FTSE in trouble, wet Easter bad for consumer-facing companies and latest twist in the Sky takeover saga
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“The FTSE 100 is struggling once again as the markets reopen on Tuesday, trading 0.6% lower at 7,012. Insurers and utility companies are the principal sectors weighing on the index,” says AJ Bell Investment Director Russ Mould.

Consumer-facing companies likely to be hit by washout Easter

“A wet Easter weekend for much of the country will have been unhelpful to retailers, pubs and restaurant operators.

“With many people enjoying four straight days of relaxation, the thought of venturing outside into the rain to go shopping or get a bite to eat may have seemed unappealing.

“Perhaps unsurprisingly, Marks & Spencer, Debenhams and Greene King are among the clothing, food and drink companies who see their share prices fall on Tuesday as the market starts to price in anticipated weaker trading.

“Theme park attendance may have also been patchy, judging by how the market is pricing Merlin Entertainment’s shares lower on Tuesday.

“You have to consider that a sunny Easter weekend has historically been a strong sales driver. Many troubled consumer-facing companies will have been desperate for the weather to be on their side this Easter. Alas, grey skies may have simply added to their woes.”

SKY

“The news that Disney is considering a separate bid for Sky News shows the lengths it and 21st Century Fox will go to get Rupert Murdoch out of the picture.

“The hope is this will smooth regulatory approval for Fox’s bid for the 61% of Sky it does not already own by allaying concerns over Murdoch’s dominance of the UK media space.

“This in turn would pave the way for Disney’s own $66bn takeover of Fox’s media assets including Sky.

“Just when you thought it couldn’t get any more complicated, remember NBC Universal owner Comcast has made its own more generous £12.50 per share proposal but is yet to table a formal bid.

“Today’s news at least suggests Fox, and by implication, Disney would be willing to respond to any rival offer.”

These articles are for information purposes only and are not a personal recommendation or advice.

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The daily market update is written by Russ Mould, AJ Bell’s Investment Director and his team. The article highlights the movement in the main index, winners and losers on the day and any macro-economic announcements.