Anglo reveals results and review, Vodafone merges Dutch business
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The FTSE 100 is predicted to rise 27 points on Tuesday morning, extending the gains from the previous day.
Stocks to watch
Anglo American posted a pre-tax loss of $5.5bn after $3.8bn of write-downs since the half year, as it unveiled its promised "radical" overhaul of the business to counter crumbling commodity prices. Chief executive Mark Cutifani announced a new focus on diamonds, platinum and copper, with $3-4bn targeted from selling off its iron ore, coal and other bulk commodities. The final dividend was suspended, as announced in December, and will not be resumed until it is felt appropriate, while for the coming year $1.9bn net benefits to EBIT are targeted, with a 50% cut of central costs and 25% of capex to under $3bn will aim to keep net debt below $10bn by year-end and below $6bn in the medium term.
Vodafone and Liberty Global have agreed to merge their Dutch operations in a 50-50 joint venture to create a national unified communications provider in the Netherlands with complementary strengths across video, broadband, mobile and B2B services. Vodafone will make a cash payment to Liberty of €1bn to equalize ownership in the venture.
Paper maker Mondi said it expected full year underlying operating profits to be higher than the €767m achieved in 2014.
It added that there would be a special item charge of €47m which includes additional restructuring and closure costs and related impairments as well as provision for settlement of a legal case relating to the 2012 acquisition of Nordenia.
Newspaper round-up
The Bank of England has rebuffed criticism from the chief architect of the UK’s banking reforms by denying that it has watered down his recommended minimum capital levels for Britain’s biggest lenders. In a statement released late on Monday the BoE rejected that it had gone soft on UK banks and pushed back firmly against an article in Monday’s Financial Times by Sir John Vickers. – Financial Times
Living standards in the UK have finally made up the ground lost as a result of the financial crash following the boost to incomes provided by rising employment and falling inflation, according to the Resolution Foundation. The thinktank said that the longest squeeze on households in living memory had finally come to an end, with incomes surpassing their previous 2009 peak. – Guardian
A new German plan to impose "haircuts" on holders of eurozone sovereign debt risks igniting an unstoppable European bond crisis and could force Italy and Spain to restore their own currencies, a top adviser to the German government has warned.
“It is the fastest way to break up the eurozone,” said Professor Peter Bofinger, one of the five "Wise Men" on the German Council of Economic Advisers. – Telegraph
US close
The US stock markets were closed on Monday for the Presidents Day national holiday and will re-open on Tuesday.