International stock news

Rss Today on Proactive AU

2014-07-25

Australia’s ASX200 trades sideways

 
Australian stocks were almost unchanged today despite a fall in iron ore price with the ASX200 shedding 0.1% to 5,583.5 points. The Shanghai Stock Exchange Composite Index is up 0.79% to 2,121.67 points while in pre-open markets the Dow-mini slipped 3 points to 16,995.
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Rss Today on Proactive UK

2014-07-25

Broker spotlight – Tate & Lyle, Glaxo, Manchester United, BSkyB

 
It has been an annus horribilis for sweeteners maker Tate & Lyle (LON:TATE), according to Deutsche Bank. An unscheduled plant closure in Singapore and worse than expected currency headwinds have had the analysts scurrying to downgrade their estimates. Deutsche shaves 2% off this year’s earnings estimate and 1% off subsequent years.  Swiss banks UBS and Credit Suisse have cut their price targets for Tate & Lyle, with the former trimming its target to 615p from 630p and the latter cutting its target to 630p from 650p. Canaccord Genuity, meanwhile, retains its ‘hold’ recommendation while lowering its target price to 640p. UBS has also been sharpening its quill and getting to work on drugs giant GlaxoSmithKline (LON:GSK), which it downgrades to ‘sell’ as it wonders whether the dividend is sustainable. The bank had expected Glaxo’s second quarter results to trigger substantial consensus downgrades, but was surprised by the scale of the miss, prompting it to use more conservative assumptions in its earnings model. It says its new estimates are not excessively pessimistic, but it believes that even after taking a more sober view of sales and costs projections, solid execution will still be required to hit the targets. Management has indicated to analysts that the dividend is sustainable; UBS is not so sure that the current policy of increasing the divi by 4p a year is realistic, as it would reduce earnings cover to about 1.1, which is sailing close to the wind. Sterling’s strength is not helping Glaxo, and UBS reckons a significant weakening of sterling would bolster the prospect of the dividend policy staying intact. UBS cuts its target price to 1,380p from 1,500p. US broker Jefferies has taken a look at soccerball kickers Manchester United (NYSE:MANU), who got off to a good start under new coach Louis Van Gaal with a 7-0 thrashing of the LA Galaxy. Jefferies is making a few adjustments to its model to reflect some seasonality shifts in fiscal 2015, plus expectations that wages will ratchet up as the club tries to regain its former pre-eminence. “Overall, our EBITDA estimates don't change very much, and we remain positive on the Manchester United story going forward, particularly in light of a fresh upcoming season and impending new contract with Adidas,” the broker said. Jefferies’ recommendation is ‘buy’. While United won’t be in Europe for some time, BSkyB (LON:BSY) will – as it struck a £5bn deal with 21st Century Fox which sees the broadcaster assume a dominant position in three of continent’s four largest pay-TV markets. That said, City broker Westhouse said it was “a little more sceptical” about the deal. Analyst Roddy Davidson gave a number of reasons for the scepticism including the challenge of increasing pay-TV penetration in Germany which he describes as a “fairly unreceptive market”. He also says Sky Italia has a weak competitive position, and questioned whether there would be sufficient management resources, at a time when the British business is confronting its first major content competitor (BT) and it is pursuing a broad range of growth opportunities.
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Rss Today on Proactive US

2014-07-25

Wall Street dragged down by global turmoil, Amazon results

 
U.S. stock futures were lower early Friday as markets were weighed down by ongoing turmoil in Ukraine and Gaza, while Amazon shed more than 10% premarket on the back of some disappointing quarterly results.
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