London open
City sources predict FTSE 100 will open down 125 points from yesterday's close of 5,070.
Stocks to watch
Tuesday’s preliminary results from Marks & Spencer (M&S) came in with a slightly better than expected profit but the retail giant said it remains cautious about the outlook for the year ahead. Profit before tax and property disposals came to Ł632.5m in the 52 weeks ended 3 April, an improvement on last year’s Ł604.4m.
South west England-focused water group Pennon hailed another successful year after lifting revenues and profits in the year to March 31 and raising the full year dividend by 7.4%. Pre-tax profits climbed to Ł183.8m from Ł159.4m on revenues that rose to Ł1.068bn from Ł958.2bn. The proposed full year dividend was upped to 22.55p from 21p.
Losses at its cash processing division meant profits came in little changed last year at banknote printer De la Rue, despite good sales growth. Pre-tax profits in the year to March were Ł96.6m, up from Ł96.1m, on sales of Ł561m some 12% higher. Operating profits rose by 13% to Ł109m driven by good growth from the banknote arm.
In the Press
Prudential’s market debut in Hong Kong fizzled this morning as the stock dived by more than 2.5% in the first half hour of trading over fresh concerns for the prospects of its planned $35bn takeover of AIA. The plunge, if sustained over coming days, could cast a dark cloud over Prudential’s impending cash-call on its shareholders – an ambitious $21bn capital-raising exercise which may depend heavily on the appetite and confidence of Asian investors, the Times reports.
AIA’s chief executive has told friends and industry executives that he would quit if the UK’s Prudential succeeded in its $35.5bn (Ł24.6bn) takeover of the Asian businesses of AIG. Mark Wilson has said he would step down once the deal closed because the proposed combination of the two Asian businesses was “unworkable”. Wilson, 43, joined AIA from Axa in 2006 and boasts more than a decade of senior management experience in the Asian insurance industry, the FT reports.
Apple is planning a high street blitz to sell the iPad when it is launched in Britain on Friday — but people ordering online could have to wait more than two weeks for delivery. Apple has signed a deal with DSGi to stock the tablet computer at 139 PC World and Currys stores from launch, more than trebling the number of shops at which it will be available. DSGi has agreed a 60-day window with Apple to sell the iPad ahead of rivals such as Comet, Tesco, John Lewis and the Carphone Warehouse, the Times reports.
Newspaper tips
Invensys revealed yesterday its order book grew from Ł2bn to Ł2.3bn, and the company has been especially focusing on emerging markets, which account for 40% of orders. It has Ł363m in cash on the balance sheetand there could still be value to be found as the economy recovers. Buy says the Independent.
Elementis, the chemicals group whose products are used for everything from waterproofing mascara to coating metals, appears to be in its element. So much so that, despite forecasting a pullback in earnings in the second half compared to the first, the company now expects full-year results to come in "well ahead" of expectations. Trading on just 8.3 times this year's earnings, Elementis shares are cheap. Buy says the Independent.
Mulberry, the luxury fashion brand and retailer, signalled its growing confidence yesterday by revealing it had signed leases for a new flagship store and head office in London. Mulberry has momentum but, at 25 times earnings, investors should wait for the shares to cool down before shopping again. For now, just hold says the Independent.
US close
Stocks closed lower as concerns over the situation in Europe overshadowed a better-than-expected rise in existing home sales.
Dow Jones closed down 126 points to 10,066. The S&P 500 fell 14 to 1,073. The tech-heavy Nasdaq dropped 15 gain to 2,213.
The National Association of Realtors said existing home sales in April jump 7.6% last month to 5.77m units, up from the upwardly revised rate of 5.36m in March. The figure was better than the 5.65m expected.
Over the weekend, a regional bank in Spain was bailed out by the Bank of Spain, which raised more uncertainty over the country's financial situation and the wider European economy.
In company news, the US Justice Department will not go ahead with criminal charges against AIG or its executives because of a lack of evidence. Joseph Cassano, who headed the AIG unit that insured mortgage-related securities, and two others colleagues were told last week they would not face charges, according to Cassano’s attorney.
City sources predict FTSE 100 will open down 125 points from yesterday's close of 5,070.
Stocks to watchTuesday’s preliminary results from Marks & Spencer (M&S) came in with a slightly better than expected profit but the retail giant said it remains cautious about the outlook for the year ahead. Profit before tax and property disposals came to Ł632.5m in the 52 weeks ended 3 April, an improvement on last year’s Ł604.4m.
South west England-focused water group Pennon hailed another successful year after lifting revenues and profits in the year to March 31 and raising the full year dividend by 7.4%. Pre-tax profits climbed to Ł183.8m from Ł159.4m on revenues that rose to Ł1.068bn from Ł958.2bn. The proposed full year dividend was upped to 22.55p from 21p.
Losses at its cash processing division meant profits came in little changed last year at banknote printer De la Rue, despite good sales growth. Pre-tax profits in the year to March were Ł96.6m, up from Ł96.1m, on sales of Ł561m some 12% higher. Operating profits rose by 13% to Ł109m driven by good growth from the banknote arm.
In the Press
Prudential’s market debut in Hong Kong fizzled this morning as the stock dived by more than 2.5% in the first half hour of trading over fresh concerns for the prospects of its planned $35bn takeover of AIA. The plunge, if sustained over coming days, could cast a dark cloud over Prudential’s impending cash-call on its shareholders – an ambitious $21bn capital-raising exercise which may depend heavily on the appetite and confidence of Asian investors, the Times reports.
AIA’s chief executive has told friends and industry executives that he would quit if the UK’s Prudential succeeded in its $35.5bn (Ł24.6bn) takeover of the Asian businesses of AIG. Mark Wilson has said he would step down once the deal closed because the proposed combination of the two Asian businesses was “unworkable”. Wilson, 43, joined AIA from Axa in 2006 and boasts more than a decade of senior management experience in the Asian insurance industry, the FT reports.
Apple is planning a high street blitz to sell the iPad when it is launched in Britain on Friday — but people ordering online could have to wait more than two weeks for delivery. Apple has signed a deal with DSGi to stock the tablet computer at 139 PC World and Currys stores from launch, more than trebling the number of shops at which it will be available. DSGi has agreed a 60-day window with Apple to sell the iPad ahead of rivals such as Comet, Tesco, John Lewis and the Carphone Warehouse, the Times reports.
Newspaper tipsInvensys revealed yesterday its order book grew from Ł2bn to Ł2.3bn, and the company has been especially focusing on emerging markets, which account for 40% of orders. It has Ł363m in cash on the balance sheetand there could still be value to be found as the economy recovers. Buy says the Independent.
Elementis, the chemicals group whose products are used for everything from waterproofing mascara to coating metals, appears to be in its element. So much so that, despite forecasting a pullback in earnings in the second half compared to the first, the company now expects full-year results to come in "well ahead" of expectations. Trading on just 8.3 times this year's earnings, Elementis shares are cheap. Buy says the Independent.
Mulberry, the luxury fashion brand and retailer, signalled its growing confidence yesterday by revealing it had signed leases for a new flagship store and head office in London. Mulberry has momentum but, at 25 times earnings, investors should wait for the shares to cool down before shopping again. For now, just hold says the Independent.
US close
Stocks closed lower as concerns over the situation in Europe overshadowed a better-than-expected rise in existing home sales.
Dow Jones closed down 126 points to 10,066. The S&P 500 fell 14 to 1,073. The tech-heavy Nasdaq dropped 15 gain to 2,213.
The National Association of Realtors said existing home sales in April jump 7.6% last month to 5.77m units, up from the upwardly revised rate of 5.36m in March. The figure was better than the 5.65m expected.
Over the weekend, a regional bank in Spain was bailed out by the Bank of Spain, which raised more uncertainty over the country's financial situation and the wider European economy.
In company news, the US Justice Department will not go ahead with criminal charges against AIG or its executives because of a lack of evidence. Joseph Cassano, who headed the AIG unit that insured mortgage-related securities, and two others colleagues were told last week they would not face charges, according to Cassano’s attorney.
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