Market Report: Union strife weighs on Anglo American

Embattled miner Anglo American was beset with more problems at its Rustenberg mine yesterday, as a standoff between rival unions led to bloodshed. Guards fired rubber bullets on crowds fighting for control of union offices and nine workers and three security guards were injured in the resulting fracas.

It's bad news for Mr Cutifani, Anglo's new chief executive who takes over from Cynthia Carroll on April 1. Anglo booked a $1.49bn (£962m) loss for last year after two months of strikes at the same mine in the autumn and Mr Cutifani will have to convince investors that yesterday's violence doesn't mean it'll be more of the same this year.

Shares fell 56p to 1997.7p.

Other miners also suffered yesterday as commodity prices slumped. Kazakh copper specialist Kazakhmys suffered as the price of the metal fell to a three-week low and shares lost 20.5p to 726.6p.

Despite the bad news among miners, the FTSE 100 remained flat, with the American market on holiday for President's Day and UK investors remaining cautious. The top flight index dropped 10 points to 6318.19.

The biggest riser was retail estate giant Hammerson, with analysts pointing to rehashed takeover rumours. It added 16.8p to 497.2p.As London's fashionistas descended on Kensington Gardens for a fashion show by Burberry, the City's style followers were marking the luxury brand out as one to watch on the takeover front. John Guy at Berenberg Capital Markets reckons Burberry is a target for trade buyers who are "looking to add a quintessentially English luxury brand with best-in-class digital execution".

London Fashion Week is in full swing and Guy thinks Burberry is better placed than some luxury groups suffering from "mega-brand fatigue".

Guy reckons the likes of Louis Vuitton – owned by Paris-listed LVMH – are facing "risks of relative sales weakness". He said investors have overreacted to bad news at Burberry and the firm's recent move to hire media expert John Smith as chief operating officer will help to boost its "digital media and sales platform and expand mobile technology".

The luxury fashion brand today unveiled its "bespoke personalisation service", an online tool allowing shoppers to not only buy items straight from its catwalk collection but also have their name stitched in. Guy rates Burberry a buy with a share-price target of 1600p. But punters were slow to follow Guy's fashion tips and the shares added just 1p to 1355p.

The City was keen to turn up the volume on bid rumours surrounding ITV. The media sector has been in focus recently after US giant Liberty Global's $23.3bn agreed takeover of cable company Virgin Media.

For ITV, rumours of possible takeover interest have been on the schedule for some time, with speculation that private-equity bidders are the most likely candidates for the Dancing on Ice broadcaster and TV production group.

Traders today also revived the suggestion that ITV could attract interest from retail billionaire Sir Philip Green and music mogul Simon Cowell.

ITV has been upping its profile in the States thanks to the cult-appeal of its Downton Abbey show and its deal to buy a majority stake in US-based reality TV producer Gurney Productions in December. The US angle could be an added bonus for any potential buyer, traders suggested. In response, ITV's share price hit its highest level since mid-2007, rising 3.3p to 120.4p. The climb came after it had already gained 3 per cent last Friday.

On the small-cap index, despite Canaccord Genuity's cutting its target price for electrical company Volex from 116p to 97p, punters piled in.

Shares in the cable-maker have plummeted since last autumn after Apple cut orders but last week the firm – which counts Nat Rothschild as its biggest shareholder – said it was in line with its much-reduced earnings targets and traders decided the price was right to move back in.

Volex was the highest riser on the small-cap index, soaring 15p to 112p.

The horsemeat saga galloped along on the small-cap index as sandwich and soup-maker Greencore clarified that none of its other products have been contaminated with horse meat after it admitted last week that its Asda's Chosen By You 350g Beef Bolognese Sauce showed trace levels.

Shares in the Irish food manufacturer recovered 7.5p to 100p today.

Elsewhere on the small-cap index, Panmure Gordon's Graham Jones reckons Premier Foods, which owns brands such as Mr Kipling, Oxo and Hovis, might have to ditch one of its stable ahead of its preliminary results on February 21.

Jones said: "We see further disposals as possible but it might take the sale of power brands to significantly improve the balance sheet."

The prediction spooked the market and Premier shares lost 5.25p to 77.75p.



Investors should have a healthy appetite for shares in Domino's, according to Numis Securities. Douglas Jack from the broker has a Buy recommendation on the pizza delivery company ahead of its final results next week and says he is looking forward to an update from its European operations which "we believe could drive a surge in growth". He has a target price for Domino's of 625p - shares are currently going for roughly 533p.



Morrisons may be buying 49 Blockbuster sites in an attempt to boost its portfolio of convenience stores, but that hasn't stopped Shore Capital labelling it a Sell. Analysts at the broker warn that the supermarket "needs to deliver an improvement in performance as the recent data has been most concerning". They have a price target of 261p, with shares at the moment in the region of 263p.



Keep hold of your shares in Amec, says Canaccord Genuity. The engineering services group saw its share price slump last week after releasing its full-year results, and while scribblers at Canaccord describe the fall as "harsh", they add that they "still struggle with Amec's slower growth against its peer group". They have kept their target price at 1215p, with shares currently around 1018p.

Start your day with The Independent, sign up for daily news emails
Barn owls are among species that could be affected
charity appeal
Sarah Silverman (middle) with sister Reform Rabbi Susan Silverman (right) and sister actress Laura Silverman (left) at Jerusalem's Western Wall for feminist Hanuka candle-lighting ceremony
peopleControversial comedian stages pro-equality Hanukkah lighting during a protest at Jerusalem's Wailing Wall
Arts and Entertainment
The Bach Choir has been crowned the inaugural winner of Sky Arts’ show The Great Culture Quiz
arts + ents140-year-old choir declared winner of Sky Arts' 'The Great Culture Quiz'
After another poor series in Sri Lanka, Alastair Cook claimed all players go through a lean period
cricketEoin Morgan reportedly to take over ODI captaincy
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
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

Carlton Senior Appointments: Private Banking Manager - Intl Bank - Los Angeles

$200 - $350 per annum: Carlton Senior Appointments: Managing Producer – Office...

Carlton Senior Appointments: San Fran - Investment Advisor – Ind Advisory Firm

$125 - $225 per annum: Carlton Senior Appointments: San Fran - Investment Advi...

Sheridan Maine: Commercial Finance Manager

Up to £70,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Sheridan Maine: Regulatory Reporting Accountant

Up to £65,000 per annum + benefits: Sheridan Maine: Are you a qualified accoun...

Day In a Page

Homeless Veterans appeal: 'You look for someone who's an inspiration and try to be like them'

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Could cannabis oil reverse the effects of cancer?

Could cannabis oil reverse effects of cancer?

As a film following six patients receiving the controversial treatment is released, Kate Hilpern uncovers a very slippery issue
The Interview movie review: You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here

The Interview movie review

You can't see Seth Rogen and James Franco's Kim Jong Un assassination film, but you can read about it here
Serial mania has propelled podcasts into the cultural mainstream

How podcasts became mainstream

People have consumed gripping armchair investigation Serial with a relish typically reserved for box-set binges
Jesus Christ has become an unlikely pin-up for hipster marketing companies

Jesus Christ has become an unlikely pin-up

Kevin Lee Light, aka "Jesus", is the newest client of creative agency Mother while rival agency Anomaly has launched Sexy Jesus, depicting the Messiah in a series of Athena-style poses
Rosetta space mission voted most important scientific breakthrough of 2014

A memorable year for science – if not for mice

The most important scientific breakthroughs of 2014
Christmas cocktails to make you merry: From eggnog to Brown Betty and Rum Bumpo

Christmas cocktails to make you merry

Mulled wine is an essential seasonal treat. But now drinkers are rediscovering other traditional festive tipples. Angela Clutton raises a glass to Christmas cocktails
5 best activity trackers

Fitness technology: 5 best activity trackers

Up the ante in your regimen and change the habits of a lifetime with this wearable tech
Paul Scholes column: It's a little-known fact, but I have played one of the seven dwarves

Paul Scholes column

It's a little-known fact, but I have played one of the seven dwarves
Fifa's travelling circus once again steals limelight from real stars

Fifa's travelling circus once again steals limelight from real stars

Club World Cup kicked into the long grass by the continued farce surrounding Blatter, Garcia, Russia and Qatar
Frank Warren column: 2014 – boxing is back and winning new fans

Frank Warren: Boxing is back and winning new fans

2014 proves it's now one of sport's biggest hitters again
Jeb Bush vs Hillary Clinton: The power dynamics of the two first families

Jeb Bush vs Hillary Clinton

Karen Tumulty explores the power dynamics of the two first families
Stockholm is rivalling Silicon Valley with a hotbed of technology start-ups

Stockholm is rivalling Silicon Valley

The Swedish capital is home to two of the most popular video games in the world, as well as thousands of technology start-ups worth hundreds of millions of pounds – and it's all happened since 2009
Did Japanese workers really get their symbols mixed up and display Santa on a crucifix?

Crucified Santa: Urban myth refuses to die

The story goes that Japanese store workers created a life-size effigy of a smiling "Father Kurisumasu" attached to a facsimile of Our Lord's final instrument of torture
Jennifer Saunders and Kate Moss join David Walliams on set for TV adaptation of The Boy in the Dress

The Boy in the Dress: On set with the stars

Walliams' story about a boy who goes to school in a dress will be shown this Christmas