26th December).
*Odds of US recession are 50:50, warns Alan Greenspan.
*HSBC (HSBA) is being paid £750-million by the Taiwanese government to rescue the country’s failed Chinese Bank.
*Iraqi oil production is above the levels seen before the US-led invasion of the country in 2003, according to the International Energy Agency. The IEA said Iraqi crude production is now running at 2.3-million barrels per day, compared with 1.9-million barrels at the start of this year. It puts the rise down to the improving security situation in Iraq, especially in the north of the country. But the IEA warned that attacks on Iraqi oil facilities remain a threat.
*US inflation rose at its fastest pace in 2-years during November, spurred on by higher energy prices, according to figures from the Labour Department. Consumer prices rose 0.8% in November from October, above market forecasts. The figures come as US and UK central banks have been cutting interest rates to bolster weakening economic growth.
Compiled in association with HB PLC and WH Ireland Ltd
