MArkets: Football deal earns a yellow card
Football was deemed to be the only winner after BT tackled broadcaster BSkyB for a share of English football rights, with shares in both dropping more than 3 per cent as investors balked at the bill.
News of the £3 billion deal for rights to show Premier League matches for three seasons came after markets closed on Wednesday, giving traders something to focus on in an otherwise uneventful session.
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Hide AdDavid Jones, chief market strategist at IG Index, said: “Virtually everyone with even a passing interest in the markets has decided to sit on their hands and await the weekend’s Greek election.”
BSkyB was down 24.5p at 671p, after Investec Securities expressed concern about the emergence of BT as a more potent competitor than ESPN, the previous holder of the smaller tranche of rights. BT was down 7.4p to 201.7p on concerns about the price for 38 games a season.
The FTSE 100 Index fell 16.8 points to 5,467.1, recovering from deeper losses as banking stocks aided a late recovery.
Banks shrugged off the deepening crisis in Spain as the UK Treasury confirmed a key concession in its banking reforms by broadening the range of activities allowed within ring-fenced businesses. Royal Bank of Scotland was among the biggest movers, up 6.9p at 229.4p, while Barclays also made the risers’ board up 4.5p to 192.8p.
Outside the top flight, Scottish oil firm Cairn Energy was 3 per cent lower at 280p amid speculation that it may have to pay more than the agreed £414 million for North Sea explorer Nautical. Northland Capital Partners speculated on who might be the next takeover target, naming Aberdeen-based Xcite among the contenders. But shares in the firm were 3p lower at 80p.
NEW YORK: Wall Street rose last night after news major central banks are preparing co-ordinated action if the results of Greek elections this weekend generate turmoil in financial markets.
The Dow Jones industrial average closed up 156.51 points, or 1.25 per cent, at 12,652.89 while the broader Standard & Poor’s 500 Index was up 14.27 points, or 1.09 per cent, at 1,329.15 by the close. The Nasdaq Composite Index ended the day up 17.72 points, or 0.63 per cent, at 2,836.33.