The Agenda Column:
*The big miners of the world seem bent on handing back huge chunks of money to shareholders in share buy-backs. This is a happier past-time than having to negotiate mining deals at some of the world’s outposts where corruption is everywhere.
*EMI (EMI.L) pouring out more profit warnings than it is selling CDs, but maybe hang on because it is half way through a cost-cutting programme and there will be more to come.
*Stagecoach (SGC.L) boss Brian Souter is head of a quoted company and a significant private investor so he sees the private equity has tricks that publicly quoted firms can copy, not least returning up to £500 million in buy backs to shareholders this year.
The Business Editor's Column:
*EMI (EMI.L) – needs a spell in rehab. It has to recognise the problem, shed illusions, cutting its cost base and thinking about the future. Sorting this out for the benefit of shareholders makes more sense than selling and letting someone else have a go.
*Another world-beating British industry looks in for a bumpy ride this week as Airbus unveils restructuring plans. It needs a well-trained workforce and there are serious gaps in key sectors, like computer programmers for the digital age.
*Marks & Spencer (MKS.L) and Sainsbury (SBRY.L) – not as mad a link up as it sounds, that would really give Tesco (TSCO.L) a run for its money.
Share Tips:
*Pennon (PNN.L) – Time to bank profits and sell.
*Wolseley (WOS.L) - Any weakness signals a buy.
*Luminar (LMR.L) – Keep buying.
*Fabian Romania Property Fund (FAB.L) – speculative buy.
*Research Now (RNOW.L) - Buy.
*Grant Thornton research has shown that most UK firms have no ambitions to export to BRIC countries, and 87% failed to see the potential of the Chinese market. Truly frightening.
*Private equity – openness should not be a disaster. People are intelligent enough to realise tough choices including job cuts have to be made and sometimes high rewards are justified.
The Business Editor Column:
*The Bank of England’s MPC is to speak on what is next for interest rates in less than three weeks, but the worry is that regional economic disparities within the UK are becoming so pronounced that the MPC can’t win whatever it does.
*Royal Mail workers have to do something about pension deficits now, if not the government will have to step in and then the public sector will feel it.
The Expert View Column:
*AIM Market - If it is so flawed why do they all want to clone it? We should be proud to possess in this country the world’s most successful growth market.
Market Movers:
*Alcoa (ALI.L) - Rio Tinto (RIO.L) and BHP Billiton (BLT.L) have appeared as predators while there is also the impending takeover by Russian-based Rusal of rival Sual.
The Simon Watkins Column:
*There have been two example of emerging markets bringing good things to the British. One is Diageo (DGE.L) and the other is Vodafone (VOD.L). The Esser deal is not without risks but at least the unpopular Arun Sarin has bought himself a lengthier future at the group.
*Alas it now looks too late to save EMI (EMI.L) as an independent business and whoever takes it over is likely to offer not more than 300p a share.
*With Barclays (BARC.L) trying to sell off its sub-prime credit card operation Monument and with for sale signs going up on Clydesdale Financial and Kensington these are the clearest of signs yet that the easy credit era is coming to an end.
The Laurie Holmes Column:
*The big British banks are about to deliver combined pre-tax profits of nearly £40 billion, half from overseas so they can’t have ripped us off on those. I think we have a more responsive banking sector to the needs of the customers, but individuals must remain vigilant.
*Monsoon’s (MSN.L) upcoming managing director, David Adams, has walked out, all due to a corporate governance spat with chairman Peter Simon, and Monsoon’s own house broker Seymour Pierce says that Simon never intended Adams to get on the board.
*J Sainsbury (SBRY.L) may ask the FSA to issue a deadline and tell private equity bidders to 'put up or shut up’ if no progress is made on a takeover bid.
*A secretive Middle Eastern investment fund that owns a stake in Sainsbury (SBRY.L) has discussed a potential joint bid for the grocer, with Stuart Rose, M&S (MKS.L) chief.
*South Korea’s Hyundai gathers a pack of international suitors in race to buy the troubled Chrysler.
*EMI (EMI.L) wants to borrow £1 billion against the rights to more than one million songs to cut debts.
*Russia’s Polys Gold, which is preparing for a London stock listing, has approached Anglo American (AAL.L) to buy its £2.25 billion stake in another mining firm, Anglo Gold Ashanti.
*More than 50 trade union leaders from the leading western nations will meet in Paris next month to address the threat they see from private equity.
*Stockbrokers Seymour Pierce is the fastest-growing midsize firm to have private equity backing, says research by The Sunday Times.
*BGC Partners, the broking business being floated by Cantor Fitzgerald, has confessed to a material weakness in its internal financial controls.
*The Government is facing set backs in its proposed £400 million sale of the bookmaker Tote.
*Scottish & Newcastle (SCTN.L) is poised to enter a joint venture with Vietnam National Tobacco Corp with a view to entering the Vietnamese beer market.
*Safestore Holdings will this week float on the London Stock Exchange for an expected £500 million.
*Luc Vandevelde, former M&S (MKS.L) chairman, is selling Hillary’s the window blind supplier via his private equity vehicle Change Capital for about £200 million.
*Kwik Save completed a crucial £50 million rescue deal late last week which heralds the return of Paul Niklas.
*Terry Smith, head of specialist broker Tullett Prebon, could sell out at the right price, say City sources.
*Debenhams (DEB.L) has come in for stinging criticism in a major research note by Goldman Sash, the bank. It was re-floated last year by its private equity owners last year.
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*John Lewis aims to double turnover with a 10-year plan for store building and the creation of 3,500 jobs.
*The utility giants may have as much control over inflation as the Bank of England in the next few months as expected falling prices will help curb inflation.
*Aviation negotiators from the US and European Union will meet in Brussels on 27 February in an attempt to breathe life in open skies talks between trading blocs.
*Videojug, the UK You Tube-style website offering instructional videos on subjects like tying a bow tie or cooking a chicken tikka massala, is to launch in America.
*Anglo American (AAL.L) will this week pledge to return up to £2.05 billion to shareholders in buy backs, as record profits deluge the industry in cash.
*Japan is poised to take the next tentative steps toward economic normality this week as it prepares to raise interest rates for the second time in 12 months - to 0.5%.
*Apollo, a property service group specialising in refurbishing social housing, schools and hospitals, is being targeted by private equity groups including 3i (III.L) and HG Capital (HGT.L).
*Airbus will reveal a controversial cost-cutting plan on Tuesday aimed at saving £3.4 billion within three years.
*Phil Bentley, the new boss of British Gas, has asked customers to withstand three more months of customer service hell – because it is the patriotic thing to do.
*Norwich Union will not transfer any more call centre jobs to India, its CEO has pledged.
*The City gets tough on dishonest workers and increasingly handing them over directly to the police rather than sacking them quietly.
*Pirc, the corporate governance watchdog, is taking Easyjet (EZJ.L) boss Andy Harrison to task over the amount of compensation he stands to collect if his contract is terminated by the board.
*Liquers like Tia Maria, Grand Marnier and Cointreau are now back it fashion and sales are booming, says Tesco (TSCO.L).
*The London Stock Exchange (LSE.L) is expecting this year to set another record for listing by Chinese firms – 2006 saw six on the main market and 44 on AIM.
*Pop starlet Lily Allen is to design a fashion collect for New Look which will go on sale in May.
Compiled in association with HB PLC and WH Ireland Ltd
