London shares are flat in early trading as the Santa rally runs out of steam in the last trading day before the Christmas break and the banking sector comes starkly into focus with two European giants settling with US authorities, who have now trained their eyes on Barclays.
IC TIP UPDATES:
In a big day of news for banks, with European giants Credit Suisse and Deutsche reaching their own settlements with US authorities, Barclays (BARC) has come under a little pressure after revealing that Federal prosecutors in the US are suing the business and two executives in particular over fraudulent mortgage backed securities issued prior to the financial crisis. Our recommendation is under review.
Pharmaceuticals giant AstraZeneca (AZN) has completed its deal to sell the commercialisation and development rights to its late stage small molecule antibiotics business to Pfizer, a deal which will see Astra bank $550m now and a further $175m in January 2019 as well as up to $250m in milestone payments and another $600m in sales related payments as well as recurring royalties. We retain our buy on Astra.
Travel and logistics specialist Dart Group (DTG) has agreed to buy another four aircraft from Boeing on top of the 30 ordered in 2015, to support the further growth of its leisure travel business, which includes airlines Jet2 and its associated package holiday business. Buy.
Retail logistics warehousing specialist Tritax Big Box Reit (BBOX) has closed a forward funding round to support the development of two distribution warehouses for Howdens Joinery in Northamptonshire. We retain our buy rating.
Paypoint (PAY) has sold its Mobile Payments business to Volkswagen Financial Services for £26.5m with the proceeds to be returned to investors in the form of a 38.9p a share dividend in January. Our sell recommendation is under review.
KEY STORIES:
Recently floated social housing company Civitas (CSH) has completed its second acquisition since November’s IPO with the purchase of a £15m portfolio of 17 assisted living properties.
