FTSE 100	5232.72, +90	Dow	10226.94, +203.52
FTSE 250	9197.55, +114.86	Nasdaq	2154.06, +41.62
FTSE All Share	2678, +43.7	S&P 500	1093.08, +23.78
Nikkei	9870.73, +61.74	Hang Seng	22268.16, +60.61
Oil (Crude)	$79.43	Gold	$1101.40
Base Rate	0.5%	10 Yr Gilt	3.85%
£/$	1.66	£/€	1.1123
1 month LIBOR	0.514	3 month LIBOR	0.609

 

Markets

London - The FTSE 100 jumped 90 points to close at 5,232.72 yesterday. Mining shares were among the top risers after metals prices rose. Kazakhmys rose 6%, Xstrata was up 5% and Antofagasta climbed 4.6%. Cadbury shares also gained ground after the confectioner rejected a hostile bid from US food giant Kraft. In economic news, house prices in England and Wales rose last month at their strongest rate in almost three years, buoyed by tight supply and record low interest rates, a survey showed on Tuesday. Today the FTSE is 10.90 points higher at 5,246.08.

New York - US stocks rallied yesterday, sending the Dow to a 13 month high. Investors optimism gained momentum after the Group of 20 said over the weekend that it would keep economic stimulus in place. The Dow Jones jumped 203.52 points to 10,226.94, the S&P 500 rose 23.78 points to 1,093.08 and the Nasdaq climbed 41.62 points to 2,154.06. Gains were broad based, with stand out sectors including financials and commodities. The US dollar briefly fell to a 15-month low, boosting commodity prices and materials stocks. Freeport MacMoRan Copper & Gold advanced 4.6%.

Tokyo - The Nikkei rose 61.74 points to close at 9,870.73 this morning. Banks led the index higher after Financial Services Minister Shizuka Kamei said the government is willing to tolerate domestic banks "briefly" falling below capital ratios to ensure the supply of credit.

Hong Kong - The Hang Seng is currently 60.61 points higher at 22,268.16. Financials are prominent after Credit Suisse Group raised its ratings on Industrial and Commercial Bank of China Ltd and Bank of China Ltd, to outperform.

Economics

UK RICS house prices (Oct) 00:01 GMT

The RICS house price balance rose from 11 to 22 in September; the largest number of surveyors (on a net balance basis) expecting higher prices since May 2007. Although analysts see the pace of house price gains abating over the coming months, seasonal effects are likely to push the RICS survey’s net balance reading to 30 in October.

UK Trade balance (Sep) 09:30 GMT

Since July 2008, the deficit on trade in goods has narrowed from GBP8.2bn to GBP6.2bn, while trade in services remains relatively stable with a GBP3.9bn surplus in August. Analysts expect a narrowing of the overall trade deficit to GBP2.1bn in September.

UK DCLG house prices (Sep) 09:30 GMT

The DCLG (formerly ODPM) house price index is the last of the house price indices to be released for the month of September, so tends not to be as significant for the markets as the Nationwide or Halifax releases. The annual rate of house price deflation is expected to moderate, given that current prices look to have stabilised.

US IBD/TIPP economic optimism (Nov) 15:00 GMT/10:00 EST

October’s IBD/TIPP index fell by 3.8pts to 48.7 and did a good job of anticipating the subsequent declines in both the University of Michigan and Conference Board surveys later that month. The weekly ABC News index also drifted lower during October. Analysts look for November’s IBD/TIPP index to slip to 48, as higher gasoline and lower stock prices in recent weeks apply some downward pressure on the personal finances component of the survey.

Corporate

Barclays, which has held up relatively well compared with some domestic peers during the global financial crisis, said Tuesday that its third-quarter pre-tax profit fell to GBP1.56 billion from GBP2.84 billion a year earlier. Impairment charges and other credit provisions rose sharply for the three months ended Sept. 30 to GBP1.4 billion from GBP862 million a year earlier, the U.K. bank said. Top-line income was GBP8.68 billion, up from GBP6.88 billion. Despite the decline in profit, the company was generally upbeat in its statement. "We have maintained strong income momentum in the third quarter, particularly in Barclays Capital and across the international activities of GRCB, enabling us to achieve consistent profitability across the first three quarters of 2009," said John Varley, group chief executive. Barclays said that net profit for the nine months fell 29% to GBP2.73 billion from GBP3.83 billion a year earlier. Impairment and other credit provisions charges increased 65% to GBP6.21 billion for the nine months from GBP3.76 billion a year earlier. For the nine months, Barclays said pre-tax profit from its investment banking division fell 38% to GBP1.97 billion. Its global retail and commercial banking division, meanwhile, reported a pre-tax profit of GBP2.18 billion, down 30% from the same nine months a year earlier as impairments rose significantly from the year-ago period. For the nine months, it said that it took a charge of GBP1.3 billion on its own debt after taking a gain of GBP1.95 billion in the year-ago nine-month period. Excluding movement on own its own debt, gains on acquisitions and disposals and gains on debt buybacks, it said that pre-tax profit more than doubled to GBP4.41 billion from GBP2.05 billion.

InterContinental Hotels Group PLC (IHG) Tuesday said that there are signs that occupancy at its hotels is stabilizing, but rates are still under "considerable" pressure and its third quarter profits and revenue fell. It said that operating profit from continuing operations, the key figure tracked by the market, dropped to $124 million in the three months to Sept. 30, down 19% from $153 million last year. The figure was boosted by $10 million because the company’s weak performance means certain staff bonus plans won’t pay out. Revenue per available room, or RevPAR–a key industry measure–dropped 15.2% in the three months, compared with an 18.6% decline in the previous quarter. Its third quarter net profit declined to GBP67 million, from GBP91 million a year earlier as revenue dropped to GBP401 million, from GBP496 million.

Imperial Tobacco Group today posted a 39% increase in full-year profit and named Alison Cooper as its new chief executive. The world’s fourth-largest tobacco group by sales said pre-tax profit before exceptionals in the year to Sept. 30 rose to GBP2.23 billion from GBP1.61 billion last year, in line with analysts’ expectations. The company confirmed Tuesday that Chief Executive Gareth Davis will retire in May 2010 and be replaced by Chief Operating Officer Alison Cooper. Cooper was named COO in March, immediately becoming favourite to succeed Davis, who has led Imperial for all of its 13 years as an independent company. He turns 60 next year. Sales rose 29.2% to GBP26.52 billion from GBP20.53 billion, while net profit increased 54.9% to GBP663 million from GBP428 million. Both sales and profit were boosted by the acquisitions of Altadis and Commonwealth Brands last year. The company said in September its full-year performance would meet expectations as it continues to shrug off the effect of the global recession.  

Randgold Resources today said it swung to a profit in the third-quarter and that it planned to fast-track Gounkoto, a potential 2.65 million troy ounces resource near the company’s flagship mine in Mali. Net profit attributable to equity shareholders was $11.32 million for the three months to Sept. 30, compared with a loss of $1.43 million during the same period a year earlier. Randgold’s performance in the third quarter of 2008 reflected a surge in net financing costs after an $8.84 million non-cash provision against securities investments. Randgold’s revenue from gold sales increased 32.2% to $103.5 million from $78.28 million a year earlier. While revenues were up, the miner also flagged rising costs - cash costs increased 30.4% to $68.17 million compared with $52.28 million a year earlier.

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

 

Posted: November 10th, 2009 under Asset Management.
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