London midday: Stocks weighed down by Spain, Bernanke - Life Style Extra
- Bernanke comments weigh on markets
- Investors nervous ahead of Chinese data this weekend
- Spain denies rumours of imminent bank bail-out petition
Blue chips were off their intraday lows but still firmly in the red by Friday lunchtime as concerns over Spain continued to dampen the mood.
Spain and the European Union has denied reports of an imminent petition by Spain for bank rescue funds. According to earlier reports, Eurogroup finance ministers were to hold a conference call tomorrow to discuss the details and issue a statement thereafter.
Fitch Ratings said last night that the "likely 'fiscal cost'" of restructuring and recapitalising the Spanish banking sector would be between 60bn and 100bn in a worst-case scenario. This came as the ratings agency downgraded its sovereign debt rating for the country from A to BBB.
Also weighing on sentiment today were yesterday's comments from Federal Reserve Chairman Ben Bernanke who "performed his usual trick of depressing the markets", according to Craig Erlam from Alpari. Analysts were hoping for hints of imminent stimulus measures but Bernanke failed to say whether the Fed would be embarking on QE3 any time soon.
Investors will still be digesting the recent interest rate cut from China, which initially spurred impressive gains for equity markets on Thursday. However, ahead of some key inflation and industrial production figures due out this weekend from the world's second-largest economy, some analysts are questioning whether the rate cut was a pre-emptive move ahead of what could be some disappointing data.
In other news, German exports decreased for the first time this year in April, falling 1.7% from March. Producer prices in the UK came in below expectations in May, showing an 0.2% month-on-month drop (consensus: +0.1%) in factory gate inflation, while input prices fell by 2.5% month-on-month (consensus: -1.6%).
FTSE 100: Resources out of favour as commodity prices drop
Metals prices were retreating on Friday morning, pressuring mining stock lower: Vedanta, Kazakhmys, Antofagasta, Xstrata, Rio Tinto, Glencore and ENRC were among the worst performers. A stronger dollar was making greenback-denominated commodities more expensive early on with crude prices also taking a tumble, denting the likes of Tullow Oil and BP.
BHP Billiton was among the fallers after Bank of America Merrill-Lynch reduced its profit forecasts for the group on the back of lower oil prices estimates. A hold recommendation was maintained.
Power systems group Rolls-Royce fell after announcing that it is to take full control of Aero Engine Controls (AEC), the engine controls joint venture it established in January 2009 with US aerospace giant Goodrich.
Heading the other way was the defensive utilities sector as investors fled from risk and into 'safer' assets, including Severn Trent, Centrica, United Utilities, SSE and National Grid.
FTSE 250: Lamprell plummets after profit warning
Energy markets-focused engineer Lamprell was battered after sneaking out a profit warning on Thursday after the London market closed, saying that it now expects to make a half-year loss of between $15m and $20m, compared with earlier guidance of "a small loss". The group also said that Chairman Jonathan Silver would step down.
"We continue to believe that management's credibility has fundamentally deteriorated," Nomura said in a research note this morning.
Budget airline easyJet edged higher after revealing that passenger numbers in May were 14.4% higher than a year ago. Traffic has been steadily increasing since February.
FTSE 100 - Risers
Capita (CPI) 645.00p +2.14%
Severn Trent (SVT) 1,759.00p +1.38%
Diageo (DGE) 1,595.50p +1.17%
Centrica (CNA) 311.60p +1.04%
United Utilities Group (UU.) 675.00p +0.97%
Next (NXT) 3,050.00p +0.93%
Reckitt Benckiser Group (RB.) 3,486.00p +0.87%
Shire Plc (SHP) 1,867.00p +0.86%
GlaxoSmithKline (GSK) 1,439.50p +0.66%
National Grid (NG.) 657.50p +0.61%
FTSE 100 - Fallers
Vedanta Resources (VED) 932.50p -5.38%
Rio Tinto (RIO) 2,865.00p -4.98%
Eurasian Natural Resources Corp. (ENRC) 421.90p -4.37%
Evraz (EVR) 276.40p -4.16%
Kazakhmys (KAZ) 699.00p -3.98%
BHP Billiton (BLT) 1,753.00p -3.68%
Anglo American (AAL) 2,055.50p -3.63%
Petrofac Ltd. (PFC) 1,530.00p -2.98%
Barclays (BARC) 187.35p -2.85%
Xstrata (XTA) 943.30p -2.43%
FTSE 250 - Risers
Bumi (BUMI) 358.00p +9.78%
RPS Group (RPS) 206.00p +4.57%
Atkins (WS) (ATK) 682.00p +4.36%
Kier Group (KIE) 1,256.00p +2.11%
Grainger (GRI) 89.00p +1.83%
New World Resources A Shares (NWR) 318.60p +1.79%
Synergy Health (SYR) 880.00p +1.79%
Brown (N.) Group (BWNG) 232.50p +1.48%
PayPoint (PAY) 712.50p +1.28%
Bellway (BWY) 753.50p +1.28%
FTSE 250 - Fallers
Lamprell (LAM) 83.40p -23.28%
Kesa Electricals (KESA) 49.49p -8.52%
Afren (AFR) 110.60p -5.63%
Anglo Pacific Group (APF) 238.80p -5.50%
Essar Energy (ESSR) 118.10p -4.99%
Lonmin (LMI) 755.50p -4.61%
Heritage Oil (HOIL) 121.50p -4.56%
Home Retail Group (HOME) 70.70p -4.27%
Hays (HAS) 72.30p -3.66%
Investec (INVP) 338.80p -3.61%
BC
London 2012: Tickets For Olympics Opening And Closing Ceremonies Go On Sale - huffingtonpost.co.uk
More tickets for some of the most popular events at the Olympic Games go on sale today.
Thousands of tickets for the opening and closing ceremonies, as well as for athletics, swimming, boxing, table tennis, volleyball and football at Wembley Stadium, will be available through the official Olympic website from 11am.
Prices range from £20 to £720 across the 96 available sessions, while tickets for the two ceremonies start at £995.
All the remaining tickets, both for the Olympic and Paralympic Games, are on sale on a first come, first served basis, and more will be available in coming weeks.
As with previous tickets, they can only be bought using a Visa card.
Locog, the London Organising Committee of the Olympic Games and Paralympic Games, said more than eight million tickets have now been sold across both games.
But there are still about three million tickets left up for grabs, including more than half a million Olympic tickets, 1.2 million Paralympic tickets and 1.25 million tickets for Olympic football.
Locog commercial director Chris Townsend said: "There are still plenty of ways to join in and be part of London 2012.
"We are at advance stages of venue planning and these represent the final release of ceremonies and other sport tickets tickets.
"Over the next few weeks we will release further tickets for other Olympic sports and keep people informed when tickets are available.
"We are delighted with ticket sales to date, and have sold another 1 million tickets in the last four weeks, prioritising people who were unsuccessful last time around."
For more information or to buy, visit www.tickets.london2012.com.
Our Cars: Vauxhall Ampera - June - News - What Car?
Week ending June 8
Mileage 5030
Driven this week: 180 miles
My brother-in-law is a dyed-in-the-wool petrolhead. The list of cars he's owned includes a Fiat Barchetta, Toyota Celica and VW Golf GTI. His current car is a 1996 Mercedes E240. He thinks electric cars are just a fad.
However, that changed after a half-hour passenger ride in our Vauxhall Ampera.
He liked the instant acceleration, the refinement, and was pleasantly surprised by the fit and finish of the Vauxhall. The range-extending petrol engine wiped out any concerns he had about electric cars and their range.
This total change of mindset bodes well for Vauxhall if it can convince enough people to at least test drive such cars.
I'm not sure that my brother-in-law's next car – or even the one after that – will be an electric car, but at least the acorn that one day he could own one has been planted in his mind.
What we didn't appreciate was the decidedly non-futuristic recharging mechanism. When the car has finished recharging, your hands get covered in dirt and crud as you wind-up the power lead. Some kind of retractable lead, such as that in a vacuum cleaner would be more user friendly, but Vauxhall says the lead can't be coiled when the car is being charged because it will get too hot.
Iain.Reid@whatcar.com
Week ending June 1
Mileage 4850
Driven this week: 100 miles
Now that the fun of having a new car is beginning to wear off, I've started to notice a few issues with our Vauxhall Ampera. It's great to drive through town – there's nothing quite like the smoothness you get from electric motors – and you get just as much attention as you do in, say, a Range Rover Evoque, but there are a couple niggles.
The first is that the incredibly low front diffuser scrapes on every speed bump. Bearing in mind that the car is badged a Vauxhall and, by virtue of its electric powertrain, destined for a considerable amount of town use, it's frustrating that it doesn't seem to have been tested in London, a city full of speed bumps.
The second thing I'm surprised about is that, although there's a fully functional Bluetooth phone connection, there's no Bluetooth audio to allow you to play music from your phone without plugging it in. In any other car, you wouldn't give it much consideration, but in the top-spec version of what would appear to be the UK's most technologically advanced car it's a strange omission.
Ed.Keohane@whatcar.com
Vauxhall Mokka prices announced - AutoExpress
London 2012: Selection 'a fairytale' for Mohamed Sbihi - BBC News
Mohamed Sbihi has described his selection in the men's eight boat for the London Olympics as "a dream".
The 24-year-old took up the sport nine years ago after being discovered through a talent identification scheme while at school in Surbiton.
He told BBC London 94.9: "An opportunity has become a dream and the dream has started to become a reality.
"I feel very fortunate. It's almost like a fairytale. If I hadn't gone into school that day, I wouldn't be here."
The Molesey Boat Club member was identified after British Rowing's World Class Start programme visited Hollyfield School in south west London.
"They wanted all the tall kids in the year to go to a special PE lesson," Sbihi added.
"I didn't really want to go because I wanted to play football but my PE teacher pulled me back and told me that as I was the tallest guy in the year, I had to go.
"Before I knew it, I was in the top four out of 10,000 kids who had been tested in our area. I didn't like it to start with but then it slowly hooked me.
"I feel honoured and proud to wear the GB flag. I have to thank everyone who has been involved in my development."
London 2012 Olympics: David Beckham set for inclusion in Stuart Pearce's Team GB football squad for Games - Daily Telegraph
There are still over one million football tickets up for sale, with interest slowing down to the rate of just 150,000 sales over the last month. Beckham's inclusion in the tournament would certainly drive interest.
Last month Beckham fiercely defended his career record and insisted his involvement with Team GB would be on merit and not because of his fame.
"I have never said it before but that suggestion has always felt a but disrespectful," said Beckham.
"Whenever I have been asked about shirt sales or filling stadiums it has always felt it is a bit disrespectful. Throughout my career I have been pretty successful, I’ve played for some pretty big teams, represented my country quite a few times, and played for managers without sentiment.
“When you play for Sir Alex Ferguson, Fabio Capello, Sven Goran Eriksson or the manager that I have played under, they don’t pick players because they want to fill a stadium or particularly to sell shirts.
“I have always found it an honour that people have wanted to buy my shirt and an honour that fans turn up to watch the team I am playing in. I have always found that a huge honour.
“But no, I don’t want to be picked for shirt sales or as a stadium-filler, I want to be picked for what I can bring to the team. That has been the case throughout my career and I don’t want that to change.”
Team GB play a friendly against Brazil at Middlesbrough's Riverside Stadium on July 20 before taking on Senegal, UAE and Uruguay in Group A at the Games.
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