City File: Lord Sterling's warning

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The Independent Online
NO SOONER had Lord Sterling warned about the weak dollar and its impact on P&O than the greenback began to recover. The stronger dollar plus lower interest rates will aid the group's North American shipping and construction interests and lift some of the gloom surrounding UK house building.

Brokers now reckon P&O will hit pounds 240m- pounds 250m this year against pounds 217m in 1991. P&O yields more than 10 per cent and the dividend is barely covered, but Lord Sterling has more or less indicated that the payout will be held. Credit Lyonnais Laing reckons P&O shares are set to leap from the current 378p to 500p by March.