Bending the Golden Rule – MoneyWeek

***AllhailMrBrown?

howmuchtaxyoucouldpayJapansfragilefutureandmore

-–Sainsburyclosedasatopbluechipgaineryesterday。

Andnotthankstoitsgoodperformance。

Instead,tradersreckonedthatabidforthestrugglingretailerisimminent。

–Sainsburytraded1。

5%upongossipthataninvestorwaslookingtoplace4%ofthegroupssharesinthemarket,atabout290ppershare。

Whocoulditbe?

Well,talkativetradersspeculatedthattheSainsburyfamilycouldbelookingtoreduceitsholdinginthecompany。

Somethingtheywouldsurelyonlydoshouldtheirretailebeupforgrabs。

–ThebidrumourshelpedliftthebluechipindexintotheblackonWednesday。

TheFTSE100inched4pointsup,totradeat4,847。

TheFTSE250neareditsall-timerecordof7,149,climbing12pointstocloseat7,110。

TheAllShareindexalsocrept0。

1%up,totradeat2,477。

–BPclosed2%intheblackyesterday,astheoilandgassectoralsoclimbed1。

5%。

Thecrudesurgefollowedbetter-than-expectedearningsfromAmericasNo。

3oilcompanyConocoPhillips。

Meantime,theAmericanPetroleumInstitutewarnedthatcrudestocksfellbynearly4mbarrelslastweek。

–YetBPfindsitselfinaspotofbother,asTheTimesreportsthatthegroupwouldhavetopayupto£67mtocomplywithnewAmericancorporategovernancereforms。

ThiscouldmeanthatthegroupcoulddumpitslistingsintheUStoavoidtheextracost。

AndthatcomesjustdaysafterBPfrozeitsoperationsinIrantoappeasetheUS。

Despitetheblow,BPtraded9pupyesterday,withrivalShellalsoadding1%tocloseat465p。

–Vodafonesaiditsnagged3。

5%moresubscribersforthethreemonthstoDecember。

Butaccordingtothetelecomgiant,theaveragerevenueperuser–animportantmeasureofprofitability–continuedtofallAndthatsthankslargelytoJapan

–VodafonesEuropeanmarketsarestillsizzling:theUKgainedover600,000newsubscribers,whileGermanyaddedover800,000。

YetJapanstillprovesathorninthecompanysside–withonly36,000newsubscribersaddedinthequarter。

Vodafonessharepricetumbled0。

4%,totradeat139p。

RivalmmO2–duetoreportitsthirdquarterresultstoday–rosejustshortof1%tocloseat125p。

–Theeconomyreboundedtowardstheendoflastyearby0。

7%–upfromthethirdquarters0。

5%。

Theresult?

Well,BritainsGDPgrewby3。

1%in2004andprovedthatChancellorGordonBrownwasprettyspotonwithhiseconomic-expansionpredictions。

OurChancellorforesawGDPtoreach3。

25%lastyear。

–SoallhailMrBrown?

–Well,notquite。

AccordingtotheInstituteforFiscalStudies(IFS),theChancellorwillneedtoraisetaxesbyahealthy£11bntomakeupforhisspendingplans。

OnlyataxrisecouldputlaggingpublicfinancesbackontracktohitthetargetssuggestedinlastyearsBudget。

Whatsmore,MrBrowncouldverywellbreak,orattheleastbend,hisowngoldenrule–toborrowonlyforinvestmentpurposes。

–TheIFSreckonstheUKscurrentbudgetdeficitcouldbemorethan£3bnbiggerthisyearthanDecemberspreBudgetreportsuggests。

Thiscouldgrowto£6bnin2006。

–GovernmentborrowingwillbehigheroverthenextfewyearsthantheTreasurythinks,inlargepartbecausetaxrevenuesarenotexpectedtogrowasquicklyasithopes,theIFSnotedyesterday。

–YettheTreasurywastednotimeinhittingback。

–WhiletheIFSsfiguresswingaroundfromonemonthtothenext,therealityasshownbytodaysGDPfiguresandlastweekspublicfinancedataisthatthegovernmenthasentered2005oncoursetocontinueitsrecordperiodofeconomicgrowthwhilemeetingallitsfiscalrules,aTreasuryspokesmansaidyesterday。

–Meantime,theMonetaryPolicyCommitteediscussedneitherinterestratehikesnorcuts,theMPCsminutes–releasedyesterday–concluded。

Whatdidtheminutessay?

Well,quitesimplythattherehadbeenlittlenewsoverthemonth。

Infact,wewonderwhattheMPCdidchataboutduringtheirtwodaysofmeetings

–Thepoundstrengthenedonlackofrate-cuttingnews,totrade1%upversusthedollarat$1。

882byLondonsclose。

Itadded0。

2%againsttheeuro,totradeat€1。

439。

–AndChinapippedtheUStotheposttobecomeJapansbiggesttradingpartner。

Chinanowaccountsforaround20%ofallJapanesetrade–whereastheUSmadeup18。

6%oftrade。

YetthisisnotthebestnewsfortheJapanese

–JapanandChinahavenotbeenthebestoffriendsoflate。

TheyvequibbledovereverythingfromtheJapaneseshrinevisitedbythecountrysofficials–despiteitcommemoratingWorldWarIIcriminalstonaturalgasfieldsinthedisputedEastChinaSea。

Andnow?

–Well,nowJapanfindsitsrecuperatingeconomyallthemoredependentonChina。

AndthatcantbegoodUntiltomorrowHeatherDAltoMoneyMornin

MMfooter(onMMarticles)?

Thisarticleistakenfromourfreedailyinvestmentemail,MoneyMorning。

SignuptoMoneyMorninghere。

NakedTextNakedText


No Tags
亚博体育app官方下载地址