Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at http://citywire.co.uk/wealth-manager/article/a629518

FTSE raised out of doldrums by US GDP growth

by Chris Marshall on Oct 26, 2012 at 13:57

FTSE raised out of doldrums by US GDP growth

UPDATE (13:56): Markets have erased earlier losses after a report showed the US economy grew by an annualised 2% in the third quarter of the year, better than expected by economists and an improvement on 1.3% growth in the previous three months.

Economists were, however, quick to put the numbers in perspective, with Rob Carnell of ING noting that the quarterly figure was flattered by 'a somewhat freakish surge in government spending' after a 13% rise in national defence spending.

Nonetheless, European markets rose from some fairly deep morning troughs, with Britain's FTSE 100 back above 5,800 and the French and Germany benchmark indices both flat.

Gains are being capped by this week's string of weak US corporate earnings reports, with Apple and Amazon both disappointing yesterday.

Next week brings a barrage of data to help investors better gauge the US economy, culminating on Friday with the last non-farm payrolls employment report before the presidential elections on 6 November. 

Anglo American among few FTSE risers as chief exits

09.01: Anglo American (AAL.L) was one of just a dozen gainers on a falling FTSE 100 today after the group announced that chief executive Cynthia Carroll was stepping down after nearly six years in the role.

The mining group said that Carroll (pictured below), who has recently come under pressure from investors to leave, will remain in her post until a successor has been appointed and ‘an appropriate transition has taken place’.

Analysts at Nomura described Carroll’s tenure at one of the world’s biggest mining companies as ‘mixed’. Some shareholders disagreed with Carroll’s decision to reject a merger offer from Xstrata (XTA.L) in 2009, while recent labour unrest in South Africa has exacerbated a sharp fall in the group’s share price this year.

‘Recently, concerns around management and the future of Carroll has been the major feedback from investors on Anglo,’ the Nomura analysts said, adding that the lack of an immediate replacement makes the outlook for the group uncertain. Today the shares rose by 2.1% to 1,857p.

Pearson publishing merger

Pearson (PSON.L) was also among the winning shares in Friday morning trade, up 1.6% to 1,212p, after confirming on Thursday evening that it is in talks to merge its Penguin publishing business with Random House.

Sign in / register to view full article on one page

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Long time coming: is the recovery here to stay?


Ian McVeigh and Steve Davies, managers of Jupiter's UK Growth fund, talk about their predictions for the UK equity space. Click here to watch a series of sponsored interviews with Jupiter's fund managers on the UK equity market.

Today's top headlines

More about this:

Look up the shares

  • Weir Group PLC (WEIR.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Admiral Group PLC (ADML.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Pearson PLC (PSON.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Anglo American PLC (AAL.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them
  • Xstrata PLC (XTA.L)
    Register or Sign in to receive email alerts for items in your favourites whenever we write about them

Archive

On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet