Morning Business News, Tuesday 2 November 2010: Citigroup Inc, US manufacturing, BAE Systems and defence contracting.
Citigroup Inc (NYSE:C) has had its Buy rating maintained by the equity analyst team at investment bank Nomura.
Citigroup Inc shares have traded a tight range in the past week, but this should all change as new economic releases and US mid-terms start to sway market direction.
A rebound in US manufacturing has handed ammunition to those at the Federal Reserve uneasy about further quantitative easing (QE), as the central bank starts its most important meeting since the depths of the crisis.
Ben Bernanke, the Fed's chairman, has signalled to Wall Street that a second dose of QE is likely to be announced on Wednesday in a bid to fire up America's economic recovery, the Telegraph reports.
BAE Systems (LON:BA) has been appointed a prime contractor to the FBI as the agency begins a $30bn overhaul of its technology. Europe’s largest defence company will provide the FBI with IT systems over the next eight years, the Times reports.
Leading defence contractors in Britain and France want Tuesday’s summit between David Cameron, the UK premier, and Nicolas Sarkozy, the French president, to boost bilateral industrial collaboration to help create a new generation of unmanned surveillance and combat aircraft programmes.
As the leaders prepare for a London summit that will focus largely on defence, the chief executives of BAE Systems and Dassault have written to both leaders, saying industrial collaboration is essential if both countries are to develop the aircraft, the FT reports.