Markets

London - The FTSE 100 dropped 74.43 points to close at 5,267.70 yesterday. Mining stocks dragged the market lower with Xstrata, the world’s fourth biggest copper supplier, falling 5% and Antofagasta, owner of Copper mines in Chile, sliding 5.4%. The day’s biggest riser was the world’s second-largest brewer, SABMiller, which rose 3.4% after its half-year profits beat analysts’ expectations. Today the FTSE is 32.80 points higher at 5,300.50. Miners rebound, led by Fresnillo, up 2.5%. Thomas Cook is the biggest percentage faller after Morgan Stanley downgraded the stock, reflecting a weaker operating environment and more expensive debt refinancing.

New York - US stocks went lower again yesterday, led by technology stocks after a brokerage downgrade on the sector. The Dow Jones dropped 93.87 points to 10,332.44, the S&P 500 slumped 14.90 points to 1,094.90 and the Nasdaq tumbled 36.32 points to 2,156.82. Bank of America-Merrill Lynch downgraded the semiconductor industry on concerns about a rising inventory glut. The downgrade came one day after two key software companies issued bearish profit outlooks. Texas Instruments dropped 3.4% while Intel slid 4.1%.

Tokyo - The Nikkei lost 51.79 points to close at 9,497.68 this morning, completing its fourth straight weekly decline. Sony declined after its new growth strategy failed to reassure investors. Helping to temper the Nikkei’s decline were gains in banking stocks, battered recently by concerns about fundraising after top lender Mitsubishi UFJ Financial Group announced a massive share sale this week.

Hong Kong - The Hang Seng is currently 187.32 points lower at 22,455.84. Banks are lower after Shanghai News said China may raise deposit reserve requirements for commercial lenders next year. Property developers are also in decline on concern that higher reserves would make less money available for mortgages.
Economics

No major economic data to report 

Corporate

Tesco today said it wants to more than double the profit it generates from non-grocery businesses like its bank and telecoms services, as it outlined plans to expand internationally and make better use of its stores and online to grow these services nationally. In a slide presentation published on its website for its two-day analyst meeting, Tesco said it will more than double profit from services to GBP1 billion, from the 2009 contribution of around GBP460 million on a pro forma basis assuming it had wholly-owned Tesco Bank prior to July 2008. The company didn’t specify how long this would take. As part of its services push, Tesco announced Thursday that it would be partnering with Cable & Wireless in a five-year deal to help provide broadband and home phone services alongside Tesco’s mobile telecoms offers. In its analyst presentation, the company said it sees potential to generate GBP2 billion of revenue and GBP200 million of profit from telecoms in the medium term, and plans to have 200 stores open by the end of 2010, building to a network of 500 across the country. The company also has ambitions abroad, with plans to build a significant international telecoms business through branded products and developing mobile virtual networks overseas.

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 20th, 2009 under Asset Management.
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