The Lex Column:
*The resources to carry on - Before the subprime horror began, it was currency carry trades that frightened investors. The real shock came from elsewhere, but carry trades were caught up in the panic.
*Goldman’s good year - Goldman Sachs left its rivals standing in 2007. It rubbed in the outperformance on Tuesday, using the word “record” nine times on the first page. But that is the past.
*Islamic finance - The UK’s Treasury and Financial Services Authority objective of making London a ‘global gateway’ for Islamic finance always looked hyperbolic. But they need to tackle tax and legal obstacles.
*Naspers bids for Tradus - Tradus’ management, accustomed to the highs and lows of the technology roller-coaster over the past decade, can breathe a sigh of relief after receiving an offer from Naspers.
*Default dilemmas - After several years of record lows global default rates are now predicted to rise. But the headaches may not be evenly distributed.
The Lombard Column:
*That festive Peltz letter to Cadbury’s (CBRY) in full.
*Only connect – Yesterday Deutsche Telekom’s T-Mobile and Hutchison Whampoa’s 3 UK agreed to share third-generation mobile networks in Britain.
*Quit when you’re winning – PPF levies that penalise risk-takers will not stop schemes from trying to limit company contributions.
Further news:
*ECB’s €350-billion market injection stuns investors.
*Fir flies as Xmas tree growers are charged with price fixing.
*Pru (PRU) rises as Merrill forecasts action to boost Asia profile.
*Blacks Leisure (BSLA) falls further.
*Sports Direct (SPD) slumps to new low.
The Business Commentary Column:
*Rebel who won’t be Schwepped aside (Nelson Peltz/Cadbury (CBRY)).
*Nationalisation by default (Northern Rock (NRK)).
Feature:
*Taxpayer’s backing for Rock (NRK) hits £50-billion.
The Tempus Column:
*Petrofac (PFC) – There is reason to hold on for more.
*Bodycote (BOY) – No more than a hold.
*Zetar (ZTR) – Buy.
Tiddler to Watch:
*Beowulf Mining (BEM) – May be set to receive a boost from new Swedish investors.
Further news:
*Drax (DRX) generates gloom with lower dividend.
*Alba (ABA) firmed 8.5p to 72.5p after selling its half-share in Grundig Multimedia for £25-million.
*SMG (SMG) is expected to announce today that it has completed its £95.1-million rights issue without any stock being left on the books of underwriter ABN.
The Comment Column:
*ECB’s mind-numbing cash injection is no magic cure.
*Are hedge funds selling their investors short?
*British keep their bonus pools to themselves – With the City’s bonus pool five times greater than kit was 10-years ago, giving must become routine for Britain’s lucky few.
The Outlook Column:
*Inflation will b back before you know it.
*The Governor’s gift of the gab – Has Mervyn King put his foot in it again?
*Mobile networks learn to share (T-Mobile/3).
*The last of the dot-com survivors – Farewell to QXL Ricardo (QXL) after its purchase by South Africa’s Naspers.
The Business Analysis Column:
*Heroes & Villains – A difficult year has muddied some of the grandest reputations in business. But 2007 also had some bright lights.
*According to the BBC, Bradford & Bingley (BB.) has approached Northern Rock (NRK) about buying assets from the troubled lender. Although the mortgage lender is not looking to buy Northern Rock outright. The news came after the Treasury extended financial guarantees to Northern Rock at the lender's request.
*Record run might be coming to an end, warns Goldman Sachs, as bank is cautious despite smashing forecasts.
*Activist investor Peltz, sharpens Cadbury (CBRY) attack.
*Top fund manager at New Star (NSAM), Theodora Zemek, defects to Axa (AXA).
*OFCOM coy on BSkyB (BSY) as it outlines pay-TV concerns.
*G4S (GFS) recaptures prison operator in £355-million deal.
*China’s IPO juggernaut thunders on.
*King set for second term at Bank as Brown puts stability first.
*Former Fed chief, Alan Greenspan, blamed for stoking US sub-prime loans crisis.
*King blasts bankers over Rock (NRK) fiasco.
*Drax (DRX) pulls the plug on refinancing.
*Matalan to roll out new store format.
*Huge ECB cash injection dwarfs BoE auction.
*More interest rate cuts expected as inflation remains at 2.1%.
*Rio Tinto (RIO) plans spot market sale to pressure BHP (BLT).
*Richard Desmond has delayed the flotation of his adult TV production business Portland Television.
*Mitchells & Butlers (MAB) bosses put bonuses on hold.
*Watchdog bares teeth at BSkyB (BSY).
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*The Dow Jones closed up 65.27 to close at 13232.47, the Nasdaq 21.57-points to 2596.03, while the S&P added.
*Treasury extends protection to bank’s mortgages.
*Drop in core inflation eases way for rate cut.
*Nick Clegg squeaks home as new Lib Dem leader.
*Jailed Lib Dem donor, Michael Brown, has been forced into bankruptcy by his own lawyers.
*The FSA is to regulate travel insurers.
*A crowded passenger train has derailed in southern Pakistan killing at least 50 people and injuring up to 100. About 12 carriages of a train travelling between Karachi and Lahore came off the rails near the city of Mehrabpur in Sindh province. Some carriages plunged into water. The express train was packed with passengers returning home for the Islamic festival of Eid al-Adha. Hundreds of people have died in recent years in crashes on Pakistani railways. Hours after the accident, rescuers were still trying to cut into at least one of the carriages and trapped passengers were heard calling for help.
Compiled in association with HB PLC and WH Ireland Ltd
