A new word to you? Yes, well, we were searching for a suitable adjective to describe this:
20 June 2013
Tullett Prebon plc
Statement in relation to court proceedings
Cheery chap, Tim Morgan, chief economist at money broker Tullett Prebon. Here’s a few charts to warm us all up on a cold February day…
The final part of Dr Gloom’s Reform trilogy has landed in the AV inbox.
Before we dive in, a quick recap. In parts I and II, Dr Tim Morgan explained why the economy, as currently configured, was incapable of delivering significant growth, and why a policy of tax reduction for working people is the one strategy that might get things moving again. Read more
Brace yourself we have another helping of doom and gloom from Dr Tim Morgan, the author of the recent Project Armageddon report.
It’s the first part of his Reform Trilogy, titled Challenging the denial consensus: a radical alternative based on tax cuts. In the report, Tullett Prebon’s Global Head of Research poses some radical questions about public spending and taxation, and reaches some equally radical conclusions. Read more
Here’s something for the Chancellor and the Office for Budget Responsibility (OBR) to chew on: a warning from Dr Tim Morgan, the global head of research at Tullett Prebon, that the deficit reduction plan won’t work and the UK is headed for a debt disaster.
Morgan says sectors that account for nearly 60 per cent of UK economic output are critically dependent on debt (public or private) and set to contract rather than expand. This will render economic growth implausible and means the burden of public and private debt will prove too heavy for the nation to carry: Read more
Terry Smith, the colourful chief of City interdealer broker Tullett Prebon, is planning to set up his own fund management business in the next few months with an aggressively priced pitch at retail and institutional investors, reports the FT. Smith will run the niche fund separately from Tullett Prebon, but aims to emulate the success of Tullett’s pension fund, which insiders say has performed particularly well in recent years. The Telegraph reports that Smith could invest as much as £20m from his £60m fortune, and that he is set to sever remaining ties with Collins Stewart, the brokerage he led from 1996.
Shares in Tullett Prebon fell by more than 13 per cent on Thursday after the interdealer broker headed by Terry Smith disclosed that discussions with a possible buyer had ended without a deal, the FT reports. The statement comes two months after the group said it was in talks with an unidentified suitor, which had pushed the stock up by more than a quarter.
Shares in Tullett Prebon jumped nearly 26% to 390p on Wednesday after the UK-based interdealer broker headed by Terry Smith disclosed it was in preliminary talks with a “third party” in a deal that could value Tullett’s equity at £840m. Some analysts said Tullett might appeal to exchange groups such as LSE or Deutsche Börse. The FTSE250 company has been linked to overseas parties including Macquarie Group and Bank of China. But others said the “third party” was most likely the group’s management team, looking at a buy-out. See also FT Alphaville, here.
Shares in Tullett Prebon, the interdealer broker, soared on Wednesday after it confirmed it was in bid talks with an unnamed rival, the FT reported. The group has been linked with a bid from Bank of China, Macquarie Group and GFI, the rival it failed to merge with in 2008. Shares in the group rose 16.7 per cent to 362p, giving Tullett a market capitalisation of £779m.
The M&A log jam is begining to break, reports FT Alphaville. Tullett Prebon says it’s in preliminary discussions for a potential offer. Over the past couple of weeks the rumour mills has thrown up a few possible acquirers of the inter-dealer broker – Macquarie, Bank of China, Nomura and even Barclays.
The ‘Volcker rule’ may be bad news for big speculative investment banks.
It might even be bad news for the inter-dealer brokers like Icap and Tullett Prebon, much of whose business is dependent on offsetting client-risk the big banks can’t internalise themselves. Read more
Tullett Prebon has offered its entire broking staff the chance to relocate from Britain in a sign of the fallout from the government’s 50% “supertax” on bank bonuses. The plan was drawn up after Terry Smith, Tullett’s CEO and a key City figure, raised the matter with the company’s board, and was conveyed to staff on Friday. The broker has also been studying the possibility of moving its corporate headquarters abroad. No decision is thought imminent.
Investor appetite for more complex OTC derivatives could rebound next year, according to Tullett Prebon, as the inter-dealer broker on Tuesday reported better than expected pre-tax earnings. The financial crisis sparked a retreat from riskier assets, including bespoke OTC derivatives, some of which were blamed for exacerbating the crisis. But Terry Smith, Tullett chief executive, predicted an eventual return of interest in many OTC derivatives.