THE TIPSTER
The Bank of England’s quarterly Inflation Report should provide some excitement for the currency markets this week. All market participants will be eagerly awaiting what the report has to say about growth prospects in the UK
and whether further quantitative easing remains a real possibility. Capital CFDs quotes a price of €1.1590-€1.1594 for sterling-euro.
Walt Disney last week announced that it had found a partner for its first theme park in mainland China located near Shanghai. The news helped lift the company’s stock and with question marks still hanging over the scope for economic recovery and consumer confidence in the US, there’s nothing Mickey Mouse about pushing for further development in emerging markets. However, Disney is due to report its fourth quarter earnings on Thursday and any lacklustre tone about demand in its home market could see the shine taken off recent gains. The current IG Markets price for Disney is $37.16-$37.24.
With only 7 per cent of its profits derived from magazine publishing, United Business Media (UBM) has successfully completed its transformation into a largely events-oriented, B2B business with comfortable and resilient operating margins, combined with a sound financial situation, according to analysts at Alphavalue.
Since last July, the UBM share price appears to have bounced a lot, gaining 19 per cent over the last three months and 45 per cent year-to-date. Although it appears fully valued against peers at current prices, its discounted cash flow offers a clear upside at 844p in spite of cautious Ebitda margin expectations. Spreadex offers 674.8p-678.7p.
With gold and silver continuing to surge ahead after last week’s stimulus package from the Fed, the likelihood of $1,500 an ounce by the end of this year draws ever closer for the yellow metal. Equally, silver could well hit $33 an ounce. The CMC Markets’ spread for gold is $1,399.50-$1,399.90 while it offers silver at $27.26-$27.29.
Evolution Securities is still extremely positive about the outlook for London-listed bank Standard Chartered, which it has had as its core buy since July 2009. Standard Chartered has performed well throughout the rights issue, touching an all-time high of 1,975p last week. But with £3bn more capital following the rights issue, the bank will now have fewer constraints to growth in emerging markets. This should push the consensus up in the future despite the stock trading near record highs. Spreadex quotes 1,932p-1,936.50p.