FTSE moves higher ahead of Fed meeting, with BT and BAT leading the way

Discussion in 'Market News' started by Lily, Oct 28, 2015.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    Investors await latest interest rate news from US central bank

    On a busy day for corporate news and with investors still cautious ahead of the latest US Federal Reserve meeting, leading shares have managed to edge into positive territory.

    BT is leading the way, up 15.75p or 3.5% at 467.75p as the Competitions and Markets Authority provisionally cleared its £12.5bn purchase of mobile operator EE. The news comes a day before BT reports results, and Connor Campbell at Spreadex said:

    Though the UK telecoms giant doesn’t report until tomorrow, news that CMA has approved its EE merger is likely sweeter than anything the company can produce with its second quarter 2016 results.

    We expect 2015 consensus earnings per share will likely come down by around 10%, and by more in 2016. Today’s warning raises questions on the timing of recent acquisitions and the cessation of the share buyback given weakness in the core businesses. We place our forecasts, target price and recommendation under review.

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