Welcome to our summary of the weekend's quality press tips, provided on Mondays by Weekend City Press Review.
PRESS TIPS:
The Times
■ Tempus: Martin Waller says the new 'Orb' market for retail bonds, launched two years by the London Stock Exchange, has not proved the runaway success hoped for at the time, with investors now showing more caution towards such investments.
The Daily Mail
■ Investment Extra: Dan Hyde says some market experts are bullish about prospects for equities this year, with professional investors suggesting stocks such as Howden Joinery Group (Last IC rating: Hold, 1 Mar), United Drug (Last IC rating: Buy, 14 Nov) and Dragon Oil (Last IC rating: Hold, 14 Aug) are worth watching.
The Sunday Times
■ Inside the City: Danny Fortson expects more takeover action among iron ore producers following the recent rally in prices, with Zanaga Iron Ore a potential punt for speculative investors (No IC rating).
The Sunday Telegraph
■ Questor: Garry White says buy Anglo American, £20.02, as a series of changes over the next few months (including the appointment of a new CEO) could 'unlock significant value over the long-term' (Last IC rating: Sell, 8 Nov).
■ Buy Rolls-Royce, 918p, as the squeeze on military spending will be outweighed by the 'boom in civil aviation' (Last IC rating: Buy, 27 Jul).
The Mail on Sunday
■ Midas: Joanne Hart offers three tips for 2013 that should offer 'superior returns' for investors: Fastnet Oil & Gas, 22p (No IC rating), Segro, 251p (Last IC rating: Buy, 2 Aug), and Avacta Group, 1p (Last IC rating: Buy, 24 Oct).
Business press headlines courtesy of Weekend City Press Review:
US economy shrugs off fears over fiscal cliff and adds 155,000 jobs
The US economy started 2013 on a more positive note following the compromise deal over the 'fiscal cliff', with 155,000 new jobs created last month and rising confidence in the services sector. In contrast, activity in the UK services sector in December fell at its fastest pace for three-and-a-half years, raising prospects of a 'triple-dip' recession. [Financial Times pp.1, 2, 4]
British Gas boss set to go in power struggle
British Gas managing director Phil Bentley is set to leave the company following reports of a 'falling out' with Sam Laidlaw, CEO of Centrica which owns the retail gas provider. Bentley's departure could be the first of several management changes at British Gas which has become embroiled in the bitter debate over rising household energy bills. [Sunday Times p.3.1]
Rolls accused of bribes in China
Rolls-Royce is facing fresh accusations of paying bribes to win overseas engine contracts, with the latest allegations involving a Chinese executive who worked at both Air China and China Eastern Airlines. The claims first emerged on US websites but are believed to have been investigated by Rolls as part of an internal review, with the findings passed on to the Serious Fraud Office. [Sunday Times pp.3.1, 3.9]
End of bond craze may send shares soaring, say fund gurus
Leading fund managers believe a 'wall of cash' could soon be switched from government gilts into equities, sparking a 'big rally' in share prices. Managers at Fidelity, BlackRock, Goldman Sachs Asset Management and other funds are said to believe that investors are preparing to switch away from highly-priced 'safe haven' bonds into what are regarded as 'cheap' shares. [Sunday Times p.3.1]
US vulture circles HMV and Dreams
US private equity giant Apollo is poised to launch a new move to buy the debt of struggling HMV, which could lead to it taking full control of the DVD and music chain. Apollo, founded by Wall Street trader Leon Black, is also considering a similar strategy for bed retailer Dreams after its private equity owners refused to inject new funds. [Sunday Times p.3.1]
Osborne's £3.8bn inflation windfall
George Osborne is reportedly on a 'collision course' with the bond markets over potential changes to the Retail Price Index due to be announced on Thursday, which could provide the Treasury with a £3.8bn windfall because of lower interest charges on Government borrowing. Analysts believe that the bond markets could see any changes to the RPI as being politically-motivated rather than essential, harming the Treasury in the longer-term. [Sunday Times p.3.2]
New Anglo American CEO snatched from rival
Mark Cutifani, CEO of AngloGold Ashanti, is poised to be named as the new CEO of Anglo American to replace Cynthia Carroll. Australian-born Cutifani, who joined AngloGold in 2007, is said to be the 'favoured choice' of the Anglo American board, although no official decision has yet been made. [Sunday Telegraph p.B1]
US Army joins battle to save stricken Shell rig
The US Army has provided assistance in the efforts to salvage Royal Dutch Shell's stricken Kulluk oil rig which has been beached on the Alaskan coast since the start of the year. The Kulluk is one of two rigs which are seen as 'crucial' to Shell's Arctic exploration plans. [Sunday Telegraph pp.B1, B5]
Market moves against Morrisons as Christmas trading flounders
Wm Morrison could reveal this week that like-for-like sales over the key Christmas period were down by as much as 2.8 per cent, potentially forcing a profit warning from the supermarket chain. The move comes as Tesco's update on Thursday may show it achieved sales growth marginally ahead of rival J Sainsbury for the first time in three years. [Sunday Telegraph pp.B1, B6]
India presents Vodafone with £1.6bn tax bill
Vodafone is facing a formal £1.55bn tax demand from the India authorities, the latest salvo in a long-running campaign over alleged tax owed following the 2007 acquisition of Hutchison Whampoa's stake in what is now known as Vodafone India. Meanwhile, Vodafone's US mobile phone partner Verizon Communications continues to be a key driver of the growth of smartphone uptake in America. [Sunday Telegraph pp.B1, B6-7]
