Mining group to hand back $2bn to shareholders despite drop in half year earningsDespite deadlock in Wednesday’s talks between Greece and the rest of the eurozone, leading shares are edging higher again.Investors are hoping that even though there was not even an agreement on issuing a statement, let alone any sign of deal, that the two sides will be able to reach a compromise before Greece’s money runs out.The low-cost/volume-push strategy appears to be working for Rio, marginal producers will continue to be pushed out of the arena, whilst Rio maintains decent margins, albeit not bull market margins. Rio see margins for low-cost producers returning to just above the average level seen before the China driven commodity boom. The buy-back is at the higher end of market expectations.Digital leadership, beauty expansion, and high US exposure should sustain Burberry’s top-line outperformance in 2015 and beyond. We believe Burberry deserves a higher PE valuation premium to luxury peers thanks to its stronger top- and bottom-line growth potential, superior return on invested capital and attractive cash return outlook. Continue reading...
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