Markets retained their momentum on hopes of a sustained and co-ordinated global recovery. In New York on Friday the Standard & Poor’s 500 Index gained 0.5 per cent after comments by investors Kenneth Fisher and Marc Faber suggested that there is further to run in the current rally. In Asia markets were initially mixed, with the MSCI Asia Pacific Index eventually gaining 0.3 per cent, helping it to a 27 per cent recovery since its March low. In London the FTSE 100 Index closed one per cent higher on Friday. The index of US leading indicators for March may show the recession “loosening its grip” in coming months, reported Bloomberg.com. Economists’ forecasts show a median estimate of a 0.2 per cent decline for the upcoming three to six months, following a 0.4 per cent decline in the February figure. The forecasts will support Federal Reserve Chairman Ben Bernanke’s view that the economy is taking a “first step” towards recovery. The New York-based Conference Board’s index is due at 10am Washington time. The CBI is set today to join the “growing list” of economists and business organisations who are arguing that the recession is bottoming out, reported the Independent. While the CBI says it has so far seen “little evidence of green shoots” of recovery and still retains downbeat forecasts it now expects the first quarter to be the “most difficult” of the crisis. The group sees a return to weak growth by spring 2010, echoing more positive forecasts from commentators in the US, a tone which will be “welcome” for the chancellor. Alistair Darling is to “demand” £15bn in Whitehall efficiency cuts this week, after warnings that public sector spending is spiralling out of control, reported the Times. The chancellor reduced the rate of growth in annual spending last November to 1.2 per cent and “will reduce it further” in Wednesday’s budget. The move will have “massive implications” for services in the years ahead. Darling is also set to announce a £500m “green stimulus” to the economy, with tens of millions of pounds earmarked for off-shore wind farms. Tesco is to launch a “direct challenge” to Carphone Warehouse in the telephone market, reported the Daily Telegraph. It plans to open 100 Telecom Centres in its shops over the next year and launch an “expansion drive” as the world’s third-biggest retailer earns record profits of over £3bn. Tesco is investigating ways to diversify from groceries, which is showing signs of saturation and discount retailers are making distinct “inroads”. Its market share this year has fallen from 30.8 per cent to 30.4 per cent according to data from TNS. Camelot, the operator of the National Lottery, could “fall under the control” of foreign companies, reported the Guardian. Four of the five owners of the company, including chocolate-maker Cadbury, are now considering disposal, with UK banknote printer De La Rue the latest to consider a sell-off. Each shareholder owns 20 per cent of Camelot, with only the Royal Mail “committed” to its stake. The owners also includedFujitsu and Thales and the discussions surround a potential sale to an overseas company or a private equity player. GlaxoSmithKline was in “late stage talks” on Sunday to acquire skin-care company Stiefel Laboratories, reported the Financial Times. The purchase is likely to be made for around £3bn, according to company sources, and could be announced “as early as Monday”………… The “aggressive monetary policy” being pursued by the world’s central banks is “playing havoc” with the bullion market creating a shortgage of gold, reported the Daily Telegraph. The changing structure of the market may push the precious metal to “fresh records” above $1500 an ounce………… “Crunch negotiations” are set to take place this week between the Bank of England and a group of building societies in an effort to support their mortgage lending, reported the Times. The societies, which include theChelsea and Skipton, were hit last week by credit rating downgrades………… Tesco is expected to confirm that it is “abandoning” hopes of its US armFresh & Easy breaking even this year, reported the Guardian. The group is due to report numbers tomorrow and it is thought that the Los Angeles-based convenience-store chain will continue to “ring up big losses”………… Rich European investors, who were the first to invest in hedge funds, have been the first to “exit” in the downturn, reported the Financial Times. According to research by Bank of New York Mellon and research company Casey Quirk high net worth individuals accounted for 80 per cent of redemptions………… Savers are turning to antiques as a “safe investment opportunity”, pushing up auction prices, reported the Independent. “Tangible” investments are increasing in popularity compared to more traditional investments and the slow housing market is reducing the supply of antiques…………business headlines.
Stocks rise on investor confidence
US indicator may show crisis easing
UK recession may have hit bottom
Budget to seek £15bn spending cut
Tesco to lay down challenge to Carphone Warehouse
Foreign predators circle Camelot
...in brief..................
GlaxoSmithKline bids for skincare firm and savers turn to antiques
Monday, 27 April 2009
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