In the Spotlight: Mining and Energy Firms, Aviva/Friends Life, The Rouble, Royal Mail
December 2, 2014 10:50 am
What’s Up
Mining and Energy Firms – Both sets of companies felt the benefits of a rebound by both gold and oil yesterday. Tullow Oil has been the FTSE company which has seen the heaviest hits to its stock price as a result of the recent tumble in commodities prices; however, the tables have turned today, as resurgent commodities have seen Tullow Oil as a big winner on the FTSE this morning, with its stock currently up by almost 5%. Most of the other energy and mining companies on the DTSE are currently also up by an average of around 2%.
Aviva/Friends Life – Meanwhile, major merger news from Aviva and Friends Life, with the two firms arriving at a deal which would see the former buying the latter. A takeover of Friends Life would make Aviva the largest insurance company in the UK; however, the deal still has to be approved by shareholders. If approved, Friends Life shareholders would own 26% of the merged firm. Aviva stock is currently up by 2.72%, while Friends Life is up by 4.89%.
What’s Down
The Rouble – Yesterday was a shaky day for the Russian Rouble, with RUB/USD peaking at a level of 53.74775:1 before falling back down to hover around the 51.7 level, as months of sanctions combined with a collapse in energy prices took their toll. The halted slide was attributed by many news sources to unspecified action taken by the Russian Central bank; the Daily Telegraph is reporting that certain Russian banks have begun to restrict foreign currency withdrawals to the $10,000 level, a step that would prevent economic heavy-hitters from a mass-withdrawal from the Rouble towards calmer currencies.
Royal Mail – The company’s recent complaint to Ofcom concerning its universal service, has been rejected by the regulator, sending Royal Mail’s stock price falling by 2.8% this morning. Royal Mail had complained that its requirement to deliver mail across the entire UK at the same price everywhere was allowing competitors to zone in on the most lucrative areas in the country and undercut RM. However, Ofcom has decided not to change the current mail delivery rule system, stating that the universal service is not under threat.
What’s Up
Mining and Energy Firms – Both sets of companies felt the benefits of a rebound by both gold and oil yesterday. Tullow Oil has been the FTSE company which has seen the heaviest hits to its stock price as a result of the recent tumble in commodities prices; however, the tables have turned today, as resurgent commodities have seen Tullow Oil as a big winner on the FTSE this morning, with its stock currently up by almost 5%. Most of the other energy and mining companies on the DTSE are currently also up by an average of around 2%.
Aviva/Friends Life – Meanwhile, major merger news from Aviva and Friends Life, with the two firms arriving at a deal which would see the former buying the latter. A takeover of Friends Life would make Aviva the largest insurance company in the UK; however, the deal still has to be approved by shareholders. If approved, Friends Life shareholders would own 26% of the merged firm. Aviva stock is currently up by 2.72%, while Friends Life is up by 4.89%.
What’s Down
The Rouble – Yesterday was a shaky day for the Russian Rouble, with RUB/USD peaking at a level of 53.74775:1 before falling back down to hover around the 51.7 level, as months of sanctions combined with a collapse in energy prices took their toll. The halted slide was attributed by many news sources to unspecified action taken by the Russian Central bank; the Daily Telegraph is reporting that certain Russian banks have begun to restrict foreign currency withdrawals to the $10,000 level, a step that would prevent economic heavy-hitters from a mass-withdrawal from the Rouble towards calmer currencies.
Royal Mail – The company’s recent complaint to Ofcom concerning its universal service, has been rejected by the regulator, sending Royal Mail’s stock price falling by 2.8% this morning. Royal Mail had complained that its requirement to deliver mail across the entire UK at the same price everywhere was allowing competitors to zone in on the most lucrative areas in the country and undercut RM. However, Ofcom has decided not to change the current mail delivery rule system, stating that the universal service is not under threat.
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