uropean markets have pressed on with Friday’s theme this morning, selling off sharply on the open as investors continue to flock out of equities, which are enduring their first sustained challenge for a long while over the last week.
Many predicted the markets would come under pressure in January after a rampant end to 2013, but the FTSE
seemed to be plain sailing towards all time high’s early last week, only to nosedive comfortably into the red for 2014 since.
It’s a bit early to be hitting panic stations yet but with another forecasted 10bln cut to the Fed’s helping hand this Wednesday and a continued rout on emerging markets, January may well end up being a month to forget for equities, just as many had feared.
Europe fared a little better than the UK, with a beat from the German IFO business survey helping to stem the flow for the DAX by mid-morning, albeit still posting red numbers for the day.
BG group went straight to the bottom of the FTSE this morning after warning oil production levels would miss expectations, hampered by ongoing disruptions in Egypt. Expectations for 2014 had been an equivalent 660k barrels per day, but BG now expects that number to be between 590-630k. That coupled with a downward revision for 2015 guidance saw the stock hammered down over 13% on the open, with the ongoing issues in Egypt forcing them to declare force majeure in the region.
ARM holdings have appointed Rexam Chairman Stuart Chambers in the same role following the departure of John Buchanan for medical reasons. Chambers is also a non-exec Director at Tesco and will take his post from March 1st.
It always seemed a bit of a long shot in the short term, but today marks the end of months of speculation about a potential AT&T bid for Vodafone, with the former making a statement at the request of the UK takeover panel. A $130bln deal between the other U.S giant Verizon and Vodafone is due to complete in Feb for Vodafone’s stake in a joint venture, and would potentially make a bid more feasible in the future.
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