Data from the Office of National Statistics released today, shows that UK consumer inflation reached its highest level in 13-months, driven by high food and fuel costs. The Consumer Prices Index (CPI) hit 3% on a yearly basis in April, up from 2.5% in March. The monthly inflation rate was 0.8%, the biggest leap since May 2001. The Retail Prices Index hit 4.2% from 3.8%. The release of this information will probably preclude the Bank of England from cutting interest rates in the near term. Shares in Alliance & Leicester were sharply lower after the mortgage bank unveiled a further hit as a result of the credit crunch, and announcing a greater-than-expected retrenchment in the mortgage market, incurring a £192-million write-down and impairment loss against debt-backed securities held in its Treasury division through the first 4-months of the year, compared with £185-million in write-downs for 2007 as a whole. The bank also said it had reined-in its mortgage lending, with total balances falling to £41.2-billion as of 30th April, a decrease of £1.5-billion from the end of December. The shares are off 60.875p at 449.625p at 11:06, as further depressing news filtered through that the analysts’ conference call had not gone too well either. At 11:06 the FTSE-100 was down 65.6 at 6155.0, as the weakness in banking impacted the major index (all but HSBC up 4.5p at 886.5p).
The Lighter Side
At last police get to the bottom of it!
Venice police have at last arrested s man who allegedly photographed more than 3,000 women's bottoms in the canalled city of Venice. Police became suspicious and stopped the man who was carrying a large bag, as he followed women through St Mark's Square. He has been charged with “infringement of privacy”, which could earn the 38-year-old Italian from between 6-months to 4-years in jail. A police video shows a man in jeans and hooded top walking behind women. Police said he was filming through a small hole in the side of the bag. The officers became suspicious when they realised he was only following women with short skirts. When they stopped or bent down to pick something up, he was clearly trying to angle the bag behind them. When the voyeur was finally caught police recovered several DVD’s which held more than 3,000 images of women's bottoms. He confessed to police he had been filming in and around St Mark's Square for nearly 2-years. Mario Marina of Venice police said the man was married with 2 young children and has a professional job in the nearby town of Padua.
The 2-Short-Planks Section
Dad couldn’t give a XXXX
Police in Alice Springs, Australia, say they were appalled to find a driver had put a seatbelt around a carton of beer … but, left a 5-year-old child unrestrained. Officers stopped the unregistered sedan on the Ross Highway south of Alice Springs on the weekend. They found the child sitting in the back seat without a seatbelt, but the driver had put a belt around a slab of beer.
Last Night in New York, shares closed higher with investors cheered by a report that Hewlett-Packard was closing in on a deal to buy Electronic Data Systems for as much as $13-billion, as well as oil's retreat from record highs. The Dow Jones closed up 130.43-points at 12876.31, the Nasdaq added 42.97-points to 2488.49, while the S&P put on 15.30-points to finish at 1403.58.
ABN has issued a review of European Food Producers, which includes a downgrade for Unilever to sell from hold
The broker has upgraded Chaucer Holdings to buy from hold and ITE Group to buy from add (raising the price target to 180p from 175p)
ABN reiterates buy Rexam (raising the price target to 525p from 500p and estimates) and says hold Robert Wiseman Dairies (cutting the price target to 410p from 435p)
Cazenove reiterates outperform on Alliance & Leicester, the broker expect to cut the current year’s EPS estimates by 3%
Collins Stewart says sell Alliance & Leicester (450p target)
The broker says buy Group 4 Securicor (313p target) and says hold TUI Travel (which is its preferred stock in the holiday sector)
Collins Stewart says buy Jetion
Credit Suisse has downgraded Royal & Sun alliance to underperform from neutral (146p target price)
Deutsche reiterates buy Enterprise Inns (860p price target) and says buy TUI Travel (raising the price target to 390p from 370p and raising estimates)
Evolution reiterates buy Enterprise Inns (690p price target) and says buy GKN (400p price target), Emerald Energy (420p target), Paddy Power (€26 target) and Tullow Oil (1129p price target)
The broker says add VT Group (725p target price)
Finncap reiterates sell Robert Wiseman Dairies (401p target)
Goldman has downgraded ITV to sell from neutral (66p price target)
WH Ireland has an outperform on Dignity and has market perform RM Group
Lehman has upgraded Yell to equal-weight from underweight
Merrill reiterates buy VT Group (825p target) and says buy Babcock (655p target)
The broker has neutral on Enodis, Galliford Try, Redrow, Travis Perkins and Enterprise Inns and buy and 145p fair value for Premier Foods, a buy and 500p target for Serco and a buy and 400p target for TUI Travel
Merrill Lynch is neutral on Alliance & Leicester
JP Morgan has downgraded Smith & Nephew to underweight from neutral (cutting the price target to 585p from 680p)
Panmure Gordon says sell Alliance & Leicester (450p target) and says hold Carluccio’s (170p target) and Enterprise Inns (575p target)
The broker says sell Galliford Try (55p target) and buy Keller (750p price target) for Keller and sell Kofax (159p target)
Panmure says buy Lookers (113p target price) and hold Premier Foods (raising target to 135p from 100p)
The broker says buy PZ Cussons (225p target), Redrow (331p target), VT Group (800p target) and WPP (680p target)
Seymour Pierce says buy African Eagle (23p target), G4 Securicor (250p target), Serco (520p target) and Tertiary Minerals and hold Travis Perkins (1000p target)
SG Securities has reviewed the European Airlines and reiterates its neutral sector recommendation, while cutting targets and estimates
UBS has downgraded Land Securities to neutral from buy (cutting the price target to 1600p from 1735p)
THE FINANCIAL TIMES
The Front Page
*Mounting signs of economic slowdown
The Lex Column
*Central reservation - Since the credit crunch began, some have argued the European Central Bank's lending policies are too generous and transfer banks' private risks on to the public. The numbers suggest worries may have been exaggerated
*Dresdner's future - Like people, most companies have done something they regret. For Allianz, which reported mixed first quarter numbers last week, if was the purchase of Dresdner Bank in 2001
*Clear Channel - An agreement to press ahead with the Clear Channel buy-out would at least leave all sides less badly burned than they might be after unleashing the lawyers to fight it out in the Lone Star State
*Hedge fund lock-ups - Why are investors in hedge funds willingly submitting to ever-longer lock-ups of their capital?
*EnCana's split - EnCana's stock price has risen eight per cent on the news that it is to split itself in two. The Canadian oil and gas group's move is smart and well-timed, raising the sum-of-the-parts argument to push for a higher stock price.
The Lombard Column
*HSBC's unique structure make comparisons difficult -- Centrica: brace yourself for higher energy prices -- It sees Britons have not turned into the national of shoppers we feared
The Power Player
*Sir Tom Hunter
Further news
*HSBC warns US crisis will continue
*HP close to $13-billion deal for EDS
*Shoppers ‘positive’ on Tesco’s US stores
*Tiscali board excludes Carphone from shortlist of would-be buyers
*Households save their pennies for house renovation work
*Google triumphant
*Premier Foods faces 3 crucial questions
*Best Buy plots its global strategy
*Investment banks pin hopes on Asia to rescue bottom line
*Kingfisher provides a spot of colour in lacklustre session
*Brokers warm to ASOS flair
*Traders tune into Shed Media
THE TIMES
The Front Page
*Elite police abandon hunt for crime lords
The Page 38 Feature
*Government backs down on corporate tax under threat of business exodus
The Business Editor’s Column
*Another tax break, Mr Darling, or we're off,,,,
*Bright sparks (Chloride)
*Hit where it hurts, in the wallet (Payment Protection Insurance)
The Business Big Shot Column
*Bill Colvin
The Tempus Column
*Dana Petroleum - Hold
*Southern Cross Healthcare - Best avoided for now
*Stobart Group – Buy
A Tiddler to Watch
*Solar Integrated Technologies
Further news
*Sharp rise in factory gate prices hits rate cut hopes
*Investor claims HSBC undervalued its US losses by $30-billion
*Battered stock makes Informa attractive to private equity
*Land of Leather fined £210,000 over sales of insurance policies
*Farepak’s former directors face legal action over loss
*Predator rumours lift high street retailers
*Current trading at Carluccio's likely to be far better than many are expecting
THE DAILY TELEGRAPH
The Front Page
*Abolish tests for pupils at 11 and 14, urge MP’s
The Comment Column
*€urozone finance ministers gang up on our champions - Without financial services, epitomised in this country by the City of London, the UK economy would have been a deeply pedestrian place over the past decade. Love it or hate it, the industry has provided growth, jobs, wealth and, dare I say it, taxes, that most other nations on earth would cry out for.
*HSBC's window on the world
*Vodafone needs to connect in Africa
The Questor Column
*Buy – Centrica
*Hold - Hiscox
Further news
*EU ministers launch assault on bankers’ big bonuses
*Rebel tells HSBC to shed US loan arm
*Vodafone faces tough call in bid to expand
*Marks & Spencer profited from Rose years but doubts persist
*Retail sector cashes in on Kingfisher bid talk
*Feature ion Market Report Section – Chloride: Powering on
THE INDEPENDENT
The Front Page
*Housing market worst for 30-years
The Outlook Column
*Centrica is the right solution for British Energy. Present profits squeeze proves it
*Can Darling survive a reshuffle?
The Business Analysis Column
*Mervyn King prepares to eat humble pie
The Investment Column
*Hold - Hiscox
*Buy - Stobart Group
*Buy - Southern Cross Healthcare
Further news
*Kingfisher soars on talk of bid from US
THE DAILY MAIL
The City Focus Page
*Brown’s boom’s gone bust
At a Glance
*Better Diploma
Further news
*Alliance & Leicester to unveil further writedowns of around £200-million on its portfolio of toxic loans
*Kingfisher flies on bid rumour
THE DAILY EXPRESS
Share Whisper
*Nice Tech contract hopes lift Zyzygy
Further news
*HSBC ‘can weather the US credit storm’
*Talk suggests Xstrata will turn hunter
SOME ITEMS THAT COULD INFLUENCE SHARE PRICES
*Tiscali draws up a short list of interested buyers, with Carphone Warehouse not among them
*Carlyle and Apax among those considering a bid for Informa
*Morgan Stanley doubles stake in Aberdeen Asset management to 6.20%
*Vodafone in talks to buy Ghana Telecom
*Chloride rejects 255p-a-share cash offer from Emerson Electric
*BP abandons plans to build a plant to capture and store carbon dioxide
*BHP Billiton agrees purchase of Anglo Potash at C$284-million, or C$8.15-a-share
*Laura Ashley raises stake in Moss Bros to 7.45%
*Tesco's attempt to break into the US grocery market with its Fresh & Easy chain appears to be gaining traction
*Argos faces strike threat
*EMI owner Terra Firma to cut 1,000 more jobs
*Sale of the government-owned Tote has attracted more than 40 expressions of interest, including one from the Dubai royal family
*ValiRx raises £890,000 by a placing of 14.9-million shares
*Clear Channel in talks with banks financing its leverage buy-out
*Australia's Westpac is planning an all-share offer for St George Bank worth almost £10-billion
From Wall Street
*The Dow Jones closed up 130.43-points at 12876.31, the Nasdaq added 42.97-points to 2488.49, while the S&P put on 15.30-points to finish at 1403.58.
Credit crisis fallout
*Poor economic figures have revealed inflationary pressures rising to levels not seen in 20-years, and further data is expected to show important parts of the economy stagnating
*According to the Royal Institution of Chartered Surveyors, house sales in the UK have fallen to their lowest levels since the 1970’s
*Property veteran Sir John Ritblat has warned that the property investment market would not see any recovery until next year
News from Home
*Government backs down on corporate tax under threat of business exodus
*UK April producers' input prices rose 2.4% in April from March, way above analyst forecasts for a 2% increase
*UK trade in goods balance with the rest of the world improved slightly in March to a deficit of £7.4-billion
*According to Citigroup, Barclays may need to raise £6-billion to drive its tier one ratio to 6.5%
*Rail Maritime and Transport union to ballot 17,000 workers for industrial action in two separate disputes
News from Abroad
*The most powerful earthquake to hit China in 30 years has killed at least 10,000 people in south-western Sichuan province, with thousands more trapped. Chinese state media said that 10,000 people were thought to be buried in one town alone near the epicentre of the earthquake in Wenchuan County. A team of 1,300 troops and medics has now reached Wenchuan, which was largely cut off by the quake.
*European Union ministers to launch assault on UK bankers' big bonuses
1997 The official report into the 1996 Channel Tunnel fire severely criticised the safety procedures run by the operators, Eurotunnel.
1996 Over 600 people were killed by a tornado in the northern Bangladesh district of Tangail.
1994 Palestinian police took over control of Jericho from Israeli soldiers.
1993 Ezer Weizman was sworn in as Israel's 7th President. He was a nephew of Israel's first president Chaim Weizmann, in 1948.
1992 Three American astronauts from the US space shuttle Endeavour, walked simultaneously in space for the first time, retrieving and repairing the Intelsat-6 satellite, in a walk lasting almost 8-and-a –half-hours.
1981 Pope John Paul II survived an assassination attempt outside St Peter's Church in Rome.
1968 Talks between North Vietnamese and American negotiators began in Paris, aimed at ending the Vietnam War.
1965 Israel and West Germany agreed to establish diplomatic relations, forcing several Arab nations to break ties with Germany.
1957 The BBC began its regular television schools programmes.
1949 The first Great British produced jet bomber, the Canberra, made its first test flight.
1943 The Italian Commander-in-Chief in Tunisia surrendered his forces, a day after his German counterpart. The Allies were now holding some 250,000 prisoners of war in North Africa.
1941 World War II: Martin Bormann, was named head of the Nazi Party Chancellery in Germany, following Deputy Fuhrer Rudolf Hess' mysterious flight to Scotland.
1940 World War II: After setting up Great Britain's wartime Coalition Government, Prime Minister Winston Churchill told Parliament he could offer ' nothing but blood, toil, tears and sweat.'
1927 'Black Friday' in Germany, signalling the collapse of its economic structure.
1888 Brazil's parliament decided to abolish slavery.
1846 United States of America declared war on Mexico.
1830 The founding of the Republic of Equador with Juan Jose Flores as President.
1787 The first fleet of ships carrying convicts to the new penal colony of Australia left England. They arrived in January 1788.
1607 Captain John Smith landed on the coast of Virginia and began the first permanent English settlement in the New World calling it Jamestown.
1568 Mary Queen of Scots was defeated by the pro-English Earl of Moray at the Battle of Langside in Glasgow
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