FTSE 100	5217.47, -59.38	Dow	10236.16, +41.87
FTSE 250	9245.25, -47.67	Nasdaq	2221.41, +17.68
FTSE All Share	2672.96, -27.9	S&P 500	1097.50, +5.33
Nikkei	10414.29	Hang Seng	20356.37, +323.30
Oil (Crude)	$73.67, -$1.04	Gold	$1084.50, -$13.80
Base Rate	0.5%	10 Yr Gilt	3.95%
£/$	1.626	£/€	1.1587
1 month LIBOR	0.517	3 month LIBOR	0.616

 

Markets

London - The FTSE 100 dropped 59.38 points yesterday to close at 5,217.47. Man Group was the biggest faller, losing 6.5%. Tullow Oil fell 4.6% after it launched a big share sale to fund the development of assets in Uganda. Resolution was the biggest winner on the index, up 2.4%, SAB Miller and British American Tobacco were also up. This morning the blue chip index gains 42.02 points to 5,257.49. This morning the index rises 38.78 points to 5,256.25.

New York - US markets rose yesterday following the Federal Reserve’s decision to leave interest rates unchanged. The decision was expected but investors took strength from the optimistic tone of the accompanying statement. Of particular note was the language used to describe how long rates would be kept at their historic lows. The Fed said it would be for an "extended period of time", which is widely regarded as at least six months or more. The Dow Jones added 17.68 points to 10,236.16, the S&P 500 rose 5.33 points to 1,097.50 and the Nasdaq climbed 17.68 points to 2,221.41.

In corporate news, Boeing led the Dow higher rallying 7.3%. The world’s second largest aircraft manufacturer reported a quarterly profit and revenue that topped estimates. Apple ended around 1% higher revealing its latest gadget - the iPad. Investors cheered the news that the new half inch wide tablet computer would have a lower than expected starting price of $499.

Tokyo - The Nikkei jumped 162.21 points to close at 10,414.29 this morning. Stocks rose for the first time in five sessions on speculation earnings will improve. Canon forecasted its biggest profit increase in a decade while Nippon Electric said annual earnings will more than double. Honda and Sony gained after the Nikkei newspaper said they’ll report higher earnings.

Hong Kong - The Hang Seng adds 323.30 points to 20,356.37 as investors take advantage of the benchmark index’s longest run of declines in a year. Both Japanese and Hong Kong markets also benefited from Barack Obama’s call to Congress to stimulate the economy and create jobs with a package of tax cuts.

Economics

US Durable goods orders (Dec) 13:30 GMT/08:30 EST

Boeing aircraft orders rose from 9 in November to 59 in December. Some of this reflects the seasonal increase typically seen at the end of the year, but even so this is a solid rise from a very low level. Meanwhile, the ISM new orders series climbed to 65.5 in December, up from 60.3. We expect total durable orders to rise by 2.5%, and we think ex-transport orders could also show some strength, rising by 1%.
US Initial jobless claims (week 23 Jan) 13:30 GMT/08:30 EST
Last week’s initial claims reading rose to 482,000, but the Labour Department attributed the increase to a backlog of applications from the year-end holidays. We look for a decline back down to 440,000 this week. Our proxy for the insured unemployment rate including extended benefits has been trending lower since last November.

Corporate

British Sky Broadcasting Group Plc today said it has entered 2010 in a good position as it reported an increase in fiscal first-half earnings and sales as more customers signed up for its pay-television, Internet and telephone services and as existing customers upgraded their services. The U.K. satellite TV operator also said it’s on track for the commercial launch of its 3D channel in the spring, the first in Europe, and will give the U.K. public a sneak peak this Sunday by televising a soccer match between Arsenal and Manchester United. "While the economic outlook remains uncertain, we remain well positioned with high-quality products offering customers great value for money," Chief Executive Jeremy Darroch said in a statement.  Operating profit before exceptional operating costs–the key figure tracked by U.K. analysts–rose 3.4% to GBP401 million for the six months ended Dec. 31, below market expectations of GB413 million because of higher-than-expected start-up costs related to new high definition customers. That compares with GBP388 million over the same period a year earlier. BSkyB added around 500,000 HD customers in the fiscal second quarter, well up on the 300,000 analysts expected, and will boost earnings down the track, Darroch told reporters on a conference call. More Britons are staying at home watching TV or surfing the Internet for their entertainment during the recession, resulting in strong demand for BSkyB’s services. Revenue rose 10% to GBP2.87 billion, broadly inline with expectations of GBP2.86 billion, underpinned by 172,000 net customer signings. That compares with revenue of GBP2.60 billion a year earlier.

3i Group Plc today posted a 66% fall in investments and a 22% drop in realizations in the last three months of 2009 as frozen credit markets and the financial crisis continued to put the brakes on mergers and acquisitions activity. Reporting on the three months to the end of December, the listed private equity firm said it made new investments of GBP59 million, down from GBP173 million in the same period a year ago, and that proceeds from the realization of assets were GBP270 million, down from GBP345 million. "We start 2010 in a strong financial position, building on the performance of the previous quarter. We have continued to see good realizations from the portfolio and the pipeline for new investment has strengthened," said 3i Chief Executive Officer Michael Queen. The company had cash, cash deposits and undrawn committed facilities of GBP2.34 billion, up from GBP831 million last year. Cash movements from realizations and investments helped cut its debt to GBP643 million from GBP854 million at end-September.

Lonmin Plc today said first quarter platinum sales fell 13.6% but the world’s third biggest platinum miner maintained its full-year target of 700,000 troy ounces for the precious metal. Platinum sales in the three months to Dec. 31 reached 109,044 ounces, compared with 126,202 ounces during the same period a year earlier, after the miner was forced to rebuild its main furnace following a breakdown last year. Lonmin also saw lower production at its mines following closure of two high-cost shafts and safety-related stoppages at its flagship operation. Despite the year-on-year declines, the company said it would hit its full-year target. "Our production performance during the first quarter of 2010 represents a solid start to the year and supports our 2010 sales guidance," Lonmin said in a statement.

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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: January 28th, 2010 under Asset Management.
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