FTSE boosted as miners recover, while ITV shrugs off rugby disappointment

Discussion in 'Market News' started by Lily, Oct 7, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Glencore climbs on takeover talk while poor US jobs data helps lift markets

    Leading shares are moving higher in tandem with other global markets, after Friday’s disappointing US job numbers convinced investors that the Federal Reserve was unlikely to raise interest rates this year after all.

    Commodity companies are among the main gainers, with emerging markets likely to benefit if the Fed does keep borrowing costs on hold.

    (1) TV advertising slots tend to be booked 4-6 weeks in advance so virtually all the slots for October would already have been booked (there might be a bit of lack of late money but that is at the margins) so advertising revenues unlikely to be significantly impacted (especially as sponsorship revenues have also already been booked);

    (2) a more credible issue is the impact on audience share - however, again, likely to be minimal especially if the other Home Nations stay in - as October is 1 month out of 12 and the Rugby World Cup is turning out to be an attractive spectacle;

    The 5% discount is equivalent to just 3.8p per share, whilst the sale overall is light even of the Royal Mail IPO, which weighed in at around £3.3bn.

    Nonetheless, it does provide a welcome opportunity for smaller investors to at least participate in a fraction of the sell-off, in what is currently a well-regarded bank, seen as something of a barometer for the UK economy. With a projected dividend yield which could nudge 4% and interest rates remaining in the doldrums, you can see this being of interest to income seeking investors in the current environment.

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