The Lex Column:
*Crunching the numbers - With the worst of the shock over, the real concern is that US house prices could fall further and profits, which remain high, could decline faster, putting the real economy in a lot more trouble.
*Merrill’s efforts – Six-years after Merrill Lynch set up shop in commercial finance for the US middle market, it has sold the business to GE Capital, releasing $1.3-billion of capital for the subprime-battered investment bank.
*Japanese/UK banks - Both sets of banks face problems. Japanese banks are awash with cash as conservative companies save rather than spend and UK banks are in need of deposits.
*US real estate outlook - Will the problems that afflicted the US residential property market in 2007 be repeated in the commercial sector in 2008?
*Private equity in 2008 - Peacocks don’t become feather dusters overnight. But it must feel like that for the private equity barons who strutted their stuff recently as the new kings of capitalism.
Feature:
*Stevie Spring, chief executive of publishing group Future (FUTR) – Publisher sees things in black and white.
Further news:
*Goldman agrees to take on failed SIV (formerly known as Cheyne Finance).
*Banks and home builders gain ground.
The Business Commentary Column:
*Villains aplenty but few heroes in sad tale of debt and tragedy.
Business Big Shot:
*Robert Maxted.
Feature – The search for Oil:
*BP (BP.) plans to pull investment from Alaska after a $1.5-billion tax increase.
*Friends become foes on front line of a new Cold War.
*Geologists believe known reserves off Greenland could just be tip of iceberg.
Further news:
*Essex & Suffolk Water seeks permission to extend Essex reservoir.
*Major reshuffle at top gives plenty of scope for holiday profit-takers.
*Delek (DGRE) bounces back after Swiss failure.
Tips of the Year (2008):
*Consumer - Tesco (TSCO).
*Property – British Land (BLND).
*Telecoms and Media - Yell (YELL).
*Leisure – Rank (RNK).
*Financials – Standard Chartered (STAN).
*Industry – Ultra Electronics (ULE).
*Damian Reece, City Editor – Punch Taverns (PUB) (Punch could put M&B (MAB) out of its misery).
*Ian Cowie, Personal Finance Editor – Savills (SVS).
World Markets:
*Emerging shift in balance of economic power.
*Apple flushes out Fox to offer latest films for rent via iTunes.
*Tesco Mobile (TSCO) under threat as key wireless spectrum shake-up is questioned and regulator’s plans put O2 joint venture at risk.
*Transocean and Google reap the greatest rewards.
*Warren Buffett will pay $4.5-billion for 60% stake in industrial conglomerate, Marmon.
*GMG and Apax snap up 19.4% stake in EMAP (EMA).
*Sanyo accounting error brings threat of Tokyo Stock Exchange delisting.
*Private investors steer clear of volatile stock market.
*Wall Street’s leading bear, Meredith Whitney says Merrill losses will keep rising.
*Reforms in the pipeline as MP’s discuss future of water industry.
*ITV (ITV) advertising expected to hold up as rivals suffer.
*House prices in the US fall at record rate.
*Bookmakers gallop towards racecourse funding deal.
*Pound hits a new €uro low.
*US oil crisis looming.
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*Last night on Wall Street the Dow Jones closed up 2.36-points to 13551.69, the Nasdaq added 10.91-points to 2724.41, while the S&P put on 1.21-points to close at 1497.66.
*Relief for retailers as late rush hoists takings.
*According to official figures, nearly 3,000 patients have died in the past three years as a result of taking medicines intended to help them. Thousands more have been hospitalised after suffering harmful side-effects or serious allergic reactions to prescription drugs and other medications.
*Union warns that wildcat strikes could hit Olympics.
*A man has been arrested on suspicion of murder after a policeman died while on duty in north London. Police had been called to a residential address in Wembley about 1745 GMT to deal with a domestic incident. They initially arrested the man for assault on an officer but he was later arrested for murder after another officer collapsed outside the house.
*Europe’s Christmas shopping figures overcome dire forecasts.
Compiled in association with HB PLC and WH Ireland Ltd
