Ofcom has ordered telecoms giant BT to separate from its Openreach division. The move is a softer blow than some had maybe feared after rivals demanded he two to become completely seperate entities. Openreach runs the UK’s broadband infrastructure and the intention is for it to become a distinct company within in BT group. BT will continue to negotiate with Ofcom as this process develops; shares in BT today closed 1.16% higher.
Following on, the FTSE lagged other major indices across Europe in the session today as the energy weighted index was dragged down from the struggling oil price. As we write oil has fallen nearly 4% in the latest session to sit around the $46.50 mark ahead of the highly anticpated OPEC meeting tomorrow. Clearly sentiment amongst investors is increasingly sceptical of a deal being made that will coax the oil price higher, or in other words an agreement to reduce global supply.
Elsewhere, stronger than expected mortgage lending figures in the UK sent housebuilders higher on the FTSE, with the approval rate hitting a 7-month high during October. Shares in Persimmon, Barratt and Taylor Wimpey all rose by c.2%.
In other news Travis Perkins is set to be relegated from the FTSE 100 after over 3 years in the top pool. The quarterly review usually removes the constituents with the lowest market caps, replaced by those on the FTSE 250 with obviously the highest M/caps. At the close the FTSE 100 was down 0.4%, the FTSE 250 was unchanged pretty much and US markets were generally flat a few hours in.
Oil price from 29.09.16-29.11.16;