The Lex Column:
*Security risk - Political risk in Asia is rising not just in Pakistan but also in Thailand where elections did not deliver a majority and with polls due in Taiwan and Korea.
*Ditching services - Some companies that ditch professional services that do not produce immediate or tangible results may discover they can survive perfectly well without them.
*Luxury losses - It has not been a merry Christmas season in the world of luxury goods.
The Lombard Column:
*What 2008 may hold for the Rock (NRK), Rio (RIO) and the rest: – Rock or millstone?... Some form of nationalistion remains the most likely escape route for the Government. But it will only get messier from here. Hostile is the new friendly... Bids from BHP (BLT) for Rio Tinto and Carlsberg for Scottish & Newcastle (SCTN) have to be formalised in the New Year and both bids have the potential of going hostile. But remember the 4 chief executives involved have a lot at stake personally, even though they may deny it. Does Turquoise feel blue?... After MiFID 2008 ought to be the year for Project Turquoise, but Clara Furse doesn’t appear to be quaking in her boots concerning a possible alternative trading exchange and the message seems to be, you can have any flavour you want, as long as it’s vanilla. How will they differentiate themselves from each other?
Merger & Acquisitions Feature:
*Bidders with cash able to pick and choose.
The AIM Market Feature:
*Crisis hits the value of secondary placings.
General Financial Feature:
*Doorstep agents help Provident Financial (PFG) ride out the credit storm.
The Neil Hume “On London” Column:
*Bargains among the small and mid caps.
Further news:
*St James’s Place (STJ), the wealth manager, is seeking disillusioned City employees for a special academy that turns out its own brand of upmarket financial adviser.
*Boost for Waterford Wedgewood (WTFU).
*Takeover rumours and oil price help Cairn (CNE) stand out.
*Deutsche Bank (DBK) lifts holding in stockbroker Evolution Group (EVG).
*Debutante Asian Logic (ALOG) closes up 1p on the day from its placing price at 112p.
The Analysis Column:
*Are you being served? Not very well by most high street retailers.
The Business Commentary Column:
*Time to get real as the credit flow dries up – The balance of power will shift to savers.
*Shops still have tangible assets.
Feature:
*Elephant (Loans & Mortgages (ELEP)) shackled by sub-prime woes.
Business Big Shot:
*Brian McBride.
The Tempus Column:
*Not quite Ten of the Best, but still ahead of the game - The Tempus 10 for 2007: - ASOS (ASC), BSS (BTSM), Compass (CPG), Cranswick (CWK), GlaxoSmithKline (GSK), Intertek (ITK), ITE Group (ITE), Johnson Matthey (JMAT), RBS (RBS), Venture Production (VPC), which gave Tempus an average change of +11.2%, compared +2.3% on the FTSE-All-Share, a difference of 8.9%.
Tiddler to Watch:
*Northwest Biotherapeutics (NWBS) - The United States-based developer of anticancer drugs, unchanged at 135p, has begun charity-funded trials of its DCVax drug against ovarian cancer.
The Lead Story of the Money Section:
*Desperate to invest? Try Russia – Wine – Cash.
Feature:
*Take your pick of the perks (the little-known benefits of share ownership).
Further news:
*British Energy’s (BGY) buzz defies market lethargy.
*London Stock Exchange (LSE) gains 10p to a new high of 1956p after saying it had attracted £14.5-billion of international flotations this year, beating New York and Nasdaq, whose combined figure reached £9-billion.
*Direct Wonen (DIWO), the AIM-listed Dutch estate agent, plunged 15p to 42p after it pulled out of a promised acquisition, citing “deteroriating conditions in the UK property market” in which its target operates.
*Continued excitement from Thursday’s news that Xcite Energy (XEL) was drilling for heavy oil in the North Sea’s Bentley Field continued to impress investors. The shares rose another 8.5p to 76p.
The Profile Column:
*Steve Forbes, chief executive and editor-in-chief of Forbes.
The Comment Column:
*Cheer up, 2008 may not be quite as bad as the forecasters fear.
*Challenging days ahead for the new knight – With consumer spending slowing and M&S (MKS) embarking on an ambitious expansion programme, soon to be knighted Stuart Rose, is facing what could be the toughest challenge yet.
The Citywire Column:
*Lowering interest rates not the answer, Tom Dobell warns.
Further news:
*Glanmore investors face cash delays.
*MFI owner, Merchant Equity Partners set to buy Kesa’s (KESA) French furniture business BUT.
*Oil stocks flare to light up dismal session.
*Sportingbet (SBT) edges ahead.
The Outlook Column:
*Bankers look forward to mergers frenzy.
*Emerging markets and political risk.
*And now for some more gratuitous predictions – It’s worth pointing out that anyone who took their opinion from the alarmist newspaper headlines of the past 3-months, would indeed think the economy was heading for hell in a handcart. Central bankers have in the round responded as required to the crisis in credit markets, and by doing so have in all probability headed off the dire economic consequences that the doomsters have been shouting about.
*New Year honours list muddle... again – It may be more instructive to muse on who hasn't been knighted for services to business in the New Year's honours than who has.
Further news:
*Bullish broker (Goldman) sparks up British Energy (BGY).
At a Glance:
*A Sporting chance (Sportingbet (SBT)).
The Daily Mail Columnist choose their 2008 picks:
*Alex Brummer – Woolworths (WLW).
*Lucy Farndon – Imperial Tobacco (IMT).
*Simon Duke – BT (BT.A).
*Brian O’Connor – British Airways (BAY).
*Karl West – Shanks (SKS).
*Tamsin Brown – Scottish & Southern Energy (SSE).
*Geoff Foster – Encore Oil (EO.).
*Sam Flemming – Rolls-Royce (RR.).
*Ian Lyall - GlaxoSmithKline (GSK).
Further news:
*Downbeat day for the Footsie.
*News that Deutsche (DBK) and Tilney have around 8% lift Evolution (EVG).
*AIM market suffers from credit crisis and tax moves.
The David Shand “Taking Stock” Column:
*Looking ahead to the New Year in the Square Mile, David says, ‘Takeover ambitions defy the credit crunch gloom’.
Ones to Watch:
*Vet group CVS (CVSG) shows health.
*Power play - Aggreko (AGK).
Further news:
*HSBC (HSBA) hit by £6.5-billion sale talk.
*Equity capital markets will get a boost next year from financial institutions seeking to shore up their tattered balance sheets and from private equity firms looking for an exit from earlier investments, bankers said.
*Shares in bond insurers MBIA and Ambac fell sharply on Friday, on concerns that a rival US bond insurer planned by billionaire Warren Buffett will eat into their ability to win new business, and thereby, further damage efforts to boost their flagging capital bases. Mr Buffett’s Berkshire Hathaway group was expected on Friday to receive a licence from the New York state insurance regulator for the new bond insurer.
*Fresh Indian setback for UBS (UBS) hits plan for Standard Chartered (STAN) division.
*Kesa (KESA) in talks to sell its French furniture business BUT for €550-million.
*New profits warning from Johnson Services (JSG) as chief executive Charles Skinner quits.
*Pub sector feels the pinch of property slowdown.
*HSBC (HSBA) ready to sell US car finance unit.
*Italy declares Air France preferred bidder for Alitalia.
*Paramount at ther box office summit with a couple of monster hits.
*Ladbrokes (LAD) ready to sign up with Turf TV.
*Private equity joins queue as BAZA puts duty-free up for sale.
*Shell (RDSA) delays decision on Iran project again.
*Warner offers unencrypted online music.
*S&N (SCTN) prepared to talk ‘if price is right’.
*Banks offer big discounts to offload leveraged debt.
*China’s CSI 300 emerges as the index of the year.
*Savers spurn banks for building societies.
*Gold gains sparkle amid market jitters.
*Pound drops to record low against €uro.
*Bank rate hopes prop up builders.
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*The Dow Jones closed up 6.26-points at 13365.87, the Nasdaq slipped 2.33-points to 2674.46, while the S&P added 2.12-points to close at 1478.49.
*IMRG predicts internet shopping could account for half of UK’s £300 billion-a-year retail market within the next decade.
*In a Radio 4 interview, Jon Moulton, the head of Alchemy Partners, claimed that private equity still did not pay enough tax, encouraging the Government to study the industry closely to make sure it got the regime right.
*Some of those that feature in the New Year’s Honours List include, Broadcaster Michael Parkinson, who is to be knighted and singer Kylie Minogue, who will receive an OBE. M&S (MKS) chief executive, Stuart Rose, will receive a knighthood. Dolly the sheep creator Ian Wilmut will also be knighted, and children's author Jacqueline Wilson is to become a dame. England rugby coach Brian Ashton will receive an MBE and retired former England rugby union captain Jason Robinson, is made an OBE. Sir Ian McKellen joins the exclusive Order of the Companion of Honour, which is restricted to 65 members, including the Queen. Des Lynam is appointed OBE, sports broadcaster and former long-distance runner Brendan Foster is appointed CBE and snooker world champion John Higgins has become an MBE. Also honoured are Julie Walters (CBE), Leslie Phillips (CBE) and Richard Griffiths (OBE). Musicians who feature include Jethro Tull frontman Ian Anderson (MBE) and Jazzie B (OBE), whose real name is Trevor Romeo.
*Bhutto’s murder raises fears over nuclear security.
*Benazir Bhutto's supporters have disputed the Pakistani government's account of how she died, calling it "dangerous nonsense". A government spokesman said her head was slammed against her vehicle by the blast from a bomb, but colleagues said she died from bullet wounds. A Pakistani militant, accused by the government of being behind the killing, has denied any involvement.
*The world's biggest retailer, Wal-Mart (WAL), has closed its video downloading service less than a year after it started selling films online. It stopped the service on 21st December, according to a message on the discount chain's video download website. Wal-Mart said the decision had been forced by Hewlett-Packard withdrawing the software running the site. The move ends a challenge to Apple's iTunes store, Amazon and Netflix to win customers who rent films over the web.
Compiled in association with HB PLC and WH Ireland Ltd
