RAMSEY CROOKALL & CO
21 MARCH 2011 MORNING REPORT
The FTSE 100 opened brightly with telecoms stocks powering ahead on the back of
AT&T's huge $39bn bid for Deutsche Telekom's T-Mobile USA.
Vodafone is the top riser as analysts have wasted little time working out what it
means in value terms for Vodafone's 45% stake in current US market leader Verizon
Wireless. If the AT&T bid is allowed, the enlarged firm will become number one, but
both companies will have huge market power in the fast growing mobile data, video
and apps market.
For now, the market is focused on the upside benefits of the deal. Vodafone shares
have jumped 5%, BT and TalkTalk are also higher.
Elsewhere, engineers and Burberry continue to rally from last week's Japan-inspired
sell-off. The firmer trend seen towards the end of last week has continued this
morning as the situation in Libya looks like it is coming to a head while repair
work gets underway at the damaged Fukushima Daiichi power plant in Japan.
British Gas owner Centrica is to expand its retail presence in the US with the
purchase of New York-based energy retailer Gateway Energy Services for $90m in cash,
including $13m of tax assets plus additional working capital.
Finally, mining giant Rio Tinto is extending the acceptance period for its A$3.9bn
bid for Australian coal miner Riversdale by three days to 6 April. The UK miner now
either owns or has received acceptances in respect of 34.94% of Riversdale shares,
up from 33.04% last Friday.
THE FTSE 100 AT 10.30 IS UP 65 @ 5783
THE DOW JONES CLOSED UP 83 @ 11,858
THE NASDAQ COMP CLOSED UP 7 @ 2643
Exchange Rates
GBP – USD 1.6263
GBP - EURO 1.1479
Monday 21st, March 2011 11:10pm.
