Market Report: Revenue slide takes toll on Tullet Prebon

Being a "hated" banker is tough, but it's not much better being a broker. A quiet summer, too many people to do an ever-dwindling amount of work, and a host of regulatory changes on the horizon mean it is getting tougher for broking firms, analysts reckon.

Results from inter-dealer broker Tullett Prebon highlighted the problem yesterday. The company reported a 12 per cent slide in revenues compared to last year for the July-October period and things got worse when superstorm Sandy shut down Wall Street.

HBSC analysts said: "Uncertainties abound. There are regulatory headwinds ahead… It is difficult to predict that volumes will recover in 2013 as there are uncertainties related to Basel III, collateral requirements and the threat from exchanges."

Numis analyst James Hamilton summed it up and said: "We expect revenues to remain under pressure as the banks continue to reduce trading activity."

Tullett Prebon shares lost 22p to 240p. The company also took a £7m charge in legal fees over three ongoing disputes with rival BGC.

City sacking season is in full swing. If you are one of the unfortunate many facing the axe, there was perhaps a small glimmer of hope from one share tipster.

Analysts at UBS think there is still some growth in "professional jobs".

UBS, which itself is axing 10,000 jobs, with around 2,000 going in London, said "emerging markets are an interesting, long-term prospect" and "although structural growth in the professional segment is lower than some believe, we still prefer the growth and margin prospects".

Its stance means white-collar recruiter Michael Page's recent share price fall, after its third-quarter revenues shrunk last month, could be overdone.

UBS's William Vanderpump said: "Michael Page is not immune to these pressures, but we continue to see it as relatively well positioned within its peer group."

UBS raised its rating from neutral to buy and gave it a target share price of 450p, up from 400p. It also rates recruiters SThree and USG as buys but gives Adecco a neutral rating.

Michael Page's shares booked in an 8.3p gain, to 366.5p.

A riser on the benchmark index was car insurance group Admiral. Its shares drove to the top of the index after Bank of America Merrill Lynch analysts gave it a buy rating with a share price target of 1,180p.

Analyst William Hardcastle reckons it is time to buy the car insurer on the prospect of its dividend.

He said: "The 2013 estimated dividend yield of 9.1 per cent... is now the highest in the sector."

Admiral shares raced up 35p to 1,054p.

Diageo confirmed its purchase of a stake in India drinks group United Spirits. The long-mooted deal sees the global drinks giant take its stake to 53.4 per cent. Diageo's shares trickled up 14p to 1,803p.

Aerospace expert Rolls-Royce said it will deliver good growth in full-year profit, despite lowering forecasts for its marine division. Its shares hovered up 16p to 877p, after the third-quarter update.

Investors were feeling cautious amid weak earnings updates and the FTSE 100 index was also hit by ongoing concerns on the euro crisis and it lost 6.37 points to 5,769.68.

Gas giant BG Group has been the subject of takeover talk since its shares crashed 20 per cent after it issued a shock warning on future production. It has hired bankers to advise on how to protect itself from any hostile approaches. City traders, who think its production warning was a wobble, not crisis, rumour a bid could still emerge. Its shares hissed up 13p to 1,057p.

Talking of long-running bid speculation, publisher Informa is still touted as a target for German publishing giant Axel Springer. It booked a 2.4p rise to 393.1p.

The deadline for William Hill and AIM-listed Gaming VC to make a firm offer for online gaming group Sportingbet is Tuesday, but City sources think it will ask for another extension for its £530m bid. Sportingbet's shares, on the small-cap index, edged down 0.5p to 51.25p.

Back on the mid-cap index, insurer Beazley said the impact of superstorm Sandy "will result in a material loss to the insurance industry", but said it "is not possible to quantify the impact on Beazley at this stage". In its third-quarter update, the company said premiums written for the nine months to October were up 9 per cent compared with the equivalent period last year. The shares slipped 0.3p to 172p.

Suggested Topics
Start your day with The Independent, sign up for daily news emails
ebooksA celebration of British elections
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Ashdown Group: Editor-in-chief - Financial Services - City, London

£60000 - £70000 per annum + benefits : Ashdown Group: A highly successful, glo...

Ashdown Group: Junior Application Support Analyst - Fluent German Speaker

£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...

Guru Careers: Management Accountant

£27 - 35k + Bonus + Benefits: Guru Careers: A Management Accountant is needed ...

Guru Careers: Project Manager / Business Analyst

£40-50k + Benefits.: Guru Careers: A Project Manager / Business Analyst is nee...

Day In a Page

General Election 2015: Ed Miliband's unlikely journey from hapless geek to heart-throb

Miliband's unlikely journey from hapless geek to heart-throb

He was meant to be Labour's biggest handicap - but has become almost an asset
General Election 2015: A guide to the smaller parties, from the the National Health Action Party to the Church of the Militant Elvis Party

On the margins

From Militant Elvis to Women's Equality: a guide to the underdogs standing in the election
Amr Darrag: Ex-Muslim Brotherhood minister in exile still believes Egypt's military regime can be replaced with 'moderate' Islamic rule

'This is the battle of young Egypt for the future of our country'

Ex-Muslim Brotherhood minister Amr Darrag still believes the opposition can rid Egypt of its military regime and replace it with 'moderate' Islamic rule, he tells Robert Fisk
Why patients must rely less on doctors: Improving our own health is the 'blockbuster drug of the century'

Why patients must rely less on doctors

Improving our own health is the 'blockbuster drug of the century'
Sarah Lucas is the perfect artist to represent Britain at the Venice Biennale

Flesh in Venice

Sarah Lucas has filled the British pavilion at the Venice Biennale with slinky cats and casts of her female friends' private parts. It makes you proud to be a woman, says Karen Wright
11 best anti-ageing day creams

11 best anti-ageing day creams

Slow down the ageing process with one of these high-performance, hardworking anti-agers
Juventus 2 Real Madrid 1: Five things we learnt, including Iker Casillas is past it and Carlos Tevez remains effective

Juventus vs Real Madrid

Five things we learnt from the Italian's Champions League first leg win over the Spanish giants
Ashes 2015: Test series looks a lost cause for England... whoever takes over as ECB director of cricket

Ashes series looks a lost cause for England...

Whoever takes over as ECB director of cricket, says Stephen Brenkley
Fishing for votes with Nigel Farage: The Ukip leader shows how he can work an audience as he casts his line to the disaffected of Grimsby

Fishing is on Nigel Farage's mind

Ukip leader casts a line to the disaffected
Who is bombing whom in the Middle East? It's amazing they don't all hit each other

Who is bombing whom in the Middle East?

Robert Fisk untangles the countries and factions
China's influence on fashion: At the top of the game both creatively and commercially

China's influence on fashion

At the top of the game both creatively and commercially
Lord O’Donnell: Former cabinet secretary on the election and life away from the levers of power

The man known as GOD has a reputation for getting the job done

Lord O'Donnell's three principles of rule
Rainbow shades: It's all bright on the night

Rainbow shades

It's all bright on the night
'It was first time I had ever tasted chocolate. I kept a piece, and when Amsterdam was liberated, I gave it to the first Allied soldier I saw'

Bread from heaven

Dutch survivors thank RAF for World War II drop that saved millions
Britain will be 'run for the wealthy and powerful' if Tories retain power - Labour

How 'the Axe' helped Labour

UK will be 'run for the wealthy and powerful' if Tories retain power