Welcome to our summary of the weekend's quality press tips, provided on Mondays by Weekend City Press Review.
PRESS TIPS:
The Times
■ Tempus: Marcus Leroux thinks the retail winners from the 'Olympics effect' will be the supermarkets (including Tesco - Last IC rating: Hold, 12 Jan) and those with a disproportionate weighting towards London and wealthy foreign customers, such as Burberry (Last IC rating: Sell, 11 Jul). But Sports Direct (Last IC rating: Buy, 23 Jul) will be the clear winner in the wider sports clothing market.
The Independent
■ No Pain, No Gain: Derek Pain has finally added to his portfolio with insurance broker Brightside, 18.5p (Last IC rating: Buy, 23 Mar).
The Daily Mail
■ Investment Extra: Ian Lyall says Morocco's oil potential is increasingly attracting speculative investors to stocks such as Tangiers Petroleum (No IC rating), Fastnet Oil & Gas (No IC rating), Pura Vida (No IC rating) and Longreach Oil & Gas (No IC rating).
The Sunday Times
■ Inside the City: Danny Fortson thinks that solar panel maker PV Crystalox's 'glory days' are surely behind it, hit by cheap Chinese exports and falling demand. Shareholders not surprisingly want distribution of the company's cash in the bank, worth 10p a share against Friday's close of 8p (Last IC rating: Hold, 28 Mar).
The Sunday Telegraph
■ Questor: Garry White says buy Rio Tinto, £32.16, which looks good value at current levels and should eventually be worth £40 or more a share (Last IC rating: Buy, 8 Aug).
■ Buy Genel Energy, 695p, as a speculative play on Tony Hayward achieving the 'canny M&A deal' the market obviously wants (No IC rating).
The Mail on Sunday
■ Midas: Joanne Hart reveals director buying at 3i Group (Last IC rating: Hold, 17 May), Barclays (Last IC rating: Sell, 27 Jul) and JD Wetherspoon (Last IC rating: Hold, 13 Jul), with selling at BG Group (Last IC rating: Buy, 26 Jul) and Ophir Energy (Last IC rating: No IC rating).
Business press headlines courtesy of Weekend City Press Review:
US drought threatens food price surge
A surge in global food inflation is threatened as a result of the worst drought in the US for at least 50 years which has destroyed a sixth of the country's expected corn crop over the past month. The crop failure - along with a poor soyabean harvest - will hit multinational food producers, including Kraft, Tyson and Nestle, who have already warned that they will be forced to pass on higher costs to consumers. [Financial Times p.1]
Sands fights for New York peace deal
Standard Chartered is seeking to agree a settlement with US regulators this week ahead of a key meeting between CEO Peter Sands and Benjamin Lawsky, head of the New York State Department of Financial Services. The bank believes Lawsky has over-stepped his remit concerning money-laundering allegations involving Iran and is putting pressure on the US Treasury and Department of Justice to agree a settlement by paying a fine of just US$5m. [Sunday Times pp.3.1, 3.5]
Berkeley bosses line up £280m bonanza
Senior directors at Berkeley Group are set to share a £280m windfall under a lucrative incentive scheme based on returning up to £1.7bn to shareholders over the next nine years. The deal is believed to be one of the most generous schemes ever introduced at company outside the FTSE 100. [Sunday Times p.3.1]
New Barclays chairman fires warning shot on pay
Barclays chairman-elect Sir David Walker plans a 'root and branch' reform of the bank's pay policies to end the perceived culture of 'apparent greed' within the bank. Walker is also believed ready to approve the sale of riskier trading businesses, with the investment banking division being cut in size by as much as a fifth. [Sunday Times p.3.1]
Swiss to buy $2bn Merrill arm
Merrill Lynch's non-US wealth management arm is set to be sold to Switzerland's biggest private bank, Julius Baer, in a US$2bn deal which could be announced as early as this week. The wealth management business outside the US is being sold by Bank of America, which owns Merrill Lynch, because it is deemed too small to be profitable. [Sunday Times p.3.2]
City blocks Stelios coup at Easyjet
Easyjet's institutional shareholders are expected to prevent an attempt by Sir Stelios Haji-Ioannou to oust chairman Sir Mike Rake at an EGM on Monday. The Stelios move is part of a campaign against the Easyjet board over a range of issues, including directors' pay and possible fleet expansion. [Sunday Times p.3.3]
Investors back RBS chief for Diamond's job
Royal Bank of Scotland CEO Stephen Hester is seen by leading Barclays shareholders as the best external candidate to succeed Bob Diamond as CEO. Hester's 'steady hand' at RBS since taking over in 2008 will put pressure on new chairman Sir David Walker to consider him when he officially takes over in November. Walker has already signalled plans for a 'wholesale review' of the bank, which could include the end of 'free banking' for customers. James Quinn, Telegraph's Deputy Business Editor, thinks it important that Walker is in a position to 'stand up' to whoever is appointed CEO. [Sunday Telegraph pp.B1, B2]
Virgin in legal threat over West Coast battle
Virgin Trains may seek a judicial review of the expected decision this week to award the new West Coast main line franchise to FirstGroup. Virgin Trains, a joint venture between Virgin Group and Stagecoach, believes FirstGroup has deliberately underbid by about £1bn on the franchise. [Sunday Telegraph p.B1]
Guggenheim Life in pole position to buy Aviva USA
Aviva's US insurance operations may be sold to the life insurance arm of Guggenheim Partners in the US. Guggenheim is understood to be in talks with Aviva adviser Goldman Sachs about an £800m deal, some £200m less than previously thought likely. [Sunday Telegraph p.B1]
LME chairman defends China deal
London Metal Exchange chairman Sir Brian Bender has denied suggestions that the commodities market will be open to manipulation by its new Chinese owner, Hong Kong Exchanges & Clearing, which acquired the exchange in a £1.39bn deal. Bender, in an interview with the Sunday Telegraph, said there were safeguards in place to ensure the LME's independence, which he pointed out was key to its continuing success. [Sunday Telegraph pp.B3, B9]
