More details are emerging about the new procedure for complaining about a company’s registered name which come into force on 1 October 2008. As we have previously reported, under this procedure, parties can object to company names which are the same as a name in which they have goodwill, or are so like their name so as to be likely to mislead by suggesting a connection between the two parties.

The costs for filing a complaint have recently been set at £400. The company complained about has to pay £150 when it files its response. There are additional fees for filing evidence and for taking other steps in the process. However, the Company Names Adjudicator has the power to award the successful party some or all of its costs, to be paid by the unsuccessful party. The Company Names Adjudicators are being appointed from the pool of existing UK Intellectual Property Office Hearing Officers who presently deal with objections to the registration of trade marks on the basis of earlier conflicting trade names with a reputation. Given this experience, they should hit the ground running when the new procedure comes into play.

This new procedure should be a valuable weapon in the fight for maintaining proper brand protection. However, companies hoping to use it to cause trouble for their competitors should beware - a complaint can be struck out if it is vexatious, has no reasonable prospect of success or is otherwise misconceived.

Posted: August 20th, 2008 under Intellectual Property.
Comments: none

The Information Commissioner’s Office has recently been given the power to impose substantial fines on organisations that deliberately or recklessly commit serious breaches of the Data Protection Act. There have been warnings that, in the future, prison sentences may even be imposed. In a report by the Information Commissioner’s Office last year, the number of data protection breaches was described as ‘horrifying’, with 13% of complaints being about internet firms. UK organisations have not been rigorous in their data protection compliance. The power to impose heavy fines should rock organisations into taking their obligations much more seriously. For example, companies must keep data secure, accurate and up-to-date, and destroy it when keeping it is no longer necessary.

Posted: August 20th, 2008 under Business Advisory Services.
Comments: none

Markets

London - The FTSE is currently 40.5 points higher at 5360.9. Tullow Oil leads the risers board after UBS upgraded the stock to ‘buy’ from ‘neutral’ on valuation grounds.

New York - US stocks slumped again yesterday on worrying economic data, poor retail earnings and continued credit worries. The Labor Department reported that the annual Producer Price Index for finished goods rose 9.8% in the 12 months that ended in July, this is the fastest annual rate in 27 years. While on the month PPI rose 1.2%, against expectations of just a 0.3-0.6% increase. This now puts the Federal Reserve in an uneasy position when it comes to maintaining its policy of low interest rates.

The Dow Jones lost 130.84 points to close at 11,348.55, the S&P 500 fell 11.91 points to end at 1,266.69. The Nasdaq dropped 32.62 points to finish at 2,384.36.

Lehman Brothers suffered another dismal session, plummeting 13% after JP Morgan forecast a further $4 billion in write downs on mortgage-related investments. Losses in the financial sector were broad based with American International Group tumbling 5.9%. The shares suffered after Goldman Sachs cut its price target on the stock to $23 from $30.

Home Depot dropped 3.7% after reporting a steep drop in quarterly profit, even though they topped expectations. However, the world’s largest home retailer did forecast weakness into 2009 as the housing slump continues. This was backed up by figures from the Commerce Department which showed housing starts and building permits fell in July to levels not seen since the 1991 recession. The Dow Jones index of home builders shares lost 3.5% as a result.

After the bell, Hewlett Packard provided a bright spot. The world’s biggest computer maker reported a higher quarterly profit and strong sales, sending shares about 3% higher.

US light crude oil for September delivery gained $1.66 to $114.53 a barrel as the threat of Tropical Storm Fay passed.

COMEX gold for October delivery climbed $11.20 to $813 an ounce. Treasury prices slipped, raising the yield on the 10 year note to 3.84% from 3.81%.

Tokyo - The Nikkei slipped 13.37 points to close at 12,851.69 this morning. Shipping lines fell in line with transportation fees, overshadowing a gain by oil explorers as crude rebounded. Nippon Yusen led shipping lines lower with a loss of 2.7%, while Inpex Holdings, Japan’s biggest oil explorer, jumped 2.5%.

Hong Kong - The Hang Seng is currently 420.99 higher at 20,905.36 on speculation that China will introduce measures to support the economy. China’s government is considering spending as much as 400 billion yuan, or 1.5% of the countries GDP, to stimulate the economy and may ease monetary policy this year.

Economics

UK Public Finances (Jul) 0930 BST

July tends to be a ‘tax take’ month (around a £6bn yield in the past couple of years), but borrowing has been significantly higher than expected this year, and so smaller tax take is expected. The Chancellor is expecting public sector net borrowing to total $43bn in the current fiscal yea. Analysts think this is optimistic and expect borrowing to be closer to £50 bn.

UK Bank of England Minutes (Aug) 0930 BST

Having already received the Inflation Report the main information from these minutes will be the voting pattern. The recent declines in commodity prices appear to have eased concerns on inflation. Analysts believe a three way split will continue, with Besley voting for higher rates, but Gieve joining Blanchflower in voting for lower rates. The other six members are likely to have voted for rates unchanged.

UK CBI Industrial Trends (Aug) 1100 BST

The Monetary Policy Committee are placing a lot of weight on the potential for the decline in sterling to boost activity. But there was no sign of this optimism in the manufacturing sector last month and analysts expect sentiment to deteriorate further. Unlike the MPC, analysts believe the decline in demand from the US and Eurozone in the recent months will outweigh the effect of the increase in competitiveness that a weaker pound brings.

Corporate

Britain’s Competition Commission said it may order UK airport operator BAA to sell three of its British airports. The commission said it could require BAA, owned by Spain’s Grupo Ferrovial, to sell two of its London airports and either Edinburgh or Glasgow airport, if the findings of its inquiry into BAA’s airport ownership are implemented. The regulator said it had provisionally found competition problems at each of BAA’s seven UK airports, which include Heathrow, Gatwick, Stansted and Southampton in England, and Edinburgh, Glasgow and Aberdeen in Scotland, with adverse consequences for passengers and airlines. BAA said in a statement that it believed the commission’s findings, including calls for a fundamental restructuring of BAA and a review of the government’s air transport white paper, risk delaying delivery of new runways. "We will be seeking urgent clarification from the government of how it believes this report’s findings can be reconciled with the air transport policy it established in 2003 and its current review of economic regulation," BAA said.

The above details are provided for information only and are not intended to be construed a solicitation for the sale or purchase of any particular investment nor as specific investment advice.

Posted: August 20th, 2008 under Asset Management.
Comments: none

Markets

London - The FTSE 100 is currently 61.6 points lower at 5,388.6 reflecting sharp falls overnight on Wall Street and in Asia, with banks under pressure again amid worries that the worst of the credit crisis is not over. HBOS claims the top faller spot, down 4.5% with RBS close behind, down 4.3%.

New York - All three major indices in the US fell around 1.5% yesterday after Barron’s reported that the Treasury may have to bail out home finance giants Fannie Mae and Freddie Mac. However, the Treasury responded by saying it has no plans to use its authority to backstop either of the two companies.

The Dow Jones dropped 180.51 points to close at 11,479.39, the S&P 500 lost 19.6 points to finish at 1,278.60. The Nasdaq tumbled 35.54 points to end the day at 2,416.98.

Fannie Mae and Freddie Mac dropped to 20 and 17 year lows respectively, with both losing more than 20%. In addition, Freddie Mac’s debt sale drew lacklustre demand and Merrill Lynch slashed its price target on the stock. Elsewhere in the financial sector, Lehman Brothers sank 7% after the Wall Street Journal predicted a third quarter loss for the company, rather than the currently expected profit. Bank of America, the No 2 US bank, slipped 4.6%, while Citigroup fell 5%.

Ambac Financial and MBIA bucked the trend in the sector to gain for the second session. Investors were still buoyed by the news that Standard & Poor’s had taken the companies bond insurance arms off negative watch and affirmed their AA ratings. Ambac gained 4.75% while MBIA added 5.4%.

Outside of the financial sector, Alcoa caused one of the biggest drags on the Dow, falling 2.2%, while Google closed 2.3% lower.

US light crude oil for September delivery slipped $0.90 to settle at $112.87 a barrel. COMEX gold for October delivery rose $13.40 to $801.80 an ounce. Treasury prices went higher, lowering the yield on the 10 year note to 3.81% from 3.84%.

Tokyo - The Nikkei tumbled 300.39 points to close at 12,865.06 this morning, its worst session for a month. Investors eyed the report from Barron’s in the US which sent the majority of financial stocks lower. Elsewhere, Seven & I Holdings Co, the nation’s biggest retailer, lost 2.1% and Nintendo Co fell to a five month low as the Bank of Japan described the economy as "sluggish".

Hong Kong - The Hang Seng is currently 204.23 points lower at 20,726.44. Again financial stocks led the decline, together with property companies, on renewed concern credit market losses will dampen economic growth.

Economics

US PPI 1330 BST/0830 EDT

Analysts expect headline PPI to rise by 0.4% and core PPI by 0.3% in July. The timing of the survey means that most of the recent decline in gasoline won’t be captured, but after the seasonal adjustment, analysts still expect a 3% decline in gasoline. However, the other energy goods prices could increase for another month (before the latest declines in the price of oil filter through) and the food PPI may rise 0.5% as farmer prices continue to rise. The Beige Book has highlighted continued input pressures, in particular for food, but also for other petroleum based materials, metals foods and chemicals. The core PPI excluding autos has been elevated for the past two months (0.34% in June and 0.49% in May), and analysts expect this trend to persist in July.

US Housing Starts (Jul) 1330 BST/0830 EDT

The spike in housing starts and permits in June (up 9% and 12%, respectively) reflected a change in the New York City construction code which temporarily boosted (brought forward) new activity. This higher pace is likely to be unsustainable, and we expect both starts and permits to drop back to 1000k in July. Housing starts in the West have risen for the past three month, and analysts continue to pay particular attention to this region.

Corporate

Irish food group Greencore Plc said on Tuesday that revenue at its core convenience foods division fell 7.5% in the four months to July 31 due to the strength of the euro against the British pound. Excluding acquisitions and stripping out the impact of foreign exchange swings, sales rose 7.2 percent on a constant currency basis despite what the group described as a "notable deterioration in consumer sentiment in the UK since June". Overall Greencore said it was on track to deliver full year earnings per share within the range currently expected by analysts of between 22.8 and 25.0 cents.

The above details are provided for information only and are not intended to be construed a solicitation for the sale or purchase of any particular investment nor as specific investment advice.

Posted: August 19th, 2008 under Asset Management.
Comments: none

Markets

London - The FTSE is almost unchanged this morning, down 1.4 points at 5,453.4 with investors cautious ahead of the release of the Bank of England minutes Wednesday, despite BHP Billiton gaining after positive results and a higher close from Wall Street Friday. Miners take up the top six positions on the risers board, led by Anglo American, up 2.4%. London Stock Exchange tops the fallers board, down 3.2%.

New York - US stocks were mixed on Friday, with the Dow and S&P 500 finishing higher while the Nasdaq edged slightly lower. Falling commodity prices gave investors hope of a recovery in consumer spending, which together with some positive results from the sector, pushed retailers higher.

The Dow Jones gained 43.97 points to close at 11,659.90, the S&P 500 added 5.27 points to end at 1,298.2. The Nasdaq slipped 1.15 points to finish at 2,452.52.

Retailers JC Penney, Kohl, Abercrombie & Fitch and Nordstrom all reported earnings that topped expectations. JC Penney gained 8.4% even though it warned that current quarter results won’t meet forecasts. Kohl jumped 7.3%, raising its full year forecast and saying it would be able to weather a tough economy.

Abercrombie & Fitch rose 0.1% after giving a very cautious forecast while Nordstrom gained 4.4%.

Ambac Financial and MBIA surged higher after ratings agency Standard & Poor’s is no longer reviewing the ratings on the insurance arms of both companies for downgrade. Ambac finished 24.6% higher and MBIA closed 8.7% higher.

US light crude oil for September delivery fell $1.24 to close at $113.77 per barrel, recovering from a session low of $111.34. COMEX gold for October delivery fell $22.30 to $788.40 an ounce. Treasury prices rose, lowering the yield on the 10 year note to 3.84% from 3.89%.

Tokyo - The Nikkei closed 146.04 points higher at 13,165.45 this morning. Stocks start the week higher as concerns eased that tighter lending standards will drive developers to bankruptcy, and after analysts recommended manufacturer shares that have become cheap.

Hong Kong - The Hang Seng is currently 375.97 points lower at 20,784.61 this morning. The index is now at a one year low as investors worry that the city’s slowest economic growth in five years will erode earnings. Hong Kong’s GDP rose 4.2% in the second quarter, much lower than the 5.9% median estimate of analysts.

Economics

US NAHB Housing Market Index (Aug) 1800 BST/1300 EDT

The NAHB homebuilder index fell to an all-time low of 16 in July, as new home sales have failed to rebound even as signs of a recovery have emerged in pending and existing home sales. The month’s supply of homes remains elevated even though the absolute number of homes on the market has been scaled back, and new home prices continued to trend lower. Analysts expect home builder optimism to increase fractionally to 17 in August.

Corporate

Hiscox posted record first half profits today, topping forecasts, as its international corporate businesses increased their profits. The Bermuda based insurer said pre-tax profit in the six months to the end of June rose to £109.2 million from £105.6 million in the same period a year ago.

Michael Page, the British staffing group which has rejected a £1.3 billion bid approach from Swiss rival Adecco, reported a 22% increase in first-half pre-tax profit on Monday despite weakening trading conditions in some markets. The group, which has 166 offices in 28 countries and generates nearly 70 percent of gross profit outside the UK, said the performance reflected its strategy of diversifying the group, both geographically and by discipline.

Mining giant BHP Billiton, bidding for rival Rio Tinto in what would be the world’s second-biggest takeover, posted a 30 percent rise in half-year profit on Monday, boosted by Chinese demand. The world’s biggest miner said cost controls and its emphasis on high-margin growth projects had propelled its bottom line to a record profit of $15.4 billion for the full year to June 30, but also warned of weaker global economic growth in the short term.

BHP said higher operating costs, such as fuel, staff and equipment replacement, had inflated costs across the group by $1.18 billion for the year. Cost inflation has emerged as an Achilles heel for miners reaping big profits from global demand for minerals such as copper and iron ore. Rising costs are also expected to cut into Rio Tinto’s first-half earnings, due on Aug. 26. Rio operates in many of the same sectors and insists BHP’s unsolicited all-share offer, worth around $123 billion, is too low. The European Union is due to give its anti-competition ruling on Dec. 9, a key date in the long-running takeover saga.

The above details are provided for information only and are not intended to be construed a solicitation for the sale or purchase of any particular investment nor as specific investment advice.

Posted: August 18th, 2008 under Asset Management.
Comments: none