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Thursday's news and tips

Created:

20 November 2008

Written by:

Tanya Malick

■ Rolls-Royce said it will axe around 4% of its workforce in 2009, with 140 likely to go at the engine maker's assembly and test facility in Derby.

■ Spread betting firm IG Group expects to report a 21% rise in first half pre-tax profits but said that it has seen a rise in doubtful debts during October.

■ Full year profit is expected to be in line with expectations at car and bicycle parts retailer Halfords following a 3% hike in the first six months despite falling like-for-like sales.

■ Temporary power solutions provider Aggreko has purchased the power rental business of Cummins India Ltd. (CIL) for £3.9m in cash, subject to the approval of CIL shareholders.

■ Babycare retailer Mothercare saw group pre-tax profit more than double at the interim stage thanks to rapid growth overseas and in the direct sales channel.

■ Daily Mail and General Trust saw underlying profit drop 9%, but the newspaper group plunged into the red on a statutory basis and admitted the short term outlook remains difficult.

■ Supply chain solutions provider Wincanton has agreed to merge its chilled consolidation activities in the UK with Culina Logistics with effect from 28 March 2009.

■ Latin America-focused Hochschild Mining is cutting 150 corporate jobs in reaction to adverse market conditions and lower metal prices.

■ Africa focused oil and gas firm Afren has sold a chunk of its interest in the Keta Block, located off the coast of Ghana, to Mitsui.

Continues below...

■ Pharmaceuticals giant AstraZeneca has put a temporary block on sales of a rival's generic version of Astra's Pulmicort Repsules asthma treatment.

■ Oilfield services company Petrofac has completed the refit of the Northern Producer floating production installation within its target schedule.

■ Half year revenue rose 16% at drug developer and bid target Protherics, which also narrowed losses for the period.

■ Power provider National Grid is trading in line with expectations and is well positioned to deliver low risk, organic growth.

■ Military decoy producer Chemring said earnings for the year remain in line with expectations, adding that it is confident that its prospects for 2009 are 'excellent'.

■ Pub group and real ale brewer Young and Co's Brewery said like for like sales on a same outlet basis fell over 3% during September and October and doesn't expect conditions to improve in the short term.

■ Electronic payment services group PayPoint has grown interim profits by 6% and traded in line with expectations since the end of September.

■ Clarity Commerce Solutions, the software company that targets the ticketing, hospitality, retail and leisure sectors, fell just short of returning to the black at the interim stage.

■ Shares in Best of the Best fell over 10% as it warned that the trading environment since its preliminary results in July, has deteriorated significantly and trading conditions have become increasingly unpredictable.

FOR A SUMMARY OF LATEST MOVEMENTS IN EQUITY, COMMODITY AND CURRENCY MARKETS, SEE FT.COM'S MARKETS PAGE.

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NEWSPAPER SHARE TIPS (20 NOVEMBER 2008)

Full round-up of newspaper share tips (sourced from Sharecast)

BANKING CRISIS:

Alistair Darling will try to kickstart bank lending next week by offering new taxpayer-funded guarantees for loans to small and medium-sized firms, it emerged last night, according to the Times.

Ninety-six percent of Lloyds shareholders approved the deal at an annual general meeting in Glasgow. The shareholders voted as an alternative proposal for HBOS shareholders from two Scottish grandees becomes less likely. There were protests outside the meeting by members of the banks' trade unions who fear the deal will lead to as many as 40,000 job cuts, writes the Independent.

Banco Santander has snubbed 1.8 million small shareholders in Britain, excluding them from taking part in its €7.2 billion (£6 billion) capital-raising, it became clear yesterday. The shareholders, who became Santander investors when the Spanish bank took over Abbey and Alliance & Leicester, will not be able to take part in the rights issue, according to the Times.

The Bank of England has issued a warning to Gordon Brown that it may reconsider further interest rate cuts if he cuts taxes too far on Monday, reports the Telegraph.

Deutsche Bank has become the latest big-name investment bank to cull its workforce, as it prepares to cut 900 jobs, with London and New York set to suffer the worst. Sources at the German financial powerhouse confirmed that almost one in seven traders faced the axe from its Global Markets division, as trading has slowed in the wake of the financial crisis, writes the Independent.

The International Monetary Fund (IMF) approved a $2.1 billion emergency package for Iceland last night to help Iceland rebuild its tattered economy. The two-year "stand-by" arrangement is structured to allow about $827 million available immediately, writes the Times.

PRESS HEADLINES:

Woolworths needs to complete the disposal of its loss-making retail business before Christmas in order to avoid the risk of being pushed into administration by its lenders. The board of the beleaguered retailer fears that the group's lenders could push the entire business into administration – including its profitable wholesale and publishing divisions – if they hang on to the troubled retail arm, says the Telegraph.

The FT adds that the group's biggest shareholder yesterday criticised talks between the retailer and Hilco UK, the retail restructuring company, arguing the group's stores were worth much more than the nominal price under discussion.

A financial stimulus package worth €130 billion (£109 billion) is being prepared by the European Commission to help to boost industry and the economy, a German minister said yesterday. The recovery plan, which the EU's executive arm plans to unveil next Thursday, will amount to 1 per cent of each country's GDP, according to Michael Glos, the German Economy Minister, writes the Times.

The boom times have come to an abrupt halt for Aim, London's lightly regulated share market for smaller companies that drew envy from rival financial capitals in recent years as it attracted listings from companies from around the globe, says the FT.

Steve Ballmer, Microsoft's chief executive, reopened the door to a deal with Yahoo! on its search business yesterday, but ruled out buying the struggling internet company, according to the Times.

Fidelity International, which manages £135bn on behalf of about one million British investors, is to axe one in seven of its staff after falling sales and rising withdrawals from unit trusts, says the Telegraph.

Our press headlines summary is sourced from www.Sharecast.com

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