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London midday: Miners lead the fallers

Mon, 24th Sep 2012 12:15

Today's morning session has started the week off in much the same way as the weather has: gloomily. Investor sentiment has been knocked by renewed concerns over the single currency region following France and Germany's failure to agree a schedule for initiating shared oversight of the region's banking sector. Miners were leading the fallers by lunchtime, following a call from analysts at JP Morgan to take profits in the sector because stalling economic growth in the US and more significantly in China, are expected to offset the US Fed´s third round of asset purchases. Furthermore, JP Morgan analysts have specifically recommended avoiding shares of Khazakmys and Anglo American.It was announced this morning that Business Secretary Vince Cable is soon to unveil the creation of a one billion pound business bank to help increase lending to companies. He will tell the Liberal Democrat party conference in Brighton that the bank would "get behind" good businesses and be up and running in 18 months. The government will put up £1.0bn and hopes this will be matched by private sector investment. Meanwhile, a survey has revealed that Britons are now even more concerned about inflation, according to Markit, a survey conductor, with repondents saying they expect living costs to rise sharply. Around 66% of those surveyed said their day-to-day living costs have risen since August, matching what was seen in the monthly index which measures inflation perceptions, which showed the strongest month-on-month increase since November 2010. 40% of respondents said they expected their financial situation to get worse over the next year. Bumi plummetsMining giant Bumi was also weighing on the sector after it said it was investigating allegations of financial and other irregularities at its Indonesian operations. The investigation centres on PT Bumi Resources, in which the company has a 29% interest, with particular focus on that firm's development funds. "The extensive development funds in PT Bumi Resources Tbk and the one development asset in PT Berau Coal Energy Tbk were marked down to zero in the accounts of Bumi plc as at December 31st 2011, except for one investment with a carrying value of $39m in the consolidated financial statements," the statement said. Fund manager Aberdeen Asset Management saw its assets under management (AuM) edge up in the first two months of the second half of the year. AuM at the end of August stood at £184.3bn, up from £182.7bn at the end of June. Gross new business during July and August totalled £6.1bn, but overall the group saw a net outflow of £0.1bn. Shares in JJB Sports were suspended this morning as the firm headed towards administration. The retailer had been searching for a buyer after it failed to raise the funds it needed to attempt a turnaround of the business. Dairy Crest warned of lower first half profits, as challenging conditions continue, but said profit expectations for the full year ending March 31st 2013 remain unchanged. Profit before tax and exceptional items slipped to £14.9m in the six months ended July 28th, from £16.2m in the corresponding period of last year at Irn-Bru maker AG Barr. The company took a £1m hit from adverse currency movements, although around £0.6m of this is expected to unwind in the second half of the year. On a constant currency basis, first half profit before tax was £0.3m behind the similar period in the prior year. Sales in the first seven weeks of the second half have shown double digit percentage growth.Analysts at Bank of America Merrill Lynch have downgraded their view on shares of Anglo American to "neutral" from "buy". Other markets The price of oil has turned south, with the most actively trade futures contract for Brent crude off $1.24 at $91.65 a barrel.The yield on the benchmark 10-year gilt is 1.73%, down from 1.84% earlier this morning. FTSE 100 - RisersGlaxoSmithKline (GSK) 1,445.00p +0.56%Shire Plc (SHP) 1,821.00p +0.39%Smith & Nephew (SN.) 688.50p +0.36%Sainsbury (J) (SBRY) 346.00p +0.32%AstraZeneca (AZN) 2,951.50p +0.32%Rexam (REX) 437.40p +0.23%Severn Trent (SVT) 1,734.00p +0.12%Associated British Foods (ABF) 1,293.00p +0.08%InterContinental Hotels Group (IHG) 1,641.00p +0.06%FTSE 100 - FallersEurasian Natural Resources Corp. (ENRC) 326.40p -5.25%Evraz (EVR) 259.40p -4.60%Anglo American (AAL) 1,864.50p -3.79%Fresnillo (FRES) 1,766.00p -3.66%Vedanta Resources (VED) 1,049.00p -3.41%GKN (GKN) 219.10p -3.05%Sage Group (SGE) 315.30p -2.92%Kazakhmys (KAZ) 708.00p -2.88%Glencore International (GLEN) 352.00p -2.76%Antofagasta (ANTO) 1,244.00p -2.51%FTSE 250 - RisersPetra Diamonds Ltd.(DI) (PDL) 116.60p +6.29%QinetiQ Group (QQ.) 180.90p +5.30%Computacenter (CCC) 379.90p +3.46%Pace (PIC) 168.70p +2.09%SIG (SHI) 104.70p +2.05%Cairn Energy (CNE) 289.30p +1.94%Shanks Group (SKS) 90.20p +1.81%Stobart Group Ltd. (STOB) 116.50p +1.75%PayPoint (PAY) 738.00p +1.72%Brown (N.) Group (BWNG) 271.90p +1.68%FTSE 250 - FallersBumi (BUMI) 137.40p -29.86%Talvivaara Mining Company (TALV) 154.00p -6.44%Ferrexpo (FXPO) 205.10p -4.83%Petropavlovsk (POG) 420.30p -4.39%Centamin (DI) (CEY) 91.95p -3.92%Imagination Technologies Group (IMG) 513.50p -3.39%Lonmin (LMI) 577.50p -2.78%Grainger (GRI) 108.40p -2.69%Dixons Retail (DXNS) 19.14p -2.65%Smith (DS) (SMDS) 187.40p -2.65%FTSE TechMARK - RisersOxford Biomedica (OXB) 2.50p +3.73%BATM Advanced Communications Ltd. (BVC) 17.00p +3.03%Wolfson Microelectronics (WLF) 211.00p +2.30%Filtronic (FTC) 44.00p +1.73%XP Power Ltd. (DI) (XPP) 1,020.00p +0.79%Consort Medical (CSRT) 731.50p +0.21%FTSE TechMARK - FallersAntisoma (ASM) 1.53p -5.26%Ricardo (RCDO) 380.00p -2.81%Gresham Computing (GHT) 70.00p -2.78%Vectura Group (VEC) 82.00p -2.38%Vislink (VLK) 31.00p -1.59%Xaar (XAR) 245.00p -1.21%E2V Technologies (E2V) 135.00p -0.55%Microgen (MCGN) 133.00p -0.19%Optos (OPTS) 178.75p -0.14%NCC Group (NCC) 920.00p -0.05%NR
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20 Mar 2011 08:59

Sunday newspaper round-up: Barclays, Budget, Punch...

Barclays has warned the Treasury against breaking up banks in a thinly veiled threat that it may move its headquarters to America. John Varley, the bank's former chief executive and its lead adviser on government affairs, held a tense meeting with officials last week. It was one of a series of priv

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15 Mar 2011 16:42

London close: Heavy losses despite recovery

The FTSE 100 closed deep in the red Tuesday amid continuing worries over the situation in Japan, though losses were more than halved following a slide in the morning as nerves calmed. A third explosion at the Fukushima Daiichi nuclear power plant in Japan has raised concerns of a major radiation le

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15 Mar 2011 14:27

London afternoon: Stocks stabilise

Leading shares remain deep in the red and the best that can be said is that the situation did not get materially worse over the lunch time session. A third explosion at the Fukushima Daiichi nuclear power plant in Japan has raised concerns of a major radiation leak and sparked panic selling on the

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15 Mar 2011 12:09

London midday: Slide continues in quake aftermath

The blue chip index continues to be hurt by the crisis in Japan as sentiment remains battered by fears of a nuclear disaster. While off its lows for the day so far, the FTSE 100 still remains over 2% under at around 5,640, a level not seen this year. A third explosion at the Fukushima Daiichi nucle

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15 Mar 2011 08:46

London open: Nuclear fears sink Footsie

An 11% plunge in Tokyo this morning on fears of a nuclear catastrophe in Japan has hammered share prices in London first thing. A third explosion at the Fukushima Daiichi nuclear power plant has raised concerns of a major radiation leak. People within 30 kilometres of the plant are being told to st

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15 Mar 2011 07:34

JJB Sports in new £65m cash call

The fate of troubled sportswear retailer JJB Sports could be decided next week after it confirmed it intends to raise £65m through a new share placing, but only if its landlords agree to a new company voluntary agreement (CVA). It is the firm's second huge fund raising in just two months, having ra

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14 Mar 2011 16:47

London close: Japanese concerns knock Footsie

London closed near to its low for the day as a decline on Wall Street dragged the market lower later in the day and there were concerns about the possible effects of the Japanese earthquake on financial markets and global economies. Miners Rio Tinto, Xstrata, African Barrick and ENRC are the pick o

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14 Mar 2011 14:57

London afternoon: Shares stuck lower as Japan casts shadow

London's blue chips have turned lower again following falls on Wall Street as traders continue to mull the possible effects of the Japanese earthquake. Miners Rio Tinto, Xstrata, African Barrick and ENRC are the pick of the mining sector. Also going well is temporary power solutions provider Aggrek

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14 Mar 2011 12:21

London midday: Blue chips turn lower on volatile day

London's blue chips have turned lower again as investors await the US markets' reaction to Japan's devastating earthquake. Miners Rio Tinto, Xstrata, African Barrick and ENRC are the pick of the mining sector. Also going well is temporary power solutions provider Aggreko, which may find its service

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14 Mar 2011 08:47

London open: Aggreko in demand in wake of earthquake

Mining stocks are shoring up the Footsie but the blue-chip index is still in the red, despite the price of oil ebbing. Miners Rio Tinto, Xstrata, African Barrick and ENRC are the pick of the mining sector. Also going well is temporary power solutions provider Aggreko, which may find its services c

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14 Mar 2011 07:35

London pre-open: Weaker trend continues

London looks set to start the week slightly lower, with attention focused on the other side of the world and the events following the earthquake in Japan. City traders expect the Footsie to open around 20 points lower than its Friday close of 5,829. Housebuilder Bovis Homes didn't disappoint with

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14 Mar 2011 07:20

JJB to raise around £65m from placing

Troubled sportswear retailer JJB Sports has responded to press speculation about its fund raising plans, and said the company expects its impending share placing will raise around £65m. The company added it is in "constructive discussions" with its major shareholders in relation to their continued

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11 Mar 2011 16:41

London close: Japan gloom stifles rally

The devastating earthquake in Japan this morning overshadowed today's trading but shares struggled to climb into the blue and finished just a few points short. The tsunami resulting from the earthquake has already killed a large number of people in Japan, with police in the port of Sendai reporting

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11 Mar 2011 11:35

JD Sports walks away from JJB

Trendy sportswear retailer JD Sports Fashion has decided not to make an offer for its struggling rival JJB Sports. JD said it had asked JJB for details of a proposed restructuring of JJB's property portfolio through a company voluntary arrangement, but that it "received no further information whats

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9 Mar 2011 08:16

Sports Direct gets SFO out of its hair

A legal cloud hanging over the Mike Ashley-controlled sportswear retailer Sports Direct has been lifted, as the Serious Fraud Office (SFO) has closed its investigation into individuals involved in the acquisition by the company of 31 stores from rival JJB Sports in 2009. The SFO completed its inve

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