PRESS DIGEST - Financial Times - Nov 16

BIG BUILDERS YET TO FEEL EFFECT OF STIMULUS

A report from KPMG to be published on Monday will reveal that only 15 percent of leading international construction groups say that they expect state intervention into the industry will provide significantly greater opportunities over the next year. In Europe, Britain and the United States, the figure is even lower, with only 10 percent of respondents expecting to see a marked upside from government spending. In Asia, construction companies were more confident, with 27 percent expecting a positive impact. However, despite the scepticism concerning the impact of government spending, construction companies are generally positive about the future, with about two thirds expecting to see profits increasing by the middle of 2010.

PROPERTY GROUPS TO REPORT GAINS IN PORTFOLIOS

Land Securities(LAND.L) and British Land(BLND.L) are to report this week that the value of their portfolios has risen for the first time since the start of the real-estate slump. The UK's two largest property companies are to say that property values began to rise in the third quarter, confirming that a recovery in the market is feeding through to the books of the large real estate investment trusts. However, the tail end of the slump in the second quarter is expected to weigh on overall half-year results. Analysts expect Land Securities to show a fall in its net asset value from 593 pence to 568 pence a share, while British Land is expected to show a fall from 370 pence to 350 pence.

ADMIRAL SET TO HIGHLIGHT LLOYDS TOXIC DEBT

The restructuring of Admiral Taverns this week is likely to highlight the toxic legacy that Lloyds Banking Group (LLOY.L) inherited from HBOS. Lloyds, which has a 855 million pounds exposure in Admiral, is expected to agree a debt-for-equity swap at the pub group just days after the collapse into administration of property developer Kenmore into which it is estimated HBOS put at least 700 million pounds in loans and equity investment. Lloyds is expected to write off as much as 600 million pounds at Admiral which has suffered from tumbling beer sales.