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Sunday newspaper round-up: Iran, RBS, Babcock

Sun, 24th Nov 2013 16:46

The interim deal between Iran and six world powers hammered out in the small hours of November 24th to curb the former's nuclear programme is a long way from perfect, but it meets two key tests. The first is that it will extend Iran's so-called "critical capability"?the time needed for it to produce one or several nuclear devices following a decision to weaponise?by many months compared with the trajectory it was on before the agreement. Secondly, it forms the basis for a more permanent solution to the decades-long problem of Iran's nuclear activities to be reached over the next six months, The Economist wrote on Sunday. Royal Bank of Scotland has been referred to City regulators over allegations that it deliberately "forced vibrant businesses into financial trouble" so that it could charge them high fees and ultimately seize their assets. The claims are made by Lawrence Tomlinson, an adviser to business secretary Vince Cable, who is convinced RBS has driven some of its own customers under so that the bank could take over their properties at knock-down prices, the Financial Times says. Ukrainians came out on Sunday in their largest numbers since the 2004 Orange Revolution to protest against last week's surprise government decision to postpone signing a historic integration deal with the EU this week. A crowd estimated at close to 100,000 people thronged central Kiev, scene of the pro-democracy uprising nine years ago, despite cold weather and fog, the Financial Times reports. Babcock International is in advanced talks on a blockbuster £1.5bn takeover of the world's biggest helicopter operator. The FTSE 100 company, which runs the Devonport and Rosyth dockyards and provides hi-tech support to the forces, plans a swoop on Avincis. It specialises in search and rescue, medical evacuation and flights to and from oil rigs. It may herald the start of the long-awaited wave of takeovers predicted by the City on the back of rapidly rising stock markets, The Sunday Times writes. Lloyds Banking Group is poised to sell a 12% stake in the wealth management firm St James's Place before Christmas in a move that would reap £390m. The taxpayer-backed bank is believed to be keen to reduce its remaining 22% holding in St James's Place to less than 10%. A lock-up agreement that blocks Lloyds from selling the shares expires tomorrow, according to The Sunday Times. The beleaguered natural resources giant ENRC is considering selling its African mining division, which is at the heart of a Serious Fraud Office investigation. One of the London Stock Exchange's most sordid chapters will close tomorrow when ENRC's shares will be delisted. It has been taken over by its trio of oligarch founders and the government of Kazakhstan for less than half the price at which it floated in 2007. The deal came after the SFO launched a probe in April amid long-running allegations of bribery and corruption, The Sunday Times explains. Vince Cable will come under intense questioning this week as to whether he will dole out an additional £4.2m in payments to advisors accused of "catastrophically" undervaluing Royal Mail. The Business Secretary will appear before Westminster's business select committee as Royal Mail unveils its maiden set of results since joining the London Stock Exchange six weeks ago, Scotland on Sunday says.Energy bills will drop by a minimum of £50 a year under Government plans to cut back green and social levies on household bills, according to industry sources. The Government is expected to announce a range of measures to shift some such charges away from utility bills and instead finance them through general taxation, along with other changes. The move, expected to be announced in the Chancellor George Osborne's Autumn Statement on December 5th, will come with a demand that energy firms cut bills still further and bear the cost themselves, The Mail on Sunday explains.Almost a quarter of BSkyB's shareholders rebelled against the £7m pay package of Chief Executive Jeremy Darroch and other top executives at the pay-TV company's annual general meeting on Friday. Almost 23% voted against BSkyB's remuneration report - with a further 0.6% abstaining, which is often viewed as a protest vote - after several shareholder advisory services flagged concerns over the way top executives are paid, The Guardian reports. Poundland has begun the process to float on the stock market in the early part of 2014 with a valuation of up to £800m. The discount retailer is this week expected to send out letters of engagement to the advisers leading the float: Credit Suisse, JP Morgan, Rothschild, and Shore Capital. It is understood that Warburg Pincus, the private equity owner of Poundland, is looking to raise between £200m and £300m from the float, which would value the retailer at between £700m and £800m. The finance raised would be used to fund significant expansion in the number of stores, The Sunday Telegraph says. AB
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27 Jun 2013 08:34

London open: Stocks gain ahead of busy day for economic data

The FTSE 100 looked set to deliver its third consecutive day of gains on Thursday as markets continued to rebound following some heavy falls over the last month. After a heavy fall on Monday to a fresh five-month low of 6,029, London's benchmark index has rebounded strongly over the last two sessio

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27 Jun 2013 08:28

Broker snap: UBS downgrades ENRC after lower offer

UBS has downgraded its rating for mining group ENRC from 'buy' to 'neutral' and slashed its target price from 285p to 230p to reflect the latest offer by the firm's founding shareholders and the Kazakhstan government. Earlier this week, the consortium offered 234.3p a share for the miner, well belo

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26 Jun 2013 14:50

Sector movers: Miners tumble as metals prices slide

Mining stocks were suffering steep losses on Wednesday as metal prices tumbled across the board owing to a stronger dollar and the increased likelihood that the Federal Reserve will soon 'taper' stimulus if economic data continues to improve. Stronger-than-expected US data released on Tuesday - in

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26 Jun 2013 14:18

FTSE 100 movers: Financials rise, offset weakness amongst miners

Gains in the financial sector were offsetting falls in the mining sector on Wednesday as bargain hunters stepped in following recent falls. Aberdeen Asset Management, Schroders, Resolution and Prudential, four stocks that have been hit hard by market volatility over the last month, were among the to

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26 Jun 2013 11:21

London midday: FTSE 100 up one per cent as sentiment improves

Strong US data out yesterday, improving consumer confidence in Germany and measures by the Chinese central bank to ease a credit squeeze, all combined to give markets a boost on Wednesday with London's FTSE 100 jumping one per cent by midday. Nevertheless, mining stocks were under pressure in morni

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26 Jun 2013 08:51

London open: Stocks rise after German data and Chinese central-bank action

UK stocks opened with moderate gains on Wednesday morning as markets continued to claw back from their recent sell-off, with data from Germany and central-bank action in China providing some support early on. While Germany continues to trudge through the Eurozone recession, consumer confidence is

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26 Jun 2013 06:46

Wednesday newspaper round-up: BoE, ENRC, Co-op Bank

Chancellor George Osborne has hit back after Bank of England Governor Mervyn King said Downing Street had applied political pressure on behalf of banks, The Telegraph reported. Osborne defended anyone's right to lobby for lighter regulation. He did not deny claims that he and Number 10 lobbied the c

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25 Jun 2013 16:44

London close: Markets rebound strongly, Carnival jumps late on

The FTSE 100 rebounded strongly with a 1.2 per cent jump on Tuesday after coming close to its 2013 low the day before, as concerns over a liquidity crunch in China and reduced stimulus in the US eased, for the time being at least. London's benchmark index finished the session up 73 points at 6,102,

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25 Jun 2013 15:09

FTSE 250 movers: Housebuilders rise after mortgage-approval data

House builders and construction stocks were performing well on Tuesday after the British Bankers' Association revealed that mortgage approvals for house purchase hit a 16-month high in May of 36,102. This was up from a revised 32,952 the month before, well ahead of the 33,200 consensus forecast and

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25 Jun 2013 11:21

London midday: Stocks rise as policymakers speak out

The FTSE 100 rebounded strongly on Tuesday morning after falling to a fresh five-month low the day before, as policymakers from China and the US spoke out to downplay fears that have sparked market volatility over recent weeks. Renewed concerns over a slowdown in China and ongoing worries about a s

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25 Jun 2013 08:31

London open: Stocks rebound ahead of key US data

UK markets opened with decent gains on Tuesday morning, rebounding after having closed at levels not seen since early January the day before. Renewed concerns over a slowdown in China and ongoing fears about a scaling back of stimulus in the States prompted another steep sell-off across global equ

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25 Jun 2013 07:24

Tuesday broker round-up UPDATE

African Barrick Gold: Morgan Stanley reduces target price from 200p to 140p, while leaving its equal-weight rating unaltered. Deutsche Bank lowers target price from 153p to 137p leaving its hold recommendation unchanged. African Minerals: Deutsche Bank lowers target price from 586p to 570p, while k

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25 Jun 2013 06:07

Tuesday tips round-up: Rio Tinto, ENRC, SEGRO

Rio Tinto's Chief Executive Officer, Sam Walsh, has abandoned plans to sell the group's diamond business after failing to attract a buyer willing to offer the two-billion-dollar price tag. Walsh is now faced with finding an alternative route to improve returns to shareholders to cut the miner's debt

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24 Jun 2013 16:41

London close: Markets suffer another sell-off as sentiment remains fragile

Markets suffered another heavy sell-off on Monday, sending the FTSE 100 to levels not seen since the start of the year, as concerns over a slowdown in China and last week's Federal Reserve policy meeting continuing to hit markets across the globe. London's FTSE 100 finished the day down 87 points,

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24 Jun 2013 14:13

FTSE 100 movers: Miners fall on concerns over Chinese slowdown

Mining stocks were again bearing the brunt of the market-wide sell-off on Monday on concerns over slowing growth in China after Goldman Sachs cut its growth forecasts for the powerhouse for this year and the next. Vedanta, Antofagasta, Glencore Xstrata and Anglo American were all registering moderat

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