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London afternoon: Banks pare losses

Mon, 30th Nov 2009 14:36

Leading share prices are still holding steady at lower levels as investors await further developments from Dubai. Banks such as Lloyds Banking, Royal Bank of Scotland and Standard Chartered remain nervous about the debt situation in emirate, though the morning's losses have been pared. HSBC defies the trend and is nursing a small gain.Properties are also out of favour after HSBC said the real estate investment trust (REIT) sector is poised to suffer a 'double-dip correction' and that shares within the sector are 'grossly over valued'.SEGRO, Liberty International and British Land are the hardest hit among the big guns of the sector.A ray of sunshine has been provided by travel operator Thomas Cook, which posted full year pre-tax profits that were ahead of expectations as increased ticket prices offset falling customer numbers. The company posted an adjusted pre-tax profit of £308.2m, down slightly from £309.3m the previous year, as revenues climbed to £9.27bn from £8.75bn. The shares have relinquished their early gains but sector peer TUI Travel, due to declare figures on Tuesday, is still in the blue.Aberdeen Asset's purchase of businesses from Credit Suisse gave assets under management a boost in the year to September, but the fund manager still suffered a 20% slump in profits. Underlying profit before tax fell to £85.1m from £95.1m a year ago, but dived to £10.5m from £60.5m after exceptional items, such as costs related to acquisitions, redundancy payments and other rationalisation charges.Oil and gas firm Cairn Energy is to make oil exploration company Capricorn a wholly owned subsidiary by buying out minority shareholder Dyas's 9.99% stake for $95m, to be satisfied through a mixture of newly issued shares and cash. The board of pub group Mitchells and Butlers has approached the Takeover Panel to rule whether a group of shareholders has been trying to gain control of the board after they blocked three potential candidates for chairman. Reports over the weekend suggested that one of those candidates was Archie Norman, the former head of Asda and recently appointed chairman of ITV.Irish banking group Allied Irish Banks (AIB) has confirmed its participation in the National Asset Management Agency (NAMA) asset acquisition programme. NAMA has yet to specify which of Allied Irish's loans it intends to buy under the scheme, but expects it will be land and development loans totalling €24.2bn on a gross loan basis. Expectations are that AIB will have to take around a 30% 'haircut' on the value of its assets in return for the boost to liquidity.Bank of Ireland also plans to join the NAMA scheme. The company said the portfolio of potential eligible bank assets to be transferred could comprise a gross book portfolio of around €16bn.Magners maker C&C has agreed to buy the UK cider assets of Constellation Brands (CB), The Gaymer Cider Company for £45m in cash.Falkland Islands Holdings has made a £3.1m profit after selling 3m shares in Falkland Oil and Gas. The group, which owns businesses in the South Atlantic territory, offloaded 20% of its stake in Falkland Oil, but still owns 12m shares, or 8.2% of the business.
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1 Apr 2011 06:56

Bank of Ireland bouncing back

Bank of Ireland shares rose sharply Friday morning, albeit from extremely depressed levels, following the publication Thursday night of the Irish government's Prudential Capital Assessment Review (PCAR). Also of great relevance for Irish banks, as well as for the wider euro zone financial sector,

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29 Nov 2010 16:45

London close: Shares slump as eurozone saga continues

The leading share index closed with triple-digit losses Monday as jitters over the eurozone debt situation continued to plague the markets. Financial markets are still betting either Portugal, Spain, or both, will need a rescue deal similar to the €85bn Irish bail-out, rubber-stamped over the weeke

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29 Nov 2010 14:18

London afternoon: Euro-zone fears resurface

Thoughts that the euro-zone boil had been lanced by the agreement of a bail-out package for Ireland have proved premature, with rising Spanish bond yields suggesting that the prospect of Spain being the recipient of an EU/IMF aid package cannot be ruled out. An underwhelming response to the latest

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29 Nov 2010 12:30

London midday: Footsie deep in the red after reversal

The leading share index is now firmly in the red after giving up the strong gains it was posting this morning. Markets remain jittery over the eurozone debt crisis. The euro hit new lows against a basket of currencies this morning, despite claims by European politicians that the €85bn Irish bail-o

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29 Nov 2010 08:54

London open: Banks lead market higher

UK shares have made a bright start to the week led by the banks after Ireland signed up to the EU/IMF bail-out at the weekend. Royal Bank of Scotland is the best performer. It has the largest exposure of the UK banks to Ireland. Lloyds, Barclays and HSBC are all going well. Bank of Ireland, meanwh

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29 Nov 2010 07:52

Bank of Ireland to seek own funds

Bank of Ireland today vowed to raise the €2.2bn demanded under the terms of the Irish bail-out through its own efforts and without the help of the Irish state. The Irish bank has to raise the additional capital by the end of next February or else get the cash from the Irish state, which would amoun

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25 Nov 2010 06:02

Thursday newspaper round-up: British banks, Irish banks, PIGS

Britain's biggest banks are working on a joint plan to cut bonus payouts and boost lending to small business. As political pressure grows ahead of January's bonus round, The Times has learnt that senior executives from Barclays, HSBC, Standard Chartered and Royal Bank of Scotland held discussions l

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22 Nov 2010 16:33

Irish banks slide afer bail-out

Worries that the European debt crisis could spread to other countries following Ireland's acceptance of a bail-out sent shares in banks lower Monday. While markets initially moved higher as investors breathed a sigh of relief when the Irish government put an end to lingering uncertainty about accep

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18 Nov 2010 12:05

London midday: Shares buoyant as updates impress

With some kind of resolution to the Irish crisis in sight and many of today's updates impressing the market, shares have moved sharply higher. The Bank of Ireland chief has confirmed a loan is likely with brokers suggesting it could be as much as €85bn, including €20bn to provide support for the co

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12 Nov 2010 17:11

Irish bonds recover on bail out hopes

Having reached around 9.25% on Thursday Irish 10-year bond yields have fallen back as Ireland is in talks with the EU about emergency funding. This was despite earlier denials from the Irish government, which had been saysing an EU rescue would not be needed. Proposals for the rescue package are

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12 Nov 2010 13:24

Bank of Ireland profits to plunge

Bank of Ireland has stoked more worries over economic conditions in the country, warning that full year profits may fall by up to 40% over the full year. The warning comes at the end of a jittery week for Ireland, which saw the 10-year Irish bond yield rise above 9% amid concerns over the ability o

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11 Nov 2010 16:53

Irish bond yields rise above 9%

The 10-year Irish bond yield has risen above 9% as Irish bonds fall for the 13th day in a row. Traders continue to offload Irish bonds, concerned over the ability of the country's government to pay its debts. That pushed the difference between the returns investors demand to lend money to the Iris

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29 Sep 2010 15:20

Sector movers: Ireland worries hit banks again

Banks are under pressure as worries over the European debt situation continue to plague the markets. Ireland is in the spotlight again amid speculation that that the cost of bailing out the nationalised bank Anglo Irish could rise to as much as €30bn (£25m). Unsurprisingly, Irish banks listed here

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23 Sep 2010 16:40

London close: Late rally trims losses

London staged a last hour rally but didn't rise by enough to eliminate losses sparked by a weak start on Wall Street. News that Brazilian oil company Petrobas will launch a world record $78bn rights issue helped other oil companies. BP, Shell and Cairn all picked up near the close. Expectation t

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23 Sep 2010 12:58

Sector movers: Irish banks under the cosh

Irish banks are sharply lower today as economic worries continue to plague the former Celtic tiger. New figures today show the debt-stricken country's economy shrank by between 1% and 2% between April and June. Allied Irish Banks is down 8% and Bank of Ireland is 6% lower. British banks are also u

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