FTSE 100	5606.72, +6.96	Dow	10552.52, -13.68
FTSE 250	9786.39, +11.67	Nasdaq	2332.21, +5.86
FTSE All Share	2864.47, +3.41	S&P 500	1138.50, -0.19
Nikkei	10567.65, -18.27	Hang Seng	21207.55, +10.68
Oil (Crude)	$81.87, +$0.37	Gold	$1124.60, -$10.90
Base Rate	0.5%	10 Yr Gilt	4.1%
£/$	1.499	£/€	1.1025
1 month LIBOR	0.543	3 month LIBOR	0.645

 

Markets

London - The FTSE 100 gained 6.96 points to close at 5,606.72 yesterday, a new 18 month high. Better than expected results from Petrofac offset declines among drugmakers with AstraZeneca pressured after its cancer drug failed in trials. This morning the index slips 5.01 points to 5,601.71. Data released overnight showed British house prices grew last month at their slowest pace since August after the amount of new property coming on to the market grew faster than the number of new buyers, the Royal Institution of Chartered Surveyors said. Meanwhile, British retail sales recovered last month from January’s snow-related slide, helped by strong sales of clothing and footwear, a survey by the British Retail Consortium found. Investors will also eye January British trade numbers, due at 0930 GMT.

New York - US indices were mixed yesterday following news of more corporate deals, a stronger dollar and fall in commodity prices. The Dow Jones slipped 13.68 points to 10,552.52, the S&P 500 edged 0.19 points lower to 1,138.50, while the Nasdaq added 5.86 points to end at 2,332.21.In deal news, MetLife agreed to buy Alico - troubled insurer AIG’s American Life Insurance unit – in a $15.5 billion cash and stock deal. It is AIG’s second major sale in a week, as it looks to pay back over a $100 billion in bailout money it took during the financial crisis.

In other deal news, Royal Dutch Shell and PetroChina have made a bid to buy Australia’s Arrow Energy for $3 billion in cash and stock. Royal Dutch already owns a 10% stake in Arrow. Elsewhere, Cisco and Research in Motion helped the Nasdaq into positive territory after both stocks received upgrades.

Tokyo - The Nikkei fell 18.27 points to 10,567.65 this morning as investors chose to lock in profits following the index’s biggest two day rise in three months.

Hong Kong - The Hang Seng rose 10.68 points to 21,207.55, with upbeat corporate news countering a drop in oil and metal prices. China Life Insurance gained 3.4% after saying 2009 profit may have climbed more than 200%.

Economics

UK RICS house prices (Feb) 00:01 GMT

Analysts expect the RICs balance to hold steady at 32% in February and the detail to suggest that January’s fall in approvals was weather related.

UK Trade balance (Jan) 09:30 GMT

The trade balance did not narrow as much as analysts had expected in the second half of last year, which can, at least in part, be attributed to the car scrappage scheme that boosted imports much more than it boosted exports. However, with car scrappage schemes being phased out analysts expect the trade balance to narrow on the back of weaker sterling.

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

February’s IBD/TIPP index fell to 46.8, with declines of around 3pts for both the economic outlook and federal policies components, while the personal finances index was close to unchanged. Analysts look for a small increase to 48 in March.

Corporate

Chilean copper miner Antofagasta today said recent earthquakes in the country may cause slight delays to two major expansion projects, but maintained its full-year forecast for a 22.7% increase in production. "The commissioning of the Los Pelambres plant expansion is now expected to be completed during the second quarter of this year and the commissioning of Esperanza is now expected to start later in the fourth quarter due to the impact on some facilities and logistics," the company said in a statement. The $1 billion Los Pelambres plant expansion had been due to start in the first quarter of the year, and the $2.3 billion Esperanza mine was due to start production toward the end of this year. Antofagasta plans to boost output to 700,000 metric tons by 2011 with the two projects. The miner’s copper production is expected to be about 543,000 tons in 2010, compared with 442,500 tons in 2009. Chief Executive Marcelo Awad said the miner emerged from a challenging year with a strong balance sheet and expectations of strong demand for copper over the medium term, though also saw a return of some cost pressures. Antofagasta reported a 20.8% fall in full-year net profit before exceptional items because of lower prices and production. Net profit excluding exceptional items was $667.7 million for the 12 months to Dec. 31, compared with $842.9 billion during the same period a year earlier. Antofagasta’s earnings after exceptional items show a much sharper fall from $1.71 billion in 2008. Net profit that year was buoyed by a one-time, $1.02 billion infusion from the sale of stakes in two assets. Revenue was 12.2% lower at $2.96 billion, compared with $3.37 billion a year earlier. The company announced a total dividend of 23.4 cents a share for the year, compared with 60 cents a year earlier. Both figures represent about 35% of 2009 net earnings.

U.K.-based independent power producer International Power today posted an 18.9% rise in full-year net profit but said near-term performance would be impacted by weak market conditions in the U.S. and the U.K. The increase was driven by higher profit from operations in Australia, the Middle East, Asia and Europe, the company said in a statement. The London-based electricity generator said that for the full year ending Dec. 31, 2009, net profit rose 18.9% to GBP996 million versus GBP838 million in 2008. Profit from operations excluding exceptional items and specific mark to market movements rose to GBP1.16 billion from GBP1.05 billion in 2008, slightly above expectations. "Looking forward, near-term performance will be impacted by weak market conditions in the U.S. and the U.K. However, our financial position is strong with good corporate liquidity, and we are well positioned to pursue a range of growth opportunities," said International Power Chairman Neville Simms. Group revenue for the year fell 4.1% to GBP3.67 billion from GBP3.82 billion a year earlier.

Satellite communications company Inmarsat today posted a 12% jump in full-year operating profit as revenue was boosted by strong demand for broadband in remote areas, and it gave a confident outlook for 2010. Inmarsat, which provides satellite telephony and e-mail services to the broadcasting, shipping and airline industries, doesn’t report full quarterly results, but subsidiary Inmarsat Group, which represents the majority of the business, said revenue for the three months to Dec. 31 was 13% higher at $181.5 million. Earnings before interest, taxes, depreciation and amortization, or Ebitda, was 18% higher at $119.7 million. "We are entering 2010 with a positive outlook, revenue growth momentum and new growth opportunities ahead of us," Chairman and Chief Executive Andrew Sukawaty said. About 40% of Inmarsat’s business is derived from government and long-term contracts, which are less affected by the performance of the wider economy and more resilient in a downturn. It posted 7.4% revenue growth in its maritime sector, 3.3% revenue growth for the land mobile sector, and 18% growth in its aeronautical sector.

Liberty International today said it has demerged its two main businesses, as it posted a year-on-year fall in its portfolio value but said it has considerable recovery prospects and faces the future with a "measure of confidence". Liberty said it would split its regional mall business, Capital Shopping Centers, or CSC, which has a GBP4.4 billion property portfolio, from its Capital & Counties business, or CapCo, which encompasses its non-shopping centre and international business with some GBP1.7 billion of investment properties, including Central London’s Covent Garden Estate. The company said in a statement that it believes the demerger will enable CSC and Capital & Counties "to achieve their full potential over a period of time". "Each business will be well prepared for the growth opportunities provided by our exceptional assets with which we aim to drive superior returns to shareholders into the next decade," it added. The group said its full-year portfolio value fell to GBP6.22 billion from 7.12 billion, causing net asset value to fall to 464 pence. Net rental income for the year ended Dec. 31 fell to GBP371 million from GBP384 million last year. Full-year revenue came to GBP578.9 million. It made a pre-tax loss of GBP329.1 million. Net external debt fell to GBP3.18 billion from GBP4.10 billion. The U.K.’s largest retail landlord said that the group is in a substantially stronger financial position than a year ago, with the loan to value ratio reduced from 58% to 51% and with cash balances of GBP583 million and undrawn committed facilities of GBP248 million.

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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: March 9th, 2010 under Asset Management.
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