Tuesday, September 14, 2010

Liams Last Post : Rics and Zew set the tone , Paddy Power drops into the Buy zone , Fed rumours

Good Afternoon ,

 

Bit of a nothing day today,  UK RIC's survey set the tone with weaker outlook for UK house prices , there was also negative news on the UK inflation front with the upper 3% limit breached for the sixth month. The BOE faces a growing split with those talking of the need for rate rises to curb inflation whilst the opposite camp are very much in favour of further stimulus in the face of very sharp public expenditure cuts. So no one is happy.

 

German investor confidence fell to its lowest level in 19 months and marked the fifth monthly decline and the lowest reading since feb 2009 according to Bloomberg.  Te decline is seen as a reaction by investors to the slowdown in the rebound and the rising fears of a double dip.

 

Market prices were a real mixed bag today in Ireland with the financials giving up ground as did CRH and Grafton though Kingspan bucked the trend with a +0.6% gain.

 

A UK broker downgraded the UK bookies so Paddy Power dropped -3% which I think presents an interesting opportunity to get on board a company with real earnings momentum.

 

Tullow in a very politically astute manoeuvre has announced that it plans to list some of its shares in Uganda and has appointed a Ugandan investment bank to advise it.  Is this enough to help push the pendulum back in its favour ? only time will tell.

 

 

As I close a colleague points out a rumour coming out of a broker in the US that the Fed is to announce $1trio asset purchase program in Nov.... $$ weakness being attributed to this, EURUSD testing 1.30....

 

Have a good evening

 

Liam

___________________________________________

Liam Boggan

 

Merrion Stockbrokers

Tel.: 353-1-2404171

Mob:353-87-2313505

www.merrion-capital.com

Disclaimer www.merrion-capital.com/disclaimer.html

Merrion Stockbrokers Limited (registration no. 307878) is a limited liability company whose registered office is at Block C, The Sweepstakes Centre, Ballsbridge, Dublin 4, Ireland.

 

 

 

 

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