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Sep 19, 2012

Money Show Investors Daily Alert -September 19, 2012-. : How to Trade $2,000 Gold

Traders Daily Alert

Tips for Traders
Long Now, Short Later, Toby Connor

Options Idea

Charts in Play

Currency Corner

Trading Idea of the Day
How to Trade $2,000 Gold, John Nyaradi

Today's Featured Videos & Exclusive Interviews
Beyond the Buy-Write: Option Strategies of the Pros, Michael Khouw, Brian Stutland, Scott Nations
Global Trades for Final Quarter of 2012, Jack Crooks

Money Show Investors Daily Alert -September 19, 2012-: Goldman Sets Sights on Gulf Bonds

Investors Daily Alert

Jim Jubak on MoneyShow.com

Today's Top Pros' Top Picks

Today's Gurus' Views & Strategies

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MoneyShow.com Exclusive Interviews

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Ideas from Around the World

Today's Featured Videos & Exclusive Interviews

The Economist | New Selected Articles September 19, 2012-.:







Democracy in America: Mitt Romney's problems continue
The Republican nominee has upset a chunk of his party's elite with his latest gaffe
read more »

Poll: What the world thinks
Is America right to give Japan security guarantees over uninhabited rocks in the East China Sea?
read more »

Eastern approaches: Where is Europe's Roma policy?
The continent is struggling with one of its biggest societal problems
read more »
Banyan: It's Ahn
The entry of an intriguing new candidate turns the presidential campaign into a three-legged race
read more »
Video: Taking off
Pilotless helicopters are taking to the sky to deliver supplies to troops. Our correspondents discuss whether the technology could one day transfer from the battlefield to a neighbourhood near you
watch »
 
Baobab: Would you go to Timbuktu?
Mali, once a hot spot on west Africa's tourist trail, is struggling to attract visitors
read more »
Buttonwood: It's not just the poor who are living off handouts
Tax breaks are government payouts too
read more »
Online debate: Home-ownership
Should home-ownership be discouraged?
read more »
Meet business schools at the free online MBA Fair: November 14th-15th
Thinking about an MBA? Chat with admissions officers and browse virtual school booths this November. Visit 5 or more schools online for your chance to win an iPad. Sign up today

NYT | DealBook Afternoon Edition -September 19, 2012-.


Wednesday, September 19, 2012
TOP STORY
The Trade: Distortion in Tax Code Makes Debt More Attractive to Banks Jesse Eisinger of ProPublica says that banks use more debt than equity to finance their activities because a tax break makes the debt cheaper and encourages banks to gorge on more.
  • DEALBOOK »
  •  
    DEALBOOK HIGHLIGHTS
    Documents Shed Light on Early Concerns About Former Barclays Chief New documents released by the British Parliament on Wednesday shed light on regulators' early concerns about Robert Diamond Jr., the former chief executive of Barclays who stepped down amid the rate-manipulation scandal.
    Heineken Wins Support for $4.6 Billion Bid for Asia Pacific Breweries The Dutch brewer moved a step closer on Wednesday to securing the rights in Asia Pacific Breweries that it did not already own after a major shareholder backed the proposed $4.6 billion deal.
    LOOKING AHEAD
    Economic Reports Data to be released on Thursday includes weekly jobless claims, the Philadelphia Fed index for September and leading economic indicators for August.
    Corporate Earnings Companies releasing results on Thursday include ConAgra Foods, Rite Aid and Oracle.
    In the United States On Thursday, the House Transportation Committee will conduct a hearing about taxpayer subsidies to Amtrak; the House Financial Services Committee will conduct a hearing about the semiannual report of the Consumer Financial Protection Bureau; and the Senate Finance Committee and the House Ways and Means Committee will conduct a joint hearing about tax reform and the tax treatment of capital gains. The House Small Business Committee will conduct a hearing about the effects of sequestration on small businesses; a House Science subcommittee will conduct a hearing about the effects of international technology transfer on American research and development; and a House Judiciary subcommittee will conduct a hearing about enforcing international intellectual property laws.
    Overseas On Thursday, Premier Wen Jiabao of China, Herman Van Rompuy, president of the European Union, and José Manuel Barroso, president of the European Commission, will attend a European Union-China meeting in Brussels.
  • DealBook Video
    Business Day Live: Rising Tower Emerges as a Billionaires' Haven
    Business Day Live: Rising Tower Emerges as a Billionaires' Haven Behind a shocking statistic, the complex picture of who pays taxes. | A peek inside a billionaires' haven overlooking Central Park.
     

NYT | Opinion Today -September 19, 2012-.

The New York Times

September 19, 2012

Opinion Today


Campaign Stops

Our Revolting Elites

What does it say about our culture that the people funding presidential campaigns seem to regard their downscale fellow countrymen as a kind of alien race?
Opinionator | Fixes

A Digital Tool to Unlock Learning

PowerMyLearning, a program that any student, parent or teacher can use for free, helps students take ownership of their learning.
Just the Scandal of the Week, or a Turning Point?
Room for Debate

Just the Scandal of the Week, or a Turning Point?

A gaffe or scandal can end a campaign, or blow over in days. What makes one controversy fatal, and another a flash in the pan?
Op-Ed Contributor

Young, Gifted and Neglected

Public education's neglect of high-ability students imperils the country's future supply of scientists, inventors and entrepreneurs.
Op-Ed Contributor

Classifying Calories

The fate of earlier campaigns suggests that it will take much more than calorie information to change the way people eat.
The Bose in the Boson
Latitude

The Bose in the Boson

Some Indians are asking, with a straight face, that the "boson" in "Higgs boson" be capitalized to honor the work of the Indian physicist Satyendra Nath Bose.
'The Most Desperate Battle Ever Fought'
Opinionator | Disunion

'The Most Desperate Battle Ever Fought'

What a regiment of inexperienced Indiana soldiers saw at Antietam.
ADVERTISEMENT
Editorial

Mitt Romney, Class Warrior

Turning the rich against the poor is Mr. Romney's campaign tactic and his plan for governing.
Editorial

California and the Fourth Amendment

The costs of taking DNA samples from people arrested but not convicted dwarf the benefits. It is also, unfortunately, unconstitutional.
Editorial

Hello, We Must Be Going

Congress has decided politicking and vacationing is more important than getting the people's work done.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
Pennsylvania's Voter ID Law
Taking Note

Pennsylvania's Voter ID Law

The requirement is in jeopardy--and that's a good thing.
What Bush Knew, and Romney Doesn't
Evaluations

What Bush Knew, and Romney Doesn't

The Republican nominee has failed to distance himself from his predecessor's failures, but he's also failed to imitate his successes.
Mark Bittman Blog

Scourge of the Lionfish, Part 4: From Beautiful Novelty to Marine Invader

Just two decades ago, the beautiful and otherworldly red lionfish started showing up in south Florida and the Caribbean. Now they're a plague.

NYT | Opinion Today -September 19, 2012-: Our Revolting Elites

The New York Times

September 19, 2012

Opinion Today



Campaign Stops

Our Revolting Elites

What does it say about our culture that the people funding presidential campaigns seem to regard their downscale fellow countrymen as a kind of alien race?
Opinionator | Fixes

A Digital Tool to Unlock Learning

PowerMyLearning, a program that any student, parent or teacher can use for free, helps students take ownership of their learning.
Just the Scandal of the Week, or a Turning Point?
Room for Debate

Just the Scandal of the Week, or a Turning Point?

A gaffe or scandal can end a campaign, or blow over in days. What makes one controversy fatal, and another a flash in the pan?


Op-Ed Contributor

Young, Gifted and Neglected

Public education's neglect of high-ability students imperils the country's future supply of scientists, inventors and entrepreneurs.
Op-Ed Contributor

Classifying Calories

The fate of earlier campaigns suggests that it will take much more than calorie information to change the way people eat.
The Bose in the Boson
Latitude

The Bose in the Boson

Some Indians are asking, with a straight face, that the "boson" in "Higgs boson" be capitalized to honor the work of the Indian physicist Satyendra Nath Bose.
'The Most Desperate Battle Ever Fought'
Opinionator | Disunion

'The Most Desperate Battle Ever Fought'

What a regiment of inexperienced Indiana soldiers saw at Antietam.

Editorial

Mitt Romney, Class Warrior

Turning the rich against the poor is Mr. Romney's campaign tactic and his plan for governing.
Editorial

California and the Fourth Amendment

The costs of taking DNA samples from people arrested but not convicted dwarf the benefits. It is also, unfortunately, unconstitutional.
Editorial

Hello, We Must Be Going

Congress has decided politicking and vacationing is more important than getting the people's work done.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
Pennsylvania's Voter ID Law
Taking Note

Pennsylvania's Voter ID Law

The requirement is in jeopardy--and that's a good thing.
What Bush Knew, and Romney Doesn't
Evaluations

What Bush Knew, and Romney Doesn't

The Republican nominee has failed to distance himself from his predecessor's failures, but he's also failed to imitate his successes.
Mark Bittman Blog

Scourge of the Lionfish, Part 4: From Beautiful Novelty to Marine Invader

Just two decades ago, the beautiful and otherworldly red lionfish started showing up in south Florida and the Caribbean. Now they're a plague.

MarketWatch | Stocks and markets in the News | Wall street at Close Report: -September 19, 2012-.

By Myra P. Saefong

SAN FRANCISCO (MarketWatch) -- U.S. stocks finished higher Wednesday, buoyed by strength in shares of home builders after data on home sales came in better than expected. The Dow industrials DJIA +0.10% closed up 13.32 points, or 0.1%, at 13,577.96, its second-straight session gain. The S&P 500 SPX +0.12% added 1.73 points, or 0.1%, to 1,461.05 and the Nasdaq Composite COMP +0.15% rose 4.82 points, or 0.2%, to 3,182.62, following modest losses for both benchmark indexes over the past two sessions. On the S&P 500 index, consumer discretionary stocks, which include home builders, led advancers. The energy sector was the biggest laggard, as a bigger-than-expected climb in last week's U.S. crude supplies helped drag oil futures CLV2 -0.12% to their lowest level in six weeks.
Read the full story:

ADVFN III Evening Euro Markets Bulletin -September 19, 2012-.


ADVFN III Evening Euro Markets Bulletin  
Daily world financial news

Wednesday, 19 September 2012

London Market Report
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M&A rumour mill cranks up

Market Movers
techMARK 2,136.13 +0.17%
FTSE 100 5,888.48 +0.35%
FTSE 250 11,974.19 +0.34%
After trading in positive territory for most of the day Footsie dipped into the red after US markets opened lower, but bounced back into the black in the final 90 minutes of trading.

The day started well with the Japanese central bank unexpectedly opting to beef up its quantitative easing programme, a move which prompted a mini-stampede into mining stocks.

The minutes from the Bank of England's Monetary Policy Committee meeting earlier this month were, as usual, pored over by the tea-leaf and rune readers.

Opinions remain divided on whether an interest rate cut is in the pipeline, but most pundits agree that it won't be long - November, probably - before the Old Lady of Threadneedle Street is following the Bank of Japan and the US Federal Reserve, and turning on the quantitative easing taps again.
M&A market showing signs of life
Aside from the long-running Glencore/Xstrata saga, the summer has not been a great one for mergers & acquisitions (M&A) but there are signs that activity could be picking up.

United Utilities rose sharply on the back of renewed speculation over a potential takeover. Usually it is the Germans or French hoovering up industries vital to Britain's everyday life, but this time the rumours point to a consortium of funds including some from the Middle East as the likely buyers, with BofA Merrill Lynch speculating that the take-out price could be around 900p.

Accountancy software firm Sage was also put through the rumour mill. The group has often been touted as a likely acquisition by a bigger software rival, but today's rumours focused on a potential sale of the group's US business.

George O'Connor, an analyst at Panmure Gordon, gave the rumours short shrift, describing the suggestion as "tosh". O'Connor did speculate, however, that Sage could be touting one of its under-performing operating units to see whether anyone is interested.

"As this fresh rumour seeps into the market the price is likely to tick upwards thereby presenting investors with another opportunity to bag some profit." Sell, is O'Connor's advice.

William Hill and GVC Holdings, meanwhile, are in the early stages of putting together a joint bid for online gaming group Sportingbet.

The two firms said they envisaged an offer that would leave William Hill with Sportingbet's core Australian market and certain other locally licensed businesses, with GVC acquiring the remaining parts.

Africa focus

Platinum miner Lonmin initially shot up on the news that striking workers at its Marikana operations are to return to work on Thursday after a settlement was reached late on Tuesday night. By the close, gains were much more modest.

Imperial Leather soap maker PZ Cussons was wanted after a well-received trading update. The group said it is confident of a return to profitable growth this financial year, though conditions remain difficult in its core market of Nigeria and challenging elsewhere.
Shopper round
Online fashion and beauty store ASOS continued its recent barnstorming performance, boosting revenues by a third in the last quarter. Retail sales were up 31% year-on-year, with a 15% rise in the UK and a 42% jump in international trading.

It was a different story at French Connection, where the shares took a hammering after the group reported a first half loss. The fashion group, which issued a profit warning in May, posted a pre-tax loss of £6.3m in the six-month period ended July 31st 2012 compared to a profit of £0.7m in 2011. Revenue during the period fell to £96m compared to £102.8m a year earlier.

Technology company Smiths Group saw top line growth across all of its divisions last year, as revenue broke through the £3bn barrier. Headline profit before tax rose 7% to £554m from £517m the year before. The median forecast from the group of analysts following the stock was £451m. Statutory profit before tax dipped to £366m from £398m as a result of laundry list of exceptional items.

Commercial vehicle hire company Northgate said despite economic headwinds affecting both its UK and Spanish businesses, it continues to trade in line with company expectations.
Other markets
Gilts had a good day with the yield on the 10-year benchmark gilt dipping to 1.84% from 1.88% overnight. Yields move inversely to prices.

The most active contract for Brent crude ended the London trading session $3.36 lower at $108.67 a barrel, after the Energy Information Administration said crude inventories rose by 8.5m barrels in the week ended Sept. 14th.

FTSE 100 - Risers
Weir Group (WEIR) 1,824.00p +2.82%
United Utilities Group (UU.) 727.00p +2.76%
Rexam (REX) 434.60p +2.36%
Fresnillo (FRES) 1,868.00p +2.13%
SSE (SSE) 1,400.00p +1.89%
AstraZeneca (AZN) 2,959.00p +1.88%
ICAP (IAP) 344.00p +1.75%
HSBC Holdings (HSBA) 587.80p +1.71%
Lloyds Banking Group (LLOY) 39.50p +1.66%
ITV (ITV) 89.50p +1.65%

FTSE 100 - Fallers
Aviva (AV.) 333.40p -3.33%
Admiral Group (ADM) 1,090.00p -1.54%
Petrofac Ltd. (PFC) 1,622.00p -1.28%
Tullow Oil (TLW) 1,393.00p -1.28%
Imperial Tobacco Group (IMT) 2,336.00p -1.10%
Rio Tinto (RIO) 3,161.50p -1.00%
Aggreko (AGK) 2,373.00p -0.84%
Meggitt (MGGT) 407.50p -0.80%
Shire Plc (SHP) 1,877.00p -0.79%
Land Securities Group (LAND) 786.50p -0.76%

FTSE 250 - Risers
Centamin (DI) (CEY) 95.00p +4.80%
PZ Cussons (PZC) 318.10p +3.51%
Debenhams (DEB) 102.90p +3.47%
Chemring Group (CHG) 360.60p +3.32%
Mondi (MNDI) 627.00p +3.12%
Bank of Georgia Holdings (BGEO) 1,330.00p +3.10%
Talvivaara Mining Company (TALV) 175.70p +2.81%
St James's Place (STJ) 369.40p +2.73%
Telecom Plus (TEP) 859.50p +2.63%
Brewin Dolphin Holdings (BRW) 166.90p +2.52%

FTSE 250 - Fallers
Aquarius Platinum Ltd. (AQP) 46.75p -8.15%
IG Group Holdings (IGG) 449.50p -4.20%
Ocado Group (OCDO) 67.20p -3.59%
TR Property Inv Trust Sigma Shares (TRYS) 70.75p -2.41%
International Personal Finance (IPF) 310.00p -2.36%
COLT Group SA (COLT) 119.60p -2.29%
Premier Farnell (PFL) 181.10p -2.11%
Electra Private Equity (ELTA) 1,705.00p -2.01%
ITE Group (ITE) 206.00p -1.95%
William Hill (WMH) 312.60p -1.91%

FTSE TechMARK - Risers
Oxford Biomedica (OXB) 2.50p +13.64%
CML Microsystems (CML) 315.00p +4.65%
Promethean World (PRW) 24.00p +4.35%
Emblaze Ltd. (BLZ) 48.00p +4.35%
Phytopharm (PYM) 12.62p +3.06%

FTSE TechMARK - Fallers
AEA Technology Group (AAT) 0.060p -33.33%
Filtronic (FTC) 42.62p -9.79%
Optos (OPTS) 167.00p -5.65%
Vislink (VLK) 32.00p -3.76%
E2V Technologies (E2V) 130.50p -3.33%
Skyepharma (SKP) 97.50p -2.50%

Europe Market Report
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Most European Markets Finished With Modest Gains Wednesday

The majority of the European markets finished in positive territory Wednesday, following the weakness of the previous two sessions. One of the major catalysts today came from new stimulus measures announced by the Bank of Japan. The markets received further support in the afternoon, after the U.S. reported some solid housing data.

The Bank of Japan on Wednesday announced a fresh round of stimulus to revive the economy by expanding the asset purchase by another JPY 10 trillion. The central bank also cut its assessment of the economy, saying the recovery is "pausing."

In addition, the central bank extended the intended timescale for completing the asset purchases till the end of December 2013 compared to its previous deadline of end of June 2013.

Bank of England policymakers unanimously decided to maintain quantitative easing at GBP 375 billion and the interest rate unchanged at 0.50 percent, the minutes of the meeting held on September 5 and 6 showed Wednesday.

The nine-member Monetary Policy Committee discussed whether it was appropriate to modify or continue with the programme of asset purchases it had agreed at its July meeting.

Germany's two-year note fetched positive yield for the first time since June at an auction on Wednesday. The country raised EUR 4.084 billion from the sale of its federal notes due September 2014, Bundesbank said. The auction drew bids totaling EUR 8.446 billion against a target of EUR 5 billion. The yield on the two-year debt known as Schatz rose to 0.06 percent from zero percent seen in the previous sale on August 22.

The Euro Stoxx 50 index of eurozone bluechip stocks increased by 0.55 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, added 0.49 percent.

The DAX of Germany climbed by 0.59 percent and the CAC 40 of France advanced by 0.54 percent. The FTSE 100 of the U.K. rose by 0.43 percent and the SMI of Switzerland gained 0.51 percent.

In Frankfurt, Porsche gained 7.82 percent. The automaker won the dismissal of two investor suits in connection with the allegations that the company had lied about its failed Volkswagen takeover plan in 2008.

Volkswagen climbed by 1.96 percent, BMW rose by 1.46 percent and Daimler finished higher by 2.25 percent.

Commerzbank increased by 2.14 percent and Deutsche Bank added 1.74 percent.

In Paris, Bouygues dropped by 0.54 percent, but peer Vinci rose by 1.07 percent. HSBC downgraded Bouygues to "Neutral" from "Overweight," while initiating Vinci with a "Neutral" rating.

Michelin raised its adjusted earnings guidance for 2015 to 2.9 billion euros from its previous target of 2.5 billion euros. The stock closed up by 1.31 percent.

STMicroelectronics fell by 2.09 percent, after S&P Equity Research downgraded the stock to "Sell" from "Hold."

Renault advanced by 2.11 percent and Peugeot gained 1.40 percent.

In London, Lonmin climbed by 0.62 percent. The striking miners at its Marikana platinum mine in South Africa's North West province finally struck a deal with the management on wages after a 39-day violent strike. The protesting miners were demanding pay rises and recognition of a new union.

Smiths Group reported a decline in fiscal 2012 profit hurt by one-time costs. The British technology company's revenue, however, increased with growth across all divisions. The stock finished higher by 1.63 percent.

HSBC rose by 1.83 percent and Lloyds Banking Group gained 1.65 percent. Royal Bank of Scotland also climbed, by 0.49 percent. Holcim increased by 2.0 percent in Zurich, after JPMorgan raised its rating on the stock.

US Market Report
Stocks Posting Modest Gains In Mid-Day Trading

While buying interest has remained relatively subdued, stocks have moved modestly higher over the course of the trading day on Wednesday. The markets have benefited from a positive reaction to news out of Japan as well as U.S. housing data.

The major averages have moved roughly sideways in recent trading, clinging to slim gains. The Dow is up 44.02 points or 0.3 percent at 13,608.66, the Nasdaq is up 4.10 points or 0.1 percent at 3,181.90 and the S&P 500 is up 4.14 points or 0.3 percent at 1,463.46.

The modest strength that has emerged on Wall Street is partly due to news of additional stimulus from the Bank of Japan, although the move is largely seen as symbolic.

The Bank of Japan increased its asset purchase program by 10 trillion yen, but the purchases are exclusively earmarked for 2013.

In a research note, Capital Economics said, "The Bank of Japan surprised markets today with a move that gave the impression of coordinated easing by the major global central banks, providing a welcome boost to confidence."

"However, we had already expected them to ease by this amount in October, so although the timing is slightly earlier than we (and most others) had anticipated, it is not a game changer," the firm added.

Traders are also digesting a mixed batch of U.S. housing data, including a report from the Commerce Department showing that housing starts rebounded in August but still came in below economist estimates.

The Commerce Department said housing starts rose 2.3 percent to an annual rate of 750,000 in August from the revised July estimate of 733,000. Economists had expected starts to climb to 768,000 from the 746,000 originally reported for the previous month.

Building permits, an indicator of future housing demand, fell 1.0 percent to an annual rate of 803,000 in August from 811,000 in July.

A separate report from the National Association of Realtors showed that existing home sales jumped by more than expected in August, reaching their highest level since May of 2010.

NAR said existing home sales jumped 7.8 percent to an annual rate of 4.82 million in August from 4.47 million in July. Economists had expected existing home sales to climb to an annual rate of 4.55 million.

Chris Low, chief economist at FTN Financial, said, "Bear in mind this report, and this morning's housing starts, pre-date the Fed's QE3 mortgage purchase announcement. The Fed's help for housing comes on top of a recovery already in progress."

"Housing is not booming, but it is improving and will continue to do so in part because the Fed is determined to drive mortgage rates to new historic lows," he added.

Among individual stocks, Cracker Barrel (CBRL), AutoZone (AZO), and General Mills (GIS) are all posting notable gains after reporting their quarterly results before the start of trading.

Broker tips
Smiths, Ashtead, Kingfisher
On the whole analysts at Credit Suisse have a favourable opinion of the final results posted today by Smiths Group. They thus describe the company´s second half performance as “solid,” while highlighting the 10% top line growth and 19.2% margin achieved.

Nevertheless, they also take note of the company´s references to the ongoing macro uncertainty and the pressure on government spending, which led to some caution on the outlook for fiscal year 2013 (in particular for the second half of that year) and as a result, trim their forecasts for the next two fiscal years (2013 and 2014) by 2% an 1%.

Credit Suisse also calls attention to the fact that the “focus of the group is now shifting towards generating top line growth, primarily through 1) investment in new products and 2) expansion in growth markets.”

That now that the main restructuring program has been completed.

Credit Suisse analysts have reiterated their outperform recommendation on shares of Smiths, as well as their 1,200p price target.

Credit Suisse has issued a very bullish research note today on the shares of plant hire firm Ashtead. More specifically, its analysts cite several factors which, when combined, make the company their favourite in the sector. Additionally, they indicate that the company faces minimal downside risks based on their HOLT model.

For all of the above reasons they have decided to raise their price target on its shares to 400p from 316p beforehand, while reiterating their outperform rating.

This despite the 149% rise in its stock price over the last twelve months, which has seen the company´s share price outperform by no less than 120%.

In particular, they cite two reasons for the above. First of all, they highlight the fact that the structural shift to renting from owning construction equipment in the US is on track. In second place, the company has started to improve the profitability of its UK operations.

“Positive” risk-factors to watch out for are the possibility of a mild winter and the fact that their US EBITDA margin targets (39% estimated for this year and 41% in FY14E) remain substantially below management medium term guidance of around 45%.

Nomura has this morning downgraded its view on the shares of do-it-yourself retailer Kingfisher to neutral from buy.

This as housing starts in France have been declining since the start of the year, which should weigh on Brico’s performance, thus creating uncertainty around near-term trading for the business.

Furthermore, and across regions, “improvements in discretionary spend have been few, with significant recoveries unexpected near term,” the broker says.

For all of the aforementioned reasons, and the resulting limited visibility in the near-term, they expect the stock to continue trading below their discounted cash flow (DCF) valuation of 338p. Rather, they believe it will trade more in line with its 12x price-to- earnings multiple, hence their downgrade and the reduction in the price target to 287p from 328p before.