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Icap is fighting to restructure and survive. Hence the very positive market reaction on Tuesday when it announced that it would beat its target for cost savings. Far more important even, traders breathed a sigh of relief that it did not cut its dividend payment. Nevertheless, a 12 per cent revenue decline alongside pre-tax profits off by 20 per cent at 284m pounds shows how difficult it is to align costs with declining markets. In addition, there are pending regulatory changes the impact of which, positive or negative, is hard to discern. Icap has been dragged into the Libor scandal, and if found guilty, could face a fine of up to 25m dollars. "The yield of 6.5 per cent may look attractive, but, given the uncertainties, I would be in no mood to chase," The Times´s Tempus says.10 days ago
ICAP's annual pre-tax profit fell 20 per cent to 284m pounds compared to the previous year as the broker was hit by the weak global economy, low interest rates and regulatory reforms. Nevertheless, that was 'in-line' with consensus expectations given company guidance in its recent trading statement. For their part, analysts at Credit Suisse saw "slightly better cost savings guidance for the fiscal year 2014", but expects only modest changes to consensus earnings as the company guided that additional cost savings would be re-invested in new initiatives.11 days ago
Strong gains in the utilities sector after a takeover approach for Severn Trent and some well-received results from Babcock International weren't enough to lift markets into positive territory by Tuesday lunchtime, as the FTSE 100 snapped an eight-day winning streak.11 days ago
Babcock International: Jefferies increases target price from 1080p to 1250p and maintains a buy recommendation.11 days ago
ICAP's annual pre-tax profit fell 20 per cent to 284m pounds compared to the previous year as the broker was hit by the weak global economy, low interest rates and regulatory reforms.11 days ago
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Earlier this week we heard from the Reserve Bank of Australia and the minutes of their meeting, which generally confirmed what most had suspected: that the strength of AUD was a pivotal factor in what was an otherwise close decision to cut interest rates.
The all-important policy guidance at the end of the minutes reveals that the RBA opted to use “some” (the “some” comment is a repeat from a couple of weeks ago) of the scope afforded by the low first quarter inflation figures and outlook, to lower the cash rate.
The latest Japanese GDP reading highlights the success that the new massive stimulus programme being carried out in Japan has had in revitalising that stricken economy. Today’s drop in UK inflation suggests that the new Bank of England governor may be wise to suggest a similar policy for the UK.
The markets seem to be extending their highs in recent days with no concern about the continuing threat of war in the Middle East.
This morning, news that Israeli and Syrian forces have exchanged fire across the ceasefire line in the occupied Golan Heights was largely ignored by the financial markets.
This morning silver fell to levels not seen since September 2010 as commodity prices slumped overnight in Asia and this extended in early London trading. Although here is plenty of physical buying from China, India and the Middle East – there is heavy computer ETF selling.
A strong dollar and outperforming equity markets have shifted investor’s attention to more risky assets with silver suffering.
Daily global markets overview with the overnight activity and what can be expected in the markets today. Information straight from the traders’ desks. Insights on commodities, equities, stocks and forex currencies.