FTSE 100	4851.70, +54.95	Dow	9441.27, +96.66
FTSE 250	8745.85, +141.05	Nasdaq	2018.78, +35.58
FTSE All Share	2492.31, +29.41	S&P 500	1016.40, +13.16
Nikkei	10320.94, +133.83	Hang Seng	20612.20, +293.58
Oil (Crude)	$68.02	Gold	$996.70
Base Rate	0.5%	10 Yr Gilt	3.66%
£/$	1.642	£/€	1.1442
1 month LIBOR	0.522	3 month LIBOR	0.665

 

Markets

London - The FTSE 100 is currently 55.95 points higher at 4,907.65. Cadbury leads the rise, rallying 38%, after rejecting a £10.2 billion offer from Kraft Foods Inc. Lonmin adds 8% after investors speculated that Xstrata is considering a potential bid for the platinum producer. Lloyds Banking Group gains 2.1% on reports that the bank is considering converting preference shares to shore up its finances.

New York - US shares gained on Friday as investors focused on the positive side of a mixed batch of jobs data. Employers axed 216,000 jobs from their payrolls in August, but this was the smallest cut for a year. However, the unemployment rate rose to 9.7% from 9.4%, hitting a 26 year high. The Dow Jones rose 96.66 points to close at 9,441.27 while the S&P 500 added 13.16 points to end at 1,016.40. The Nasdaq gained 35.58 points to finish at 2,018.78.

Intel led semiconductor stocks higher after the company’s chief executive said aging personal computers and Microsoft’s launch of Windows 7 will prompt companies to start spending on PCs next year. Intel climbed 1.1% while Microsoft added 2.1%. Elsewhere in the tech sector, Apple advanced 2.3% ahead of its media event next week where it is expected to launch iPod Nano and touch models that include digital cameras.

Fannie Mae and Freddie Mac were prominent among financial stocks after news that they were back in compliance with New York Stock Exchange share listing rules. Fannie Mae rose 7.9% and Freddie Mac gained 5.4%.

US light crude oil for October delivery edged $0.06 higher at $68.02 a barrel. COMEX gold for December delivery fell $1 to $996.70 an ounce. Treasury prices went lower, raising the yield on the 10 year note to 3.44% from 3.34%.
Tokyo - The Nikkei rose 133.83 points to close at 10,320.94 this morning. The index enjoyed its first rise for four days after Japan Steel Works Ltd boosted its demand forecast for nuclear plants in China and real-estate developers climbed on speculation property prices will increase.

Hong Kong - The Hang Seng is currently 293.58 points higher at 20,612.20. HSBC, the most heavily weighted stock in the index, climbs 1.7% after a newspaper reported that the company made a bid for ING Groep NV’s private-banking businesses.

Economics

There is no major economic news today.

 Corporate

U.S. food giant Kraft Foods Inc said today it has had a £10.2 billion bid for Cadbury Plc rejected by the confectioner but is committed to working toward a recommended transaction. Kraft Foods said it offered to pay 300p in cash and 0.2589 new Kraft Foods shares for each Cadbury share - valuing the U.K. company’s share capital at £10.2 billion. Cadbury shares closed Friday at 568p, giving the group a market capitalization of £7.76 billion. "The combination would build on Kraft Foods’ position as a global powerhouse in snacks, confectionery and quick meals with a rich portfolio of iconic brands," said Kraft. "Kraft Foods is committed to working toward a recommended transaction and to maintaining a constructive dialogue and is announcing this proposal as a means to encourage and further that process," it added. Cadbury was not immediately available for comment.

Food, ingredients and retail group Associated British Foods Plc today raised its full year guidance following strong trading in the second half, which helped lift adjusted operating profit in the period. The food producer and retail group said it now expects progress in adjusted earnings, compared with guidance provided in July of flat adjusted profit, despite previously flagged higher interest charges. AB Foods, which has food businesses around the world, did not provide specific sales guidance for each division, but said sugar profit would be substantially ahead of last year, driven by growth in the European Union and its South African sugar operations Illovo, offsetting weakness in China. 

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The above details are provided for information only and are not intended to be construed a solicitation for the sale or purchase of any particular investment nor as specific investment advice.

Posted: September 7th, 2009 under Asset Management.
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