Markets
London - UK stocks closed at a seven month high on Thursday, as better than expected earnings from companies such as BT Group boosted sentiment, lifting miners, banks and telecoms firms. The FTSE100 closed up 84.08 points at 4631.61. BT Group closed 13 percent higher, as the company posted a smaller than expected 3 percent dip in first quarter adjusted core earnings and said it was on track to deliver cost cuts. Miners added the most points to the index, with Rio Tinto, BHP Billiton, Xstrata and Eurasian Natural Resources adding 5.5 to 7.8 percent. Antofagasta gained 7.8 percent after reporting a 6.6 percent dip in first half copper production, slightly better than expected. Lonmin was another strong performer, up 8.5 percent as Citigroup upgraded it’s to buy from hold.

Posted: July 31st, 2009 under Asset Management.
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>Markets

London - UK stocks rose on Wednesday as gains from financial stocks, boosted by strong figures from the British arm of Banco Santander and positive broker comments, outweighed a weak mining sector. The FTSE100 closed 18.69 points higher at 4547.53. Banks were the best performing sector after the British arm of Santander, which includes Abbey, said profits rose by a third in the first half of the year as bad debts showed a second consecutive quarterly decline. HSBC, Lloyds Banking Group, RBS and Standard Chartered rose between 0.7 and 3.6 percent.

Life insurers were also higher. Aviva rose 3.3 percent after Deutsche Bank lifted its rating on the stock to buy in a review of the UK sector which saw possible consolidation on the horizon. Prudential, Standard Life, Old Mutual and Legal and General added 1.5-3.9 percent. Schroders rose 4.6 percent after Morgan Stanley raised its rating on the stock to overweight from underweight and upped its price target.

Energy stocks were mixed as crude prices fell below $64 a barrel after an unexpected rise in US crude inventories threw the focus on weak demand. BP added 0.2 percent, while Royal Dutch Shell added 0.5 percent ahead of its second quarter figures due today. BG Group fell 2.7 percent after it posted a 31 percent drop in its second quarter profits and said lower gas demand meant it would not meet its 2009 production target.

Weak metals prices weighed on the mining sector with Anglo American, Antofagasta, Fresnillo and Rio Tinto down between 0.7 and 4.4 percent. BHP Billiton fell 2.4 percent. The miner has agreed with unnamed customers to take a 33-44 percent price cut for contracted iron ore shipments, covering 23 percent of its total sales volumes. Rexam was the top blue chip faller, down 8.1 percent after the company confirmed a £334.4m rights issue but still traded above its theoretical rights price as it reported better than expected results.

The market shrugged off figures released by the Bank of England showing weaker than expected consumer credit data, as news that British mortgage approvals hit their highest since April 2008 boosted sentiment.

New York - US stocks closed lower on Wednesday after a weak durable goods orders report added to worries about the economy. News about Yahoo’s partnership with Microsoft also weighed on stocks. The DJIA closed 26 points lower at 9070.72, the Nasdaq fell 7.75 points to close at 1967.76 and the S&P500 closed 4.47 points lower at 975.15.

In economic news, US durable goods orders plunged 2.5 percent in June, a far bigger decline than economists were expecting. The drop revived some worries that the economy may not be stabilizing as quickly as investors have been betting. Orders for long lasting manufactured goods saw the biggest monthly decline since January, the Commerce Department reported. Orders rose a revised 1.3 percent in May. Economists surveyed thought orders would fall 0.6 percent. However, orders excluding transportation rose 1.1 percent versus forecasts for no change. Last month, the same measure rose 0.8 percent. The Federal Reserve released its Beige Book survey of economic conditions in its twelve districts. The report showed that economic activity remained weak, but for most districts, the pace of the decline has slowed.

In company news, it was announced Microsoft and Yahoo have finally completed a 10 year search deal that takes aim at Google’s dominance in the online market. Yahoo will use and promote Microsoft’s Bing search engine on its site. In exchange, the company will keep 88 percent of the revenue from all search ad sales for the first five years. Yahoo will also have the right to sell ads on some Microsoft sites. However, investors expressed some disappointment that Yahoo will not receive an upfront payment, sending its shares 12 percent lower. Microsoft attempted to buy Yahoo outright for $47.5bn last year, but was rebuffed by the company. Microsoft shares rose 1.4 percent. Time Warner reported weaker quarterly earnings that beat estimates on weaker revenue that missed estimates. The stock fell 1.8 percent. Sprint Nextel reported weaker quarterly sales and earnings as subscribers continued to decline. The stock fell 12 percent.

Treasury prices rose, lowering the yield on the 10 year note to 3.66 percent from 3.68 percent.

Posted: July 30th, 2009 under Asset Management.
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Markets
London - UK stocks closed lower on Tuesday, ending its two week running streak after profit taking in mining and energy stocks erased earlier gains on the index, which had risen for the past 11 sessions. The FTSE100 closed 57.29 points lower at 4528.84. Miners took the most points off the index, with Antofagasta, Kazakhmys, Eurasian Natural Resources, Lonmin and Rio Tinto falling between 3.6 and 7.2 percent. Xstrata fell 5.8 percent, as investors cashed in on recent gains after the miner posted an 11 percent rise in first half production of coal, while copper output rose 1 percent. Randgold Resources fell 8.6 percent after the company announced a share offering to fund the development of its Gounkoto and Massaqa projects in Senegal and Mali as it reported a rise in quarter on quarter profits and production.

Posted: July 29th, 2009 under Asset Management.
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Markets
London - UK stocks closed higher on Monday for a record equalling 11th straight session, though gains were limited by falls on Wall Street after corporate earnings disappointed. The FTSE100 closed 9.52 points higher at 4586.13, hitting its highest closing level since January 5. Energy stocks added the most points to the index, holding onto gains made earlier in the session when crude rose on brighter economic prospects. BP, Royal Dutch Shell and Tullow Oil added between 1.1 and 1.6 percent. Miners were higher, against a backdrop of firmer metal prices, with Antofagasta, Anglo American, BHP Billiton, Eurasian Natural Resources and Kazakhmys up between 0.5 and 4.4 percent. Lonmin stood out, up 4.7 percent as Goldman Sachs upped its rating to neutral from sell.

Posted: July 28th, 2009 under Asset Management.
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Markets

London - UK stocks rose on Friday, with banking and energy stocks helping the index to rise for a 10th straight session and to a 6 1/2 month high, but gains were capped by weakness on Wall Street and poor UK economic data. The FTSE100 closed 16.81 points higher at 4576.61, its highest closing level since January 7. The market shrugged off a larger than expected fall in second quarter UK gross domestic product, which contracted by 0.8 percent in the three months to June and by 5.6 percent on the year. The University of Michigan Survey of Consumers showed consumer sentiment waned in July to the lowest reading since April on growing pessimism on the economic outlook. In the UK, the second quarter GDP contraction was the biggest annual decline on record. Some analysts said that the situation may start to pick up from here. Investors got some relief from data showing euro zone services and manufacturing sectors contracted much less sharply than expected in July.

Posted: July 27th, 2009 under Asset Management.
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