Price of gold like a crisis

There is still scope for gold to outperform, as the price adjusted for inflation is medium off the coast of its peaks 30 years ago. Photo: ALAMY

"Gold is likely to record highs if disorder continues," said Adrian Ash, Director of research at the tomb of Bullion, which holds more than $billion (621 m £) gold for customers.

At $ 1 405, the price is already closing in on his record of $1,423.75, struck on 6 December last year.

"Gold is a form of insurance crisis, which retains only pay", said Mr. Ash. "If you have purchased at Northern Rock began to crumble you would have doubled your money now.". He kept payment as an assurance of crisis for the past four years. »

Indeed, the final nail however big shares some similarities with the situation in which the world is now.

"There are interesting with 1980 historical comparisons when the tanks went in Afghanistan and he was weak leadership in the United States," said Mr. Ash.

"Back then us also saw outbreak of oil prices and inflation, making the sound events today very similar to the last time really succeeded gold medal."

But there is always place for outperformance, as the price adjusted for inflation is always medium off the coast of its peaks 30 years ago. He hit $ 850 an ounce in January 1980, which is something of the order of $2 250 when adjusted for inflation. If the 1980s are really return, or much beyond a run.

Capital Economics, headed by economist and Telegraph columnist Roger Bootle, scheduled in December that gold could hit $ 1,600 in 2011 and reach $2,000 at the end of 2012.

"We are more positive on gold". A firmer dollar, fears of inflation if feather and large appetite for risk may be limited in the coming months. But the price of gold should continue to be supported by demand for shelter with other possible economic and financial shocks Capital Economics said.

However, it is political unrest driving the price higher than at the present time - is a very political metal. "Buying gold is always a political investment because you are essentially disengagement of the monetary system of the world," said Mr. Ash.

With the money continues printing via quantitative easing to the United States, many lose faith of global currencies. It is not just investors who are frightened by printing crawling of money by the Fed or investors concerned by inflation are turning to gold. Central banks are too.

Earlier this month, the World Gold Council revealed that central banks became net purchasers of metal in 2010 for the first time since 1988. Until 2009, the central banks had been unloading their reserves of gold, believing he could go no higher, but things have changed.

Historically, Western Governments had been holders of gold, but now central bankers in emerging markets more and more purchase in the history of gold.

"Emerging nations which have not historically supported their gold coins and therefore have not acquired vast holdings of the metal are redressing the situation," said Daniel Major, an analyst with metals at RBS. "The trend is characterized by Russia, where purchases are planned to continue to 100 tonnes per year, having bought 135 tonnes last year."

China began to purchase of its massive holdings of debt denominated gave substantial currency of the country risk in its reserves. The most recent American finance figures show that China held almost $892bn we obligations.

"China's gold reserves had tonnes at end of 2010 represented 1. FP7 just to forex total reserves", said Mr Major. It would be surprising that the Chinese did not wish to diversify their reserves more.

There are several ways to play the price of gold - take the physical metal exchange funds shares traded. The price is likely to remain volatile but high, therefore equities are a good way to play the merchandise. You invest in gold companies that have production, but also the possibility of increasing their production or reserves.

Whenever you turn on the TV, you can find another reason to buy gold. It seems that crises just won't go away.

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Share price up to the levels pre-banking crisis shoot

Move triggered hopes that the largest global economy will begin to develop, encourage investors to buy shares and climb the price on the stock markets from around the world.

The book reached its highest level against the dollar since January more than $1.62 as the Bank of England has kept historical low 0.5% interest rate.

The Bank decided against pumping money into the system, but the Chancellor said yesterday that facilitate further quantitative is a possibility if the economy slows significantly next year.

George Osborne told MEPs that monetary policy, spending, the Government step should be the "main"tool for stimulating economic demand.

Experts said that floating FTSE is good news for the millions who relied on actions, although they warned that it was not evidence the economy was on track to make a quick recovery.They also warned that many savers find life difficult for some time yet.

The stock market in London, which includes more than 1,000 companies is approximately 1.8 billion to £.A large part of the invested money is owned by the Corporation or public sector pension funds.

The value of the stock market has a direct effect on the size of a pension that someone enjoys if they purchase an annuity on their retraite.Millions households have savings invested directly in equities - many thanks to savings accounts (ISAs), whose annual limit is passed earlier this year to £ 7,200 to £ 10,000.

Someone whose cumulative investment in an ISA was worth £ 20,000 when the market was at its nadir in the spring of last year would have increased the value of their portfolio £ 11,600.

Net gains yesterday followed several months of encouraging economic news.Manoj Ladwa, senior capital ETX trader said: "even if the decision to other funds of pump in the u.s. economy was a surprise, it seems certainly given the equity market."

David Buik, associate principal at BGC Partners, explained the jump in the price of the shares: "there was a momentum of quantitative easing, third quarter earnings were much better than expected, and there is no cloud storm on the horizon that austerity package starts to bite."

Week last economy showed the official figures of the United Kingdom had increased by two per cent in the last six months.

Mark Dampier, Hargreaves Lansdown, an independent financial adviser, said: "much of this gathering is driven by EQ in the États.Mais not enough credit is given to retail - investor private shareholders - in the United Kingdom .they started back on the market and were buying shares seriously in recent months."

"And politicians have been big sellers.Whenever they are taxes, a judicious intelligence looks to the taxe.Avec funding the upper limit of £ 10,000 ISA many have been profiting by buying shares.»

The majority of companies in the FTSE 100 index earn profits abroad, most experts consider the index of blue chip to take account of health economy internationale.Cependant, the FTSE 250 - small businesses, which most do their business in Great Britain - was also renaissante.Il closed until 140.18 yesterday evening at 11,016.46, a maximum of three years.

Mr. Dampier has added: "" companies reported that profits attendus.De companies made it better that Governments should done: cut their debts and get their houses in order .they are reaping the benefits now. ""

Economists warned that the resurgent markets were not a sign that life would be best for the majority of consumers.

Charles Davis at the Centre of the economy and research companies, a think tank, said: "we had some surprisingly strong economic data, but it has not improved from one day to the next."

"There are winds .Familles economy are feeling the pinch of rising cost of living at a rate much faster than average gains.Et which is rising year next TVA and the effects of reduced benefits and public job losses increased."

Investors with money in a bank or building society were warned that they were unlikely to take advantage of the best savings rates.

Although the Bank of England voted against a fresh episode of quantitative easing, most believe that it will keep rates low interest for a future time.

"Cash savers have had a shocker and they will continue to do so, said Mr. Dampier.

Howard Archer, UK to INS Global Insight Chief Economist said: "ahead still interest rates remain low current weakness in registration of 0.5% until at least late 2011."

"In addition, we would not rule out interest rates remain low 0.5% by 2012."

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Minors hoist large cap as the price of metal Bond

With gold reaching another top and silver destabilization $40 an ounce for the first time since 1980, as well as copper checking, Fresnillo and Randgold resources advanced 38 p to £ 16,46 and 110 p to £ 53.40 respectively.

But it was not just surging metal prices having a positive impact on minors. M & A potential reactions were also the towers, invited by expectations that commodity trading house, Glencore, will float in London. Swiss-based Glencore already has almost 35pc of Xstrata and mines and the logistics of the chains around the world, as well as trade commodity. Bernstein analysts believe that Glencore could float in the second quarter of this year and perhaps try to merge with Xstrata.

Then, analysts estimate, the combined entity could make room for anglo american. The broker believes that such acquisition may be motivated by factors, including an overlap of solid goods between the two companies, including copper and nickel.

"Even outside this scenario, we believe that Anglo American is the target of acquisition probably among the large diversified miners and might be of interest in the company of a number of his peers," said Bernstein analysts.

They have highlighted two other potential M & A among minors diverse major, including bhp billiton to another offer of Rio tinto and Xstrata sell himself to the Chinese of a takeover of 30pc premium. Xstrata advanced 40½p to £ 125 p to £ 33.44 15.13½ and Anglo American. BHP Billiton and Rio Tinto progression 68½ £ 25.85½ and 139 p to £ 45.24 respectively. Minors midcap kenmare Resources and African Barrick Gold advanced 3½ to 49 p and p 18½ to 563, respectively.

Activity in the resource sector helped establish the benchmark on a firm footing after it slipped back later Thursday following another earthquake in the Japan. The FTSE 100 rose 48.38 points to 6055.75, then that the FTSE 250 points 66.77 at 11726.19.

Also on the rise has been undertaken of security, G4S, who set p of 3.6 to 262,7 after purchasing group Cotswold, a provider of surveillance, of £ 10. 2 m.

Ticks too was drug manufacturer, Shire, higher at £ 18.19 28 p. He has given boost by the American Food and Drug Administration (FDA) by saying that it was not recommending changes in the use of stimulants to treat hyperactivity, such as Adderall XR of the County, after a review of a study on the potential heart disease risks posed by drugs. The FDA has not yet give an update completes its review, but traders were encouraged by the positive signals from surveillance of drugs.

"Even if not absolutely definitive, that is positive for the stimulant class and Shire," said Bernstein analysts. "" "". Concerns about the possibility of a wrong result moderate our enthusiasm for Shire. »

Join Shire was Scottish & Southern Energy, spread up to 29% to £ 13.12 as Credit Switzerland developed at the enterprise level of public services "outperform" from "neutral", which raised its price target to £ 12.25 £ 14.00.

Conversely, Credit Switzerland cut ICAP of "neutral" to "underperform" for purposes of evaluation, sending broker disappear down 21 519 p.

Drag-back was too Aggreko, who reached 30 p £ 16.66, that Morgan Stanley, also citing reasons for the evaluation, cut electricity provider temporary to "equalweight" from "overweight".

As oil rose to a high airlines, 30 months prices fell from favour. On the top flight, International Airlines Group slid 5.6 p 217.4 while peer midcap easyJet declined 8.7% 324.3. Also weighing on this last point was a note from UBS cut its price target to 460 p 420 p, but keeping its rating to "buy".

Leading the laggards, however, was online games company bwin.party, which sank 6.4 c p. With investors still scratching his head on the implications of the German States - apart from the Schleswig-Holstein - proposes to strengthen their regulations on gambling, Numis analysts recalled the words of Lord Palmerston: "only three people have never really understood the Schleswig-Holsteinle Prince Consort business"who is dead, a German Professor, who lost the reason and me, who have forgotten all about it. »

Since the emergence of proposals Wednesday, the share of the bwin.party price slipped 18 5pc, as worried investors of the potential impact on earnings. But analysts at Numis thought that it was an overreaction, "which will reverse as the proposed Act is improved in the coming months" and retained their "buy" rating.

However, UBS analysts cut their rating to "sell" from "neutral", with a price target of p 100 185 p.

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Next week: price BP and Shell Oil to increase their profits

Indices of managers of the last purchase (PMIS), manufacturing, construction and services sectors survey will be examined for indications on how the UK started in 2011. Some economists believe that the economy will appreciate a bounce-back this quarter as companies catch up with work delayed. This hope is outweighed by concerns over the impact of public spending cuts.

• RYANAIR cope with rising oil prices is a major point of discussion when the airline announces third quarter results. While the carrier is 90pc covered approximately $ 73 per barrel at the end of March through analysts are some quiz Ryanair boss Michael O'Leary on political coverage go ahead now that oil is close to $100 per barrel.
• UBS is forecast for the quarter, partly due to disturbances of the winter, an operating loss of 21 million euros (£ 18 million)
sales up to EUR 612 million to EUR 700 million.

Full-year results

No application

Interim results

Filtronic

Trading update

Mitie, Ryanair

Economy

The land registry house price index

Meetings

PhORM (AGM)

• ARM Holdings, the designer of microchips for virtually all smartphones in the world and tablet devices, including iPhone and iPad, should declare year-round profits before tax of approximately 160 million pounds compared to 96 m £ a year earlier. Sales are expected to come in at about 100 million pounds sterling more than 400 m from £ when it announces its annual results on Tuesday.
•Ocado, online grocery retailer that sells food, Waitrose will publish its results for the first year since its introduction on the stock market last summer. The city expects Ocado to the result before interest, taxes and depreciation (EBITDA) of
approximately 22 million pounds, more than 9 million to £ last year.

Full-year results

ARM Holdings, autonomy, BP

Interim results

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National Grid, water of Northumbria, Ocado

Economy

Manufacturing PMI for January, the Bank of England and lending money for December figures

Meetings

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Plasmon, Imperial Tobacco

Economy

Construction PMI for January

Meetings

Imperial Tobacco (AGM)

•Consumer goods giant Unilever will publish its results for the year. In its update of the third quarter, shampoo Sunsilk and PG board manufacturer has reported an increase in turnover, driven by strength in emerging markets. Forecasts updated consensus sales to €44 MD (£ 38bn) and profit before tax of. 93bn €5. Written in advance the results of the year, Citigroup analysts stated that "any guidance on the rising costs and ability to Unilever to transmit their be a key element of sentiment on the stock and, indeed, the sector".
The broker said: "the last spike in raw is worrying, and given the backdrop of mac ro, it is unlikely that food companies will be able to go to the pricing as easily as in 2008." Proof of US food sector, however, is encouraging and points taken early signs of pricing worms and sticking. »
•Healthcare giant GlaxoSmithKline (GSK) will unveil its annual results on Thursday. Earlier this month, knowledgeable company would book a £ 2 MD of legal costs in the fourth quarter, for an investigation on the sale and promotion
practices in Colorado, as well as claims about his diabetes, Avandia drug. In the fourth quarter of GSK
profits will be effectively annihilated by the charge. For the full year, analysts are expecting GSK to post sales of £ 28. 39bn and profits before tax of more than £ 4, compared with £ 28. 37bn sales year last and £ 7. 9bn profit. Analysts are preoccupied with the shadow of an action suspended above the pharmaceutical industry. Morgan Stanley recently downgraded its rating on GSK to "underweight" from "equal-weight", saying that he feared that the company may need to take other provisions to deal with law enforcement investigations.

Full-year results

GlaxoSmithKline, Unilever

Interim results

BT, Vodafone, Qinetiq

Trading update

TUI Travel

Economy

Services PMI for January, ECB rate announcement

Meetings

TUI Travel (AGM)

Friday 4 February

• Full-year results
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Southern Cross Healthcare
Economy
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Saudi ruler offers $36bn to stave off uprising amid warning oil price could double

The growing turmoil in the region led experts to warn last night that Brent crude oil prices may double from the $111 a barrel mark it peaked at yesterday if the crisis continues to spread to other Middle Eastern countries.

Nomura's commodity team said oil prices risk vaulting to uncharted highs over coming weeks if chaos hits Algeria as well, reducing global spare capacity to the wafer-thin margins seen just before the first Gulf War.

On Wednesday, Brent crude rose more than 5pc to almost $112 a barrel, threatening levels that could derail the global economy. It closed at $111.25.

"We could see $220 a barrel should both Libya and Algeria halt oil production. We could be underestimating this as speculative activiites were largely not present in 1990-1991," said Michael Lo, the bank's oil strategist.

The warning came as Italy's ENI announced a suspension of supplies through Libya's gas pipeline, and a string of foreign companies evacuated staff and shut production. Libya holds Africa's biggest oil reserves and produces 1.6m barrels a day (b/d), mostly for export to Europe.

The German driller Winthershall halted its 100,000 b/d production in Libya, while ENI stopped at a string of sites, vastly reducing its flow of 550,000 b/d. A number of producers have declared "force majeure".

Barclays Capital said 1m b/d of Libyan output is "shut in", with the other 0.6m at risk. While Saudi Arabia can step in by raising output, this takes time and its oil is not a substitute for Libya's "sweet crude".

The escalating crisis set off further falls on global bourses. Wall Street was down 1pc in early trading and the FTSE 100 fell 1.2pc. The Dow has shed more than 300 points over the past three days to 12,075.

Nomura said a shut-down in both Libya and Algeria would cut global supply by 2.9m b/d and reduce OPEC spare capacity to 2.1m b/d, comparable with levels at the onset of the Gulf War and worse than during the 2008 spike, when prices hit $147.

Both price shocks preceeded – or triggered – a recession in Europe and the US. Fatih Birol, chief economist for the International Energy Agency, said the latest price rise had already become a "serious risk" for the fragile economies of the OECD bloc.

Some analysts fear the underlying picture is worse that officially recognised, doubting Saudi claims of ample spare capacity. A Wikileaks cable cited comments by a geologist for the Saudi oil giant Aramco that the kingdom's reserves had been overstated by 40pc. A second cable cited US diplomats asking whether the Saudis "any longer have the power to drive prices down for a prolonged period".

Nomura's report, which does not examine the catastrophic scenario of a full-blown Gulf crisis, said past oil shocks have shown a three-stage pattern, with a final blow-off in prices in the final phase. The current crisis is at stage one.

Surging oil prices create a nasty dilemma for central banks since they are inflationary if caused by robust global growth, but deflationary if caused by a supply crunch that acts as a tax on consuming nations. The big oil exporters tend to save extra revenues from price spikes at first, so the initial effect is to drain global demand.

The current picture contains elements of both, with an added twist of liquidity created by the US Federal Reserve that is leaking into the global system and playing havoc with commodity pricing.

US Treasury Secretary Tim Geithner said on Wednesday that the world economy is stong enough to "handle" the oil shock, insisting that central banks "have a lot of experience in managing these things".

The European Central Bank (ECB) responded to the oil spike in July 2008 by raising rates even though Germany and Italy were in recession by then. Nout Wellink, the ECB's Dutch governor, said this had been a policy error.

Circumstances are different this time yet also murky. ECB chief Jean-Claude Trichet signalled last month that the bank will "look through" the short-term price hump, but ECB rhetoric has since turned more hawkish. Fed doves will undoubtedly give more weight to the deflationary risks.

Jeremy Leggett, a leader of the UK industry task force on peak oil and energy security, said the Mid-East crisis "shows the extreme fragility of the global system. People don't realise how close we are to a potential precipice if this unrest reaches critical mass in enough OPEC countries. Governments need to draw up emergency plans and get cracking on proactive measures while we still have time," he said.

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The price of oil soaring destabilize nervous market

Other companies travel came under pressure, too, in the midst of concerns rising costs of oil and threats for the tourism industry. TUI Travel and easyJet fell 2.8 240½p and 355½p respectively 10½.

Always on a theme by oil prices, Numis analysts cut their profits forecast for easyJet 210 million pounds to 166 million pre-tax profits of £. "The downgrade reflects our revised estimate of easyJet fuel costs after the recent spike in price and certain losses modest due to recent disorders geopolitical," said analysts, who kept their ratings on the transporter "hold."

Elsewhere on the index, concerns about a surge in costs of fuel and its potential impact on economic recovery took their toll on oil explorers and producers. BP fell 4¼ to 488½p, then Premier oil flat at £ 19.65 as RBS analysts suggest that it could bid to BP Wytch farm oilfield, Dorset, including the giant plans to sell oil.

Copper - often a barometer of economic demand – fell to its lowest in nearly a month, the miners were on the slide. Antofagasta and Xstrata has dropped from 70 percent to £ 13.13 and 62 percent to £ 13,47 respectively. Dragged the FTSE 100 down 73.23 points to 5923.53 and the FTSE 250 was 130.47 points to 11521.94.

Defensive again were doing their best to support blue-chips with Imperial tobacco and GlaxoSmithKline edges up to 10 p to £ 20.01 and 4 p to £ 11.80 respectively.

Pharmaceutical peer Glaxo, AstraZeneca, hangar 33 p to £ 29.76½ reports came just before the closing bell its medical devices unit had attracted the interest of bidders about 20, including medical technology companies and private funds. Sale of Astra Tech was first reported last November, and thought that he could fetch $2bn (£ 1 MD).

The theme of M & A, Diageo has fallen p 14-£ 11.85, analysts turned their attention to potential acquisition division of Fortune Brands spirits beverage company.

Manufacturer of gin Gordon, touted as a potential and analysts to Liberum said they expected to Diageo to buy as much 70pc of beam Global Spirits company that has Diageo brands such as bourbon label Jim Beam. Diageo has been on the trail of the acquisition of the end. Earlier this week, it has agreed to buy Mey Içki Turkey for £ 1 5.3, marking its acquisition of more than a decade.

Investors has proven riskier stocks, Lloyds banking Group lost 65½p 0.79 and Royal bank of scotland throw a 0.4 percent to 47.32.

Taking the tumble size, however, was Rexam. Whereas Red Bull may give you good wings, manufacturer of boxes for the energy drink is not flying as investors booked profits based on the results of the year. Despite posting them an increase in annual profit, Rexam sank 21.6 348.4 p.

Apart from making profits, the market also somewhat disappointed by the lack of details on Rexam plans to sell its Division of closures, what makes tops and lids for products such as beverage containers. "Even though the Declaration confirmed branch closures was for sale, there may be some disappointment that no further progress has been made since the news was released in December 2010," said analysts Seymour Pierce, who kept their rating on Rexam "buy."

On the second level, cable & wireless Communications jumped 2.86 percent 49.33 take first place after that saying that it would sell its operating activities in Bermuda Canada Bragg Group 70 m $ and announced a share of 100 m $ of redemption.

To join the telecommunications company in the midcap ranking was Capital & counties properties group. Developer said that it planned a joint venture for its redevelopment of several billion pounds of Earls Court in London. There were reports that Capco was in talks with family Kwok based in Hong Kong, which controls the Sun Hung Kai Properties, provide funding for the site. CAPCO said that he received interest in a joint venture of several of the parties.

As Capco also said he is progressing well in the planning application for the development of 8,000 - home, he ticked up 4.3 percent 148.8. This increase reflected by blue-chip real estate stock land securities, edged up to 6 to 741 p.

Gartmore was flat, 103 p as Fund Manager posted his final to merge with rival Henderson income statement.

Leading mid-cap latecomers was Logica. After having posted recipes of dishes throughout the year, the it services company slid 7.8 at 137½p.

Among small-caps Group Yell fell 0.1% to 7.6% after analysts from Barclays Capital preserved their rating "underweight" on Yellow Pages Publisher and reduce their price target to 5 percent to 8 percent. The broker describes recent results for the third quarter Yell "disappointing."

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The price of oil minor typo of gold

It was in evidence on Tuesday as the FTSE 100 closed 0.98 points to 5974.76 following a volatile trading day. The broader 250 FTSE fell 4.35 11743.52 as traders and analysts speculated whether the so-called "great bull run" had hit the wall.

"With the prospect of higher interest rates, higher inflation, a rising unemployment and slowdown in global growth, the negatives are much too much to ignore, more earnings for shares may be difficult to obtain, which means", warned Angus Campbell at Capital spreads. "After such a huge rally, investors are naturally cautious and until in 2011 both UK indices have ground stop."

Political unrest across the Middle East continued to spook investors.

Fall of the price of oil reaches the value of gold, which had benefited from a flight to safety Monday. Randgold resources, including the mines of the precious commodity, fell 400 p to £ 44.80 while hardened African Barrick Gold p 20½ at 547½.

Group Weir was one or other of the big losers of the day despite a 58pc jump better than expected in the benefits of the reporting year. The British engineer titles, which have increased by more than 100pc of last year, fell 84 p to £ 16.95 on making profits as strong recoveries in the shale oil and gas and mining markets fuelled demand for pumps and valves of the company.

Among the smaller caps, rate shares dropped 44.1 - 20pc - 176.4% after the author of the set - top box has warned that one of its American customers had delayed a large order to 2012, reducing its forecast of growth of sales of 2011.

bt Group and Vodafone were among the winners of the day, rising 7.3 percent 191.1 and 3.15 181,85 p. The pair rose after Morgan Stanley analysts placed a rating of "upgrade" on the telecommunications sector.

Analysts, said: "in the reduction of rates (MTR) mobile endpoints, roaming, unbundling and deflation in all DSL products faces." The prospects are more calm now, by reductions in MTR the final furlong, EU lower exposure and fixed prices inflate homelessness. Data mobile are not driving the European sector, but it have impact in the United States and in emerging markets, to which EU companies are subject. Download us our attractive sector view. »

Old mutual led a rally in the financial sector after the Anglo-sud African insurer beat analyst expectations with a 14pc rising profits and said it was close to the sale of his business life U.S.. Shares in the Group spent 4.4 to 137.7 p, then that peers including Aviva also increased.

Prudential, which will be Wednesday deliver its first results of the exercise given his agreement of. 5bn (£ 22bn) of $35 for AIA collapsed last summer, also presented in the ranking, from 13½ to 714 p.

Elsewhere, shares of Cairn energy advanced 6.8 at 448 p after Bank of America, Merrill Lynch upgraded its rating of the Explorer of oil "buy" from "neutral", with a price target increased from 520 p, 485 p.

In a note, Merrill said that it expected the uncertainty on the Elimination of the Cairn India Vedanta Resources to facilitate. "While we do not exclude that the agreement could close after the April 15 deadline, we are optimistic that it will end in the short term," the broker added.

Heritage oil also found under the spotlight, from 7½ to 282 p on speculation that BG Group explores bid for the assets of the Iraqi gas company.

Heritage oil company's shares have plunged since January, when he said that he had found gas in the region of Kurdistan of Iraq - disappointing investors who had hoped for a discovery of oil. Reports in Africa suggest that the company is also close to resolving a dispute tax troublesome in Uganda.

Back among the smaller caps, Ashtead acquired 16.7 to 203,2 after his British industrial equipment rental company
third-quarter loss before tax of £ 1. 7 m.

Evolution of securities raised its price target for the company, which employs diggers from small tools equipment, to 225 percent of 200 p. "in July, our forecast pre-tax 2011 held at 12 million pounds sterling." Yesterday, it was 20 million pounds, after today's announcement, it is likely to rise to £ 25 m to £ 30 m, "evolution of values securities analyst and Philip Sparks said in a note."

Betfair also rose 67½ to 955 p after you have copied rivals Ladbrokes and William Hill by moving parts of its business in Gibraltar. The move, which has been taken to benefit from a lower tax environment in the region, just a few months after that Betfair has completed its controversial London listing last October.

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The Libya uplift sends shares plummet as oil price leaps

The Libya is the first oil exporters leading to be affected by the political crisis in the Middle East. Photo: AFP

Sharp falls in Asian markets during night sparked a sell-off in London and Europe, while Brent crude reaches most of $108 a barrel on concerns exports of crude oil Libya more than 1 m barrels per day may be affected foreign oil companies to evacuate the country staff.

In London, the FTSE 100 index sank as 1. 5pc and CAC 40 France fell nearly $ 2pc moves towards the exit on the high price of oil concern of investors and political turmoil will limit economic growth and hurt corporate earnings.

Better than expected UK, the figures offered loan support limited to UK blue chips, despite news of a surplus of. 7bn £ 3 for public finances of Britain in January, thanks to a bumper haul tax.

UK Government bonds were supported by the new and investors seek refuge with the yield on ten-year gilts down five points from base to 3 68pc.

Michael Hewson, CMC Markets told traders market analyst fears the Libya and broader problems in the Middle East could send global markets in prolonged slump.

"Given that we saw massive gains of the stock market in recent months, investors have been nervous about a possible fix for some time," he said.

"Tensions in the Middle East with the implosion of the Libya and concerns that disorders may extend to Saudi Arabia could provide such a catalyst for a correction as we are approaching some support keys on main indices levels."

The Libya is 18th largest producer of oil in the world, pumping approximately 1.8 million barrels per day, or a little under 2pc of daily production. OPEC countries also depends on the largest oil reserves throughout Africa.

The country is the first oil exporters leading to be affected by political unrest, but traders were also considering events in Iran, the second largest producer in OPEC.

Airlines were among stocks hardest hit in London, under pressure from concerns over the impact of soaring fuel costs.

Europe receives more gross exports of Libya - mainly 85pc jet fuel – with 8 5pc password to the United Kingdom.

However, the Director of the International Energy Agency, Nobuo Tanaka, moved to reassure markets that provides oil are secure.

Speaking at a meeting in Riyadh, Saudi Arabia, he said OPEC nations provided that the cartel can use spare capacity to increase production to meet any shortfall of the Libya or Bahrain.

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Saudi ruler offers $36bn to stave off uprising amid warning oil price could double

The growing turmoil in the region led experts to warn last night that Brent crude oil prices may double from the $111 a barrel mark it peaked at yesterday if the crisis continues to spread to other Middle Eastern countries.

Nomura's commodity team said oil prices risk vaulting to uncharted highs over coming weeks if chaos hits Algeria as well, reducing global spare capacity to the wafer-thin margins seen just before the first Gulf War.

On Wednesday, Brent crude rose more than 5pc to almost $112 a barrel, threatening levels that could derail the global economy. It closed at $111.25.

"We could see $220 a barrel should both Libya and Algeria halt oil production. We could be underestimating this as speculative activiites were largely not present in 1990-1991," said Michael Lo, the bank's oil strategist.

The warning came as Italy's ENI announced a suspension of supplies through Libya's gas pipeline, and a string of foreign companies evacuated staff and shut production. Libya holds Africa's biggest oil reserves and produces 1.6m barrels a day (b/d), mostly for export to Europe.

The German driller Winthershall halted its 100,000 b/d production in Libya, while ENI stopped at a string of sites, vastly reducing its flow of 550,000 b/d. A number of producers have declared "force majeure".

Barclays Capital said 1m b/d of Libyan output is "shut in", with the other 0.6m at risk. While Saudi Arabia can step in by raising output, this takes time and its oil is not a substitute for Libya's "sweet crude".

The escalating crisis set off further falls on global bourses. Wall Street was down 1pc in early trading and the FTSE 100 fell 1.2pc. The Dow has shed more than 300 points over the past three days to 12,075.

Nomura said a shut-down in both Libya and Algeria would cut global supply by 2.9m b/d and reduce OPEC spare capacity to 2.1m b/d, comparable with levels at the onset of the Gulf War and worse than during the 2008 spike, when prices hit $147.

Both price shocks preceeded – or triggered – a recession in Europe and the US. Fatih Birol, chief economist for the International Energy Agency, said the latest price rise had already become a "serious risk" for the fragile economies of the OECD bloc.

Some analysts fear the underlying picture is worse that officially recognised, doubting Saudi claims of ample spare capacity. A Wikileaks cable cited comments by a geologist for the Saudi oil giant Aramco that the kingdom's reserves had been overstated by 40pc. A second cable cited US diplomats asking whether the Saudis "any longer have the power to drive prices down for a prolonged period".

Nomura's report, which does not examine the catastrophic scenario of a full-blown Gulf crisis, said past oil shocks have shown a three-stage pattern, with a final blow-off in prices in the final phase. The current crisis is at stage one.

Surging oil prices create a nasty dilemma for central banks since they are inflationary if caused by robust global growth, but deflationary if caused by a supply crunch that acts as a tax on consuming nations. The big oil exporters tend to save extra revenues from price spikes at first, so the initial effect is to drain global demand.

The current picture contains elements of both, with an added twist of liquidity created by the US Federal Reserve that is leaking into the global system and playing havoc with commodity pricing.

US Treasury Secretary Tim Geithner said on Wednesday that the world economy is stong enough to "handle" the oil shock, insisting that central banks "have a lot of experience in managing these things".

The European Central Bank (ECB) responded to the oil spike in July 2008 by raising rates even though Germany and Italy were in recession by then. Nout Wellink, the ECB's Dutch governor, said this had been a policy error.

Circumstances are different this time yet also murky. ECB chief Jean-Claude Trichet signalled last month that the bank will "look through" the short-term price hump, but ECB rhetoric has since turned more hawkish. Fed doves will undoubtedly give more weight to the deflationary risks.

Jeremy Leggett, a leader of the UK industry task force on peak oil and energy security, said the Mid-East crisis "shows the extreme fragility of the global system. People don't realise how close we are to a potential precipice if this unrest reaches critical mass in enough OPEC countries. Governments need to draw up emergency plans and get cracking on proactive measures while we still have time," he said.

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Waves of oil price thanks to $110 for the first time in two years

German oil firm Wintershall has stopped oil production at its Sarah Libya photo oil field: AFP/GETTY.

Brent crude hit a maximum of $111.85 in London as he broke through the mark $110 for the first time since September 2008, so that benchmark crude for delivery April on the New York Mercantile Exchange rose more than 4 $ to $99.50 MIDI.

Major oil companies Western, such as the Italian firm Eni and Repsol-YPF the Spain suspended production in Libya, while UK giant BP began evacuating personnel.

Some analysts fear that NYMEX crude may break beyond its 2008 of approximately $147 record if political instability spreading to countries such as the Iran and Saudi Arabia.

Véronique riches-Flores, Societe Generale Economist said: "by pushing oil prices to highs of two years during the past 24 hours, Libyan riots gave a new dimension to the process of the revolution in North Africa."

She added: "resulted in the rapid spread of unrest throughout the region investors to imagine worse and become increasingly concerned about the risk of another oil shock in price."

Disorders are propagated Tunisia and the Egypt, but the Libya is the largest exporter of oil major to be affected by the crisis.

Hundreds of Libyans were killed in violent clashes between anti-government demonstrators and forces loyal to dictator Colonel Muammar Khadafi these days.

And as colonel Gaddafi refused to relinquish power, promising to fight for his "last drop of blood", the oil price continues to surge.

Howard Wheeldon, strategist over the BGC Partners said that he saw no price level inversion "long".

He added that market uncertainty caused by the tensions throughout the Middle East and the North Africa will grow Brent crude at $120 per barrel.

He said: "If the current political crisis will be enough to push the price above $147 a barrel level (90 pounds) record remains to be seen whether my opinion is that this will probably not tested yet."

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World Promethean wipes off-target price as FTSE 100 rises

But analysts said: "as a whole, given the decline of the c.75pc in the course of actions of Promethean since the intellectual property offices (and c.30pc), last week, the day of the profit warning we believe future dark is updated for the company." We believe not proceed as U.S. budget eventually recover in 2012 and society began to grow once more. »

Despite cutting, Promethean 1½ pink p 57.75 as partners in Sturgis, Manager of funds, raised its participation in a little more 5MC.

Interactive whiteboards aside, the most excitement was among major FTSE J Sainsbury actors stole Tesco entertainment as whispers resurfaced - again - that State Qatar investors could snaffle supermarket chain.

Although Tesco was the one results optimistic, 15.3 - ball Sainsbury or 4 28pc - p vertical on reheated gossip Qatar whose investment authority has a 27 5pc its participation in the retailer could be an inclination of society. This time, the figure being brandished threat was 450 p apart.

Qatar could not buy three years Sainsbury's, but she has invested in a string of international companies it seeks to diversify. Qatar Holding - Division on investment Qatar Investment Authority - buy Harrods earlier this year for about £ 1. 5bn.

But the merchants urged caution on speculation. The prospect of a bid for Sainsbury Qatar made before tours - when rumours supply resumed cropped in October last year, shares stir-fry Sainsbury 10pc in a single day. In July of this year, shot Sainsbury until almost 5MC that speculation swept once more the market.

Traders noted that Sainsbury's ' increase could have as much to do with third-quarter results and news that the retailer was seeing a pick-up request he leads in Tesco period peak Christmas trade.

However, with Tesco amounting to a mere 10 to 430 Sainsbury of the Eclipse p its largest peer yesterday.

Rehash rumors about the Sainsbury's has helped market rally one day when the mood was also clarified by rising prices of raw materials. As metals hit new heights, minor lit up the rankings. Africa Barrick Gold claimed pole position, putting on 34½ 600 percent, then that Antofagasta gained 71% to £ 15.28.

With minor heavy weight on the rise, the FTSE 100 obtained 38.17 38.17 points to 5808.45, while the FTSE 250 points 11299.44 148.09. Wednesday, investors will be discover that is defined for the promotion and demotion of CPI.

A final decision will be based on Tuesday closing price Wednesday, but indicative positions suggest that IMI could enter the FTSE 100 leave Cobham. IMI has 34 948 p while than Cobham 195.9 p 1.4.

Betfair may be set to enter the FTSE 250, while the Yell Group could be on the path of. Betfair on 62% to £ file while Yell throw 0.02 at 12.10 p.

Making an appearance alongside Sainsbury's ranking was Unilever thanks to an optimistic note from Michael Steib, an analyst at Morgan Stanley receives consumer giant a double-upgrade - boosting its position on "overweight"underweight"Unilever and raise his price target to £ 23.00 from £ 19.00.

In a note entitled "The New 'Unilever Model'", he wrote that while challenges remain "formidable", broker has been "encouraged by how Unilever appears more reshape its growth strategy".

He added that many risks - as competition and fresh produce - are now well understood by investors and must be taken into account in the pricing actions. Unilever has increased 53% to £ compared.

With investors optimistic mood, defensive were on the decline - National Grid throw 5 547½p and AstraZeneca has fallen from £ 30.27½ 6½p.

Among liners of a second, a series of housebuilders were in first place after Bellway said he expected net profit before taxes for the first half of up 20pc.

Signs of a more promising prospect for the peer supported the Bellway housebuilders. Kaki, Taylor Wimpey and Barratt Developments put on 416.4 p, 33.7 1.77 to 29 percent and 7½ to 86.3. But Bellway claimed gold medal over in more 54½ 612½p.

Saint Modwen developer has also benefited from JP Morgan Cazenove boost "overweight" to "neutral" rating in an extensive review of the property sector. Analysts said St Modwen stock was lower by 22pc for three months. St Modwen increased hereditary 151 p.

Suffering from a carefree bearish note was supergroup. The retailer behind worship wear used by artists such as David Beckham, reduce back his losses at the beginning at the end of the 2 p to £ estimate. After having tripled its price starts from floating p 500 in March, brokers were optimistic about the prospects of the supergroup - last month, Goldman Sachs has begun to cover with a "conviction buy" rating and a price of £ 21.00 target.

But execution of noble broke ranks, start with a rating of "selling" and the fair value of £ 11.65 supergroup.

Analysts said the current assessment required "flawless execution" and raised concerns about the brand growth rates. Said broker supergroup naturally takes advantage of incentives offered by the owners, but questioned whether this would lead to brand expand too quickly and to early saturation.

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