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London midday: Footsie deep in the red after reversal

Mon, 29th Nov 2010 12:30

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-out had stemmed the eurozone crisis. France's finance minister Christine Lagarde said "The amount is sufficient because that will keep Ireland afloat for three years".Sentiment has not been helped by economic news here. The number of approvals in October fell to its lowest level for eight months, sliding to 47,185 from 47,369 in September. Hometrack, the housing intelligence group, said house prices in November fell by 0.8% from the previous month.Royal Bank of Scotland is clinging onto gains. It has the largest exposure of the UK banks to Ireland.Bank of Ireland, meanwhile, 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 amount to effective nationalisation.Irish Life & Permanent Group Holdings, meanwhile, said the new 12% capital requirement for its Permanent TSB banking arm will have little impact on the group, and will be met from its own resources.Aviva has been lifted by JPMorgan Chase slapping an "overweight" recommendation on the stock with a 524p price target, but the US investment house is less enamoured of Resolution, where clients are advised to be underweight in the stock, as it sees better opportunities elsewhere in the sector.Travel firm TUI Travel provides a ray of sunlight, advancing after disclosing it is to sell its Thomson Al Fresco business to Homair Vacances. At 30 September 2009 the net book value of the assets being sold was £10.3m. Miner African Barrick Gold has accelerated its drilling programme at the Nyanzaga Project in Tanzania after more good in-fill results. The miner, which recently suspended 40% of the mining department at its Buzwagi mine in Tanzania following a fuel theft, said its drilling made further successful intersections on the southern extensions with several broad, higher-grade zones of gold mineralization. BP has sold its stake in Argentina-based oil and gas company Pan American Energy (PAE) to Bridas Corporation for $7.06bn (£4.52bn) in cash. BP's 60% will give Bridas, which already owns 40% of the business, full control when the deal completes in 2011. It also puts BP firmly on course to hit its $30bn target of asset sales, announced in July, by the end of next year. Today's deal pushes the total so far to $21bn.UK smartphone users won't rack up such huge bills when travelling in Europe after Vodafone today cut the price of sending emails and surfing the net while abroad. Occasional travellers will be able to take a domestic data plan overseas for €2 (£1.70) per day, 60% less than the company's existing plans. It also includes an increase to the data allowance.Week-end reports that a major restructuring is on the cards has lifted indebted pubs group Punch Taverns. Ian Dyson, the new chief executive, may hand the tenanted estate to the group's bondholders, leaving the group to concentrate on the 800 pubs that Punch directly manages.Oil and gas explorer Salamander has made a 'highly encouraging' gas discovery at its Angklung-1 exploration well in the Bontang PSC, East Kalimantan, Indonesia. Salmander, which is the operator with a 100% interest, says Angklung-1 well flowed gas at a commercial rate and also found a new Upper Miocene oil play, highlighting the potential value in the North Kutei basin. Qantas on Sunday began flying its Airbus 380s for the first time since a mid-air explosion of a Rolls-Royce engine forced one of the Australian airline's jets to make an emergency landing earlier in November. Luxury interior furnishings group Walker Greenbank said full year pre-tax profits are expected to be materially ahead of market forecasts after a robust autumn period. The group, whose brands include Sanderson, Morris & Co., Harlequin and Zoffany, said, "During the past few weeks, the company's brands have achieved their highest-ever level of sales of wallpapers and fabrics."Student accommodation business Unite Group has completed the sale of assets to the Unite UK Student Accommodation Fund for £143.9m in cash.FTSE 100 - RisersHSBC Holdings (HSBA) 659.30p +1.26%Alliance Trust (ATST) 357.50p +0.79%TUI Travel (TT.) 216.00p +0.61%African Barrick Gold (ABG) 513.00p +0.39%Royal Bank of Scotland Group (RBS) 38.78p +0.23%ICAP (IAP) 476.90p +0.21%Smith & Nephew (SN.) 595.50p +0.17%Randgold Resources Ltd. (RRS) 6,075.00p +0.08%British Sky Broadcasting Group (BSY) 720.50p 0.00%ARM Holdings (ARM) 398.40p -0.03%FTSE 100 - FallersPetrofac Ltd. (PFC) 1,410.00p -4.54%Cairn Energy (CNE) 379.20p -4.00%Burberry Group (BRBY) 1,012.00p -2.69%Resolution Ltd. (RSL) 219.20p -2.62%BT Group (BT.A) 169.70p -2.58%InterContinental Hotels Group (IHG) 1,135.00p -2.41%Vedanta Resources (VED) 2,026.00p -2.36%Compass Group (CPG) 542.50p -2.25%Weir Group (WEIR) 1,717.00p -2.22%Kingfisher (KGF) 239.20p -2.21%FTSE 250 - RisersPunch Taverns (PUB) 62.80p +6.26%Salamander Energy (SMDR) 244.80p +5.02%Computacenter (CCC) 367.00p +2.92%Unite Group (UTG) 193.20p +2.44%EnQuest (ENQ) 133.00p +2.23%SVG Capital (SVI) 198.90p +2.00%Gartmore Group Ltd. (GRT) 105.00p +1.94%JD Sports Fashion (JD.) 819.50p +1.80%ITE Group (ITE) 186.30p +1.80%Fidessa Group (FDSA) 1,465.00p +1.67%FTSE 250 - FallersFerrexpo (FXPO) 350.90p -4.93%Daily Mail and General Trust (DMGT) 528.50p -3.73%Halma (HLMA) 326.00p -3.26%Redrow (RDW) 105.80p -2.94%Melrose Resources (MRS) 233.00p -2.88%Morgan Crucible Co (MGCR) 238.20p -2.70%Barratt Developments (BDEV) 72.45p -2.62%Babcock International Group (BAB) 514.00p -2.56%Shanks Group (SKS) 114.00p -2.31%Afren (AFR) 126.70p -2.31%
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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 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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