Old Mutual and Investec lead risers on new South African finance minister

Discussion in 'Market News' started by Lily, Dec 14, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    President Zuma appoints third minister in a week, but rand recovers

    After last week’s market plunge which knocked £73bn off the value of Britain’s biggest companies, shares are edging higher at the start of a key week for the global economy.

    All eyes will be on the Federal Reserve and whether or not it will raise US interest rates on Wednesday.

    We believe the combination is a good deal for BG investors and will be seen as a good deal by Shell holders in future. We do not believe Shell will try to renegotiate the terms agreed with the BG Board but will live with them. Everything the Shell chief executive has stated recently confirms this view.

    The only way in which the deal could fall apart is if a third party waits until Shell has received all 5 approvals and then submits a higher bid than Shell’s for BG. We understand that Shell and BG have 28 days to post documents to shareholders ahead of their votes. This is likely to be the only period a third party would use to make an alternative offer.

    [There is an] article in the Telegraph stating that several UK universities have purged all of Pearson’s material from their teaching materials in a row over the charging of eBooks - in some cases, reportedly upping prices by 100-fold - to make up revenues as print textbook sales decline.

    If correct, it looks like Pearson’s tactics have backfired. The article quotes a Pearson spokesman as saying the UK higher education business is a “small but growing part of Pearson” but the news adds to the feeling that the January trading update is likely to deliver another profit warning. Reiterate as top sell.

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