Tips from the press
Tempus in the Times likes
Recent performance has been so strong (AUM: £184.7m, 9 per cent up over the last six months) that Tempus suggests holding, then buying on weakness (Last IC rating: Buy, 30 Apr).
In the Telegraph, Questor stays loyal to pharma giant
Business press headlines:
More than one million homeowners will see their mortgage payments jump by hundreds of pounds a year from today as lenders, including two state-backed banks, raise borrowing costs. Borrowers with other banks and building societies face similar increases in the months ahead, experts have warned, with the Eurozone crisis and lenders' funding problems driving up the cost of home loans. The squeeze on family finances has raised fears of a new wave of home repossessions. From today, seven lenders including Halifax, Co-operative, Yorkshire and Natwest are increasing rates for existing customers by up to 0.5 percentage points, adding about £55 a month to a typical £200,000 mortgage, The Times reports.
Exporters are at risk of having their wings clipped as a stronger international appetite for sterling assets drives the pound to its highest levels in two and a half years. The pound rose yesterday to its highest value against a basket of currencies since August 2009 after the Swiss National Bank nearly doubled its nominal holdings of sterling assets in the first quarter of the year. Although the Swiss data were distorted by short-term swap arrangements, traders seized upon them as evidence that leading institutions were funnelling more cash into the pound and trimming euro holdings. A higher pound will make British exports more expensive and could dent government hopes for a "rebalancing" of the economy towards trade. If the gains are sustained, it could prompt the Bank of England to extend its £325bn quantitative easing scheme in the hope of capping sterling gains, analysts said, according to The Times.
China has announced plans to cut import tariffs just days before US Treasury Secretary Timothy Geithner arrives in Beijng for the latest round of talks between the two superpowers. Duties will be reduced on an array of imports, including energy products and some consumer goods, China's State Council said on Monday, without giving more details. The White House is pushing Beijing to cut tariffs and reverse a currency policy that many in the US believe hands Chinese manufacturers an unfair advantage. The State Council also ordered the country's local governments to "appropriately enlarge" the import of consumer goods. Government departments and local administrations in China must "adjust their focus on encouraging exports and limiting imports and place equal emphasis on both", the State Council said, according to The Telegraph.
The chairman of
Plans for a massive $6bn (£3.6bn) investment programme to develop a potash mining venture in North Yorkshire and create up to 1,100 jobs have been announced after studies showed the ambitious development was viable.
Sterling climbed to its highest level against the euro in almost two years on Monday as concerns grew in the financial markets about the deepening crisis in the single currency. A pound at one stage bought more than €1.23 on the foreign exchanges - making foreign holidays cheaper but UK exports to the single-currency zone more expensive. Fears that "austerity fatigue" is setting in among voters were heightened after figures were released showing that Spain - the country thought to be next in line for a bailout - has slid back into recession. The pound was also stronger against the US dollar, where last week's weaker-than-expected growth figures for the first three months of 2012 were followed by a closely watched barometer of business in Chicago, The Guardian says.
David Cameron raised the spectre of the collapse of the euro and years more economic turmoil yesterday as he confronted his deepest political crisis since entering Downing Street. The Prime Minister warned the debt crisis across the Continent was not even halfway through, blaming the EU's woes for Britain's double dip recession. With support for the Conservatives at its lowest ebb since 2004, just days before crucial London mayoral and local council elections, Mr Cameron promised to 'strain every sinew' to prompt economic growth, The Daily Mail reports.
Read today's Market Overview - a round-up of today's company announcements.
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