City sources predict FTSE 100 will open up 20 points from yesterday’s close of 5,148. Stocks to watch
Cable & Wireless Worldwide warns the coalition government’s emergency budget will cause earnings growth to slow this year and come in at the lower end of the range of expectations. The largely UK focused part of the old Cable & Wireless, split off in March, said its major programmes and lines of business performed broadly in line with plan during the first quarter. But non-contracted spending in the UK public sector has slowed “very significantly”, it cautioned. “Given the nature of our public sector business, this reduction will adversely impact trading in the current year.”
William Hill reported a rise in second quarter revenues, though gains from the World Cup were partly offset by a loss-making Royal Ascot festival. The group built on its improved performance in the first quarter, benefitting from strong growth in its online unit and gaming machines. For the year to date, net revenue was up about 3% compared with the same period in 2009 and pre-exceptional earnings before interest, tax and amortisation for the first half are expected to be around Ł135m from Ł134.6m last time.
Severn Trent‘s customers kept consumption steady over the past three months from April, while prices declined by 0.7%. As a result, the water utility has kept its expectations and guidance unchanged for this year.
In the Press
One of the energy industry’s biggest shareholders has threatened to block all new investments in British renewables unless the Government increases the returns available to investors and gives greater certainty over its future policy. Neil Woodford, the head of investment at Invesco Perpetual — which holds more than Ł4.5bn of shares in energy companies including National Grid, Centrica, United Utilities, SSE, Drax and International Power — fired a warning shot at coalition plans for a green energy revolution, the Times reports.
Both Boeing and Airbus went home happy after the first day of the Farnborough International Airshow, with a clutch of orders from the Middle East, Russia and resurgent leasing companies. As of yesterday afternoon, Airbus had won 122 orders, close to its target for the week of 130, and Boeing had 70. The biggest order from an airline was from Dubai-based Emirates, which will buy 30 Boeing 777s, in a deal worth $9.1bn (Łbn). For Airbus, Russia's Aeroflot committed to buy 11 A330s, the Telegraph reports.
President Barack Obama will raise the issue of BP’s alleged role in lobbying for the release of Libyan terrorist Abdel Basset al-Megrahi when he meets David Cameron on Tuesday. Obama’s administration has already publicly accepted the UK’s explanation for last year’s release from a Scottish jail of Mr al-Megrahi. But the White House said on Monday that the US president and UK prime minister would “likely touch on” the Libyan issue at their first official meeting in the US, the FT reports.
Newspaper tips
Department store Debenhams has proved an object lesson in why not to buy assets from private equity. Many believe it queered the pitch for other IPOs for several years thereafter. The shares currently sell on less than eight times this year’s earnings and are among the cheapest in the sector, but even at this level there seems no compelling reason to chase them says the Times.
The sale of Findus Italy, which is expected to clear in the fourth quarter, will complete Unilever's exit from its frozen food operations in Europe. While the case for its shares being undervalued is less compelling than at the start of the year, Unilever's stock has legs at a relatively undemanding 2011 price to forecast earnings of 10.7. Buy says the Independent.
Coal prices may be going up, but miner UK Coal has been battered by the costs of refinancing its growing debt mountain, which wiped another hefty chunk from the share price as it told investors that first-half, pre-tax losses would come in at Ł94m against Ł81.5m. UK Coal really ought to have something going for it in the long term but the performance of the shares speaks for itself. Sell says the Independent
No comments:
Post a Comment