3rd February 2013
1) The banks have been hit with yet another review this time surrounding interest rate swap misselling. Already the regulator is under pressure because it is proposing not to review swaps worth more than £10million because these larger businesses are deemed sophisticated. Some MPs want all businesses covered as the Telegraph reports. For banks, it obviously delays any chance of a return to normality though at least – from the point of view of bank investors – the hundreds of millions being discussed are nothing like those for payment protection insurance. It does means the cultural problems extend to yet another bank business area.
2) Apple is receiving advice from all sorts of quarters but this from Bankers Investment Trust may make sense. It suggests one way out of its share price troubles may be to crack the business market when it comes to tablet sales. But it also asks is the price too high?
3) As we know, intermediary Sanlam has dropped Invesco Perpetual’s Neil Woodford off its white list and on to its grey, though as MIndful Money argued last week investors should think long and hard before they do the same.
4) My word. Analysts at Citi say the FTSE could hit 7,000 by the end of the year as Investment Week reports. As the website notes, they are the most bullish of the market commentators.
5) Fund manager Ignis bond fund manager Chris Bowie warns that corporate bonds generally could see capital losses of as much as 30 per cent as he tells Citywire. He says for every one per cent rise in gilt yields, credit losses are about 7.8 per cent. Yields are at one per cent, but the long term trend is 3 per cent, hence the risk. He rates supermarkets over financials.