TODAY’S FAYRE

TODAY’S FAYRE – Tuesday, 4th November 2014

“Along the field as we came by
A year ago, my love and I,
The aspen over stile and stone
Was talking to itself alone.
‘Oh who are these that kiss and pass?
A country lover and his lass;
Two lovers looking to be wed;
And time shall put them both to bed,
But she shall lie with earth above,
And he beside another love.’

And sure enough beneath the tree
There walks another love with me,
And overhead the aspen heaves
Its rainy-sounding silver leaves;
And I spell nothing in their stir,
But now perhaps they speak to her,
And plain for her to understand
They talk about a time at hand
When I shall sleep with clover clad,
And she beside another lad.”

AE Housman – poet – 1859-1936

“Mr Turner” – is a typically well-acted, beautifully filmed Mike Leigh production with an extremely talented cast – particularly Timothy Spall, cast in the lead role of ‘JMW Turner’ and Marion Bailey as his latter-day-mistress, Mrs Booth. Spall could well end up with a ‘BAFTA’ or a ‘Golden Globe’; even an ‘Oscar!’ However, gracious me was it boring or what! It lasted 210 minutes and was at least 30 minutes to long! I suggest no more than one bottle of Sauvignon Blanc between two before watching this movie or the ‘lids’ could become very heavy!

I never have liked the idea of coalition governments in the UK. Conviction to expedite the policies of the major party becomes very watered down, leaving many supporters truly frustrated. In my very humble opinion the performance of the Deputy Prime Minister Clegg in recent weeks, as we head towards the general election, has been reprehensible and disloyal in the extreme. Why policeman are standing on duty outside his house in Putney, I have no idea, as he seems to have abrogated his responsibilities as DPM in favour of his party. That being the case, let’s end this charade! As for Norman Baker’s resignation, I thought he was one of the good guys; but his rather visceral comments about Theresa May are disappointing, even if heart-felt. If you are in a government; then you behave like a minister!

Yesterday felt rather like ‘after the Lord Mayor’s Show!’ The FTSE ended down 60 odd points at 6487, taken lower by energy, utilities and perceived irritation at HSBC’s ‘conduct bill’ – PPI +$700m, US Housing +$500m and FX +$370m. HSBC shares were down by 1.8%. Ryanair finished the day up 9% after the ebullient Michael O’Leary announced that profits for the year could be up by €100 million.

On the Street of Dreams it was rather a nebulous session with more than a little inertia, though markets rallied from their ‘lows’ towards the close for the DOW to ease by just 0.14%, the S&P 500 by 0.01% with the NASDAQ finishing just above the Plimsoll line +0.18%. With Nymex oil falling below the $80 threshold to $78.80, the likes of Exxon Mobil and Chevron suffered the slings and arrows of outrageous fortune. Apple was probably the best performing tech stock – up 1.3% on the day. All eyes will be on Alibaba, which posts its first set of interim results since its IPO in September. The shares are up 45% from its issue price of $68 and the market is expecting a 45% increase in profits. It waits in awe and trepidation. Blackstone announced that it was selling IndCor Properties to GIC Singapore for $8 billion. Sapient shares rallied by 42% on news of Publicis’s interest and Covance added 26% in value thanks to a $6.1 billion bid from Laboratory Corporation. JP Morgan Chase may see its contingent liabilities for litigation rise by $1.3 billion (FX) to $5.9 billion this year.

With Tokyo being shut yesterday for yet another of their 15 annual holidays, the NIKKEI made up for lost time today, adding another 2.7% this morning to add to the 4.8% it grabbed on Friday. Most other Asian markets were rather quiet. There was a slew of earnings this morning posted here in London – IMPERIAL TOBACCO, AB FOODS, L&G, ADVANCED COMPUTER SOFTWARE, UNITE, WEIR, 888 HOLDINGS and SANTANDER. There are more erudite people than me to provide added value in terms of comment. L&G’s efforts were splendid with sales up 14% (+1%). As for AB Foods it seems to have been all about Primark, which saw sales up 16% and profits by 30% on the year. Sugar? Imperial Tobacco increased its profits by 5% to £2.064 billion (+1.2%). These shares have done well in the last year rising by 14%. We hear that Virgin Money may return to the IPO market at the end of November if conditions remain positive. It looks as though Rooney Anand, CEO of Greene King has won the ‘spoils of war’ in its bid for Spirit Pubs with a knock-out bid of 115p.

UK companies posting results or trading statements this coming week – Wednesday – M&S, OLD MUTUAL, FIRST DERIVATIVES, HILTON FOODS, JD WETHERSPOON, AER LINGUS (TS), MEGGITT, Thursday – GEM DIAMONDS, ASTRA ZENECA, RSA, XCHANGING, SUPERGROUP, SCHRODERS, COBHAM, TATE & LYLE, WM MORRISON, STV GROUP, HALFORDS, C&W, LONDON MINING, DAIRY CREST, INMARSAT, RANGOLD, EXPERIAN, COCA-COLA HBC, Friday – NATIONAL GRID, ADMIRAL (TS), BOVIS HOMES (TS), TULLOW OIL (TS).

Monday – LOEW’S, SPRINT, TENET HEALTHCARE, Tuesday – OFFICE DEPOT, MOTOROLA SOLUTIONS, EASTMAN KODAK, Wednesday – DUKE’S ENERGY, TIME WARNER, DYNERGY, Thursday – GAP, WALT DISNEY, AOL. MOLSONS COORS, ZYNGA

These are David Buik personal views

Twitter – @truemagic68

David Buik

Market Commentator

D +44 (0)20 7886 2775
Panmure Gordon & Co
One New Change | London | EC4M 9AF | United Kingdom
http://www.panmure.com – The information in this e-mail and any attachments is confidential and may be legally privileged. It is intended solely for the addressee(s). If you are not an intended recipient, please delete the message and any attachments and notify the sender of miss-delivery: any use or disclosure of the contents of either is unauthorised and may be unlawful.

David Buik
Market Commentator

D +44 (0)20 7886 2775
Panmure Gordon & Co
One New Change | London | EC4M 9AF | United Kingdom
http://www.panmure.com

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