Tips from the press
The Telegraph's Questor column opines on
The shares have underperformed for ages, despite numerous restructurings and the sell-off of Aviva's US business. One possible move, muses Questor, is the merger of Aviva with RSA Insurance. Questor has been burned after recommending Aviva as tip of the year in 2011 but sticks to his guns - you can see why, the yield is 8.6 per cent and the shares trade on just 5.4 times earnings. Buy (Last IC rating: Buy, 2 May).
Tempus in the Times likes
Yesterday the stock sank like a stone (down 10 per cent) and rather refreshingly Tempus says he has no idea why. But the shares now trade at just ten times 2012 earnings and with a pickup expected across several of its markets, Morgan Crucible is a buy (Last IC rating: Buy, 15 Feb).
Tempus is slightly more cautious on the immensely successful
But TeleCity, thinks Tempus, has a solid business model: get money from selling capacity at its datacentres, then build more datacentres. With growth available in underdeveloped markets like Turkey, this is a "strong long-term hold" - although just worth mentioning that the shares are trading at 27 times forward earnings, so not quite a buy (Last IC rating: Hold, 13 Feb).
Business press headlines:
More than £25bn was wiped off the value of Britain's biggest companies on Tuesday as traders dumped risky assets and fled to safety as fears grew that Greece will leave the euro and trigger a fresh crisis. The FTSE 100 slid 1.8 per cent to close at its lowest level this year, falling 100 points to 5,554, following the Greek electorate's rejection of the austerity measures that are a condition of its two bail-outs, worth a combined €219bn. European markets followed suit, with Germany's Dax dropping almost 2 per cent and France's CAC sliding nearly 3 per cent. The US Dow Jones Industrial Average dipped 1.3 per cent in early trading after digesting the weekend's tumultuous developments for a second day, The Telegraph says.
The chairman of
More than 12,000 former public sector workers have retired on pensions worth at least £50,000 a year - twice the average national wage in Britain - according to a report by the Intergenerational Foundation. Taxpayer liabilities for public sector pensions have swelled to £45,000 a household, with government employees enjoying vastly better pension coverage than their private sector counterparts, according to the charity. About 88 per cent of public sector workers are entitled to pensions related to their final salaries, which are typically the most generous, compared with only 10 per cent in the private sector, the charity found, The Times reports.
The largest onshore wind farm in England and Wales has been given approval to be built in the picturesque countryside, despite campaigners condemning it as "ugly", "inefficient" and "intrusive". The 76-turbine farm, which will be among the highest of its kind in Europe, will now be developed on a mountainside at Pen y Cymoed in South Wales. The £300m project, which is the latest in a line of proposals protesters have campaigned against since 1994, has been supported by the UK's energy minister Charles Hendry and approved, despite accusations it will be a "blight on the countryside," The Telegraph writes.
Nearly 100,000 City jobs have been lost since 2007 and London's position as the world’s leading financial centre is under threat from the Far East, according to a report being published today. The Centre for Economics and Business Research said that the average number of City jobs was likely to have dropped to 255,000 this year. This is the lowest level since 1996 and down from its previous estimate of 288,000 and a total of 354,000 jobs in 2007. It comes not long after Lloyds Banking Group said that it would cut 1,600 jobs and Royal Bank of Scotland axed 464 posts, The Times says.
Four in ten companies operating in the North Sea are concerned about the potential impact of the independence referendum in Scotland on their investment plans. A report by Aberdeen and Grampian Chamber of Commerce included a question on whether the referendum planned for 2014 and its possible consequences was "a factor in future plans and investment proposals". A total of 39 per cent of firms surveyed said it was, 56 per cent said no and 5 per cent did not answer. The study said the responses were "inconclusive" and the issue would be explored further. However, the poll also revealed that more than 50 per cent of oil majors and international and national service companies operating on the UK Continental Shelf claim a move to Scottish Government control of their assets has not been a factor in planning North Sea developments after 2014, The Scotsman reports.
Read today's Market Overview - a round-up of today's company announcements.
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