The Lex Column:
*Tiers for fears - Expect an unusual amount of investor attention on balance sheet measures, such as capital ratios, as the markets assimilate the knock-on effects of the credit crisis.
*S&N (SCTN) fights back - Few trading updates provoke spontaneous rounds of applause. That was the reception from analysts to John Dunsmore's first outing as chief executive of S&N, the UK brewer under siege.
*Unsteady Freddie - Freddie Mac is blazing a painful trail. It will raise capital 'very quickly' to shore up its balance sheet in the face of heavy credit provisions and mark-to-market losses in its mortgage portfolio which triggered a $2-billion third-quarter loss.
*Shinsei Bank - Christopher Flowers, contemplating a bid for the UK's troubled Northern Rock (NRK) after flirting with Germany's Landesbanken, is spending $1.8 billion for a stake in Japan's Shinsei Bank.
*Richemont/BAT’s (BAT) - Richemont is considering spinning off its stake in BAT ahead of 2010 legal changes in Luxembourg that will increase the company's capital gains tax bill. The change would be an historic one.
*Private equity code - The UK private equity code of conduct comes just as the storm of controversy over the secretive industry has died down. It amounts to the bare minimum the industry thinks it can get away with.
The Lombard Column:
*Let the Rock's (NRK) hedge-fund investors fend for themselves.
*Upping Kate Swan's targets (WH Smith (SMWH)).
*Paragon (PAG) no more.
Fund Focus:
*Jupiter has an eye for talent.
Further news:
*Fed’s downbeat economic forecast explains reluctance to cut rates.
*S&N (SCTN) plans Russian offensive.
*Northern Rock (NRK) needs £1-billion new cash, say bidders.
*ICAP (IAP) to explore new markets.
*3I Infrastructure (3IN) has eyes on FTSE-100 ranking.
*easyJet (EZJ) rides fuel price uplift.
*Tullow Oil (TLW) left behind as Footsie swings higher.
*Care UK (CUK) takes turn for the better.
*Sci Entertainment (SEG) turns lower on talk that CDC Corp had decided not to bid.
*Stakebuilding rumours lift Shaftesbury (SHB).
The Business Commentary Column:
*Buy-to-let story is a tale of two lenders (Bradford & Bingley (BB.) and Paragon (PAG)).
*CAA rewards bad behaviour.
Business Big Shot:
*Sir Roy McNulty.
The World Business Briefing Column:
*The alarm bells begin to ring in China.
The Tempus Column:
*Enterprise Inns (ETI) - Long-term buy.
*Hogg-Robinson (HRG) – Strictly a buy for the brave.
*Great Eastern Energy (GEEC) - Worth a look.
Further news:
*Sir David Arculus seeks to 'ride both horses' in realignment of EMAP (EMA).
*Starbucks plans 100 new stores in UK.
*Banks bounce back on hope of rate cuts.
*Carphone Warehouse (CPW) rises on upgrade from Bear Sterns.
*ABN Amro believes the price of Ashtead (AHT) is wrongly factoring in a US construction crash.
The Comment Column:
*Brewer leaves investors feeling flatter than last night's pint (Scottish & Newcastle (SCTN)).
*(Sir David) Walters closes stable door after the horse has bolted.
*Prudent Paragon (PAG) isn't another Northern Rock (NRK).
The Questor Column:
*ICAP (IAP) – Buy.
*Enodis (ENO) - Hold.
*Trinity Capital (TRC) - Buy.
Further news:
*Fed sets off new Wall Street plunge.
*Protests as Euro soars past $1.48.
*FTSE battles through turbulence to make up losses.
The Outlook Column:
*Rock (NRK) must not be given away for nothing.
*Private equity does the bare minimum.
*S&N (SCTN) bid defence hinges on BBH value.
The Investment Column:
*Hold - Enterprise Inns (ETI).
*Buy - Protherics (PTI).
*A risky buy - Trinity Capital (TRC).
The Business Analysis Column:
*Is the buy-to-let boom over?
Further news:
*Blue-chip property stocks find firmer ground.
*More than one-in-10 of all hedge funds will go out of business this year as the rate of failure doubles, according to head of Man Group (EMG).
*Northern Rock (NRK) has received JC Flowers’ takeover bid details. JC Flowers offers nominal sum for shares and plans to pay off all Bank of England debts in 3-years.
*Moody's is reviewing Northern Rock's (NRK) AAA covered bonds for possible downgrade.
*At least two of the bidders for Northern Rock (NRK) believe that the stricken mortgage lender will need a substantial injection of new cash to shore up its capital base and allow it to carry on making new loans.
*The City Focus Column in the Daily Mail says that Evil Knieval, Simon Cawkwell, claims to have made £1-million from ‘bear raids’ on Northern Rock (NRK).
*RAB Capital (RAB) said to have lost £30-million since building up its 6.6% Northern Rock (NRK) holding in September.
*Former HBOS (HBOS) chief Sir James Crosby named as deputy of Financial Services Authority.
*China's biggest steel group adds voice to global chorus against the Rio Tinto (RIO)-BHP Billiton (BLT) deal.
*Heineken and Carlsberg say there is no merit to BBH arbitration case and sees nothing new from Scottish & Newcastle (SCTN) trading update.
*British Airways (BAY) ponders £160-million bid for BBVA's Iberia stake.
*UK government to split London & Continental Railways into three; high speed one to be sold in 2009.
*Waterline possible offer talks with third party have been terminated and is considering options.
*Ath Resources (ATH) receives planning approval for Grievehill site extension.
*Invesco Property Income (IPI) is to carry out a fire sale of £100-million of assets from its £465-million portfolio to cut debt.
*BlackRock, the asset manager 49% owned by Merrill Lynch is set to be appointed to manage the £36-billion superfund that the top 3 US banks are forming.
*Helphire (HHR) buys Cab Aid for up to £5.24 million.
*ReGen Therapeutics (RGT) shareholders approve 100-for-1 reverse stock split.
*Cambridge Soft Corp pulls flotation.
*Man Group's (EMG) AHL fund net asset value up 1.69% vs last week.
*UK Government to auction £2-billion in 4.5% gilts maturing 2042 on 28th November.
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*The Dow Jones closed up 51.70-points at 13010.14, the Nasdaq added 3.43-points to 2596.81, while the S&P closed up 6.43-points at 1439.70.
*US reports 'phenomenal' drop in Iraq violence.
*Millions of British families have been warned to watch their bank accounts for suspicious transactions after the government admitted it had lost child benefit details of 25-million people.
*UK three-month libor fixing rises again to 6.49% from 6.45%.
*Government borrowing has reached its annual limits only 7-months into the financial year.
*Crude oil futures hit a record closing high, finishing above $98 as the dollar fell back.
*HSBC (HSBA) steps up security following reported loss of customer bank details.
*The insurance industry could face a £3 billion bill for claims against directors, relating to the sub-prime mortgage lending crisis, according to William Sturge, a partner at law firm LG.
*Manufacturers will increase prices over the next three years, easing pressure for a rate cut, according to the CBI.
*US Federal Reserve reveals it no longer believes the US economy can grow much more than 2.5% a year without causing rising inflation, a lower rate than many investors thought was sustainable, helping to explain why the US central bank appears reluctant to cut interest rates too aggressively.
*US October housing starts up 3% to 1.229-million unit annual rate, with permits down 6.6% to 1.178-million.
*Freddie Mac loses $2-billion and seeks new capital.
*Cerberus drops $4-billion Chrysler bond as credit crunch bites.
*Hewlett-Packard (HEW) fourth quarter profit beats Wall Street forecasts.
*US Airways to begin service at Heathrow from next 29th March.
*Ericsson (ERI) reiterates forecast for full-year 2008 market to be in line with 2007.
Compiled in association with HB PLC and WH Ireland Ltd
