City sources predict FTSE 100 will open up 4 points from its previous close of 4,838.Stocks to Watch
Premier Oil has upgraded reserves estimates for Catcher and Catcher East to between 60 million barrels of oil (mmbls) and 100 mmbbls after striking oil again at the lucrative field in the UK Central North Sea. The explorer, with a 35% interest in the 28/9 licence, drilled down over 6,000 feet at the Catcher South West Appraisal (28/9-1Y) sidetrack well and found 68 feet of net hydrocarbon pay over a gross vertical reservoir interval of 261 feet.
Part-nationalised lender Lloyds Banking Group is selling a portfolio of 40 private equity investments in its Bank of Scotland Integrated Finance (BoSIF) unit to a newly formed joint venture for Ł332m in cash. The new joint venture, called Cavendish Square Partners LP, will be majority owned by private equity investor Coller Capital, with Lloyds Banking Group retaining a stake of around 30%.
Wickes owner Travis Perkins has got its name on BSS after the pair agreed a cash and share bid that values each BSS Share at 435.8p and the plumbing supplies firm at approximately Ł558m in total. The terms are in line with the initial approach from Travis in May. BSS shareholders will receive 232.91p in cash and 0.2608 in new Travis Perkins shares, valued at 196.8p. They will also get the recent BSS final dividend, worth an additional 6.09p.
In the Press
Financial betting against the pound has fallen significantly since the emergency Budget – with hedge funds and speculators closing their positions that anticipated further falls in the value of sterling. In the seven days following the emergency Budget, the number of short positions in sterling fell from 62,267 to 52,397, according to data compiled by the US Commodity Futures Trading Commission. The number of long positions increased slightly over the same period from 15,921 to 17,626, reports the Telegraph.
The governments of Kuwait, China and Singapore could be tapped for funding under a Ł6bn plan designed to shore up BP’sfinances in the wake of the disaster. The oil giant is said to be examining measures to bolster its balance sheet including issuing bonds, a conventional rights issue or accepting a cash injection from sovereign wealth funds in exchange for a slice of equity in the company, the Times reports.
The England football team is set to suffer another painful loss as Nationwide terminates its Ł20m sponsorship contract after 11 years. A spokesman for the building society, whose sponsorship deal with England expires at the end of the month, said that the group was "pleased" with the relationship that had "helped raise its profile with customers" but confirmed that the contract was "unlikely to be renewed", reports the Telegraph.
Newspaper tips
Builders' merchant Travis Perkins, owner of Wickes, gave some much-needed cheer to the stock market on Friday when it said it had performed ahead of expectations in the first half, with like-for-like sales up 3.4%. The Telegraph does not feel confident with this lack of visibility, so, despite the dividend resumption, recommends investors avoid the shares.
Avon Rubber shares are 101.5p but they should show considerable improvement over the next few years. Chief executive Peter Slabbert and finance director Andrew Lewis have worked hard to create an efficient and attractive business. The firm makes top-notch products for individuals and organisations that really need them and it is continually looking for ways to expand and improve its range. Buy, says the Daily Mail.US close
It looked like Wall Street would finish in the blue Friday following an afternoon rally, but the optimism was fleeting and an attack of nerves in the final half hour of trade left the market at a 2010 low.
Investors reacted badly to a weaker than expected jobs report. Non-farm payrolls fell by 125,000 in June compared with 431,000 jobs created in May – although that was boosted by temporary census jobs.
Private sector employers added 83,000 new staff, well below forecasts, though double the previous month’s 41,000, of which many were only temporary positions. The unemployment rate fell to 9.5%, the lowest rate since July last year and down from 9.7% in May.
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